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Labcorp Holdings
(NYSE:LH)
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Rating:75Outperform
Price Target:
$346.00
▲(16.59% Upside)
Action:Reiterated
Date:07/31/26
The score is driven primarily by improving fundamentals (revenue/profitability recovery with better ROE) and strong price momentum (trading above all key moving averages). The latest earnings call adds support via raised guidance, margin expansion, and solid BLS backlog/book-to-bill. Offsetting factors are a relatively high P/E with a low dividend yield, plus cash-flow variability and meaningful absolute leverage.
Positive Factors
Diversified, scale-driven business model
Labcorp's two-segment model (Diagnostics and Drug Development) and global scale provide durable revenue diversification. Clinical testing and CRO services expose the company to multiple secular demand drivers, smoothing cycles and enabling cross-selling and operational leverage over the next several quarters.
Negative Factors
High absolute leverage despite manageable ratios
While leverage ratios are within industry norms, the large absolute debt stock limits financial flexibility for opportunistic investments or cushioning during downturns. Elevated interest and principal obligations increase vulnerability to cash-flow timing issues over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified, scale-driven business model
Labcorp's two-segment model (Diagnostics and Drug Development) and global scale provide durable revenue diversification. Clinical testing and CRO services expose the company to multiple secular demand drivers, smoothing cycles and enabling cross-selling and operational leverage over the next several quarters.
Read all positive factors
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 (LH) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$25.88B
Dividend Yield0.9%
Average Volume (3M)669.45K
Price to Earnings (P/E)26.2
Beta (1Y)0.35
Revenue Growth6.41%
EPS Growth33.31%
CountryUS
Employees71,000
SectorHealthcare
Sector Strength45
IndustryMedical - Diagnostics & Research
Share Statistics
EPS (TTM)12.17
Shares Outstanding81,100,000
10 Day Avg. Volume791,792
30 Day Avg. Volume669,453
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$338.27Price Target Upside13.98% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering12
EPS Forecast (FY)18.29
Revenue Forecast (FY)$14.74B
Labcorp Holdings Business Overview & Revenue Model
Company Description
Labcorp Holdings, Inc. offers vital diagnostic laboratory services, enabling medical professionals, healthcare facilities, pharmaceutical firms, scientific investigators, and patients to make well-informed and confident choices. The company commen...
How the Company Makes Money
Labcorp makes money primarily by charging fees for services delivered through its two main operating segments.
1) Diagnostics (clinical laboratory services)
- Fee-for-service testing: The Diagnostics segment generates revenue when Labcorp perform...
Labcorp Holdings Earnings Call Summary
Earnings Call Date:Jul 30, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 22, 2026
Earnings Call Sentiment Positive
The call presented a strong operational and financial quarter: revenue growth, margin expansion, double-digit adjusted EPS growth, raised guidance, robust BLS backlog and book-to-bill, and multiple product/partnership launches. Headwinds highlighted were a meaningful quarter-over-quarter drop in free cash flow (timing and capex), a modest ACA-related volume headwind (~30 bps), prior and improving Early Development softness, higher patient-pay mix, and elevated absolute debt with relatively low cash on hand. On balance the positives around revenue, margins, guidance increases, product/market progress, and capital returns materially outweigh the cited challenges.Positive Updates
Enterprise Revenue Growth
Revenue grew 5.8% year-over-year to $3.7 billion ($3.7B reported; CEO cited 6%), with organic revenue growth of 4.2%, net acquisitions contributing 1.2%, and foreign currency adding 0.4%.
Negative Updates
Free Cash Flow Decline
Free cash flow was $314 million in Q2 versus $543 million year-ago (decline of ~$229M), primarily attributed to working capital timing and planned increases in capital expenditures. Full-year FCF guidance remains $1.24B–$1.36B.
Read all updates
Q2-2026 Updates
Positive
Negative
Enterprise Revenue Growth
Revenue grew 5.8% year-over-year to $3.7 billion ($3.7B reported; CEO cited 6%), with organic revenue growth of 4.2%, net acquisitions contributing 1.2%, and foreign currency adding 0.4%.
