Labcorp beats Q2 2026 estimates with EPS $4.99, revenue $3.73B, raises 2026 guidance

 

Labcorp beats Q2 2026 estimates with EPS $4.99, revenue $3.73B, raises 2026 guidance on specialty testing, BLS strength

• Q2 revenue rose 5.8% to $3.7B; adjusted EPS up 14.9% to $4.99.
• Enterprise operating margin expanded 70 bps to 15.8%, fifth consecutive quarter of margin gains.
• Diagnostics grew 5.5% to $2.9B, with 3.6% organic growth and 50 bps margin expansion.
• Biopharma Laboratory Services rose 6.5% to $836M; margin up 130 bps to 17%.
• 2026 guidance raised: enterprise revenue growth 5.4–6.3%, EPS $18.10–18.55, both midpoints higher.
• Specialty testing in oncology, neurology, autoimmune and women’s health delivered double-digit growth, lifting tests-per-accession.
• Central Labs grew mid-to-high single digits organically; early development returned to low-single-digit growth post-actions.
• Free cash flow was $314M vs. $543M last year; full-year FCF guidance unchanged at $1.24–1.36B.
• Capital deployment remained active: $226M acquisitions, $354M share repurchases, $59M dividends; buyback authorization increased to $1.4B.
• Key risks are ACA and forthcoming PAMA reimbursement changes, though bad debt and payer mix remain stable.
• Main concern: reimbursement headwinds from ACA membership shifts and potential PAMA cuts in 2027.
• Strong quarter, driven by broad-based growth in Diagnostics and Biopharma Lab Services with continued margin expansion.

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