Labcorp Holdings Inc.
- Open
- 279.20
- Day high
- 290.65
- Day low
- 279.02
- Prev close
- 281.94
- Volume
- 617K
- Mkt cap
- $23.2B
- P/E (TTM)
- 24.9
- EPS (TTM)
- $11.37
- P/B
- 2.7
- P/S
- 1.6
- Yield
- 1.02%
- Per share
- $2.88
- ▼Insiders net selling -$1.8M over the last 3 months (0 open-market buys, 4 sales)
- 🏛Institutions mixed (13F)
Labcorp Holdings Inc. (LH) is a Healthcare company listed on NYSE. The stock is up 16% over the past year. Over the trailing 3 months, insiders filed 0 open-market buys and 4 sales (SEC Form 4).
Labcorp Holdings Inc. (LH) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 2 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
LH earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Apr 30, 2026 | $4.09 | $4.25 | +3.9% | $3.5B | +0.8% |
| Feb 17, 2026 | $3.95 | $4.07 | +3.0% | $3.5B | +0.5% |
| Oct 28, 2025 | $4.13 | $4.18 | +1.2% | $3.6B | +0.2% |
| Jul 24, 2025 | $4.17 | $4.35 | +4.3% | $3.5B | +1.2% |
| Feb 6, 2025 | $3.39 | $3.45 | +1.8% | $3.3B | +0.7% |
| Oct 24, 2024 | $3.47 | $3.50 | +0.9% | $3.3B | +0.6% |
| Aug 1, 2024 | $3.78 | $3.94 | +4.2% | $3.2B | +1.1% |
| Apr 25, 2024 | $3.48 | $3.68 | +5.7% | $3.2B | +1.9% |
| Feb 15, 2024 | $3.29 | $3.30 | +0.3% | $3.0B | +0.5% |
| Oct 26, 2023 | $3.37 | $3.38 | +0.3% | $3.1B | +2.2% |
| Jul 27, 2023 | $3.47 | $3.42 | -1.4% | $3.0B | -3.8% |
| Feb 16, 2023 | $4.06 | $4.14 | +2.0% | $3.7B | -1.8% |
LH insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Jul 6, 2026 | Kyle Kathryn Wofficer: EVP, Chief Legal Officer | Option | 256 | — |
| Jul 6, 2026 | Kyle Kathryn Wofficer: EVP, Chief Legal Officer | Tax | 73 | $283.88 |
| Jul 6, 2026 | Vaughn Bryan Tofficer: EVP and President, Diagnostics | Tax | 93 | $283.88 |
| Jul 6, 2026 | Kyle Kathryn Wofficer: EVP, Chief Legal Officer | Sell | 92 | $286.19 |
| Jul 6, 2026 | Vaughn Bryan Tofficer: EVP and President, Diagnostics | Sell | 234 | $286.19 |
| Jul 6, 2026 | Vaughn Bryan Tofficer: EVP and President, Diagnostics | Option | 327 | — |
| Jun 10, 2026 | Kyle Kathryn Wofficer: EVP, Chief Legal Officer | Sell | 762 | $263.89 |
| May 13, 2026 | Schechter Adam Hdirector, officer: President & CEO | Sell | 5,903 | $254.50 |
| Mar 30, 2026 | Bailey Megan D.officer: EVP, Pres, Central Labs & Intl | Grant | 1,184 | — |
| Mar 30, 2026 | Schroeder Mark Sofficer: EVP, Pres Diagnostics & COO | Tax | 1,468 | $268.38 |
| Mar 30, 2026 | Schroeder Mark Sofficer: EVP, Pres Diagnostics & COO | Grant | 2,968 | — |
| Mar 30, 2026 | Caveney Brian Jofficer: EVP, Pres of ED, CMO & CSO | Grant | 9,304 | — |
| Mar 30, 2026 | Vaughn Bryan Tofficer: EVP, Diagnostics | Grant | 1,584 | — |
| Mar 30, 2026 | Caveney Brian Jofficer: EVP, Pres of ED, CMO & CSO | Tax | 863 | $268.38 |
| Mar 30, 2026 | van der Vaart Sandra Dofficer: EVP, Corporate Affairs | Grant | 6,382 | — |
Source: LH SEC Form 4 filings, latest Jul 6, 2026. For informational purposes only — not investment advice.
