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1. Company Snapshot

1.a. Company Description

Laboratory Corporation of America Holdings operates as a global life sciences company that provides vital information to help doctors, hospitals, pharmaceutical companies, researchers, and patients make clear and confident decisions.It operates in two segments, Labcorp Diagnostics (Dx) and Labcorp Drug Development (DD).It offers various tests, such as blood chemistry analyses, urinalyses, blood cell counts, thyroid tests, PAP tests, hemoglobin A1C and vitamin D, prostate-specific antigens, tests for sexually transmitted diseases, hepatitis C tests, microbiology cultures and procedures, and alcohol and other substance-abuse tests.


The company also provides specialty testing services comprising gene-based and esoteric testing; advanced tests target specific diseases, including anatomic pathology/oncology, cardiovascular disease, coagulation, diagnostic genetics, endocrinology, infectious disease, women's health, pharmacogenetics, and parentage and donor testing; and occupational testing services, medical drug monitoring services, chronic disease programs, and kidney stone prevention tests.It provides online and mobile applications to enable patients to check test results; and online applications for managed care organizations and accountable care organizations.It offers end-to-end drug development, medical device, and companion diagnostic development solutions from early-stage research to clinical development and commercial market access.


It serves managed care organizations, pharmaceutical, biotechnology, medical device and diagnostics companies, governmental agencies, physicians and other healthcare providers, hospitals and health systems, employers, patients and consumers, contract research organizations, and independent clinical laboratories.Laboratory Corporation of America Holdings has a collaboration agreement with Tigerlily Foundation to increase clinical trial diversity for women of color.The company was incorporated in 1994 and is headquartered in Burlington, North Carolina.

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1.b. Last Insights on LH

Labcorp Holdings' recent performance was driven by strong Q4 earnings, with the company reporting $4.07 per share, surpassing estimates. Revenue growth of over 7% and 13% adjusted EPS growth contributed to the positive results. The company's Diagnostics segment showed momentum, and expanding test demand was a key factor. Labcorp's acquisition strategy and specialty testing expansion also supported growth. Management introduced 2026 guidance, citing continued growth and margin expansion. According to MarketBeat.com, the company has a consensus rating of "Moderate Buy" from 15 analysts.

1.c. Company Highlights

2. Labcorp's 2025 Earnings: A Strong Year with Promising Outlook

In 2025, Labcorp reported a robust financial performance, with enterprise revenue increasing by 7%, adjusted EPS growing by 13%, and margins improving by over 50 basis points. The company's Diagnostics revenue grew 6% with organic growth of over 4%, while Central Laboratory revenue increased 11% or 8% constant currency. The actual EPS came out at $1.98, missing estimates at $3.95. For the fourth quarter, enterprise revenue increased 6% with margins improving 120 basis points and adjusted EPS grew 18%.

Publication Date: Feb -18

📋 Highlights
  • 2025 Performance:: 7% top-line growth, 13% adjusted EPS growth, and 50 bps margin improvement.
  • 2026 Guidance:: 5.4% revenue growth (midpoint), 9% adjusted EPS growth, and $100–125M annual cost savings target.
  • Central Labs Growth:: 11% Q4 revenue increase (8% constant currency), driven by oncology, neurology, and cardiometabolic demand.
  • Strategic Innovations:: Launched 130+ new tests, including first FDA-cleared Alzheimer’s blood test in primary care.
  • Margin Expansion:: BLS segment to outpace Diagnostics in margin improvement, with enterprise margins up 120 bps in Q4.

Segment Performance

The Diagnostics business was impacted by lower referrals from a large consumer genetic client due to financial challenges and weather, but would have been 2% growth without these factors. The Central Labs business saw strong demand, underscored by wins in oncology, neurology, and cardiometabolic studies. The company's specialty areas are expected to grow 2-3 times faster than the overall market.

Guidance and Outlook

For 2026, Labcorp expects full year enterprise revenue growth of 5.4% at the midpoint of its guidance, improved margins across both segments, and adjusted EPS growth of approximately 9%. The company is confident in its 2026 guidance, which includes 4.7-6% revenue growth and 9% EPS growth at the midpoint. As Julia Wang mentioned, "We expect another year of meaningful margin improvement by both segments, with BLS segment improving more than the Diagnostics segment."

Valuation and Metrics

With a P/E Ratio of 26.04, P/B Ratio of 2.65, and EV/EBITDA of 15.54, the market seems to have priced in a certain level of growth. Analysts estimate next year's revenue growth at 5.5%, which is in line with the company's guidance. The company's ROE is 10.28%, and ROIC is 6.75%, indicating a decent return on equity and invested capital. The Net Debt / EBITDA ratio is 3.22, which may be a concern for some investors.

Key Drivers

The company's growth is driven by its strong position in specialty testing, with 130 new tests launched last year, focusing on women's health, oncology, neurology, and autoimmune disease. The Central Labs business is expected to see solid organic mid-single-digit growth, driven by a strong trailing 12-month book-to-bill. The Early Development market is expected to be relatively flat in 2026, but improve as the year progresses.

