LH · Labcorp Holdings Inc.

Labcorp's first quarter 2026 results demonstrated robust operational performance across both segments. Revenue grew 5.8% to $3.54 billion, driven by organic growth of 3.1%, acquisitions adding 1.4%, and a 1.3% favorable foreign exchange impact. The Diagnostics Laboratories segment posted 5.0% revenue growth to $2.76 billion, with organic volume up 1.8% and price/mix up 1.1%, partially offset by adverse weather. Adjusted operating margin improved 30 basis points to 16.6%, driven by organic growth. The Biopharma Laboratory Services segment grew 8.2% to $780.6 million, led by Central Labs revenue growth of 11.3%, while Early Development grew 0.6%. Adjusted operating margin expanded 60 basis points to 15.5%, driven by Central Labs growth. On a GAAP basis, diluted EPS surged 32.8% to $3.35, while adjusted EPS rose 10.6% to $4.25, reflecting strong earnings growth and margin expansion. Management highlighted continued momentum across strategic priorities, including partnerships with Children's Hospital of Philadelphia, Illumina, and Optum.ai, as well as new product launches like the Labcorp Fentanyl Visual Urine Test and an AI-powered real-world data platform. The company raised its full-year 2026 adjusted EPS guidance to $17.70-$18.35 (midpoint $18.03, up $0.13) and enterprise revenue growth guidance to 5.0%-6.1% (midpoint up 20 bps). Free cash flow guidance was maintained at $1.24-$1.36 billion. Capital allocation remained disciplined, with $202.2 million in acquisitions, $98.0 million in share repurchases, and $61.2 million in dividends during the quarter. The balance sheet showed $981.1 million in cash and $6.33 billion in debt, with higher balances due to pre-funding of maturing debt.