10-Q · May 4, 2026
Labcorp Holdings Inc. reported Q1 2026 results with strong revenue growth and a notable EPS beat, demonstrating resilience in its operational performance. Despite increases in some costs, the company maintained its…
Earnings analysis · 10-Q
LH earnings analysis
Filed October 30, 2026 · Our reading of the company's report
The latest report
Labcorp delivered $3.810 billion of Q3 revenue and $4.78 of adjusted EPS, beating consensus estimates of $3.761 billion and $4.64, respectively. GAAP diluted EPS was $3.22, modestly above $3.12 in the prior-year…
Read full summary
Labcorp delivered $3.810 billion of Q3 revenue and $4.78 of adjusted EPS, beating consensus estimates of $3.761 billion and $4.64, respectively. GAAP diluted EPS was $3.22, modestly above $3.12 in the prior-year quarter, while free cash flow increased to $412.2 million from $281 million. Management raised full-year enterprise revenue growth and adjusted EPS guidance, although ERP implementation, foreign-exchange exposure, and variable-rate debt remain material risks.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $3.22
What stood out
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Revenue accelerated and beat consensus
Revenue was $3.810 billion, up approximately 2.1% from $3.73 billion in 2026 Q2 and 7.0% from $3.56 billion in 2025 Q3; it exceeded the $3.761 billion consensus estimate by approximately 1.3%.
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Adjusted EPS beat estimates
GAAP diluted EPS was $3.22, up from $3.12 in 2025 Q3, while adjusted EPS was $4.78, exceeding the $4.64 consensus estimate by $0.14, or approximately 3.0%.
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Free cash flow strengthened
Free cash flow was $412.2 million, up from $314 million in 2026 Q2 and $281 million in 2025 Q3, representing increases of approximately 31% and 47%, respectively.
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Full-year outlook was raised
Full-year 2026 enterprise revenue growth guidance increased to 5.9%-6.7% from 5.4%-6.3%, and adjusted EPS guidance increased to $18.30-$18.70 from $18.10-$18.55.
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Repurchase capacity remains substantial
The company had $1,378.6 million of remaining share-repurchase authorization at September 30, 2026, after the Board authorized an additional $1,000.0 million on July 8, 2026.
What to watch
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ERP implementation and liquidity risk
The revised risk factor highlights deployment of a new ERP system across broader areas of the company. Integration, data migration, or operating problems could disrupt supply-chain and procurement processes, and the company may increase or accelerate inventory purchases, adversely affecting cash flow and liquidity.
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Foreign-exchange sensitivity
Foreign-currency exposure increased: 13.7% of nine-month 2026 revenue was denominated in non-U.S. currencies versus 13.5% in the prior-year period. A hypothetical 10% currency move would have affected nine-month 2026 pretax income by approximately $26.6 million.
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Variable-rate debt exposure
Variable-rate debt creates exposure to higher interest expense. At September 30, 2026, variable-rate debt included $750.0 million under the 2026 Term Loan and $556.0 million under the AR Facility; each 0.25% rate change would affect annual interest expense by approximately $3.3 million.
Management's outlook
Full-year 2026 adjusted EPS guidance was raised to $18.30-$18.70 from $18.10-$18.55. Enterprise revenue growth guidance was raised to 5.9%-6.7% from 5.4%-6.3%, while free cash flow guidance was maintained at $1,240-$1,360 million.
Earlier filings 4
10-Q · October 31, 2025
Labcorp reported Q3 revenue of $3,563.5 million (up from $3,282.0 million a year ago) with gross profit of $1,025.1 million and operating income of $396.6 million. Diluted EPS was $3.12 versus $2.00 in Q3 2024.…
10-Q · August 1, 2025
Labcorp reported revenue of $3,527.3M for Q2 (three months ended June 30, 2025), up vs prior quarter and year, with expanding gross and operating margins that drove diluted EPS of $2.84. Operating cash flow for the six…
10-Q · April 29, 2025
Labcorp reported Q1 results with revenue of $3,345.1M, up $168.5M (+5.3%) versus Q1 2024 revenue of $3,176.6M, and gross profit of $948.0M (gross margin ~28.3%). Operating income was $326.0M (operating margin ~9.8%)…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.