Labcorp reported higher third-quarter revenue and earnings, with adjusted earnings per share rising faster than sales, and raised its full-year 2026 revenue-growth and adjusted-EPS outlook. The company also highlighted an acquisition already completed and three more acquisition agreements, alongside new diagnostic tests and partnerships.
Key details
- Third-quarter revenue was $3.81 billion, up 6.9% from $3.56 billion a year earlier.
- Diluted earnings per share rose 3.3% to $3.22, from $3.12. Adjusted EPS increased 14.5% to $4.78, from $4.18.
- Labcorp said margins expanded during the quarter, though it did not provide a margin figure in the results presented here.
- Full-year revenue-growth guidance was raised to 5.9%–6.7%, an increase of 50 basis points at the midpoint.
- Full-year adjusted EPS guidance was raised to $18.30–$18.70, an 18-cent increase at the midpoint.
Acquisitions and partnerships
Labcorp said it had announced or completed four transactions as part of its growth strategy. It expects each to add to adjusted EPS in its first year and to earn a return above its cost of capital by the third year.
- MLM Medical Labs has been acquired. The company provides central and specialty laboratory services and operates in the United States, Germany and South Africa.
- Labcorp agreed to acquire selected assets from BioReference Health’s laboratory testing businesses, covering clinical and women’s health testing, urology, corrections and certain operational assets.
- Labcorp agreed to acquire Myriad Genetics’ Prenatal Health testing business, including the Prequel, Foresight, SneakPeek and FirstGene tests.
- Labcorp agreed to acquire Millennium Health, a specialty laboratory focused on drug testing and surveillance.
- The three announced deals remain subject to regulatory approvals and customary closing conditions. No purchase prices were provided in the material presented here.
- Labcorp also partnered with the National Association of Community Health Centers on leadership development, practice improvement and community health initiatives.
Diagnostic developments
- Labcorp received FDA approval for its PGDx elio tissue complete companion diagnostic, which is intended to help identify patients with advanced melanoma who may be candidates for treatment.
- It partnered with Oregon Health & Science University’s Knight Cancer Institute on a study of a blood-based test designed to help detect recurrence earlier in patients with muscle-invasive bladder cancer.
- The company added a hepatitis D reflex-testing option to its hepatitis testing portfolio.
- After the quarter ended, Labcorp launched the FDA-cleared Elecsys pTau-217 blood test for Alzheimer’s disease testing in primary and specialty care.
- Labcorp also announced a collaboration with Waters Corporation to offer the FDA-approved BD Onclarity HPV assay through clinician- and self-collected screening, including in clinics, patient service centers and at-home settings. Labcorp said it would be the first commercial laboratory to offer the assay across those collection options.
The higher full-year guidance reflects Labcorp’s improved outlook for both revenue growth and adjusted earnings. Its acquisition plans broaden its testing businesses, including in specialty and women’s health testing, while several of the new testing initiatives extend its offerings in cancer, Alzheimer’s disease and infectious disease.