Why did Labcorp raise its 2025 guidance?

The company cited its strong first-half performance and momentum into the second half. The filing states the raise was primarily driven by currency, as well as the underlying strength of its businesses.

How did Labcorp's segments perform in the second quarter?

Diagnostics Laboratories revenue rose 8.9% to $2.75 billion, with organic growth of 4.5% and adjusted operating margin of 17.6%. Biopharma Laboratory Services revenue rose 11.0% to $784.8 million, with organic growth of 7.8% and adjusted operating margin of 15.7%.

How strong is Labcorp's cash position after the quarter?

At June 30, 2025, cash and cash equivalents were $0.65 billion and total debt was $5.58 billion. Free cash flow for the quarter was $542.7 million, compared with $432.9 million a year earlier.

What are the company's capital allocation actions?

During the quarter, Labcorp repurchased $200.0 million of common stock, invested $25.0 million in acquisitions and partnerships, and paid $59.9 million in dividends. It also announced a quarterly dividend of $0.72 per share, payable September 11, 2025, to holders of record on August 28, 2025.

What acquisitions is Labcorp pursuing?

Labcorp announced an agreement to acquire select assets of Incyte Diagnostics' clinical and anatomic pathology testing businesses in the Pacific Northwest. It also continued to progress the acquisition of select oncology and clinical testing assets from BioReference Health. After quarter end, it announced an agreement to acquire select assets of the outreach business from Community Health Systems across 13 states.

LH 8-K: Earnings & Results

01—Abstract

Summary

Summary of the 8-K filed July 24, 2025. Cited figures are marked; the original filing is the authoritative source.

Labcorp Holdings Inc. reported second-quarter 2025 results in a Form 8-K furnishing Exhibit 99.1, a press release announcing 2025 Second Quarter Results.

Revenue rose to $3.53 billion^a from $3.22 billion, a 9.5% increase, with organic growth of 5.4% and acquisitions contributing 3.5%. Diluted EPS was $2.84 versus $2.43, and adjusted EPS was $4.35 versus $3.94, up 10.4%. Operating income margin was 11.2% versus 9.2%, and adjusted operating margin was 15.1% versus 14.9%.

The company raised its 2025 guidance. Enterprise revenue growth is now expected at 7.5% to 8.6%, with the midpoint raised by 70 basis points. Adjusted EPS guidance is narrowed to $16.05 to $16.50^b, with the midpoint raised by $0.23, and free cash flow guidance is $1.13 billion to $1.28 billion, with the midpoint raised by $25 million.

The company attributes the raise primarily to currency and the underlying strength of its businesses. Diagnostics Laboratories revenue grew 8.9% to $2.75 billion^c, and Biopharma Laboratory Services revenue grew 11.0% to $784.8 million, with organic growth of 7.8%. Biopharma backlog reached $8.71 billion, up 10.0% year over year.

At quarter end, cash and cash equivalents were $0.65 billion^d and total debt was $5.58 billion. During the quarter, the company repurchased $200.0 million of stock and declared a quarterly dividend of $0.72 per share.

02—Key points

Key Highlights

Q2 2025 revenue of $3.53 billion, up 9.5% from $3.22 billion, with organic growth of 5.4%
Adjusted EPS of $4.35 versus $3.94 in Q2 2024, up 10.4%; diluted EPS of $2.84 versus $2.43
Full-year 2025 guidance raised: enterprise revenue growth of 7.5% to 8.6%, adjusted EPS of $16.05 to $16.50, and free cash flow of $1.13 billion to $1.28 billion
Operating income margin of 11.2% versus 9.2%; adjusted operating margin of 15.1% versus 14.9%
Biopharma Laboratory Services revenue up 11.0% to $784.8 million, with Early Development revenue growth of 20.4%; backlog of $8.71 billion, up 10.0%
Capital returns: $200.0 million of share repurchases in the quarter and a $0.72 quarterly dividend payable September 11, 2025
Acquisition pipeline includes Incyte Diagnostics assets, continued progress on BioReference Health assets, and an agreement to acquire select Community Health Systems outreach assets across 13 states

03—Questions

Frequently Asked Questions

Why did Labcorp raise its 2025 guidance?
The company cited its strong first-half performance and momentum into the second half. The filing states the raise was primarily driven by currency, as well as the underlying strength of its businesses.
How did Labcorp's segments perform in the second quarter?
Diagnostics Laboratories revenue rose 8.9% to $2.75 billion, with organic growth of 4.5% and adjusted operating margin of 17.6%. Biopharma Laboratory Services revenue rose 11.0% to $784.8 million, with organic growth of 7.8% and adjusted operating margin of 15.7%.
How strong is Labcorp's cash position after the quarter?
At June 30, 2025, cash and cash equivalents were $0.65 billion and total debt was $5.58 billion. Free cash flow for the quarter was $542.7 million, compared with $432.9 million a year earlier.
What are the company's capital allocation actions?
During the quarter, Labcorp repurchased $200.0 million of common stock, invested $25.0 million in acquisitions and partnerships, and paid $59.9 million in dividends. It also announced a quarterly dividend of $0.72 per share, payable September 11, 2025, to holders of record on August 28, 2025.
What acquisitions is Labcorp pursuing?
Labcorp announced an agreement to acquire select assets of Incyte Diagnostics' clinical and anatomic pathology testing businesses in the Pacific Northwest. It also continued to progress the acquisition of select oncology and clinical testing assets from BioReference Health. After quarter end, it announced an agreement to acquire select assets of the outreach business from Community Health Systems across 13 states.

04—Continue

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