01—Abstract
Summary
Summary of the 8-K filed September 22, 2026. Cited figures are marked; the original filing is the authoritative source.
On September 21, 2026, the Centers for Medicare & Medicaid Services (CMS) released preliminary Clinical Laboratory Fee Schedule payment rates for 2027 through 2029 under the Protecting Access to Medicare Act (PAMA).
Labcorp Holdings Inc. states that the rates are based on data not fully representative of the broader commercial laboratory market and would impose steep annual payment cuts that threaten patient access to laboratory services. The company says it continues to support the bipartisan RESULTS Act, which it describes as a solution to ensure a sustainable and innovative U.S. laboratory system. The company states it had already considered the anticipated continuation of PAMA-related reimbursement pressure when it set its 2026-2029 long-term outlook at its September 10, 2026 Investor Day, and it is reaffirming that outlook.
The reaffirmed targets are compound annual revenue growth of 5%a to 8%, adjusted operating margin expansion of 75 to 150 basis points by the end of 2029, compound annual adjusted EPS growth of 8.5% to 11.5%, and compound annual free cash flow growth in line with adjusted earnings growth. Labcorp is still evaluating the CMS payment rates and says it expects to disclose the impact on its 2027 financial guidance when that guidance is announced in February 2027. Investors should note that the outlook is presented as a forward-looking, non-GAAP-based projection, and the company does not provide forward-looking reconciliations of its adjusted measures.
02—Key points
Key Highlights
- CMS released preliminary PAMA Clinical Laboratory Fee Schedule rates for 2027-2029 on September 21, 2026.
- Labcorp says the rates rely on data not fully representative of the broader commercial lab market and would bring steep annual payment cuts.
- The company continues to support the bipartisan RESULTS Act as a remedy for the reimbursement issue.
- Labcorp reaffirmed its 2026-2029 long-term outlook first announced at its September 10, 2026 Investor Day.
- Reaffirmed targets: 5%-8% compound annual revenue growth, 75-150 basis points of adjusted operating margin expansion by end of 2029, 8.5%-11.5% compound annual adjusted EPS growth, and free cash flow growth in line with adjusted earnings.
- Impact of the CMS rates on 2027 financial guidance has not yet been quantified; the company will update with 2027 guidance in February 2027.
03—Questions
Frequently Asked Questions
What triggered this filing?
On September 21, 2026, CMS released preliminary Clinical Laboratory Fee Schedule payment rates for 2027 through 2029 under PAMA. Labcorp filed this Regulation FD disclosure to state its position and reaffirm its long-term outlook.
Is Labcorp changing its long-term outlook?
No. The company states it considered the anticipated PAMA-related reimbursement pressure when setting the 2026-2029 outlook at its September 10, 2026 Investor Day, and it is reaffirming that outlook.
What are the reaffirmed long-term targets?
Compound annual revenue growth of 5% to 8%, adjusted operating margin expansion of 75 to 150 basis points by the end of 2029, compound annual adjusted EPS growth of 8.5% to 11.5%, and compound annual free cash flow growth in line with adjusted earnings growth.
When will investors learn the impact of the CMS rates on 2027 guidance?
Labcorp says it is still evaluating the CMS payment rates and expects to provide additional information on their impact on 2027 financial guidance when that guidance is announced in February 2027.
What is Labcorp's position on the RESULTS Act?
The company continues to support the bipartisan Reforming and Enhancing Sustainable Updates to Laboratory Testing Services (RESULTS) Act, which it says would ensure the U.S. has a sustainable and innovative laboratory system.
04—Continue