How did Labcorp perform in the first quarter of 2025?

Revenue increased to $3.35 billion from $3.18 billion, and adjusted operating income rose to $469.0 million from $452.8 million. GAAP diluted EPS declined to $2.52 from $2.69, while adjusted EPS increased to $3.84 from $3.68.

Did Labcorp change its full-year 2025 guidance?

Revenue guidance of 6.7% to 8.0% and free cash flow guidance of $1.10 billion to $1.25 billion were reaffirmed. The adjusted EPS range was narrowed to $15.70 to $16.40 from $15.60 to $16.40, raising the midpoint by $0.05.

What drove the decline in adjusted operating margin?

Adjusted operating margin declined 20 basis points to 14.0% from 14.3%. The company stated this decrease was due to Invitae.

What strategic activity did Labcorp report during the quarter?

Labcorp entered a strategic collaboration with Inspira Health to manage hospital laboratory operations, agreed to acquire select assets of BioReference Health's oncology and related clinical testing businesses, and completed the acquisition of select assets of North Mississippi Health Services' ambulatory outreach laboratory business.

What is the status of Labcorp's cash position and dividend?

Cash and cash equivalents were $0.37 billion and total debt was $5.57 billion at quarter end. The company paid $61.6 million in dividends during the quarter and declared a quarterly dividend of $0.72 per share payable June 11, 2025.

LH 8-K: Earnings & Results

01—Abstract

Summary

Summary of the 8-K filed April 29, 2025. Cited figures are marked; the original filing is the authoritative source.

Labcorp Holdings Inc. reported first quarter 2025 results on April 29, 2025, under Item 2.02 of this Form 8-K, furnishing a press release as Exhibit 99.1.

Revenue rose to $3.35 billion^a from $3.18 billion, with diluted EPS of $2.52 versus $2.69 and adjusted EPS of $3.84 versus $3.68. Organic revenue grew 2.1%, acquisitions added 3.7%, and foreign exchange reduced growth by 0.5%. Operating income was $326.0 million compared with $321.3 million, while adjusted operating income rose to $469.0 million from $452.8 million, though adjusted operating margin declined 20 basis points to 14.0%, which the company attributed to Invitae.

The company reaffirmed its 2025 revenue guidance of 6.7% to 8.0% and free cash flow guidance of $1.10 billion to $1.25 billion^b, and raised the midpoint of its adjusted EPS range by $0.05 to a range of $15.70 to $16.40. First-quarter free cash flow was negative $107.5 million, compared with negative $163.6 million a year earlier, as operating cash flow improved to $18.5 million from negative $29.8 million, primarily due to timing of working capital. Year-end cash and cash equivalents were $0.37 billion and total debt was $5.57 billion.

The release also highlighted partnership and acquisition activity, including a strategic collaboration with Inspira Health, an agreement to acquire select assets of BioReference Health's oncology testing businesses, and completion of the North Mississippi Health Services outreach laboratory asset acquisition. The Diagnostics Laboratories segment grew revenue 6.0% to $2.63 billion^c, while Biopharma Laboratory Services grew 1.5% to $721.3 million with backlog of $8.18 billion. A quarterly dividend of $0.72 per share was declared, payable June 11, 2025.

02—Key points

Key Highlights

Revenue rose to $3.35 billion from $3.18 billion, up 5.3%, with organic growth of 2.1%, acquisitions contributing 3.7%, and foreign exchange reducing growth by 0.5%.
Diluted EPS was $2.52 versus $2.69 a year earlier, while adjusted EPS increased to $3.84 from $3.68.
Adjusted operating income increased to $469.0 million from $452.8 million, although adjusted operating margin fell 20 basis points to 14.0%, which the company attributed to Invitae.
2025 revenue guidance of 6.7% to 8.0% and free cash flow guidance of $1.10 billion to $1.25 billion were reaffirmed; the adjusted EPS midpoint was raised $0.05 to a $15.70 to $16.40 range.
Operating cash flow improved to $18.5 million from negative $29.8 million, and free cash flow was negative $107.5 million versus negative $163.6 million, largely reflecting working capital timing.
Diagnostics Laboratories revenue grew 6.0% to $2.63 billion, while Biopharma Laboratory Services revenue grew 1.5% to $721.3 million, with backlog of $8.18 billion.
A quarterly cash dividend of $0.72 per share was announced, payable June 11, 2025, to holders of record on May 29, 2025.

03—Questions

Frequently Asked Questions

How did Labcorp perform in the first quarter of 2025?
Revenue increased to $3.35 billion from $3.18 billion, and adjusted operating income rose to $469.0 million from $452.8 million. GAAP diluted EPS declined to $2.52 from $2.69, while adjusted EPS increased to $3.84 from $3.68.
Did Labcorp change its full-year 2025 guidance?
Revenue guidance of 6.7% to 8.0% and free cash flow guidance of $1.10 billion to $1.25 billion were reaffirmed. The adjusted EPS range was narrowed to $15.70 to $16.40 from $15.60 to $16.40, raising the midpoint by $0.05.
What drove the decline in adjusted operating margin?
Adjusted operating margin declined 20 basis points to 14.0% from 14.3%. The company stated this decrease was due to Invitae.
What strategic activity did Labcorp report during the quarter?
Labcorp entered a strategic collaboration with Inspira Health to manage hospital laboratory operations, agreed to acquire select assets of BioReference Health's oncology and related clinical testing businesses, and completed the acquisition of select assets of North Mississippi Health Services' ambulatory outreach laboratory business.
What is the status of Labcorp's cash position and dividend?
Cash and cash equivalents were $0.37 billion and total debt was $5.57 billion at quarter end. The company paid $61.6 million in dividends during the quarter and declared a quarterly dividend of $0.72 per share payable June 11, 2025.

04—Continue

← View all 8-K filings