01—Abstract
Summary
Summary of the 8-K filed October 28, 2026. Cited figures are marked; the original filing is the authoritative source.
Labcorp Holdings Inc. reported third-quarter 2026 results for the period ended September 30, 2026, with revenue of $3.81 billiona, up 6.9% from $3.56 billion, and adjusted EPS of $4.78, up 14.5% from $4.18.
Diluted EPS was $3.22b, up 3.3% from $3.12. Organic revenue growth was 5.5%, and acquisitions contributed 1.5%. Operating income was $402.1 million, or 10.6% of revenue, compared with 11.1% a year earlier, while adjusted operating income rose to $570.0 million, or 15.0% of revenue, from 14.4%.
Free cash flow was $412.2 millionc, up from $280.5 million. The company raised its full-year 2026 guidance. Enterprise revenue growth is now projected at 5.9% to 6.7%, up 50 basis points at the midpoint, and adjusted EPS is projected at $18.30 to $18.70, up 18 cents at the midpoint.
Free cash flow guidance of $1,240 million to $1,360 milliond was unchanged. Guidance includes the estimated impact of planned acquisitions, share repurchases, and dividends. Biopharma Laboratory Services guidance was raised most significantly, to $3,328 million to $3,358 million in revenue, with growth of 7.4% to 8.4%.
Management highlighted an active M&A agenda. Four transactions were announced or closed during the quarter, including the acquisition of MLM Medical Labs, and three further acquisition agreements were signed after quarter end: select assets of BioReference Health's laboratory testing businesses, Myriad Genetics' Prenatal Health testing business, and Millennium Health. Each is subject to regulatory approval and customary closing conditions.
The company also declared a quarterly dividend of $0.72 per share, payable December 11, 2026, and reported $1.4 billion remaining under its share repurchase authorization. Total debt was $5.85 billion and cash was $261.8 million at quarter end.
02—Key points
Key Highlights
- Q3 2026 revenue rose 6.9% to $3.81 billion, with organic growth of 5.5% and acquisitions contributing 1.5%.
- Adjusted EPS rose 14.5% to $4.78 from $4.18; diluted EPS was $3.22, up 3.3% from $3.12.
- Full-year 2026 enterprise revenue growth guidance was raised to 5.9% to 6.7%, and adjusted EPS guidance was raised to $18.30 to $18.70 from $18.10 to $18.55.
- Free cash flow was $412.2 million in the quarter, up from $280.5 million; full-year free cash flow guidance of $1,240 million to $1,360 million was unchanged.
- Biopharma Laboratory Services revenue grew 8.5% to $866.7 million, with organic growth of 9.6%, and adjusted operating margin expanded to 18.3% from 16.5%.
- Three acquisition agreements were signed after quarter end: BioReference Health assets, Myriad Genetics' Prenatal Health testing business, and Millennium Health, all subject to regulatory approvals.
- Backlog reached $8.92 billion, up 3.9% year over year, with a trailing twelve-month book-to-bill of 1.10.
03—Questions
Frequently Asked Questions
What drove the increase in Labcorp's third-quarter profitability?
Adjusted operating income rose to $570.0 million from $513.3 million, and adjusted operating margin reached 15.0% versus 14.4%. The company attributed the improvement to organic growth and operating efficiencies. Diagnostics Laboratories' adjusted operating margin rose to 16.7% from 16.3%, and Biopharma Laboratory Services' rose to 18.3% from 16.5%.
How did Labcorp change its 2026 guidance?
Enterprise revenue growth guidance was raised to 5.9% to 6.7% from 5.4% to 6.3%, and adjusted EPS guidance was raised to $18.30 to $18.70 from $18.10 to $18.55. Diagnostics Laboratories revenue guidance was raised to $11,475 million to $11,551 million, and Biopharma Laboratory Services guidance was raised to $3,328 million to $3,358 million. Free cash flow guidance of $1,240 million to $1,360 million was unchanged.
What acquisition activity is pending?
Labcorp signed agreements to acquire select assets of BioReference Health's laboratory testing businesses, Myriad Genetics' Prenatal Health testing business, which includes the Prequel, Foresight, SneakPeek, and FirstGene tests, and Millennium Health, an accredited specialty laboratory. Timing for each is subject to regulatory approvals and customary closing conditions. During the quarter, the company invested $255.5 million in acquisitions.
What are the capital return plans and balance sheet position?
The board declared a quarterly cash dividend of $0.72 per share, payable December 11, 2026, to stockholders of record on November 24, 2026. The company paid $58.2 million in dividends in the quarter and has $1.4 billion remaining under its share repurchase program. At September 30, 2026, cash and cash equivalents were $261.8 million and total debt was $5.85 billion.
What drove the Biopharma Laboratory Services results?
Biopharma Laboratory Services revenue rose 8.5% to $866.7 million, with organic growth of 9.6%. Central Labs revenue grew 11.5%, and Early Development revenue grew 0.4%. TTM net orders were $3.59 billion, the TTM book-to-bill was 1.10, and backlog was $8.92 billion.
04—Continue