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
QuarterlyIQ Insights · LH
How strong the business is — where it ranks within its sector on capital efficiency and cash generation, and how well management has been executing.
How this business ranks within health care on a research-validated quality screen. As of 2026-09-04.
The screen ranks LH against its sector on four durable signals: share dilution, return on capital, free-cash-flow yield, and FCF margin. Historically the highest-quality names tended toward better typical outcomes and fewer bad years over multi-year holds (strongest at three years, modest at one), and that pattern showed up even before the price moved. It characterizes business quality, not price direction.
Each leg is a sector-relative percentile (higher is better); 4 of 4 legs were available for this name. The composite is built from these four; the raw value follows each percentile for context.
A forward quality tilt, not a price prediction, and context for your own research rather than a recommendation. Not investment advice.
How management runs the business: capital, margins, balance sheet, and how reliably they guide and deliver.
Each factor is a parallel diagnostic with a clear read of what it shows and how names like it have historically fared. Never aggregated into a single score.
Operating income rose in 2 of the last 3 quarter-over-quarter moves. Historically, Health Care names rated strong grew net income 53% of the time over the next year (vs 41% for the rest of the cohort, n=9986).
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
A guidance track record builds as the company issues and delivers on guidance.
Priorities management has stated in recent disclosures, with status and evidence drawn from earnings calls, filings, and press releases.
Raise and deliver on full-year 2026 adjusted EPS guidance with continued double-digit growth and margin expansion.
Stated as a priority in 6 of last 6 quarters. Labcorp raised its full-year 2026 adjusted EPS guidance from a midpoint of about $15.70 in 2025-Q1 to $18.325 in 2026-Q2. Diluted EPS grew from $2.52 in 2025-Q1 to $3.64 in 2026-Q2, reflecting double-digit growth and margin expansion. The trajectory matches management's repeated guidance increases and delivery of earnings growth.
“Raised full-year adjusted EPS guidance to $18.10 to $18.55; up 30 cents at the midpoint.”
“Raised full-year adjusted EPS guidance to $17.70 to $18.35; up 13 cents at the midpoint.”
“Provided 2026 adjusted EPS guidance range of $17.55 to $18.25; midpoint growth of 8.9%.”
“Updated full-year adjusted EPS guidance range of $16.15 to $16.50; midpoint raised by $0.05.”
“Raised full-year adjusted EPS guidance range to $16.05 to $16.50; midpoint raised by $0.23.”
“Raised midpoint of adjusted EPS guidance to $15.70 to $16.40; midpoint raised $0.05.”
Raise and deliver on full-year 2026 revenue guidance with mid-single-digit growth driven by organic and acquisition growth.
Stated as a priority in 6 of last 6 quarters. Labcorp raised its full-year 2026 revenue guidance from about $14.65 billion in 2026-Q1 to $14.71 billion in 2026-Q2, reflecting mid-single-digit growth. Quarterly revenue grew from $3.35 billion in 2025-Q1 to $3.73 billion in 2026-Q2. The trajectory is delivering consistent revenue growth aligned with guidance.
Maintain disciplined capital allocation with free cash flow guidance of $1.24 billion to $1.36 billion for 2026.
Stated as a priority in 6 of last 6 quarters. Labcorp maintained free cash flow guidance of $1.24 billion to $1.36 billion for 2026, up from about $1.10 billion in early 2025. Quarterly cash from operating activities was $445.5 million in 2026-Q2 versus $620.6 million in 2025-Q2, reflecting timing and capital expenditure increases. The trajectory shows disciplined capital allocation with some quarterly variability.
Advance leadership in specialty testing and oncology with new test launches, collaborations, and expanded access.
Stated as a priority in 4 of last 6 quarters. Labcorp expanded specialty testing and oncology offerings with new FDA-approved tests, clinical trial collaborations, and over 130 new tests launched in 2025. Central Labs revenue grew 9.8% in 2026-Q2 and 11.3% in 2026-Q1, showing delivery on specialty testing growth, though some segments like Early Development showed mixed results.
Expand partnerships and acquisitions with health systems and regional/local laboratories to grow market presence.
Stated as a priority in 5 of last 6 quarters. Labcorp has consistently expanded its partnerships and acquisitions with health systems and regional/local labs, completing or signing 13 transactions in 2025 alone. These actions support growth and market presence, aligning with management’s stated priority to be the partner of choice.
“Completed acquisitions of outreach labs from Parkview Health and Tribal Diagnostics; awarded DoD contract.”
Over the trailing year it converted 1.38x of net income into operating cash flow. Historically, Health Care names rated neutral grew net income 54% of the time over the next year (vs 43% for the rest of the cohort, n=3313).
Most sensitive to the broad stock market.
Not enough signal to read sensitivity to real (inflation-adjusted) rates, long-term interest rates, the US dollar, Fed net liquidity (low R² over the window).
23 material management or governance events in the past 24 months, led by capital-allocation actions. Historically, Health Care names rated volatile grew net income 53% of the time over the next year (vs 50% for the rest of the cohort, n=3986).
Not investment advice. As of 2026-09-04.
“Updated 2026 enterprise revenue guidance to $14.71 billion to $14.83 billion; growth 5.4% to 6.3%.”
“Updated 2026 revenue guidance to $14.65 billion to $14.80 billion; growth 5.0% to 6.1%.”
“Provided 2026 revenue guidance of $14.61 billion to $14.79 billion; midpoint growth of 5.4%.”
“Updated 2025 revenue guidance to 7.4% to 8.0%; midpoint lowered 40 bps due to currency and acquisition timing.”
“Raised 2025 revenue guidance for enterprise revenue primarily driven by currency and underlying strength.”
“Reaffirmed 2025 revenue guidance of 6.7% to 8.0%.”
“Free Cash Flow guidance of $1,240 million to $1,360 million for 2026.”
“Free Cash Flow guidance of $1.24 billion to $1.36 billion for 2026.”
“Provided 2026 free cash flow guidance of $1.24 billion to $1.36 billion.”
“Free Cash Flow range of $1.17 billion to $1.29 billion; midpoint raised by $25 million.”
“Free Cash Flow range of $1.13 billion to $1.28 billion; midpoint raised by $25 million.”
“Free Cash Flow of $1.10 billion to $1.25 billion guidance reaffirmed.”
“Expanded Labcorp Oncology offerings in lung, colorectal, and prostate cancers, including new tests and clinical trial collaborations.”
“Advanced leadership in specialty and companion diagnostics with collaborations and new test launches.”
“Launched first FDA-cleared blood test for Alzheimer’s and expanded molecular residual disease testing in oncology.”
“Expanded oncology and genetic testing portfolio, including FDA-authorized pan-solid tumor liquid biopsy test.”
“Completed acquisition of Crouse Health’s Laboratory Alliance and managed inpatient labs; strategic collaboration with CHOP.”
“Completed acquisitions of Lab Works and Ballad Health outreach labs; strategic collaboration with Inspira Health.”
“Signed agreements to acquire Empire City Laboratories and Laboratory Alliance of Central New York; managed Crouse Health labs.”
“Announced agreements to acquire Incyte Diagnostics and BioReference Health assets; expanded partnerships.”