3. NewsRoom

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Labcorp Expands Collaboration with PathAI to Deploy FDA-Cleared Digital Pathology Platform Nationwide

12:00

Source: prnewswire.com

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Raiffeisen Bank International AG Purchases Shares of 3,068 Labcorp Holdings Inc. $LH

10:40

Source: defenseworld.net

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Aberdeen Group plc Sells 6,077 Shares of Labcorp Holdings Inc. $LH

Feb -19

Source: defenseworld.net

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Labcorp Q4 Earnings Call Highlights

Feb -19

Source: defenseworld.net

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Labcorp Holdings Inc. (LH) Q4 2025 Earnings Call Transcript

Feb -17

Source: seekingalpha.com

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Labcorp Q4 Earnings Beat, Revenues Miss, Stock Down in Pre-Market

Feb -17

Source: zacks.com

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Labcorp (LH) Q4 Earnings: Taking a Look at Key Metrics Versus Estimates

Feb -17

Source: zacks.com

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Labcorp Holdings (LH) Q4 Earnings Surpass Estimates

Feb -17

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.57%)

6. Segments

Diagnostics Laboratories

Expected Growth: 4.5%

Diagnostics Laboratories from Laboratory Corporation of America Holdings' 4.5% growth is driven by increasing demand for molecular diagnostics, expansion in esoteric testing, and growing adoption of precision medicine. Additionally, the company's strategic acquisitions, investments in digital health, and cost savings initiatives contribute to its growth momentum.

Biopharma Laboratory Services

Expected Growth: 4.8%

The 4.8% growth of Biopharma Laboratory Services from Laboratory Corporation of America Holdings is driven by increasing demand for clinical trial services, expansion into emerging markets, and growing adoption of precision medicine. Additionally, strategic partnerships, investments in digital technologies, and a strong pipeline of new testing services also contribute to the segment's growth.

Intercompany Eliminations and Other

Expected Growth: 3.5%

Intercompany Eliminations and Other segment of Laboratory Corporation of America Holdings grew 3.5% driven by increased testing volumes, strategic acquisitions, and cost savings initiatives. Additionally, the company's focus on personalized medicine and genomic testing contributed to the growth. Furthermore, the segment benefited from the expansion of its esoteric testing business and the integration of newly acquired companies.

7. Detailed Products

Clinical Trials

Laboratory Corporation of America Holdings provides clinical trial testing services to pharmaceutical and biotechnology companies, supporting the development of new drugs and therapies.

Esoteric Testing

LabCorp offers esoteric testing services for rare and complex diseases, including genetic testing, molecular diagnostics, and anatomic pathology.

Routine Testing

LabCorp provides routine testing services for common health conditions, including cholesterol testing, blood glucose testing, and complete blood counts.

Anatomic Pathology

LabCorp offers anatomic pathology services, including tissue and cell analysis, to help diagnose and manage diseases such as cancer.

Molecular Diagnostics

LabCorp provides molecular diagnostics services, including genetic testing and DNA analysis, to help diagnose and manage diseases.

Covance Drug Development

LabCorp's Covance Drug Development segment provides drug development services, including clinical trial management and regulatory consulting.

8. Laboratory Corporation of America Holdings's Porter Forces

Forces Ranking

Threat Of Substitutes

Laboratory Corporation of America Holdings faces moderate threat from substitutes due to the presence of alternative diagnostic testing methods and services.

Bargaining Power Of Customers

Customers of Laboratory Corporation of America Holdings have limited bargaining power due to the company's strong brand reputation and wide range of diagnostic testing services.

Bargaining Power Of Suppliers

Suppliers of Laboratory Corporation of America Holdings have limited bargaining power due to the company's large scale of operations and diversified supplier base.

Threat Of New Entrants

The threat of new entrants in the diagnostic testing industry is low due to the high barriers to entry, including regulatory hurdles and significant capital requirements.

Intensity Of Rivalry

The intensity of rivalry in the diagnostic testing industry is high due to the presence of established competitors, such as Quest Diagnostics, and the need for continuous innovation to stay competitive.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 39.89%
Debt Cost 5.01%
Equity Weight 60.11%
Equity Cost 8.98%
WACC 7.40%
Leverage 66.37%

11. Quality Control: Laboratory Corporation of America Holdings passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
LabCorp

A-Score: 5.4/10

Value: 4.6

Growth: 4.3

Quality: 5.4

Yield: 2.0

Momentum: 7.0

Volatility: 9.3

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Medpace

A-Score: 5.0/10

Value: 1.3

Growth: 9.3

Quality: 7.9

Yield: 0.0

Momentum: 9.5

Volatility: 2.0

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Natera

A-Score: 4.7/10

Value: 4.0

Growth: 7.0

Quality: 3.6

Yield: 0.0

Momentum: 8.5

Volatility: 5.0

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Waters

A-Score: 4.4/10

Value: 1.0

Growth: 5.2

Quality: 7.7

Yield: 0.0

Momentum: 6.0

Volatility: 6.3

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Twist Bioscience

A-Score: 3.8/10

Value: 6.8

Growth: 7.1

Quality: 4.6

Yield: 0.0

Momentum: 2.0

Volatility: 2.0

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Stock-Card
Charles River Laboratories

A-Score: 3.3/10

Value: 4.6

Growth: 4.1

Quality: 3.1

Yield: 0.0

Momentum: 3.5

Volatility: 4.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

284.57$

Current Price

284.57$

Potential

-0.00%

Expected Cash-Flows