Labcorp Holdings (LH) AI Stock Analysis

• Market Cap: $23.61B
• Dividend Yield: 1.14%
• Average Volume (3M): 716.31K
• Price to Earnings (P/E): 27.6
• Beta (1Y): 0.35
• Revenue Growth: 8.28%
• EPS Growth: 97.24%
• Country: US
• Employees: 60,900
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Equipment & Services
• EPS (TTM): 4.07
• Shares Outstanding: 82,400,000
• 10 Day Avg. Volume: 743,329
• 30 Day Avg. Volume: 716,312
• PEG Ratio: 1.28
• Price to Book (P/B): 2.42
• Price to Sales (P/S): 1.50
• P/FCF Ratio: 17.31
• Enterprise Value/Market Cap: 1.29
• Enterprise Value/Revenue: 2.18
• Enterprise Value/Gross Profit: 7.72
• Enterprise Value/Ebitda: 15.12
• 1Y Price Target: $308.22
• Price Target Upside: 7.59% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 10
• EPS Forecast (FY): 17.86
• Revenue Forecast (FY): $14.68B

• Rating: 70 Outperform
• Price Target: $311.00 ▲(8.56% Upside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

The score is driven by improving operational outlook and supportive technical momentum (price above key moving averages with positive MACD), partly offset by only solid—not exceptional—financial consistency (margin and FCF variability) and a relatively high P/E with a modest dividend yield.

Positive Factors

Biopharma Central Labs Backlog

A large, converting central-lab backlog and book-to-bill >1 provide durable revenue visibility from biopharma customers. High backlog (~$8.7B with ~$2.7B expected to convert in 12 months) underpins multi-quarter organic growth and reduces short-term cyclicality tied to single-program timing.

Product & Technology Innovation

Sustained test launches, an FDA-cleared Alzheimer's blood test, rising esoteric share (37.5% to 41.5%) and AI/automation investments strengthen differentiation and higher-margin service mix. This expands clinical offerings, supports pricing power in specialty testing, and drives durable competitive advantage.

Consistent Cash Generation & Capital Flexibility

Recurring positive free cash flow (~$1.2B) plus active buybacks, dividends and M&A demonstrates strong cash conversion and disciplined allocation. Combined with extended receivables facility and manageable leverage, this gives flexibility to invest in growth (capex, central lab), return capital, and support strategic acquisitions over the medium term.

Negative Factors

Margin Compression & Profitability Volatility

Margins have materially compressed from prior-cycle peaks and profitability remains volatile, which weakens earnings resilience. Persistent margin pressure limits free cash flow upside, constrains reinvestment capacity, and increases sensitivity to volume and reimbursement changes over the medium term.

Early Development (BLS) Weakness & Restructuring

Significant ED revenue decline and active streamlining (targeted ~$50M annual revenue reduction) signal structural weaknesses in a higher-growth subsegment. While aimed at improving margins, the shift reduces revenue diversification and could impair client relationships or future pipeline work, pressuring medium-term BLS growth.

Reimbursement & Regulatory Uncertainty (PAMA)

Ongoing uncertainty around PAMA and reimbursement reforms creates pricing and revenue unpredictability for diagnostic services. Delays and legislative risk complicate long-range planning, may suppress margin recovery, and keep a nagging downside to cash flows until a durable regulatory outcome is established.

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 generates revenue primarily through its two main segments: Labcorp Diagnostics and Labcorp Drug Development. The Diagnostics segment earns money by providing a broad array of laboratory testing services, including blood tests, genetic testing, and other specialized tests to hospitals, physicians, and patients. This segment benefits from high volume, as it serves a vast network of healthcare providers and has a significant presence in the outpatient testing market. The Drug Development segment earns revenue by offering clinical trial services, laboratory testing, and related services to pharmaceutical and biotechnology companies, aiding in the development of new drugs. Key revenue streams include service fees for tests and trials, contracts with healthcare providers, and partnerships with pharmaceutical firms for drug development projects. Additionally, Labcorp's extensive laboratory network and technological advancements help reduce operational costs and improve efficiency, further contributing to its earnings.

Labcorp Holdings Financial Statement Overview

Summary

Solid but not best-in-class fundamentals: revenue momentum improved (notably into 2025) and the balance sheet looks stable with manageable leverage, but margins have compressed versus prior peak years and free cash flow has been uneven, reducing visibility.

Income Statement

Revenue has grown steadily from 2023 to 2025 (with a sharp acceleration in 2025), but profitability has been volatile and below prior-cycle peaks. Gross margin has compressed versus 2020–2022, and net margin—while improving in 2024–2025—remains well below 2021 levels. EBIT/EBITDA profitability is positive overall, but margin consistency has weakened, suggesting a more challenging cost/price environment.

Balance Sheet

Leverage appears manageable for the industry: debt-to-equity sits in a moderate range and improved in 2025 versus 2024, while equity remains sizable relative to total assets. Returns on equity have recovered from 2023 and improved further in 2024–2025, though still meaningfully below the strong profitability period seen in 2020–2022. Overall, the balance sheet looks stable, with the main watch item being the still-material debt load.

Cash Flow

The company consistently generates positive operating cash flow and free cash flow, which is a key strength. However, free cash flow has been choppy—down in 2022 and 2023, rebounding in 2024, then declining again in 2025—reducing visibility. Free cash flow has covered a meaningful portion of earnings across years, but cash conversion is not consistently strong enough to offset the variability in free cash flow trends.

