LabCorp reported strong Q4 2025 with revenue growth and margin expansion, driven by diagnostics and central labs. For 2026, they guide to continued growth and EPS improvement. They emphasize strategic investments in specialty testing and technology, while addressing headwinds like PAMA delay and ACA subsidy expiration. Q4 2025 revenue growth of 5.6% and organic growth of 3.8% exceeded expectations; BLS central lab grew ~8% constant currency.
LabCorp reported strong Q4 2025 with revenue growth and margin expansion, driven by diagnostics and central labs. For 2026, they guide to continued growth and EPS improvement. They emphasize strategic investments in specialty testing and technology, while addressing headwinds like PAMA delay and ACA subsidy expiration. Q4 2025 revenue growth of 5.6% and organic growth of 3.8% exceeded expectations; BLS central lab grew ~8% constant currency.
LabCorp reported strong Q4 2025 with revenue growth and margin expansion, driven by diagnostics and central labs. For 2026, they guide to continued growth and EPS improvement. They emphasize strategic investments in specialty testing and technology, while addressing headwinds…
Reported gross margin was 26.18%, reinforcing the quarter's better-than-guided profitability.
Management expressed confidence in 2026 guidance, highlighted strong pipeline and momentum, and reiterated commitment to strategic priorities and growth.
2026 Revenue and EPS growth guided at ~5.4% and ~9% respectively, with margin expansion in both segments.
Management highlighted the use of AI and automation in areas like pathology, psychology, and microbiology, and mentioned AI-powered solutions for appointment scheduling, results reporting, and a test finder for physicians. They also discussed Global Trial Connect to accelerate clinical trials, but did not provide specific details on monetization or competitive positioning.
Central lab growth supported by strong backlog and book-to-bill. Management expressed confidence in 2026 guidance, highlighted strong pipeline and momentum, and reiterated commitment to strategic priorities and growth.
Capital expenditures are expected to increase to approximately 4% of revenue in 2026, up from prior years, as the company begins investing in a new 500,000+ square foot central laboratory and kit production facility to support long-term growth in the central lab business.
Management expressed confidence in 2026 guidance, highlighted strong pipeline and momentum, and reiterated commitment to strategic priorities and growth.
“we continue to focus on streamlining our business, which will reduce annual revenue by $50 million and increase operating income.”
“LabCorp became the first US commercial laboratory to enter in an agreement to implement Roche's fully automated mass spectrometry solution.”
| Metric | Period | Range | Midpoint | Status |
|---|---|---|---|---|
| EPS | FY2026 | $17.55–$18.25 | $17.90 | GUIDED |
| Free cash flow | FY2026 | $1.24B–$1.36B | $1.3B | GUIDED |
| Revenue | FY2026 | 4.7%–6% | 5.35% | GUIDED |
LabCorp is reducing early development business by $50M revenue to streamline and increase operating income by Q2 2026. — Signals softening demand in early development (ED) segment, indicating competitive pressure across CROs; a retreat from ED suggests LabCorp sees better capital allocation elsewhere.
… includes in vacate. Now, I will review the fourth quarter segment performance for biopharma laboratory services, or BLS. Revenue was $793 million, an increase of 3.4% compared to last year. due to an increase in organic revenue of 0.6% and foreign currency translation of 2.8%. In the quarter, central labs performed well and revenue grew 11.1% or 7.7% constant currency. Early development revenue was down 13.5% or 15.1% constant currency. and we continue to focus on streamlining our business, which will reduce annual revenue by $50 million and increase operating income. The actions began in the fourth quarter of 2025, and we expect to be largely completed by the end of the second quarter. BLS adjusted operating income was $136 million, or 17.2% of revenue. compared to $131 million, or 17% of revenue last year. Adjusted operating income and operating margin were slightly up due to Central Lab's revenue growth. We ended the quarter with a backlog of $8.7 billion, and we expect approximately $2.7 billion of this backlog to convert into revenue over the next 12 months. Our segment quarterly book-to-bail and trading 12-month book-to-bail was strong at 1.16 and 1.09, respectively. Now …
Company installed new automated mass spectrometry system from Roche Diagnostics, signaling capex spend and automation shift. — This could provide Roche with a flagship reference site and competitive edge in lab automation, signaling potential share gains for Roche's diagnostics segment.
… longevity. In the quarter, On Demand launched new tests for food allergies, micronutrients, and thyroid health. We also continue to make significant progress through technology and AI-powered solutions to accelerate innovation, to improve quality, to enhance customer experience, and to operate more efficiently. For example, we launched AI and automation in areas such as pathology, psychology, and microbiology. Recently, we announced that LabCorp became the first US commercial laboratory to enter in an agreement to implement Roche's fully automated mass spectrometry solution. In addition, we improved the customer experience in several areas. AI-powered solutions simplified appointment scheduling and results reporting for consumers. Our AI test finder experience for physicians helps them find the right lab test in seconds, freeing up time for patient care. And LabCorp's Global Trial Connect will help to accelerate clinical trials for investigator sites and for sponsors. Finally, we announced a strategic investment to build a new central laboratory facility to support growth and demand. which will enable us to deliver more integrated, connected experience for customers. …