Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
Labcorp's Q2 FY2026 results were defined by broad-based organic growth across both Diagnostics and Biopharma Laboratory Services, with total organic revenue increasing 4.2% and acquisitions contributing a further 1.2%. The Diagnostics segment saw organic revenue growth of 3.6% driven by higher volume and favorable price/mix, while Biopharma Laboratory Services posted 6.2% organic growth, reflecting strength in the Central Laboratory business. Margins expanded in both segments and at the total company level, though cash and equivalents fell sharply to $141.8 million as the company deployed capital for acquisitions and share repurchases while taking on additional debt.
Revenue
$3.73B
+5.78% YoY
EPS (Diluted)
$3.64
+28.17% YoY
Gross Margin
29.8%
+0.1 pts YoY
Operating Income
$451.6M
+14.47% YoY
Source: SEC XBRL
Labcorp Holdings (LH) reported Q2 FY2026 revenue of $3.73B, up 5.8% year over year. Operating margin was 12.1%, up 0.9 points from 11.2% a year earlier. LH's fiscal Q2 FY2026 corresponds to calendar Q2 2026.
Last 4 quarters: 3 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026This filing | 4.99 | 4.92 | Beat +1.4% |
| Mar 2026 | 4.25 | 4.21 | Beat +1.0% |
| Dec 2025 | 4.07 | 4.06 | Beat +0.3% |
| Sep 2025 | 4.18 | 4.26 | Miss -1.8% |
Adjusted (non-GAAP) EPS of $4.99 versus the $4.92 analyst consensus — a +1.4% beat for Jun 2026. Analyst consensus is quoted on the adjusted (non-GAAP) basis the street uses. GAAP diluted EPS for this quarter was $3.64.
Compiled by AI from 10-Q Item 2 of this filing
Total organic revenue increased 4.2% for the quarter, with Diagnostics (Dx) organic growth of 3.6% and Biopharma Laboratory Services (BLS) organic growth of 6.2%. Dx volume grew 3.0% (organic 1.8%) and price/mix improved 2.5%.
Source: 10-Q Item 2 MD&A
Dx operating margin increased 50 basis points to 18.0%, while BLS operating margin expanded 130 basis points to 17.0%, driven by organic growth and operating efficiencies.
Source: 10-Q Item 2 MD&A
SG&A as a percentage of revenue improved to 15.5% from 16.4% a year ago, primarily due to revenue growth outpacing selling and administrative expenses.
Source: 10-Q Item 2 MD&A
The company discussed the enacted OBBBA and its potential to reduce insurance coverage and diagnostic testing utilization, but currently does not expect a material impact on results.
Source: 10-Q Item 2 MD&A
The company entered into a $750 million term loan and used proceeds to redeem senior notes. Share repurchases increased to $451.8 million, and the board authorized an additional $1.0 billion buyback.
Source: 10-Q Item 2 MD&A
Compiled by AI from this SEC filing · 1 high, 3 medium, 1 low
Cash and cash equivalents fell to $141.8 million, down 78.1% year-over-year, primarily due to acquisitions and share repurchases. This low cash balance, combined with upcoming debt maturities, could pose liquidity challenges if operating cash flows weaken.
Source: 10-Q Balance Sheet (XBRL)
Total liabilities to equity is 1.15x, and long-term debt increased to $5.86 billion. With a portion of debt bearing floating interest rates, rising rates could significantly increase interest expense, which already grew 6.9% in the quarter.
Source: 10-Q Balance Sheet (XBRL)
The company continues to pursue acquisitions, with amortization of intangibles up 14.3% and the announcement of a $155 million outreach laboratory acquisition. Integration challenges could affect expected synergies and margins.
Source: 10-Q Item 2 MD&A
The recently enacted OBBBA could alter healthcare coverage and demand for testing services. Changes in government payment policies or payer reimbursement rates could adversely affect Dx revenue.
Source: 10-Q Item 2 MD&A
With international operations, particularly in BLS, foreign exchange fluctuations contributed 0.4% to total revenue growth but also generated foreign currency transaction losses of $7.5 million in the first half. Sustained currency volatility could impact reported financials.
Source: 10-Q Item 2 MD&A
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 3.73 $B | 3.53 $B | +5.78% |
Cost of Revenue $B | 2.62 $B | 2.48 $B | +5.56% |
Gross Profit $B | 1.11 $B | 1.05 $B | +6.29% |
Operating Income $M | 451.60 $M | 394.50 $M | +14.47% |
Net Income $M | 298.70 $M | 237.90 $M | +25.56% |
EPS (Basic) $ | 3.66 $ | 2.85 $ | +28.42% |
EPS (Diluted) $ | 3.64 $ | 2.84 $ | +28.17% |
SG&A Expense $M | 577.20 $M | 579.30 $M | -0.36% |
Answers draw on this SEC filing and the data on this page
Expected release date, analyst estimates & what to watch
LH (Labcorp) delivered strong Q1 FY2026 results with revenue up 5.8% YoY to $3.54B, net income surging 30.5% to $277.8M, and operating cash flow jumping 935% to $191.5M, reflecting solid operational leverage and disciplined cost management.
LH (Labcorp) delivered strong FY2025 results with revenue growing 7.2% to $13.95B, operating income surging 27.4% to $1.38B, and EPS rising 18.6% to $10.54, driven by margin expansion and disciplined cost management.
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