Labcorp Shares Rise 1.5% as Q3 Earnings Beat Forecasts and Full-Year Guidance Increases

Labcorp Holdings Inc. (NYSE:LH) shares advanced 1.46% in pre-market trading on Wednesday after the laboratory services company reported third-quarter 2026 earnings and revenue above analyst expectations and raised its full-year financial outlook.

The company reported adjusted earnings per share of $4.78, exceeding the consensus estimate of $4.65. Revenue increased 6.9% year over year to $3.81 billion, compared with analysts’ expectations of $3.76 billion and $3.56 billion in the corresponding period of 2025.

Adjusted earnings per share rose 14.5% from $4.18 a year earlier, supported by revenue growth and improved operating margins across its laboratory businesses.

Diagnostics and Biopharma Services Drive Revenue Growth

Labcorp’s Diagnostics Laboratories segment generated revenue of $2.95 billion, representing a 6.5% increase from the previous year.

The segment’s adjusted operating margin expanded to 16.7%, compared with 16.3% in the third quarter of 2025.

Biopharma Laboratory Services reported revenue of $866.7 million, up 8.5% year over year.

The division also recorded an improvement in adjusted operating margin to 18.3%, from 16.5% in the prior-year period.

The growth across both divisions contributed to higher consolidated revenue and earnings during the quarter.

Labcorp Raises Full-Year 2026 Financial Guidance

Following its third-quarter performance, Labcorp increased its full-year revenue growth forecast to between 5.9% and 6.7%.

The midpoint of the revised range represents a 50-basis-point increase from the company’s previous guidance.

Labcorp also raised its adjusted earnings per share forecast to between $18.30 and $18.70, representing an 18-cent increase at the midpoint.

The revised earnings guidance has a midpoint of $18.50, compared with approximately $18.33 previously.

Chairman and Chief Executive Officer Adam Schechter highlighted the company’s financial performance and improved profitability.

“Labcorp delivered another strong quarter with 7% revenue growth, continued margin expansion and 14.5% adjusted EPS growth, leading to a raise in our full-year guidance,” Schechter said.

The updated forecasts reflect the company’s revenue growth and margin improvements during the first nine months of 2026.

Labcorp Announces Laboratory Services Acquisitions

Labcorp announced four acquisitions during and after the third quarter as part of its efforts to expand its laboratory services operations.

The transactions include MLM Medical Labs and agreements to acquire selected assets from BioReference Health, the Prenatal Health business of Myriad Genetics and Millennium Health.

The acquisitions are intended to expand Labcorp’s service capabilities across diagnostic testing and biopharmaceutical laboratory services.

The company did not provide additional financial details about the transactions in the reported announcement.

Shareholder Returns and Capital Allocation

Labcorp paid $58.2 million in dividends during the third quarter.

The company also reported approximately $1.4 billion remaining under its existing share repurchase authorisation.

The available repurchase capacity provides Labcorp with flexibility for future shareholder distributions alongside its acquisition and investment activities.

Labcorp Outlook

Labcorp’s third-quarter results exceeded market expectations, with adjusted earnings per share of $4.78 and revenue increasing 6.9% to $3.81 billion.

Both Diagnostics Laboratories and Biopharma Laboratory Services reported higher revenue and improved adjusted operating margins.

The company raised its full-year revenue growth forecast to 5.9%–6.7% and increased its adjusted earnings per share guidance to $18.30–$18.70.

Shares gained 1.46% before the opening bell following the announcement, as investors assessed the earnings performance, revised guidance and announced acquisitions.

Labcorp Holdings stock price