01—Abstract
Summary
Summary of the 10-Q filed October 31, 2025. Cited figures are marked; the original filing is the authoritative source.
Labcorp Holdings Inc. reported third-quarter 2025 revenues of $3,563.5 milliona, up from $3,282.0 million in the prior-year quarter, and net earnings attributable to Labcorp Holdings Inc. of $261.1 million, compared with $169.3 million a year earlier.
Diluted earnings per share were $3.12b, versus $2.00. For the nine months ended September 30, 2025, revenues were $10,435.9 million and diluted EPS was $8.48. The filing attributes the quarterly revenue increase of 8.6% to organic revenue growth of 6.2%, acquisitions net of divestitures of 1.7%, and favorable foreign currency translation of 0.7%.
Operating income rose to $396.6 millionc from $254.1 million, aided by lower general corporate and unallocated expenses, which fell to $109.9 million from $172.5 million. Cash generation was steady, with operating cash flow of $1,026.3 million for the nine months versus $808.6 million a year earlier. Cash and cash equivalents declined to $598.1 million from $1,518.7 million at December 31, 2024, as the company repaid $1,000.0 million of senior notes, paid $225.0 million for share repurchases and $181.4 million in dividends, and spent $324.0 million on acquisitions and $179.9 million on equity affiliate investments.
Total debt on the balance sheet was roughly $5.58 billiond, and the company reported $1,000.0 million of available borrowings under its revolver. The filing also points to pending transactions: an agreement to acquire select outreach assets from Community Health Systems for approximately $195.0 million, expected to close in the fourth quarter of 2025, and an agreement to acquire select clinical laboratory assets from Empire City Laboratories for up to $250.0 million, expected to close in the first quarter of 2026. Management disclosed the One Big Beautiful Bill Act, which could reduce insurance coverage and diagnostic testing utilization, but stated it does not expect a material impact on results of operations in future periods.
02—Key points
Key Highlights
- Revenues rose to $3,563.5 million in Q3 2025 from $3,282.0 million, an increase of 8.6%, driven by organic growth of 6.2%.
- Net earnings attributable to Labcorp Holdings Inc. were $261.1 million in Q3 2025, versus $169.3 million a year earlier; diluted EPS was $3.12 compared with $2.00.
- Operating income increased to $396.6 million from $254.1 million, supported by a $62.6 million decline in general corporate and unallocated expenses.
- Dx segment operating margin was 16.3% in Q3 2025, up from 15.2%, and BLS segment operating margin was 16.5%, up from 16.4%.
- Cash and cash equivalents fell to $598.1 million at September 30, 2025, from $1,518.7 million at December 31, 2024, after $1,000.0 million of senior note repayments.
- Pending acquisitions include Community Health Systems outreach assets for about $195.0 million and Empire City Laboratories assets for up to $250.0 million.
- The board authorized repurchases of up to $1,055.4 million of common stock, and a $0.72 per share dividend was announced on October 8, 2025.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q3 FY2025, Labcorp Holdings kept $0.07.
- Revenue$3.56B100.0%
- Cost of revenue−$2.54B71.2%
- Gross profit$1.03B28.8%
- Operating costs−$628.5M17.6%
- Operating income$396.6M11.1%
- Interest, other & tax−$135.5M3.8%
- Net income$261.1M7.3%
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2025filed October 31, 2025Financial Statements
Q3 FY2025 against Q3 FY2024
| Line item | Q3 FY2025Q3 FY2024 | Change |
|---|---|---|
| Revenue | $3.56B$3.28B | +8.6% |
| Cost of Revenue | $2.54B$2.38B | +6.8% |
| Gross Profit | $1.03B$904.40M | +13.3% |
| SG&A Expenses | $553.10M$568.60M | −2.7% |
| Operating Income | $396.60M$254.10M | +56.1% |
| Interest Expense | $56.00M$50.40M | +11.1% |
| Net Income | $261.10M$169.30M | +54.2% |
| EPS (Basic) | $3.14$2.02 | +55.4% |
| EPS (Diluted) | $3.12$2.00 | +56.0% |
| Shares Outstanding (Basic) | 83.10M84.00M | −1.1% |
| Shares Outstanding (Diluted) | 83.70M84.40M | −0.8% |
05—Questions
Frequently Asked Questions
How did Labcorp's revenue and profitability change in the third quarter of 2025?
Revenues were $3,563.5 million, up 8.6% from $3,282.0 million. Operating income increased to $396.6 million from $254.1 million, and net earnings attributable to Labcorp Holdings Inc. rose to $261.1 million from $169.3 million. The filing attributes the revenue growth to organic growth of 6.2%, acquisitions net of divestitures of 1.7%, and favorable foreign currency translation of 0.7%.
How much debt did Labcorp repay, and how is its liquidity position?
The company repaid $1,000.0 million of 3.60% senior notes due 2025 during the nine months ended September 30, 2025. Cash and cash equivalents were $598.1 million at quarter-end, and $1,000.0 million of borrowings were available under the revolving credit facility. Management said it has sufficient liquidity for the next 12 months.
What acquisitions are pending, and what do they cost?
Labcorp agreed to acquire select outreach assets from Community Health Systems for about $195.0 million, expected to close in the fourth quarter of 2025. It also agreed to acquire select clinical laboratory assets from Empire City Laboratories for up to $250.0 million, including $165.0 million at closing and up to $85.0 million contingent on performance, expected to close in the first quarter of 2026.
What regulatory risk does the filing highlight?
The One Big Beautiful Bill Act, enacted July 4, 2025, includes changes to Medicaid and the Affordable Care Act that could reduce insurance coverage and diagnostic testing utilization, which may cause revenue to decrease. Management believes any such reduction would not likely have a material impact on results of operations in future periods.
How much capital did Labcorp return to shareholders?
During the nine months ended September 30, 2025, the company paid $181.4 million in dividends and purchased $225.0 million of common stock. Its board authorization had $1,055.4 million remaining at September 30, 2025, with no expiration date. On October 8, 2025, the company announced a $0.72 per share dividend, about $60.6 million in total.
06—Continue