Labcorp Q2 Earnings Preview: Diagnostics Strength in Focus

Labcorp Holdings Inc. LH, or Labcorp, is slated to report second-quarter 2025 results on July 24, before the opening bell.

The renowned laboratory service provider reported adjusted earnings of $3.84 per share in the last reported quarter, topping the Zacks Consensus Estimate by 2.95%. Labcorp’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 2.31%. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

LH’s Q2 Estimates

The Zacks Consensus Estimate for revenues is pegged at $3.49 billion, suggesting an 8.3% rise from the year-ago reported figure.

Per the Zacks Consensus Estimate, EPS is expected to improve 5.1% to $4.14.

Estimate Revision Trend Ahead of Labcorp’s Q2 Earnings

Estimates for earnings have remained unchanged at $4.14 per share in the past 30 days.

Here’s a brief overview of the company’s progress ahead of this announcement.

Factors at Play

Diagnostics Laboratories (Dx)

The segment likely maintained last year’s strong momentum, supported by both organic growth and successful acquisitions. Labcorp’s string of partnerships with hospitals, health systems and regional local laboratories is expected to have been instrumental to this growth. During the second quarter of 2025, the company enhanced access to its diagnostic capabilities through collaboration with Graves Gilbert Clinic and completed the acquisition of North Mississippi Health Services’ ambulatory outreach laboratory business. Additionally, it expanded its high-volume routine and specialty diagnostic services foothold in Chantilly, VA, with a new diagnostics laboratory — the largest regional diagnostics branch.

In the previous quarter, Labcorp collaborated with Inspira Health. Its acquisition of BioReference Health's laboratory testing businesses expanded its genetic testing capabilities, particularly in oncology, across the United States. These developments are expected to have strongly boosted Labcorp’s revenues in the to-be-reported quarter.

Furthermore, the company might have continued to make notable advances in science, technology and innovations to lead in important therapeutic areas. In April 2025, it launched pTau-217/Beta Amyloid 42 Ratio, a powerful new blood-based biomarker test to aid in the diagnosis of Alzheimer's disease.

Labcorp Holdings Inc. Price and EPS Surprise

Labcorp Holdings Inc. price-eps-surprise | Labcorp Holdings Inc. Quote

Additionally, Labcorp expanded its precision oncology portfolio with a new solution, Labcorp Plasma Detect, designed for assessing the risk of disease recurrence in stage III colon cancer patients. It announced the availability of PGDx elio plasma focus, the first and only kitted, pan-solid tumor liquid biopsy test, which is expected to have significantly contributed to the second-quarter top line.

The Zacks Consensus Estimate indicates an 8.7% year-over-year increase in the Dx segment’s revenues.

Biopharma Laboratory Services (“BLS”)

In the second quarter, the segment is likely to have benefited from the ongoing strength in the Central Laboratories business, its largest component. Similar to the first quarter, the company likely saw strong uptake of Labcorp Diagnostics Assistant by health system clients and their physicians, helping bring together lab result data, clinical guidelines and EHR data to inform clinical decisions at the point of care. Additionally, the Early Development unit is expected to have contributed to the second-quarter revenues, led by improved gross order bookings and cancellations.

According to the Zacks Consensus Estimate, revenues in the BLS segment are likely to improve 5.1% year over year.

From an operational standpoint, we expect both segments’ margins to have improved in the second quarter of 2025, aiding the overall profit margin of the company. Furthermore, the synergies of Launchpad initiative are likely to have aided in managing costs. The Zacks Consensus Estimate implies a 5.4% increase in the adjusted operating income for the Dx business, while the same for the BLS arm indicates a 10.3% improvement year over year.

Earnings Whispers for Labcorp

Per our proven model, stocks with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), along with a positive Earnings ESP, have a higher chance of beating estimates, which is not the case here, as you can see below:

Earnings ESP: Labcorp has an Earnings ESP of -0.26%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: The company currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Top MedTech Picks

Here are some medical stocks worth considering, as these have the right combination of elements to post an earnings beat this reporting cycle:

CVS Health CVS has an Earnings ESP of +2.06% and a Zacks Rank #1 at present. The company is slated to release second-quarter 2025 results on July 31. You can see the complete list of today’s Zacks #1 Rank stocks here.

CVS’ earnings surpassed estimates in each of the trailing four quarters, the average surprise being 18.08%. The Zacks Consensus Estimate for second-quarter EPS implies a year-over-year decline of 19.7%.

Cencora COR has an Earnings ESP of +1.49% and a Zacks Rank #2 at present. The company is slated to release third-quarter fiscal 2025 results on Aug. 6.

The company’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 6.00%. The Zacks Consensus Estimate for fiscal third-quarter EPS implies a year-over-year increase of 13.2%.

Cardinal Health CAH has an Earnings ESP of +0.68% and a Zacks Rank #2 at present. The company is expected to release its fiscal fourth-quarter 2025 results on Aug. 12.

CAH’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 10.30%. The Zacks Consensus Estimate for fiscal fourth-quarter EPS suggests a year-over-year improvement of 1.3%.

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This article originally published on Zacks Investment Research (zacks.com).

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