Key Highlights

  • Labcorp Holdings shares are trading at $304.31 in Wednesday's session, down 2.32%.
  • CMS released preliminary 2027-2029 Clinical Laboratory Fee Schedule payment rates that the company warns would impose steep annual Medicare payment cuts on lab services.
  • The company warns the proposed cuts would threaten patient access to laboratory testing.
  • Labcorp reaffirmed its long-term 2026-2029 guidance, including 8.5% to 11.5% compound annual EPS growth and 5% to 8% Revenue growth.

Proposed Medicare Fee Cuts Weigh on Shares

Labcorp Holdings (NYSE:LH) shares are declining in Wednesday's session after the Centers for Medicare and Medicaid Services released preliminary 2027-2029 Clinical Laboratory Fee Schedule payment rates that the company warns would impose steep annual Medicare payment cuts on lab services, a change it argues would threaten patient access to laboratory testing. Despite the regulatory overhang, Labcorp reaffirmed its long-term 2026-2029 guidance, including 8.5% to 11.5% compound annual EPS growth, 5% to 8% revenue growth, and 75 to 150 basis points of Margin expansion.

A Leading Global Laboratory Services Provider

Labcorp Holdings, headquartered in Burlington, North Carolina, is a global leader in laboratory services that helps doctors, hospitals, pharmaceutical companies, researchers and patients make clear, confident health decisions. The company operates through two segments, Diagnostics Laboratories, offering routine and specialty clinical testing across areas such as oncology, women's health, autoimmune disease and neurology, and Biopharma Laboratory Services, which provides drug development, central laboratory and clinical trial support to pharmaceutical and biotechnology clients worldwide.

Company Continues Backing Bipartisan Legislative Fix

The company continues backing the bipartisan RESULTS Act, legislation aimed at softening the reimbursement cuts, but investors appear to be discounting the near-term Medicare pricing risk ahead of formal 2027 guidance expected in February 2027. With roughly 71,000 employees serving clients in about 100 countries, Labcorp performs hundreds of millions of tests annually and supported over 85% of new FDA-approved drugs in 2025, competing with companies including Quest Diagnostics as it navigates the proposed reimbursement changes.