See the full LH insider & 13F page →Labcorp Holdings Inc. company profile
Overview
Laboratory Corporation of America Holdings (NYSE:LH) is a leading global life sciences company founded in 1978 and headquartered in Burlington, North Carolina. The company has grown through strategic acquisitions and organic expansion to become one of the world's largest clinical laboratory networks. Labcorp went public in 1990 and operates as a critical healthcare infrastructure provider, delivering diagnostic testing services and drug development solutions that enable healthcare decision-making across the medical ecosystem. The company serves millions of patients annually through its extensive network of laboratories and patient service centers while also supporting pharmaceutical and biotechnology companies in bringing new treatments to market.
Business
Labcorp operates in the clinical laboratory and life sciences industry, providing essential testing and research services that form the backbone of modern healthcare delivery. The company operates through two primary business segments that together generate approximately $13 billion in annual revenue. Labcorp Diagnostics (Dx) represents the larger segment, generating approximately 80% of total revenue with around $10.4 billion annually. This division operates one of the largest clinical laboratory networks in the United States, processing millions of diagnostic tests each year. These tests range from routine blood work like cholesterol panels and blood cell counts to highly specialized genetic testing and cancer diagnostics. The diagnostic services include blood chemistry analyses, urinalyses, thyroid function tests, sexually transmitted disease screening, and advanced molecular diagnostics. The segment also provides anatomic pathology services, which involve examining tissue samples to diagnose diseases like cancer, and offers specialized testing in areas such as cardiovascular disease, infectious diseases, women's health, and pharmacogenetics (testing how patients respond to specific medications). Labcorp Drug Development (DD), also known as Biopharma Laboratory Services, accounts for approximately 20% of revenue with around $2.6 billion annually. This segment provides comprehensive laboratory services to pharmaceutical, biotechnology, and medical device companies throughout the drug development process. Services include early-stage research support, clinical trial laboratory testing (known as central lab services), bioanalytical testing to measure drug concentrations in biological samples, and companion diagnostic development. The division helps pharmaceutical companies conduct clinical trials by providing standardized laboratory testing across multiple trial sites, ensuring data consistency and regulatory compliance. This segment has become increasingly important as the pharmaceutical industry relies more heavily on outsourced laboratory services to accelerate drug development timelines and reduce costs. Both segments leverage advanced technologies including artificial intelligence, automation, and sophisticated data analytics to improve testing accuracy, reduce turnaround times, and enhance the overall value proposition for customers. The company has been particularly focused on expanding its capabilities in high-growth therapeutic areas such as oncology, neurology, autoimmune diseases, and women's health.
Revenue model
Labcorp generates revenue through multiple complementary business models across its two operating segments. The Diagnostics segment primarily operates on a fee-for-service model, where the company is paid for each individual test performed. Revenue comes from various payers including commercial health insurance companies, government programs like Medicare and Medicaid, hospitals and health systems, and direct-pay patients. The company has established contracts with managed care organizations that set reimbursement rates for different types of tests, with routine tests typically generating lower margins but higher volumes, while specialized esoteric tests command premium pricing due to their complexity and clinical value. The Drug Development segment operates on a contract-based service model, where pharmaceutical and biotechnology companies pay for laboratory services throughout the drug development lifecycle. This includes milestone-based payments for early development work, ongoing fees for central laboratory services during clinical trials, and per-sample fees for bioanalytical testing. The segment benefits from multi-year contracts that provide revenue visibility, though it faces exposure to clinical trial cancellations and delays that can impact revenue timing. Several factors influence Labcorp's profitability margins. Positive margin drivers include increasing test volumes as healthcare utilization grows, the ongoing shift toward higher-margin specialty and esoteric testing, operational efficiencies gained through automation and AI implementation, and the company's scale advantages in negotiating with suppliers. The acquisition of hospital laboratory operations also provides opportunities for margin expansion as Labcorp applies its operational expertise to improve efficiency. Margin pressures come from reimbursement rate pressures from managed care organizations and government payers, labor cost inflation particularly for skilled laboratory technicians, competition from regional laboratories and hospital-owned labs, and the cyclical nature of pharmaceutical R&D spending that affects the Drug Development segment. Additionally, the company faces ongoing capital expenditure requirements to maintain and upgrade laboratory equipment and information technology systems. The company has implemented its "LaunchPad" cost reduction initiative to offset these pressures through operational improvements and automation.
