Labcorp raises annual profit forecast on strong testing demand (updated)

Labcorp Holdings

30/07/2026 13:08

Updates share move, adds CEO comment in bullet 2
By Sahil  Pandey
July 30 (Reuters) - Laboratory operator Labcorp LH.N raised its annual profit forecast and posted better-than-expected second-quarter results on Thursday, as steady demand for diagnostic testing and growth in its drug-development services business boosted performance.
Shares of the company rose about 1% in morning trading, reversing premarket losses.

Here are more details:    
The company's diagnostics business has benefited from specialty testing and laboratory management agreements, while improved pharmaceutical and biotechnology spending has supported its research services business.
Specialty testing areas including oncology, neurology, autoimmune disease and women's health delivered double-digit revenue growth in the first half of the year and continued to grow faster than routine testing, CEO Adam Schechter said in a post-earnings call.
Labcorp raised its 2026 adjusted earnings forecast to $18.10 to $18.55 per share from $17.70 to $18.35 previously. 
The midpoint of the new range, $18.33, is above analysts' estimate of $18.01 per share, according to data compiled by LSEG.
The company lifted its annual revenue forecast to a range of $14.71 billion to $14.83 billion from its previous projection of $14.65 billion to $14.80 billion. Analysts expect annual revenue of $14.71 billion.
Revenue at Labcorp's Diagnostics Laboratories segment grew 5.5% to $2.90 billion, slightly below analysts' expectation of $2.91 billion.
Last week, rival Quest Diagnostics DGX.N raised its full-year profit forecast after demand for routine diagnostic testing helped the company beat second-quarter estimates.
Revenue at its Biopharma Laboratory Services segment rose 6.5% to $836.2 million, exceeding estimates of $797.3 million.
Overall second-quarter revenue rose 5.8% to $3.73 billion, above estimates of $3.71 billion. Adjusted earnings per share of $4.99 topped expectations of $4.78.

 (Reporting by Sahil Pandey in Bengaluru; Editing by Tasim Zahid and Diti Pujara)
 ((Sahil.Pandey@thomsonreuters.com;))