Read all positive updates
Company Guidance
Labcorp raised and narrowed its 2026 guidance, increasing the midpoint of enterprise revenue by $42 million and adjusted EPS midpoint by $0.30; enterprise revenue is now expected to grow 5.4%–6.3% (a 30‑bp midpoint increase) including a ~40‑bp FX benefit, with Diagnostics revenue expected to grow 5.3%–6.0% (20‑bp midpoint increase) and BLS revenue 5.5%–6.5% (midpoint raised 140 bps, including a ~150‑bp FX tailwind). Adjusted EPS guidance is $18.10–$18.55 (implying >11% growth at the midpoint), the adjusted tax rate is expected to be ~23%, free cash flow guidance remains $1.24–$1.36 billion, capital expenditures are expected to be ~4% of revenue, and the BLS backlog of $8.7 billion is expected to convert roughly $2.7 billion to revenue over the next 12 months (BLS book‑to‑bill 1.14 this quarter, 1.03 trailing 12 months); Central Labs is expected to grow mid‑single digits (organic, constant currency) and Early Development low single digits.Labcorp Holdings Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
68
Positive
Cash Flow
64
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 14.35B | 13.95B | 13.01B | 12.16B | 11.86B | 13.14B |
| Gross Profit | 4.00B | 3.73B | 3.62B | 3.36B | 3.71B | 4.99B |
| EBITDA | 2.15B | 2.01B | 1.81B | 1.35B | 1.95B | 3.68B |
| Net Income | 1.00B | 876.50M | 746.00M | 418.00M | 1.28B | 2.38B |
Balance Sheet | ||||||
| Total Assets | 18.53B | 18.39B | 18.38B | 16.73B | 20.16B | 20.39B |
| Cash, Cash Equivalents and Short-Term Investments | 141.80M | 532.30M | 1.52B | 536.80M | 320.60M | 1.47B |
| Total Debt | 6.77B | 7.20B | 7.27B | 5.95B | 6.25B | 6.34B |
| Total Liabilities | 9.91B | 9.76B | 10.31B | 8.83B | 10.04B | 10.09B |
| Stockholders Equity | 8.61B | 8.62B | 8.05B | 7.88B | 10.10B | 10.27B |
Cash Flow | ||||||
| Free Cash Flow | 1.16B | 1.21B | 1.10B | 874.10M | 1.47B | 2.65B |
| Operating Cash Flow | 1.64B | 1.64B | 1.59B | 1.33B | 1.96B | 3.11B |
| Investing Cash Flow | -1.45B | -1.19B | -1.37B | -1.17B | -1.65B | -884.60M |
| Financing Cash Flow | -689.30M | -1.46B | 779.90M | -59.30M | -1.32B | -2.07B |
Labcorp Holdings Technical Analysis
Positive
296.77
Price Trends
279.67
Positive
270.93
Positive
268.06
Positive
Market Momentum
11.27
Negative
71.57
Negative
95.40
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 296.77 is below the 20-day moving average (MA) of 296.82, above the 50-day MA of 279.67, and above the 200-day MA of 268.06, indicating a bullish trend. The MACD of 11.27 indicates Negative momentum. The RSI at 71.57 is Negative, neither overbought nor oversold. The STOCH value of 95.40 is Negative, 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 45 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 |
|---|---|---|---|---|---|---|---|
77 Outperform | $23.14B | 28.96 | 11.27% | 1.18% | 8.37% | 23.94% | |
75 Outperform | $25.88B | 26.23 | 11.57% | 0.97% | 6.41% | 33.31% | |
74 Outperform | $26.31B | 24.98 | 14.49% | 1.46% | 9.87% | 12.51% | |
74 Outperform | $39.29B | 29.36 | 21.95% | ― | 8.22% | 16.68% | |
68 Neutral | $30.72B | 36.61 | 4.52% | ― | 0.53% | -45.79% | |
67 Neutral | $9.79B | 26.34 | 26.69% | ― | 29.41% | 59.39% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
LH
Labcorp Holdings
321.31
56.44
21.31%
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PODD
Insulet
142.85
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DGX
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237.63
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35.57%
STE
Steris
238.91
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-0.07%
IQV
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241.99
61.90
34.37%
Labcorp Holdings Corporate Events
Business Operations and StrategyDividends
Labcorp Holdings Announces Quarterly Cash Dividend Declaration
Positive
Jul 10, 2026
On July 9, 2026, Labcorp Holdings Inc. announced that its Board of Directors had declared a quarterly cash dividend of $0.72 per share of common stock. The dividend is scheduled to be paid on September 11, 2026, to shareholders of record as of the...
Business Operations and StrategyFinancial Disclosures
Labcorp Schedules Release of Second-Quarter 2026 Results
Neutral
Jun 30, 2026
On June 30, 2026, Labcorp Holdings Inc. announced that it will release its financial results for the second quarter of 2026 before the market opens on Thursday, July 30, 2026. The company will host a webcast at 9:00 a.m. ET that day to discuss the...
Business Operations and Strategy
Labcorp to Present at 2026 Jefferies Healthcare Conference
Neutral
May 27, 2026
Labcorp Holdings Inc., a major global laboratory services provider specializing in diagnostics and drug development support for healthcare providers and pharmaceutical companies, operates in roughly 100 countries with a workforce of nearly 71,000....
Executive/Board ChangesShareholder Meetings
Labcorp Shareholders Approve Directors, Executive Pay and Auditor
Positive
May 26, 2026
At its 2026 Annual Meeting of Shareholders, held after a March 26, 2026 record date, Labcorp reported that holders of 76.4 million shares were present in person or by proxy, representing a quorum out of 82.2 million shares outstanding and entitled...
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.