Key facts
- Labcorp raised its annual profit forecast and reported better-than-expected second-quarter results.
- The company's diagnostics business benefited from specialty testing and laboratory management agreements.
- Improved pharmaceutical and biotechnology spending supported its research services business.
- Revenue at Labcorp's Diagnostics Laboratories segment grew 5.5% to $2.90 billion.
- Revenue at its Biopharma Laboratory Services segment rose 6.5% to $836.2 million.
- Labcorp raised its 2026 adjusted earnings forecast to $18.10 to $18.55 per share.
Laboratory operator Labcorp raised its annual profit forecast and reported better-than-expected second-quarter results on Thursday, driven by steady demand for diagnostic testing and growth in its drug-development services business. The company's diagnostics business has benefited from specialty testing and laboratory management agreements, while improved pharmaceutical and biotechnology spending has supported its research services business.
Revenue at Labcorp's Diagnostics Laboratories segment grew 5.5% to $2.90 billion, slightly below analysts' expectations. However, revenue at its Biopharma Laboratory Services segment rose 6.5% to $836.2 million, exceeding estimates. Overall second-quarter revenue increased 5.8% to $3.73 billion, and adjusted earnings per share of $4.99 topped expectations.
Labcorp raised its 2026 adjusted earnings forecast to a range of $18.10 to $18.55 per share, above analysts' estimate of $18.01. The company also lifted its annual revenue forecast to $14.71 billion to $14.83 billion. Despite the positive results and raised guidance, shares of the company fell about 6% in premarket trading, with analysts suggesting investors were focused on softer-than-expected organic growth in the Diagnostics Laboratories segment.