Labcorp (LH)
NYSEHealth CareMedical - Diagnostics & ResearchSnapshot 2026-09-04
$326.89-1.39%
Close 2026-09-04 · 1-day change
NYSEHealth CareMedical - Diagnostics & ResearchSnapshot 2026-09-04
Intact: The reason to own it still holds.
Labcorp grows revenue about 6% a year. It raised 2026 revenue guidance to $14.72 billion. Profit per share is expected near $18. Free cash flow is strong at about $1.3 billion. New AI tools and cancer trial partnerships support growth.
Revenue growth could slow below 6%. Profit per share might miss $18. Cash flow could weaken. Management changes and debt raise risks.
The price is about 14% below our fair value near $328. Analysts expect 6% revenue growth. We agree with these views.
Breaks if: Adjusted EPS falls below $17.0 in FY26
Breaks if: Free cash flow falls below $1.1 billion in FY26
Breaks if: No revenue growth from AI or oncology partnerships in 2026
This is not a price target or investment advice.
A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.
This investment represents a durable compounder with a focus on consistent earnings and revenue growth. The current thesis state is intact, supported by recent strong financial results and management's commitment to increasing guidance.
The market appears to have priced in a neutral valuation, with Labcorp being viewed as cheap compared to its peers. There is a slight expectations gap, indicating that the market does not fully anticipate the potential for further earnings growth.
Fundamentals are likely to continue on a positive trajectory, as management is on track with its priorities for increasing earnings and revenue guidance. However, there is a moderate risk due to the company's recent history of misses, which could impact investor confidence.
The long-term thesis hinges on maintaining earnings guidance and the overall health of the healthcare sector. Key factors include the performance of sector bellwethers and the potential impact of economic conditions on cyclical names like Labcorp.
The most important moves since the prior daily snapshot.
Yes, our read has strengthened. The company beat earnings expectations in Q2. It also raised its full-year revenue outlook. Analysts revised their earnings estimates upwards for the upcoming period. There are no new threats to the thesis.
as of 2026-09-04
Review the evidence to watch, what would become a concern, and what would make it less concerning.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Breaks if: Revenue falls below $13.9 billion in FY26
Overall, Labcorp's strong recent performance and management's focus on growth support a positive long-term view. Not investment advice.