Labcorp Positioned For Gradual Upside With Resilient Margins And Dividend Support

Laboratory Corp (NYSE: LH) reported third-quarter 2025 adjusted earnings per share of $4.18 on Tuesday, up from $3.50 a year ago, beating the consensus of $4.18.

Sales increased 8.6% year-over-year to $3.56 billion, beating the consensus of $3.56 billion.

The increase was due to organic revenue growth of 6.2%, acquisitions, net of divestitures, 1.7%, and foreign currency translation of 0.7%.

Adjusted operating income for the quarter was $396.6 million, or 11.1% of revenue.

“Labcorp’s third-quarter performance reflects continued momentum in our Diagnostics and Central Laboratory businesses, resulting in strong revenue growth and margin improvement,” said Adam Schechter, chairman and CEO of Labcorp.

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Guidance: LabCorp revised its fiscal year 2025 adjusted earnings guidance from $16.05-$16.50 to $16.15-$16.50, compared to the consensus of $16.32.

The company also lowered its 2025 sales guidance from $14.08 billion-$14.23 billion to $13.97 billion-$14.05 billion, versus the consensus of $14.01 billion.

LabCorp forecasts 2025 sales growth of 7.4%-8% compared to prior guidance of 7.5%-8.6%.

The guidance includes 2025 Diagnostics Laboratories sales growth of 7.2%-7.8% (compared to the previous guidance of 7%-8%) and Biopharma Laboratory Services sales growth of 5.7%-7.1% (compared to the previous guidance of 6.1%-7.5%).

William Blair reiterated an Outperform rating. Analyst Andrew F. Brackmann said LabCorp is benefiting from steady organic growth in diagnostics, healthy utilization trends, stable pricing, and a solid M&A pipeline.”

The analyst said LabCorp is well-positioned to trend higher, supported by long-term earnings growth, a steady dividend, and a resilient valuation multiple, while clarity on 2026 earnings will be key to near-term share gains.

Price Action: Laboratory stock is down 5.23% at $261.25 at the last check on Tuesday.

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