Labcorp (LH)
NYSEHealth CareDiagnostics & ResearchSnapshot 2026-07-07
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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
Labcorp aims to increase its 2026 Adjusted EPS guidance, reflecting strong operational performance.
Stated in 3 of last 3 quarters. Adjusted EPS guidance was raised to $18.03 at the midpoint, reflecting a $0.13 increase. The company is delivering on its guidance increase, supported by strong operational performance.
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“CEO: 'Raising our full year Adjusted EPS guidance to $18.03 at the midpoint.'”
“Provided Full-Year 2026 Adjusted EPS guidance: $17.55 to $18.25.”
“Adjusted EPS range of $16.15 to $16.50; midpoint raised by $0.05.”
Breaks if: Free cash flow falls below $1.1 billion in FY26
Labcorp provides guidance for 2026 free cash flow, reflecting its financial strategy.
Stated in 3 of last 3 quarters. Free Cash Flow guidance is set at $1.24 to $1.36 billion, reflecting a strategic financial outlook. The company is delivering on its cash flow guidance, supported by strong cash earnings.
“Provided Full-Year 2026 Free Cash Flow guidance: $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.”
Breaks if: No revenue growth from AI or oncology partnerships in 2026
Breaks if: Revenue falls below $13.9 billion in FY26
Labcorp updates its 2026 revenue guidance to reflect improved performance and outlook.
Stated in 3 of last 3 quarters. Revenue guidance was updated to $14.65 to $14.80 billion, reflecting improved performance. The company is delivering on its revenue guidance update, supported by strong first-quarter results.
“Labcorp is updating 2026 full year guidance to reflect its first quarter performance.”
“Provided Full-Year 2026 Enterprise Revenue guidance: $14.61 billion to $14.79 billion.”
“Labcorp raised 2025 guidance for enterprise revenue.”