Labcorp Holdings (LH)
NYSE:LH
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Labcorp Holdings
(NYSE:LH)
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Rating:62Neutral
Price Target:
$280.00
▲(4.33% Upside)
Action:DowngradedDate:03/21/26
The score is driven primarily by solid (but uneven) financial performance and a constructive earnings outlook with guided growth, backlog strength, and margin initiatives. These positives are partially offset by a weak technical trend and only average valuation support, while recent financing-related corporate actions are modestly positive but keep leverage in focus.
Positive Factors
Central Labs backlog & book-to-bill momentum
A sizeable $8.7B backlog with ~ $2.7B expected to convert in 12 months and book-to-bill >1 provides durable revenue visibility for Biopharma Central Labs. That pipeline reduces near-term demand volatility, supports mid-single-digit organic growth, and underpins margin leverage over the next 2–6 months.
Negative Factors
Early Development revenue weakness
A meaningful decline in Early Development reduces exposure to higher‑margin, growth-oriented work in BLS. Streamlining that trims ~$50M of revenue may improve near-term margins but erodes scale and could slow recovery of ED volumes, weakening segment growth and client continuity over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Central Labs backlog & book-to-bill momentum
A sizeable $8.7B backlog with ~ $2.7B expected to convert in 12 months and book-to-bill >1 provides durable revenue visibility for Biopharma Central Labs. That pipeline reduces near-term demand volatility, supports mid-single-digit organic growth, and underpins margin leverage over the next 2–6 months.
Read all positive factors
Labcorp Holdings (LH) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$22.11B
Dividend Yield1.14%
Average Volume (3M)620.04K
Price to Earnings (P/E)23.8
Beta (1Y)0.38
Revenue Growth8.28%
EPS Growth97.24%
CountryUS
Employees60,900
SectorHealthcare
Sector Strength45
IndustryMedical - Diagnostics & Research
Share Statistics
EPS (TTM)4.07
Shares Outstanding82,400,000
10 Day Avg. Volume574,576
30 Day Avg. Volume620,040
Financial Highlights & Ratios
PEG Ratio1.28
Price to Book (P/B)2.42
Price to Sales (P/S)1.50
P/FCF Ratio17.31
Enterprise Value/Market Cap1.29
Enterprise Value/Revenue2.05
Enterprise Value/Gross Profit7.25
Enterprise Value/Ebitda14.20
Forecast
1Y Price Target
$308.22Price Target Upside14.84% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering10
EPS Forecast (FY)17.86
Revenue Forecast (FY)$14.67B
Labcorp Holdings Business Overview & Revenue Model
Company Description
Labcorp Holdings, Inc. provides laboratory services to help doctors, hospitals, pharmaceutical companies, researchers and patients make clear and confident decisions. The company was founded on April 16, 2024 and is headquartered in Burlington, NC....
How the Company Makes Money
Labcorp primarily makes money by delivering two broad categories of services: (1) clinical laboratory and diagnostic testing and (2) drug development services for life sciences customers. In its clinical diagnostics business, revenue is generated ...
Labcorp Holdings Key Performance Indicators (KPIs)
Any
Revenue by Segment
Breaks down sales across various business divisions, revealing which segments are contributing most to the top line and where there might be potential for expansion or risk.
Breaks down sales across various business divisions, revealing which segments are contributing most to the top line and where there might be potential for expansion or risk.
Data provided by:
The Fly
The FlyLabcorp Holdings Earnings Call Summary
Earnings Call Date:Feb 17, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 05, 2026
Earnings Call Sentiment Positive
The call portrays a fundamentally strong and growing business: solid full-year revenue and EPS growth, margin expansion, robust central lab backlog and book-to-bill, continued product launches and AI/automation investments, plus a constructive 2026 guidance. Offsetting risks include a meaningful decline in early development revenue (being actively addressed via streamlining), a one-off Q4 volume hit from a large consumer-genetics client and weather, higher near-term capital spending for a new central lab facility, and ongoing reimbursement/regulatory uncertainty (PAMA). On balance, the positives (organic growth, margin expansion, strong backlog/book-to-bill, innovation and disciplined capital allocation) outweigh the headwinds, though management expects some transitional impacts in ED and incremental capex this year.Positive Updates
Strong Full-Year Revenue and EPS Growth
2025 enterprise revenue grew over 7% year-over-year and adjusted EPS grew 13% for the full year; management noted adjusted EPS growth of ~13% and margins improved by over 50 basis points versus prior year.
Negative Updates
Early Development (ED) Revenue Decline
BLS early development revenue declined 13.5% in Q4 (15.1% constant currency). Management is streamlining the ED business, expecting to reduce annual revenue by ~$50 million to improve operating income, with actions largely completed by end of Q2 2026.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Full-Year Revenue and EPS Growth
2025 enterprise revenue grew over 7% year-over-year and adjusted EPS grew 13% for the full year; management noted adjusted EPS growth of ~13% and margins improved by over 50 basis points versus prior year.
