01—Abstract
Summary
Summary of the 10-K filed February 24, 2026. Cited figures are marked; the original filing is the authoritative source.
Labcorp Holdings Inc. (LH) reported 2025 revenues of $13,951.7 milliona, up 7.2% from $13,008.9 million in 2024, driven by organic revenue growth of 4.4%, acquisitions net of divestitures of 2.5%, and favorable foreign currency translation of 0.4%.
Operating income rose to $1,384.7 millionb from $1,086.7 million, and net earnings attributable to Labcorp Holdings Inc. were $876.5 million, versus $746.0 million in 2024. Diluted EPS was $10.46, compared with $8.84 in 2024. Dx (Diagnostics Laboratories) generated $10,876.5 million in revenue with segment operating income of $1,779.9 million, while BLS (Biopharma Laboratory Services) generated $3,098.2 million with segment operating income of $498.5 million.
Cash flow from operations was $1,640.5 millionc, compared with $1,585.8 million in 2024. Cash and cash equivalents fell to $532.3 million from $1,518.7 million, reflecting $1,194.0 million used for investing activities (including $582.0 million in acquisitions and $434.5 million in capital expenditures) and $1,457.0 million used for financing activities, which included $450.0 million in share repurchases and $240.7 million in dividends. Senior notes principal totaled $5.2 billion, and the company had $1.0 billion available under its revolving credit facility at year-end.
The filing also highlights ongoing reimbursement pressure from PAMA, with rate reductions frozen for 2026 and capped at 15%d per year for 2027 to 2029 under the Consolidated Appropriations Act. Management plans to raise capital expenditures to approximately 4.0% of revenues. Pending legal matters include the Ravgen patent judgment, which the company is appealing, and the AMCA data incident, for which the company has reached a term sheet to settle the class action.
02—Key points
Key Highlights
- Revenues rose 7.2% to $13,951.7 million, with organic revenue growth of 4.4%, acquisitions net of divestitures contributing 2.5%, and favorable currency translation of 0.4%.
- Operating income increased to $1,384.7 million from $1,086.7 million, and diluted EPS rose to $10.46 from $8.84.
- Dx segment revenue reached $10,876.5 million with operating margin of 16.4%, while BLS revenue was $3,098.2 million with operating margin of 16.1%.
- Operating cash flow was $1,640.5 million, and the company invested $582.0 million in strategic acquisitions and returned capital through $450.0 million in share repurchases and $240.7 million in dividends.
- Cash and cash equivalents declined to $532.3 million from $1,518.7 million, and $830.4 million remained under the Board's share repurchase authorization.
- PAMA rate reductions are frozen for 2026 and capped at 15% per year for 2027 to 2029, though reimbursement pressure remains a key risk.
- Labcorp expects capital expenditures to rise to approximately 4.0% of revenues, and the Ravgen patent judgment remains under appeal.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2025, Labcorp Holdings kept $0.06.
- Revenue$13.95B100.0%
- Cost of revenue−$9.94B71.2%
- Gross profit$4.01B28.8%
- Operating costs−$2.63B18.8%
- Operating income$1.38B9.9%
- Interest, other & tax−$507.7M3.6%
- Net income$877.0M6.3%
Where FY2025 revenue went
$13.95B- Cost of revenue: $9.94B, 71% of revenue
- SG&A: $2.22B, 16% of revenue
- Net income: $877.0M, 6.3% of revenue
- Other operating costs: $411.5M, 2.9% of revenue
- Interest, other & tax: $507.7M, 3.6% of revenue
Kept 6.3% as net income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2025filed February 24, 2026Financial Statements
FY2025 against FY2024
| Line item | FY2025FY2024 | Change |
|---|---|---|
| Revenue | $13.95B$13.01B | +7.2% |
| Cost of Revenue | $9.94B$9.38B | +5.9% |
| Gross Profit | $4.01B$3.62B | +10.7% |
| SG&A Expenses | $2.22B$2.23B | −0.6% |
| Operating Income | $1.38B$1.09B | +27.4% |
| Interest Expense | $224.10M$208.30M | +7.6% |
| Net Income | $877.00M$746.00M | +17.6% |
| EPS (Basic) | $10.54$8.89 | +18.6% |
| EPS (Diluted) | $10.46$8.84 | +18.3% |
| Shares Outstanding (Basic) | 83.20M83.90M | −0.8% |
| Shares Outstanding (Diluted) | 83.80M84.40M | −0.7% |
05—Questions
Frequently Asked Questions
How did Labcorp perform financially in 2025?
Revenues were $13,951.7 million, up 7.2% from $13,008.9 million in 2024. Net earnings attributable to Labcorp Holdings Inc. were $876.5 million, compared with $746.0 million, and diluted EPS was $10.46 versus $8.84.
What drove revenue growth in 2025?
The company attributed the 7.2% revenue increase primarily to organic revenue growth of 4.4%, acquisitions net of divestitures of 2.5%, and favorable foreign currency translation of 0.4%. Dx organic revenue grew 4.1%, and BLS organic growth was 4.0%.
How is Labcorp returning capital to shareholders?
In 2025 the company repurchased 1.8 million shares for $450.0 million at an average price of $254.17 and paid $240.7 million in dividends. At year-end, $830.4 million remained under the Board's repurchase authorization, and a quarterly dividend of $0.72 per share was announced for March 2026.
What are the main reimbursement risks for the Dx business?
The filing describes ongoing government and commercial payer pressure to reduce reimbursement. PAMA resulted in a net reduction of approximately $245.0 million in reimbursement revenue between 2018 and 2020. Under the Consolidated Appropriations Act, PAMA rate decreases are frozen for 2026 and will resume in 2027 with annual reductions capped at 15% through 2029.
What is the status of the major pending litigation?
The Ravgen patent case involves a $272.0 million jury verdict from 2022, enhanced damages of $100.0 million, and an ongoing royalty of $100 per test. The company disagrees with the verdict and is appealing. For the AMCA data incident, the parties reached a term sheet in November 2025 and are drafting a settlement subject to court approval.
06—Continue