01—Abstract
Summary
Summary of the 10-Q filed October 30, 2026. Cited figures are marked; the original filing is the authoritative source.
Labcorp Holdings Inc. reported third-quarter 2026 revenues of $3.81 billiona, up 6.9% from $3.56 billion a year earlier, with organic revenue growth of 5.5% and acquisitions contributing 1.5%.
Operating income rose 1.4% to $402.1 millionb, and net earnings attributable to Labcorp Holdings Inc. were $262.8 million, or $3.22 per diluted share, compared with $261.1 million, or $3.12 per diluted share, a year earlier. Nine-month revenues were $11.08 billion, up 6.2%, with net earnings attributable to the company of $839.3 million, or $10.22 per diluted share, versus $8.48 per diluted share in the prior-year period. Segment operating margins expanded in both Diagnostics Laboratories and Biopharma Laboratory Services, though general corporate and unallocated expenses rose to $153.9 million for the quarter from $110.6 million, citing higher LaunchPad costs and acquisition and disposition-related costs.
Cash generation and capital deployment were significant over the nine months. Net cash provided by operating activities was $1.20 billionc, up from $1.03 billion, while the company spent $404.2 million on capital expenditures and $683.4 million on business acquisitions, net of cash acquired. The company repurchased $451.8 million of common stock, paid $178.1 million in dividends, and took out a $750.0 million 2026 Term Loan due 2028.
Cash and cash equivalents fell to $261.8 milliond at September 30, 2026, while the board authorized an additional $1.00 billion of repurchases on July 8, 2026, leaving $1,378.6 million available. Total debt-related commitments and the company's own acquisition pipeline also stand out, including agreements announced in October 2026 to acquire assets of BioReference Health's laboratory business for up to $872.0 million, Myriad Genetics' Prenatal Health testing business for approximately $210.0 million plus inventory, and Millennium Health for up to $375.0 million. The filing reports that the company was in compliance with its debt covenants at September 30, 2026.
Management stated it believes it has sufficient liquidity for the next 12 months, and it expects to refinance its $600.0 million 3.60% senior notes due September 1, 2027, at likely higher interest rates. Legal matters include the AMCA data security class action, which received final court approval on August 20, 2026, and the Ravgen patent case, with oral argument before the Federal Circuit scheduled for December 15, 2026.
02—Key points
Key Highlights
- Revenues of $3,810.0 million in Q3 2026, up 6.9% from $3,563.5 million, driven by 5.5% organic growth and 1.5% from acquisitions, net of divestitures.
- Net earnings attributable to Labcorp Holdings Inc. of $262.8 million in Q3 2026 versus $261.1 million a year earlier; diluted EPS of $3.22 versus $3.12.
- Dx segment operating margin rose to 16.7% from 16.3%, and BLS segment operating margin rose to 18.3% from 16.5%.
- General corporate and unallocated expenses increased to $153.9 million from $110.6 million, primarily due to higher LaunchPad costs and acquisition and disposition-related costs.
- Operating cash flow of $1,200.8 million for the nine months ended September 30, 2026, up from $1,026.3 million; capital expenditures were $404.2 million.
- Shareholder returns in the nine months included $451.8 million of share repurchases and $178.1 million of dividends, with $1,378.6 million of repurchase authorization remaining at September 30, 2026.
- Pending acquisitions announced in October 2026 include BioReference Health's laboratory business (up to $872.0 million), Myriad Genetics' Prenatal Health testing business (approximately $210.0 million plus inventory), and Millennium Health (up to $375.0 million).
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q3 FY2026, Labcorp Holdings kept $0.07.
- Revenue$3.81B100.0%
- Cost of revenue−$2.70B70.9%
- Gross profit$1.11B29.1%
- Operating costs−$706.0M18.5%
- Operating income$402.1M10.6%
- Interest, other & tax−$139.3M3.7%
- Net income$262.8M6.9%
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2026filed October 30, 2026Financial Statements
Q3 FY2026 against Q3 FY2025
| Line item | Q3 FY2026Q3 FY2025 | Change |
|---|---|---|
| Revenue | $3.81B$3.56B | +6.9% |
| Cost of Revenue | $2.70B$2.54B | +6.4% |
| Gross Profit | $1.11B$1.03B | +8.1% |
| SG&A Expenses | $611.40M$553.10M | +10.5% |
| Operating Income | $402.10M$396.60M | +1.4% |
| Interest Expense | $59.10M$56.00M | +5.5% |
| Net Income | $262.80M$261.10M | +0.7% |
| EPS (Basic) | $3.24$3.14 | +3.2% |
| EPS (Diluted) | $3.22$3.12 | +3.2% |
| Shares Outstanding (Basic) | 81.10M83.10M | −2.4% |
| Shares Outstanding (Diluted) | 81.60M83.70M | −2.5% |
05—Questions
Frequently Asked Questions
How did Labcorp perform in the third quarter of 2026?
Revenues rose 6.9% to $3,810.0 million, with organic revenue growth of 5.5%. Gross profit was $1,108.1 million and operating income was $402.1 million, compared with $396.6 million a year earlier. Net earnings attributable to Labcorp Holdings Inc. were $262.8 million, or $3.22 per diluted share.
What drove the increase in corporate expenses and restructuring charges?
General corporate and unallocated expenses rose to $153.9 million from $110.6 million, primarily due to higher LaunchPad costs and acquisition and disposition-related costs. Restructuring and other charges were $15.9 million for the quarter, compared with $5.9 million a year earlier, comprised mainly of $12.3 million in severance and other personnel costs.
How much debt does Labcorp carry and what are its refinancing plans?
Total debt on the balance sheet was $601.2 million in short-term borrowings and current portion of long-term debt and $5,250.7 million in long-term debt at September 30, 2026. The company entered into a $750.0 million 2026 Term Loan due 2028 and used its proceeds to redeem the 1.55% senior notes due 2026. It expects to refinance its $600.0 million 3.60% senior notes due 2027 and anticipates higher interest rates on the replacement debt.
What are the company's major pending acquisitions?
In October 2026, Labcorp agreed to acquire select assets of BioReference Health's laboratory business for up to $872.0 million, including $722.0 million payable in cash at closing, with closing anticipated in mid-2027. It also agreed to acquire Myriad Genetics' Prenatal Health testing business for approximately $210.0 million in cash plus inventory, expected to close in early 2027, and Millennium Health for up to $375.0 million, anticipated to close in 2026.
Are there material legal proceedings investors should monitor?
The AMCA data security class action received final court approval on August 20, 2026. The Ravgen patent infringement case has a Federal Circuit oral argument scheduled for December 15, 2026, and the Company strongly disagrees with the verdict. The company also received a civil investigative demand from the North Carolina Attorney General's Office on August 20, 2026, related to urine drug testing, and states it is cooperating with the requests.
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