Read all positive updates
Company Guidance
Labcorp's 2026 guidance calls for enterprise revenue growth of 4.7%–6.0% (midpoint 5.4%), with Diagnostics up 5%–6% and Biopharma Laboratory Services (BLS) up 3%–5%; Central Labs is expected to grow mid‑single‑digit organic (constant currency) while Early Development is relatively flat. Adjusted EPS is guided to $17.65–$18.25 (midpoint implying ~9% growth), adjusted tax rate ≈23%, net interest ≈$230M, free cash flow $1.24B–$1.36B (seasonally weighted to H2), and capital expenditures about 4% of revenue to begin a new 500,000+ sq ft central lab/kit facility; LaunchPad savings are expected in line with the long‑term $100M–$125M/year target. The outlook incorporates a ~40bps FX tailwind enterprise‑wide (~170bps for BLS), the PAMA delay through 12/31/2026, adverse weather YTD, and plans to deploy FCF for acquisitions, share repurchases and dividends (≈$800M repurchase authorization remaining); FY‑end liquidity and leverage metrics cited were $532M cash, $5.6B total debt (≈2.3x gross debt/TTM adjusted EBITDA), backlog $8.7B with ~$2.7B expected to convert in 12 months, and segment book‑to‑bill of 1.16 for the quarter and 1.09 TTM.Labcorp Holdings Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
70
Positive
Cash Flow
58
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 13.95B | 13.01B | 12.16B | 11.86B | 13.14B |
| Gross Profit | 3.73B | 3.62B | 3.36B | 3.71B | 4.99B |
| EBITDA | 2.01B | 1.81B | 1.35B | 1.95B | 3.68B |
| Net Income | 876.50M | 746.00M | 418.00M | 1.28B | 2.38B |
Balance Sheet | |||||
| Total Assets | 18.39B | 18.38B | 16.73B | 20.16B | 20.39B |
| Cash, Cash Equivalents and Short-Term Investments | 532.30M | 1.52B | 536.80M | 320.60M | 1.47B |
| Total Debt | 7.20B | 7.27B | 5.95B | 6.25B | 6.34B |
| Total Liabilities | 9.76B | 10.31B | 8.83B | 10.04B | 10.09B |
| Stockholders Equity | 8.62B | 8.05B | 7.88B | 10.10B | 10.27B |
Cash Flow | |||||
| Free Cash Flow | 1.21B | 1.10B | 874.10M | 1.47B | 2.65B |
| Operating Cash Flow | 1.64B | 1.59B | 1.33B | 1.96B | 3.11B |
| Investing Cash Flow | -1.19B | -1.37B | -1.17B | -1.65B | -884.60M |
| Financing Cash Flow | -1.46B | 779.90M | -59.30M | -1.32B | -2.07B |
Labcorp Holdings Technical Analysis
Positive
268.38
Price Trends
273.45
Negative
265.66
Positive
266.39
Positive
Market Momentum
-2.74
Positive
47.28
Neutral
49.93
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LH, the sentiment is Positive. The current price of 268.38 is below the 20-day moving average (MA) of 270.99, below the 50-day MA of 273.45, and above the 200-day MA of 266.39, indicating a neutral trend. The MACD of -2.74 indicates Positive momentum. The RSI at 47.28 is Neutral, neither overbought nor oversold. The STOCH value of 49.93 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LH.
Labcorp Holdings Risk Analysis
Labcorp Holdings disclosed 44 risk factors in its most recent earnings report. Labcorp Holdings reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Labcorp Holdings Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Neutral | $21.77B | 19.42 | 13.88% | 1.80% | 13.74% | 14.87% | |
69 Neutral | $21.91B | 32.31 | 10.21% | 0.94% | 5.15% | 60.30% | |
68 Neutral | $15.35B | 80.92 | 17.36% | ― | 27.12% | -41.72% | |
64 Neutral | $28.04B | -133.33 | 7.28% | ― | 5.00% | -1.03% | |
62 Neutral | $22.11B | 23.81 | 10.28% | 1.14% | 8.28% | 97.24% | |
59 Neutral | $28.75B | 28.49 | 22.28% | ― | 3.85% | -4.74% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
LH
Labcorp Holdings
268.38
40.80
17.93%
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Labcorp Holdings Corporate Events
Private Placements and Financing
Labcorp Holdings Secures New $750 Million Term Loan
Positive
Mar 20, 2026
On March 20, 2026, Labcorp Holdings Inc. and its subsidiary Laboratory Corporation of America Holdings entered into a new term loan credit agreement providing a $750 million senior unsecured term loan maturing on March 20, 2028. The facility, full...
Executive/Board Changes
Labcorp Holdings Adds John Sampson to Board
Positive
Feb 9, 2026
Labcorp Holdings Inc., the Burlington, N.C.-based provider of diagnostic and drug development laboratory services, has expanded its board with the appointment of John H. Sampson, M.D., Ph.D., MHSc, MBA, effective February 9, 2026. Sampson, vice ch...
Business Operations and StrategyPrivate Placements and Financing
Labcorp Extends Receivables Facility, Enhances Liquidity Flexibility
Positive
Jan 29, 2026
Labcorp Holdings Inc. reported that on January 28, 2026, it executed a second amendment to its receivables purchase agreement through its special-purpose entity, Labcorp Receivables LLC, with PNC Bank as administrative agent and other parties. The...
Financial Disclosures
Labcorp Schedules Q4 2025 Earnings Release and Call
Neutral
Jan 15, 2026
On January 15, 2026, Labcorp Holdings announced plans to release its financial results for the fourth quarter of 2025 before the market opens on Tuesday, February 17, 2026, followed by a 9 a.m. ET conference call and webcast for investors and anal...
Dividends
Labcorp Holdings Board Declares Quarterly Cash Dividend
Positive
Jan 14, 2026
On January 14, 2026, Labcorp Holdings Inc. announced that its Board of Directors declared a quarterly cash dividend of $0.72 per share of common stock, payable on March 12, 2026, to shareholders of record as of the close of business on February 27...
Business Operations and Strategy
Labcorp to Present at J.P. Morgan Healthcare Conference
Neutral
Dec 30, 2025
On December 30, 2025, Labcorp announced it would participate in a fireside chat at the 44th Annual J.P. Morgan Healthcare Conference, scheduled for Tuesday, January 13 at 4:30 p.m. Pacific Time. The session, which will be accessible via a live aud...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.