01—Abstract
Summary
Summary of the 10-Q filed August 5, 2026. Cited figures are marked; the original filing is the authoritative source.
Labcorp Holdings Inc. (LH) reported revenues of $3,731.1 milliona for the three months ended June 30, 2026, up from $3,527.3 million a year earlier, and $7,268.7 million for the six months, up from $6,872.4 million.
The quarter's revenue increase of 5.8% was attributed to organic revenue of 4.2%, acquisitions net of divestitures of 1.2%, and favorable foreign currency translation of 0.4%. Operating income rose to $451.6 millionb from $394.5 million, and net earnings attributable to Labcorp Holdings Inc. were $298.7 million, or $3.64 per diluted share, versus $2.84 a year earlier. Dx and BLS contributed approximately 78% and 22% of revenues, respectively.
Cash flow and capital allocation were central to the period. Net cash provided by operating activities was $637.0 millionc for the six months, roughly flat with $639.1 million a year earlier. The company acquired businesses for $427.9 million net of cash acquired, spent $252.6 million on capital expenditures, and repurchased $451.8 million of common stock.
Cash and cash equivalents fell to $141.8 milliond at June 30, 2026, while long-term debt increased to $5,857.6 million, reflecting a new $750.0 million 2026 Term Loan used to redeem the 1.55% senior notes due 2026. After the period end, the Board authorized an additional $1,000.0 million repurchase, bringing total authorization to $1,378.6 million, and declared a $0.72 per share dividend payable September 11, 2026.
The filing also reports that the Texas Supreme Court reinstated a District Court judgment in the company's favor in the Texas Medicaid qui tam matter on June 19, 2026, and that the company settled a DOJ urine drug testing subpoena on July 15, 2026. The Ravgen patent judgment remains under appeal, and the AMCA-related class action is subject to court approval of a settlement.
02—Key points
Key Highlights
- Total revenues rose 5.8% to $3,731.1 million for Q2 2026, driven by organic revenue growth of 4.2% and acquisitions contributing 1.2%.
- Operating income increased to $451.6 million from $394.5 million, and diluted EPS rose to $3.64 from $2.84.
- Dx segment operating margin was 18.0% for the quarter, up from 17.6%, and BLS segment operating margin was 17.0%, up from 15.7%.
- Six-month operating cash flow of $637.0 million was roughly flat versus $639.1 million a year earlier, as working capital changes offset higher cash earnings.
- Long-term debt increased to $5,857.6 million from $5,084.6 million after a $750.0 million 2026 Term Loan funded redemption of $500.0 million of 1.55% senior notes.
- Share repurchases totaled $451.8 million in the first six months, and the Board added $1,000.0 million to the authorization on July 8, 2026, for a total of $1,378.6 million.
- Acquisitions for the six months totaled $528.6 million of total consideration, and an agreement was signed on June 28, 2026 to acquire outreach laboratory assets for approximately $155.0 million.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q2 FY2026, Labcorp Holdings kept $0.08.
- Revenue$3.73B100.0%
- Cost of revenue−$2.62B70.2%
- Gross profit$1.11B29.8%
- Operating costs−$660.4M17.7%
- Operating income$451.6M12.1%
- Interest, other & tax−$152.9M4.1%
- Net income$298.7M8.0%
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2026filed August 5, 2026Financial Statements
Q2 FY2026 against Q2 FY2025
| Line item | Q2 FY2026Q2 FY2025 | Change |
|---|---|---|
| Revenue | $3.73B$3.53B | +5.8% |
| Cost of Revenue | $2.62B$2.48B | +5.6% |
| Gross Profit | $1.11B$1.05B | +6.3% |
| SG&A Expenses | $577.20M$579.30M | −0.4% |
| Operating Income | $451.60M$394.50M | +14.5% |
| Interest Expense | $61.10M$57.10M | +7.0% |
| Net Income | $298.70M$237.90M | +25.6% |
| EPS (Basic) | $3.66$2.85 | +28.4% |
| EPS (Diluted) | $3.64$2.84 | +28.2% |
| Shares Outstanding (Basic) | 81.70M83.40M | −2.0% |
| Shares Outstanding (Diluted) | 82.00M83.90M | −2.3% |
05—Questions
Frequently Asked Questions
How did Labcorp perform in the second quarter of 2026?
Revenues were $3,731.1 million, up 5.8% from $3,527.3 million, and operating income was $451.6 million versus $394.5 million. Net earnings attributable to Labcorp Holdings Inc. were $298.7 million, or $3.64 per diluted share, compared with $237.9 million, or $2.84 per diluted share, a year earlier.
What drove revenue growth and segment performance?
The quarter's revenue growth was primarily organic (4.2%), with acquisitions net of divestitures adding 1.2% and favorable currency adding 0.4%. Dx revenues rose 5.5% to $2,900.7 million, while BLS revenues rose 6.5% to $836.2 million, with BLS organic growth of 6.2% attributed to the Central Laboratory business.
How is the company funding acquisitions and shareholder returns?
Operating cash flow of $637.0 million for the six months was supplemented by a $750.0 million 2026 Term Loan, a $175.0 million gross accounts receivable securitization draw, and $34.7 million of employee stock plan proceeds. These funded $427.9 million of net acquisition spending, $252.6 million of capital expenditures, $451.8 million of share repurchases, and $119.9 million of dividends paid.
What legal developments did the filing disclose?
On June 19, 2026, the Texas Supreme Court reversed the Texas Court of Appeals and reinstated the District Court's judgment in favor of the company in the Texas Medicaid qui tam matter. On July 15, 2026, the company entered into a settlement agreement with the DOJ regarding a urine drug testing subpoena. The Ravgen patent judgment remains under appeal, and the AMCA class action settlement is subject to court approval.
What is the company's dividend and repurchase outlook?
On July 9, 2026, the company announced a $0.72 per share dividend, approximately $59.0 million in aggregate, payable September 11, 2026, to holders of record on August 28, 2026. On July 8, 2026, the Board authorized an additional $1,000.0 million in share repurchases, bringing total authorization to $1,378.6 million, with no expiration date.
06—Continue