01—Abstract
Summary
Summary of the 10-Q filed May 4, 2026. Cited figures are marked; the original filing is the authoritative source.
Labcorp Holdings Inc. (LH) reported revenues of $3,537.6 milliona for the three months ended March 31, 2026, up from $3,345.1 million a year earlier, and net earnings attributable to Labcorp Holdings Inc. of $277.8 million versus $212.8 million.
Diluted EPS was $3.35b compared with $2.52. Operating income rose to $380.8 million from $326.0 million, and the company attributed the revenue increase to organic revenue growth of 3.1%, acquisitions net of divestitures of 1.4%, and favorable foreign currency translation of 1.3%. Diagnostics Laboratories (Dx) revenues were $2,762.1 million, up 5.0%, and Biopharma Laboratory Services (BLS) revenues were $780.6 million, up 8.2%.
Cash flow improved markedly. Net cash provided by operating activities was $191.5 millionc versus $18.5 million in the prior-year quarter, which the company attributed primarily to higher cash earnings. Cash and cash equivalents rose to $981.1 million from $532.3 million at December 31, 2025.
Long-term debt increased to $5,833.7 milliond from $5,084.6 million, driven by a new $750.0 million 2026 Term Loan entered on March 20, 2026, which the company anticipates using to repay maturing short-term debt. The company also repurchased 0.4 million shares for $98.0 million and paid $61.2 million in dividends during the quarter.
The company stated it was in compliance with its debt covenants at March 31, 2026, and believes it has sufficient liquidity for the next 12 months. Pending matters include the Parkview Health System outreach laboratory asset acquisition, expected at up to $165.0 million and anticipated to close in 2026, and several legal matters, including a Texas Medicaid qui tam case and a Ravgen patent judgment under appeal, which the company says it will vigorously defend.
02—Key points
Key Highlights
- Revenues rose 5.8% to $3,537.6 million, with organic growth of 3.1%, acquisitions contributing 1.4%, and favorable currency translation contributing 1.3%.
- Diluted EPS was $3.35 versus $2.52 a year earlier; net earnings attributable to the company were $277.8 million versus $212.8 million.
- Operating income increased to $380.8 million from $326.0 million, with Dx segment operating income of $458.7 million and BLS segment operating income of $120.7 million.
- Operating cash flow was $191.5 million versus $18.5 million, and cash and cash equivalents increased to $981.1 million.
- Long-term debt increased to $5,833.7 million, including a new $750.0 million 2026 Term Loan maturing March 20, 2028, at an effective rate of 4.39%.
- The company repurchased 0.4 million shares for $98.0 million, with $732.4 million remaining under its repurchase authorization, and declared a $0.72 per share dividend payable June 11, 2026.
- Acquisitions totaled $312.0 in consideration during the quarter, including Empire City Laboratories, and a Parkview outreach asset deal of up to $165.0 is pending.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q1 FY2026, Labcorp Holdings kept $0.08.
- Revenue$3.54B100.0%
- Cost of revenue−$2.52B71.3%
- Gross profit$1.01B28.7%
- Operating costs−$633.0M17.9%
- Operating income$380.8M10.8%
- Interest, other & tax−$103.0M2.9%
- Net income$277.8M7.9%
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2026filed May 4, 2026Financial Statements
Q1 FY2026 against Q1 FY2025
| Line item | Q1 FY2026Q1 FY2025 | Change |
|---|---|---|
| Revenue | $3.54B$3.35B | +5.8% |
| Cost of Revenue | $2.52B$2.40B | +5.3% |
| Gross Profit | $1.01B$948.00M | +6.9% |
| SG&A Expenses | $551.00M$546.00M | +0.9% |
| Operating Income | $380.80M$326.00M | +16.8% |
| Interest Expense | $55.10M$56.00M | −1.6% |
| Net Income | $277.80M$212.80M | +30.5% |
| EPS (Basic) | $3.37$2.54 | +32.7% |
| EPS (Diluted) | $3.35$2.52 | +32.9% |
| Shares Outstanding (Basic) | 82.30M83.60M | −1.6% |
| Shares Outstanding (Diluted) | 82.90M84.30M | −1.7% |
05—Questions
Frequently Asked Questions
How did Labcorp's revenue and profitability change in the first quarter of 2026?
Revenues were $3,537.6 million, up 5.8% from $3,345.1 million. Operating income increased to $380.8 million from $326.0 million, and net earnings attributable to Labcorp Holdings Inc. rose to $277.8 million from $212.8 million, with diluted EPS of $3.35 versus $2.52.
What drove the revenue growth?
The 5.8% increase was due to organic revenue growth of 3.1%, acquisitions net of divestitures of 1.4%, and favorable foreign currency translation of 1.3%. Dx revenues grew 5.0%, primarily from organic growth and acquisitions, while BLS revenues grew 8.2%, mainly from favorable currency translation of 5.5% and organic growth of 3.7%.
How did the company's debt and liquidity position change?
Long-term debt increased to $5,833.7 million from $5,084.6 million, mainly due to the $750.0 million 2026 Term Loan. Cash and cash equivalents rose to $981.1 million, and $1,000.0 million was available under the revolving credit facility at March 31, 2026. The company said it was in compliance with its covenants and expects to remain so for the next 12 months.
What are the notable pending items or risks disclosed in the filing?
The company expects to close the Parkview Health System outreach laboratory asset acquisition in 2026 for up to $165.0 million. Legal matters include a Texas Medicaid qui tam lawsuit pending before the Texas Supreme Court, a Ravgen patent judgment under appeal, and a Meta Pixel class action settlement subject to court approval. The company states it will vigorously defend the lawsuits it is contesting.
How much did the company return to shareholders this quarter?
Labcorp repurchased 0.4 million shares for $98.0 million at an average price of $273.76 per share and paid $61.2 million in dividends during the quarter. On April 9, 2026, it announced a $0.72 per share dividend, approximately $60.0 million in aggregate, payable June 11, 2026.
06—Continue