Highlights

  • Second quarter 2026 revenue was $3,731.1 million, and net earnings attributable to the company were $298.7 million, or $3.64 per diluted share.
  • Diagnostics Laboratories revenue was $2,900.7 million and Biopharma Laboratory Services revenue was $836.2 million in the quarter.
  • Net cash provided by operating activities was $637.0 million for the six months ended June 30, 2026.
  • Management said it expects full-year 2026 adjusted EPS of $18.10 to $18.55 and enterprise revenue growth of 5.4% to 6.3%.

Labcorp Holdings Inc. (NYSE: LH) shares were trading at USD 326.96 on October 27, 2026, down 0.89%, with a relative volume at time of 2.10. The diagnostics and drug development laboratory company announced a $0.72 per share dividend on July 9, 2026, discussed second quarter 2026 results and raised guidance on a management call, and filed its Form 10-Q for the quarter ended June 30, 2026 on August 5, 2026.

Labcorp is incorporated in Delaware and lists its principal executive offices in Burlington, North Carolina. It reports two segments. Diagnostics Laboratories contributed approximately 78% of the business in the periods presented, and Biopharma Laboratory Services contributed approximately 22%. Its fiscal year ends December 31. The company completed the spin-off of its former clinical development and commercialization services business, Fortrea.

Second Quarter 2026 Results

Revenues were $3,731.1 million for the three months ended June 30, 2026, an increase of 5.8% from $3,527.3 million in the second quarter of 2025. The company said the increase was primarily due to organic revenue of 4.2%, acquisitions, net of divestitures, of 1.2%, and foreign currency translation of 0.4%.

Total operating income was $451.6 million, compared with $394.5 million. Earnings from operations before income taxes were $386.4 million, compared with $304.7 million, and the provision for income taxes was $87.3 million, compared with $66.4 million. Net earnings attributable to the company were $298.7 million, compared with $237.9 million. Diluted earnings per share were $3.64, compared with $2.84. Interest expense was $61.1 million, and restructuring and other charges were $5.1 million.

Diagnostics Laboratories revenue was $2,900.7 million, compared with $2,748.8 million, an increase of 5.5%. Requisitions increased 3.0%. Segment operating income was $522.6 million, compared with $482.8 million, and segment operating margin was 18.0%, compared with 17.6%.

Biopharma Laboratory Services revenue was $836.2 million, compared with $784.8 million, an increase of 6.5%. Segment operating income was $142.2 million, compared with $123.3 million, and segment operating margin was 17.0%, compared with 15.7%. On the call, management said the segment ended the quarter with a backlog of $8.7 billion.

For the six months ended June 30, 2026, revenues were $7,268.7 million, compared with $6,872.4 million, and diluted earnings per share were $6.99, compared with $5.36.

Cash Flow, Acquisitions and Capital

Net cash provided by operating activities was $637.0 million for the six months, compared with $639.1 million. Net cash used for investing activities was $688.3 million, compared with $430.1 million, which the company said was primarily due to increased business acquisitions and capital expenditures. Capital expenditures were $252.6 million. Net cash used for financing activities was $339.4 million.

Cash and cash equivalents were $141.8 million at June 30, 2026, compared with $532.3 million at the start of the year. The company also had $1,000.0 million of available borrowings under its revolving credit facility. Senior notes outstanding included $2,593.1 million and $2,000.0 million of aggregate principal amount under two indentures.

During the six months, the company acquired various businesses and related assets for total consideration of $528.6 million, net of cash acquired. It paid $119.9 million in common stock dividends. On July 9, 2026, it announced a cash dividend of $0.72 per share, approximately $59.0 million in the aggregate, payable on September 11, 2026.

2026 Outlook

On the second quarter call, management said it raised its full-year guidance. It expects enterprise revenue growth of 5.4% to 6.3%, Diagnostics revenue growth of 5.3% to 6.0% and Biopharma Laboratory Services revenue growth of 5.5% to 6.5%. Management said the guidance includes a 40 basis point benefit from foreign currency translation at the enterprise level.

Management expects full-year adjusted EPS of $18.10 to $18.55, free cash flow of $1.24 billion to $1.36 billion and capital expenditures of approximately 4% of revenue. It said the guidance reflects its current capital allocation assumptions, including the use of free cash flow for acquisitions, share repurchases and dividends. On the call, management reported second quarter adjusted EPS of $4.99, a non-GAAP measure.