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

• Technical Analysis Sentiment: Positive
• Last Price: 286.47
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 286.47 is above the 20-day moving average (MA) of 280.48, above the 50-day MA of 267.60, and above the 200-day MA of 264.30, indicating a bullish trend. The MACD of 5.14 indicates Negative momentum. The RSI at 59.65 is Neutral, neither overbought nor oversold. The STOCH value of 86.65 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LH.

Labcorp Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LH	70 Outperform	$23.61B	27.64	10.51%	1.14%	8.28%	97.24%
DGX	70 Neutral	$23.10B	24.24	14.17%	1.80%	13.74%	14.87%
STE	69 Neutral	$24.30B	34.91	10.44%	0.94%	5.15%	60.30%
PODD	68 Neutral	$17.28B	70.11	18.12%	―	27.12%	-41.72%
BIIB	64 Neutral	$27.60B	21.36	7.39%	―	5.00%	-1.03%
IQV	59 Neutral	$29.57B	22.18	21.64%	―	3.85%	-4.74%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Labcorp Holdings Corporate Events

Labcorp Holdings Adds John Sampson to Board

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 chancellor for health affairs and dean of the University of Colorado Anschutz School of Medicine, brings clinical, research and health system leadership experience in oncology, neuroscience, women’s health and personalized medicine that aligns with Labcorp’s strategic priorities.

The company also named Sampson to its Quality and Compliance Committee, signaling a focus on strengthening clinical rigor and governance across its global operations. His background as a practicing neurosurgeon, member of the National Academy of Medicine and prolific researcher in neurologic disease is expected to bolster Labcorp’s efforts to advance earlier diagnosis, personalized medicine and new therapy development for its worldwide customer base.

The most recent analyst rating on (LH) stock is a Buy with a $319.00 price target. To see the full list of analyst forecasts on Labcorp Holdings stock, see the LH Stock Forecast page.

Labcorp Extends Receivables Facility, Enhances Liquidity Flexibility

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 amendment extended the facility’s scheduled termination date to January 26, 2029, added a committed $125 million accordion feature that allows Labcorp Receivables to increase the facility size from $700 million to up to $825 million by May 29, 2026, and removed a 0.10% SOFR adjustment previously applied to the capital accruing yield. The structure keeps Labcorp Receivables as a separate legal entity whose assets are available first to its own creditors, with any excess collections potentially remitted to Labcorp, underscoring the company’s continued use of off-balance-sheet-like receivables financing to enhance liquidity while maintaining creditor protections.

The most recent analyst rating on (LH) stock is a Buy with a $291.00 price target. To see the full list of analyst forecasts on Labcorp Holdings stock, see the LH Stock Forecast page.

Labcorp Schedules Q4 2025 Earnings Release and Call

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 analysts. The earnings release, detailed financial information, and a replay of the webcast—available for nearly a year, until February 4, 2027—will be accessible via the company’s investor relations website, signaling Labcorp’s continued emphasis on transparency and engagement with the financial community as it reports on its recent operating performance.

The most recent analyst rating on (LH) stock is a Hold with a $273.00 price target. To see the full list of analyst forecasts on Labcorp Holdings stock, see the LH Stock Forecast page.

Labcorp Holdings Board Declares Quarterly Cash Dividend

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, 2026. The move signals continued commitment to returning capital to shareholders and reflects management’s confidence in the company’s cash generation and financial stability, which may bolster Labcorp’s appeal to income-focused investors in the healthcare and diagnostics sector.

The most recent analyst rating on (LH) stock is a Buy with a $325.00 price target. To see the full list of analyst forecasts on Labcorp Holdings stock, see the LH Stock Forecast page.

Labcorp to Present at J.P. Morgan Healthcare Conference

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 audio webcast on the company’s investor relations website and archived for replay, underscores Labcorp’s ongoing efforts to engage with the investment community and highlight its role in the global diagnostics and drug development ecosystem.

The most recent analyst rating on (LH) stock is a Buy with a $308.00 price target. To see the full list of analyst forecasts on Labcorp Holdings stock, see the LH Stock Forecast page.

Labcorp Holdings Announces Executive Retirement

On December 9, 2025, Labcorp Holdings announced that Mark Schroeder, the Executive Vice President and President of Diagnostics Laboratories and Chief Operations Officer, will retire on April 1, 2026. This announcement marks a significant leadership change for the company, potentially impacting its operational strategies and stakeholder relations.

The most recent analyst rating on (LH) stock is a Hold with a $290.00 price target. To see the full list of analyst forecasts on Labcorp Holdings stock, see the LH Stock Forecast page.

Labcorp Announces Board Member Retirement

On December 10, 2025, Labcorp Holdings announced the retirement of Dr. D. Gary Gilliland from its Board of Directors, effective December 31, 2025. Dr. Gilliland, who has been a director since 2014, played a crucial role in the company’s growth and innovation in oncology and gene therapy, significantly contributing to Labcorp’s position as a trusted leader in laboratory services.

The most recent analyst rating on (LH) stock is a Buy with a $287.00 price target. To see the full list of analyst forecasts on Labcorp Holdings stock, see the LH Stock Forecast page.

Labcorp Holdings Appoints Victor Bulto to Board

Labcorp Holdings announced the appointment of Victor Bulto, President of Novartis U.S., to its Board of Directors, effective December 1, 2025. Bulto brings extensive experience in healthcare leadership, having managed Novartis’ $20+ billion U.S. operations across key therapeutic areas. His expertise in transformation and innovation is expected to support Labcorp’s strategic priorities in advancing healthcare innovation and delivering value to customers and shareholders.

The most recent analyst rating on (LH) stock is a Hold with a $270.00 price target. To see the full list of analyst forecasts on Labcorp Holdings stock, see the LH Stock Forecast page.