Competitive moat
Labcorp possesses a moderate to strong competitive moat built on several interconnected advantages, though the strength varies across its business segments. The company's primary moat stems from its massive scale and network effects. As one of the two dominant players in the U.S. clinical laboratory market (alongside Quest Diagnostics), Labcorp benefits from significant economies of scale that allow it to spread fixed costs across millions of tests, invest heavily in automation and technology, and maintain cost advantages that smaller competitors cannot match. The company's regulatory and quality advantages create meaningful barriers to entry. Clinical laboratories must maintain complex regulatory compliance including CLIA (Clinical Laboratory Improvement Amendments) certification, CAP (College of American Pathologists) accreditation, and FDA approvals for many specialized tests. Labcorp's established quality systems, regulatory expertise, and track record provide significant advantages when competing for large health system contracts or pharmaceutical partnerships. Network effects and switching costs strengthen the moat, particularly in the Diagnostics segment. Healthcare providers benefit from using a single laboratory partner for consistency in testing protocols, data integration, and administrative efficiency. The cost and complexity of switching laboratory providers, especially for large health systems, creates customer stickiness. In the Drug Development segment, pharmaceutical companies often prefer working with established partners who have proven regulatory track records and global capabilities. However, the moat faces several competitive threats and limitations. The rise of point-of-care testing and at-home diagnostic tests could disintermediate traditional laboratory services for certain test types. Technology companies like Amazon and Google have shown interest in healthcare, potentially bringing new competitive dynamics. Additionally, hospital systems increasingly view laboratory services as a profit center and may choose to bring services in-house rather than outsource them. The Drug Development segment faces competition from specialized contract research organizations and faces cyclical pressures from pharmaceutical industry spending patterns. The company's moat is strongest in complex, high-volume testing where scale advantages are most pronounced, but weaker in routine testing where competition is more intense and margins are compressed.
Risks & safety
Labcorp presents a moderate margin of safety with solid financial fundamentals but some areas of concern regarding debt levels and cyclical exposure. Liquidity and Solvency: - Strong cash position of $369 million plus additional short-term investments - Current ratio of 1.84 indicates adequate short-term liquidity coverage - Debt-to-equity ratio of 0.78 shows moderate leverage levels that are manageable but elevated - Free cash flow turned negative at -$108 million in Q1 2025, primarily due to working capital timing and integration costs - Annual free cash flow remains strong at over $1 billion, providing good debt service coverage Valuation Metrics: - Trading at 22.9x trailing P/E ratio, which appears reasonable for a healthcare services company - EV/EBITDA of 12.9x suggests moderate valuation relative to cash generation - Price-to-book ratio of 2.34 reflects reasonable premium to tangible assets - Graham number calculation suggests potential undervaluation relative to conservative metrics Other Considerations: - Stable, non-cyclical healthcare demand provides defensive characteristics - Diversified revenue base across diagnostic testing and drug development reduces concentration risk - Recent Invitae acquisition adds integration risk but expands genetic testing capabilities - Exposure to pharmaceutical R&D cycles creates some earnings volatility in Drug Development segment
Recent development
Over the past several years, Labcorp has executed a comprehensive strategic transformation focused on expanding its specialty testing capabilities and strengthening its market position through targeted acquisitions. The most significant recent development was the acquisition of select assets from Invitae, a medical genetics company, for $239 million in 2024. This acquisition substantially expanded Labcorp's genetic testing portfolio and is expected to generate over 10% annual revenue growth with the potential to become accretive to earnings by 2025. The company has aggressively pursued hospital and health system partnerships, announcing six new laboratory partnerships in 2023 alone and continuing this expansion in 2024. These partnerships involve Labcorp taking over laboratory operations for health systems, providing operational expertise while allowing hospitals to focus on patient care. This strategy has proven successful with the integration of Ascension lab operations and continues to drive organic growth in the Diagnostics segment. Innovation in specialty testing has been a key focus, with particular emphasis on high-growth therapeutic areas. The company launched Plasma Detect, a minimal residual disease (MRD) detection assay for cancer monitoring, and received FDA authorization for companion diagnostics in gene therapy. New test launches have concentrated on oncology, women's health, neurology, and autoimmune diseases, areas that command premium pricing and are experiencing rapid growth. Technology advancement has been another priority, with the introduction of Labcorp OnDemand consumer testing platform, expansion of AI-powered diagnostic tools through the Labcorp Diagnostic Assistant, and the launch of Labcorp Global Trial Connect to enhance drug development services. The company has also implemented its LaunchPad cost reduction initiative to improve operational efficiency and offset inflationary pressures. In 2023, Labcorp completed the spin-off of Fortrea, its clinical development business, allowing the company to focus more intensively on laboratory services while creating a separate public company focused on clinical research services. This strategic move simplified Labcorp's structure and allowed for more focused capital allocation.
LH company profile · for informational purposes only — not investment advice.
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