Labcorp Holdings Inc.

Second quarter 2026 enterprise revenue was $3.7 billion, up 5.8% year over year, with organic revenue growth of 4.2%, 1.2% from acquisitions, and 0.4% from foreign currency translation. Adjusted operating income was $589 million, or 15.8% of revenue, versus $532 million, or 15.1% last year; adjusted EPS was $4.99, up 14.9%; and free cash flow was $314 million versus $543 million last year. Diagnostics revenue increased 5.5% to $2.9 billion and BLS revenue increased 6.5% to $836 million; Diagnostics margin expanded to 18% and BLS margin to 17%. For full-year 2026, Labcorp now expects enterprise revenue growth of 5.4% to 6.3%, Diagnostics revenue growth of 5.3% to 6.0%, BLS revenue growth of 5.5% to 6.5%, adjusted EPS of $18.10 to $18.55, and free cash flow of $1.24 billion to $1.36 billion. Management said the guidance still assumes a 40 bps FX benefit at the enterprise level and a 150 bps FX tailwind in BLS, and capital expenditures are expected to be about 4% of revenue.

Adam Schechter said the quarter reflected “solid revenue growth, margin expansion, and progress across our strategic priorities,” with strength in specialty testing, health-system and biopharma partnerships, consumer growth, and technology. He emphasized that specialty areas such as oncology, neurology, autoimmune disease, and women’s health are growing faster than routine testing, and that Labcorp is using its broad test menu and advanced diagnostics to win more customers. His tone was confident and constructive, repeatedly framing the company as well positioned for sustainable growth and long-term value creation.

Julia Wang highlighted 70 bps of enterprise margin expansion to 15.8%, driven primarily by organic revenue growth, along with 14.9% adjusted EPS growth to $4.99 and free cash flow of $314 million. She said Labcorp deployed capital with $226 million invested in acquisitions, $354 million of share repurchases, and $59 million in dividends, and ended the quarter with $142 million in cash and $5.9 billion of total debt after retiring $500 million of senior notes. She also said the board approved an additional $1 billion share repurchase authorization, bringing total authorization to $1.4 billion, and reaffirmed the full-year adjusted tax rate at about 23% and full-year free cash flow guidance of $1.24 billion to $1.36 billion.

Analysts focused on Diagnostics volume trends, the effect of ACA/Medicaid changes, BLS early development dynamics, pricing and patient responsibility, specialty testing, self-collection, and capital allocation. Management said Diagnostics volume growth remained strong, with specialty outpacing routine testing and tests per accession continuing to rise; on ACA, Julia said the full-year assumption remains a 30 bps headwind to Diagnostics volume, with Q2 impact of about 20 to 30 bps and a small payer cohort making up less than 4% to 5% of total diagnostic volume. On BLS, Adam and Julia said Central Labs remained very strong, Early Development was improving as strategic actions were largely complete, and stronger book-to-bill supported the raised guidance. On capital allocation and M&A, Adam said the deal pipeline is very strong but acquisitions must be accretive in year one and return cost of capital in 2 to 3 years; on PAMA, he said Labcorp has submitted its data and will watch for further developments.