01—Abstract
Summary
Summary of the 8-K filed October 28, 2025. Cited figures are marked; the original filing is the authoritative source.
Labcorp Holdings Inc. furnished an 8-K on October 28, 2025 attaching Exhibit 99.1, a press release announcing its 2025 third-quarter results and updated full-year guidance.
Third-quarter revenue was $3.56 billiona versus $3.28 billion a year earlier, up 8.6%, with organic growth of 6.2% and acquisitions contributing 1.7%. Diluted EPS was $3.12 versus $2.00, and adjusted EPS was $4.18 versus $3.50, up 19.4%. Operating income rose to $396.6 million (11.1% of revenue) from $254.1 million, and adjusted operating income reached $513.3 million (14.4% of revenue).
Free cash flow was $280.5 millionb versus $161.5 million, and the company repurchased $25.0 million of stock during the quarter. Cash and cash equivalents ended the quarter at $598 million and total debt at $5.58 billion. The Diagnostics Laboratories segment grew revenue 8.5% to $2.77 billion, while Biopharma Laboratory Services grew 8.3% to $799.1 million.
The filing notes the company is beginning to divest or restructure approximately $50 millionc of annual Early Development revenue. For full-year 2025, Labcorp narrowed its enterprise revenue growth guidance to 7.4% to 8.0%, with the midpoint lowered 40 bps due to currency and acquisition timing. Adjusted EPS guidance is $16.15 to $16.50, with the midpoint raised by $0.05, and free cash flow guidance is $1.17 billion to $1.29 billion, with the midpoint raised by $25 million.
02—Key points
Key Highlights
- Q3 2025 revenue of $3.56 billion, up from $3.28 billion, an 8.6% increase; organic growth was 6.2%.
- Q3 adjusted EPS of $4.18 versus $3.50, a 19.4% increase; diluted EPS was $3.12 versus $2.00.
- Adjusted operating margin expanded to 14.4% from 13.4%; GAAP operating margin rose to 11.1% from 7.7%.
- Free cash flow of $280.5 million versus $161.5 million, driven by higher cash earnings.
- Full-year revenue guidance narrowed to 7.4%-8.0%, with midpoint lowered 40 bps on currency and acquisition timing.
- Full-year adjusted EPS guidance raised to $16.15-$16.50 (midpoint up $0.05); free cash flow guidance raised to $1.17-$1.29 billion.
- Biopharma Laboratory Services backlog reached $8.58 billion, up 5.4% year over year, with a TTM book-to-bill of 1.09.
03—Questions
Frequently Asked Questions
How did Labcorp perform in the third quarter of 2025?
Revenue rose 8.6% to $3.56 billion, with organic growth of 6.2%. Adjusted EPS grew to $4.18 from $3.50, and GAAP diluted EPS was $3.12 versus $2.00. Adjusted operating margin reached 14.4% versus 13.4% a year earlier.
What changed in Labcorp's full-year 2025 guidance?
Enterprise revenue growth guidance is 7.4% to 8.0%, with the midpoint lowered 40 bps due to currency and acquisition timing. Adjusted EPS guidance is $16.15 to $16.50, with the midpoint raised by $0.05. Free cash flow guidance is $1.17 billion to $1.29 billion, with the midpoint raised by $25 million.
Which segments drove growth?
Diagnostics Laboratories revenue grew 8.5% to $2.77 billion, with organic growth of 6.3% and acquisitions contributing 2.2%. Biopharma Laboratory Services revenue grew 8.3% to $799.1 million, with Central Labs growth of 10.3% and Early Development growth of 3.3%.
What is Labcorp doing about Early Development underperformance?
The company says it is responding to lower-than-anticipated Early Development revenue and is beginning to divest, or restructure through site consolidation, approximately $50 million of annual revenue.
What was Labcorp's capital position at quarter end?
Cash and cash equivalents were $598 million and total debt was $5.58 billion at September 30, 2025. During the quarter the company invested $268.4 million in acquisitions and partnerships, paid $59.9 million in dividends, and repurchased $25.0 million of stock.
04—Continue