Labcorp (LH) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue rose 5.8% to $3.73B, with adjusted EPS up 14.9% to $4.99 and diluted EPS up 28.5% to $3.64; strong growth in both Diagnostics and Biopharma Laboratory Services, driven by specialty testing, consumer business, and favorable currency translation.

• Adjusted net income for Q2 2026 was $409.2M, with adjusted EBITDA of $686.2M, both up year-over-year.

• Expanded specialty test portfolio, launched innovative products like ColoSense and Marker by Labcorp, and broadened partnerships with health systems and biopharma clients.

• Raised full-year 2026 revenue and adjusted EPS guidance, reflecting confidence in continued growth.

Financial highlights

• Q2 2026 revenue: $3.73B, up 5.8% year-over-year; organic revenue growth 4.2%.

• Adjusted operating income: $588.7M (15.8% margin), up from $531.6M (15.1%) last year.

• Adjusted EPS: $4.99, up 14.9% year-over-year.

• Free cash flow: $314M, down from $543M last year due to working capital timing and higher capex.

• Diagnostics revenue: $2.9B (+5.5%); BLS revenue: $836M (+6.5%).

Outlook and guidance

• 2026 enterprise revenue guidance raised to $14.71-$14.83B (5.4%-6.3% growth); adjusted EPS guidance increased to $18.10-$18.55.

• Diagnostics revenue expected at $11.45-$11.53B (5.3%-6.0% growth); BLS at $3.27-$3.30B (5.5%-6.5% growth).

• Free cash flow guidance unchanged at $1.24B-$1.36B.

• Continued margin expansion expected in both segments, with BLS outpacing Diagnostics.

• Management expects compliance with all debt covenants and sufficient liquidity for cash needs.