Labcorp's Q4 Earnings Preview: What's in Store for the Stock?

Labcorp Holdings Inc. LH, or Labcorp, is slated to report its fourth-quarter 2025 results on Feb. 17, before the market opens.

The renowned laboratory service provider reported adjusted earnings of $4.18 in the last reported quarter, topping the Zacks Consensus Estimate by 1.21%. Labcorp surpassed estimates in each of the trailing four quarters, the average surprise being 2.68%.

Q4 Estimates for LH

The Zacks Consensus Estimate for Labcorp’s fourth-quarter 2025 revenues is pegged at $3.55 billion. This suggests a 6.6% rise from the year-ago reported figure.

The Zacks Consensus Estimate for its fourth-quarter 2025 EPS indicates an improvement of 15% to $3.95.

Estimate Revision Trend Ahead of Labcorp’s Q4 Earnings

Estimates for Labcorp’s fourth-quarter earnings have remained constant at $3.95 in the past 30 days.

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

LH: Factors at Play

Diagnostics Laboratories (Dx)

The segment is likely to have continued its strong momentum, supported by organic growth and contributions from acquisitions. Over the past several years, Labcorp’s strategic relationships with health systems and regional/local laboratories have expanded its patient and provider network and strengthened its presence in key markets. Recent additions include the acquisition of Incyte Diagnostics’ clinical pathology (CP) business, select assets of the outreach business from Community Health Systems across 13 states, and select oncology and clinical testing assets from BioReference Health. We expect these additions to have favorably supported the company’s revenues in the fourth quarter of 2025.

Demand for the core test menu is likely to have remained strong across high-growth specialty areas, including oncology, women's health, neurology and autoimmune diseases. The company has introduced several testing capabilities, including the availability of OmniSeq INSIGHT Genomic Profiling with homologous recombination deficiency (HRD) reporting, and wider access to Invitae genetic tests through Epic Aura. PGDx elio tissue’s complete status as the only tissue-based tumor profiling test with CE-IVDR marking may have enhanced global tissue profiling capabilities in support of clinical trials. We assume these developments to have positively aided the company’s top line in the fourth quarter of 2025.

Labcorp Holdings Inc. Price and EPS Surprise

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

Labcorp is also likely to have witnessed continued strong adoption for its consumer-initiated tests through the Labcorp OnDemand channel. The company had partnered with Praia Health, a consumer experience platform for health systems, to help close care gaps and deliver better experiences for patients.

The Zacks Consensus Estimate indicates a 7% year-over-year increase in the Dx segment’s revenues.

Biopharma Laboratory Services (“BLS”)

The segment is likely to have continued to benefit from the strength of the Central Laboratories, its largest component. Early Development revenues were impacted by delayed study starts in the previous quarter, prompting Labcorp to divest or restructure through site consolidation, impacting roughly $50 million in annual revenues in non-core areas. During the October earnings call, management indicated that the fourth quarter of 2025 presents the most challenging year-over-year comparison for this business.

The Zacks Consensus Estimate suggests that revenues in the BLS segment are likely to grow 3.1% year over year.

Across the organization, Labcorp’s increased use of science and technology may have strongly favored growth and operational efficiency. The company introduced Test Finder, a generative AI tool developed with Amazon Web Services, to improve test selection for providers and health systems. Other recent innovative initiatives include the Labcorp Diagnostic Assistant and eClaim Assist tool.

Within core laboratory operations, Labcorp is also investing in digital and AI capabilities to improve in areas such as pathology, cytology and microbiology. The Launchpad initiative is likely to achieve its targeted $100-$125 million in annual savings, supporting the company’s margins in the fourth quarter.

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 0.00%. 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 #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank stocks here.

Key MedTech Picks

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

Veracyte VCYT has an Earnings ESP of +7.98% and a Zacks Rank #1. The company is set to release fourth-quarter 2025 results on Feb. 25. 

VCYT’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 45.12%. The Zacks Consensus Estimate for the company’s fourth-quarter EPS suggests an increase of 13.9% from the year-ago quarter figure.

Globus Medical GMED has an Earnings ESP of +3.92% and a Zacks Rank #2. The company is expected to release fourth-quarter 2025 results soon.

GMED’s earnings beat estimates in three of the trailing four quarters and missed on one occasion, the average surprise being 16.24%. The Zacks Consensus Estimate for the company’s fourth-quarter EPS implies a surge of 26.2% from the year-ago reported figure.

Merit Medical Systems MMSI has an Earnings ESP of +2.09% and a Zacks Rank #2. The company is slated to release fourth-quarter 2025 results on Feb. 24.

MMSI’s earnings topped estimates in each of the trailing four quarters, the average surprise being 14.1%. The Zacks Consensus Estimate for the company’s fourth-quarter EPS calls for an increase of 3.2% from the year-ago quarter’s figure.

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

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