Labcorp Holdings Inc.: Q2 FY2026 earnings call

What management said about Q2 FY2026, from the documents filed with the SEC on 30 July 2026: press release. Guidance figures: 4 raised, 1 kept. The quarter’s numbers.

Read the filing

Key takeaways

• Revenue rose 5.8% to $3.73 billion: Revenue was $3,731.1 million against $3,527.3 million a year earlier. Organic growth was 4.2%, acquisitions added 1.2 points, and foreign exchange added 0.4 points. Source
• Adjusted operating margin widened 70 basis points: Operating income was $451.6 million, or 12.1% of revenue, against 11.2%. Adjusted operating income was $588.7 million, or 15.8% of revenue, against 15.1%. Source
• Biopharma revenue rose 6.5%: Biopharma Laboratory Services revenue was $836.2 million, with organic growth of 6.2%. Central Labs grew while Early Development revenue declined, per the segment footnote. Source
• Biopharma backlog up 0.2%: Backlog reached $8.73 billion, up 0.2% from a year earlier. The prior release had reported backlog up 5.6% as of March 31. Source
• ColoSense launched nationwide: The RNA-based colorectal screening test is the first FDA-approved of its kind with at-home collection. Labcorp cites Medicare and expanding commercial coverage as supporting access. Source
• Free cash flow fell to $313.9 million: Operating cash flow was $445.5 million against $620.6 million. Capital expenditures were $131.6 million against $77.9 million, leaving free cash flow of $313.9 million against $542.7 million. Source
• Senior notes retired, debt reduced: Labcorp retired $500.0 million of senior notes in June. Total debt was $5.86 billion at quarter end, against $6.33 billion at March 31, which the prior release tied to pre-funding of maturing debt. Source

“Labcorp delivered another very strong quarter, with 6% revenue growth, significant margin expansion, and double-digit adjusted EPS growth reflecting continued momentum across the business,”

Adam Schechter, Chairman and CEO of Labcorp

Guidance

What changed from last quarter

• Guidance raised: Full-year enterprise revenue growth guidance and adjusted EPS guidance were raised. Source
• Guidance raised: Biopharma Laboratory Services revenue guidance was raised for 2026. Source
• Guidance kept: Free cash flow guidance was kept at $1,240 to $1,360 million. Source
• New: Board approved a $1.0 billion increase in the share repurchase authorization in July, bringing remaining authorization to $1.4 billion. Source
• New: Marker by Labcorp genetic health panel launched, providing consumers with genetic insights. Source
• New: ColoSense launched nationwide, with Labcorp as its primary nationwide distributor. Source
• New: Acquisition of Tribal Diagnostics completed, a clinical laboratory serving Oklahoma and Texas. Source

Results and growth drivers

• Revenue rose 5.8% to $3.73 billion: Revenue was $3,731.1 million against $3,527.3 million a year earlier. Organic growth was 4.2%, acquisitions added 1.2 points, and foreign exchange added 0.4 points. Source
• Diluted and adjusted EPS both grew: Diluted EPS was $3.64 against $2.84. Adjusted EPS was $4.99 against $4.35, up 14.9%. Net earnings attributable to Labcorp were $298.7 million against $237.9 million. Source
• Adjusted operating margin widened 70 basis points: Operating income was $451.6 million, or 12.1% of revenue, against 11.2%. Adjusted operating income was $588.7 million, or 15.8% of revenue, against 15.1%. Source

Segments and regions

• Diagnostics revenue rose 5.5%: Diagnostics Laboratories revenue was $2,900.7 million, with organic growth of 3.6% and acquisitions adding 1.9 points. Adjusted operating margin reached 18.0% against 17.6%. Source
• Biopharma revenue rose 6.5%: Biopharma Laboratory Services revenue was $836.2 million, with organic growth of 6.2%. Central Labs grew while Early Development revenue declined, per the segment footnote. Source
• Biopharma margin rose 130 basis points: Biopharma adjusted operating margin was 17.0% against 15.7%, on adjusted operating income of $142.2 million. Management linked the increase to organic growth and Early Development actions. Source

“Our performance and continued execution position us well to deliver sustainable growth and long-term value for customers and shareholders.”

Adam Schechter, Chairman and CEO of Labcorp

Demand and the order book

• Biopharma backlog up 0.2%: Backlog reached $8.73 billion, up 0.2% from a year earlier. The prior release had reported backlog up 5.6% as of March 31. Source
• Trailing net orders and book-to-bill: Trailing twelve-month net orders were $3.32 billion, with book-to-bill of 1.03 against 1.04 at March 31. Next twelve months backlog conversion was $2.75 billion. Source
• Diagnostics requisitions rose 3.0%: Diagnostics requisitions grew 3.0% in total and 1.8% organically. Acquisitions added 1.3 points to requisition growth, and price/mix rose 2.5% in total. Source

Products and customers

• Oncology test menu extended: Added a DPYD genotyping test for chemotherapy toxicity risk, a Fox Chase trial collaboration on lung cancer MRD, and nationwide access to a Roche prostate companion diagnostic. Source
• ColoSense launched nationwide: The RNA-based colorectal screening test is the first FDA-approved of its kind with at-home collection. Labcorp cites Medicare and expanding commercial coverage as supporting access. Source
• MyLabcorp app reaches millions: The AI-powered MyLabcorp app lets patients schedule appointments, view test results and gain health insights. Management said millions of consumers have downloaded it. Source
• Epic diagnostic test placement expanded: The collaboration with Epic was expanded to place more than 6,500 diagnostic tests on Epic's Aura platform. Source

“During the second quarter, we expanded our leadership in oncology and other high-growth specialty areas, strengthened our position as the partner of choice for health systems, biopharmaceutical companies, and regional/local laboratories”

Adam Schechter, Chairman and CEO of Labcorp

Partnerships and acquisitions

• Two outreach acquisitions completed: Labcorp completed purchase of select outreach services from Parkview Health in Indiana and Ohio, and of Tribal Diagnostics. Acquisitions used $225.7 million in the quarter. Source
• Defense laboratory contract awarded again: Labcorp was awarded a Department of Defense contract to test service members and families at military hospitals worldwide. Source
• Patient Service Center experience improved: Patient Service Centers added appointment availability, streamlined scheduling, and proactive rescheduling reminders and assistance. Source

Costs, margins and adjustments

• SG&A held near prior-year level: SG&A was $577.2 million against $579.3 million. Amortization of intangibles rose to $78.1 million from $68.3 million, and cost of revenues rose to $2,619.1 million from $2,481.1 million. Source
• LaunchPad costs fell year over year: LaunchPad costs were $11.7 million against $17.2 million. Acquisition and disposition-related costs were $21.3 million against $15.1 million. Source
• Adjusting items unchanged at $137.1 million: Adjustments to operating income were $137.1 million in both quarters. Amortization of $78.1 million was the largest component in the second quarter. Source

Cash, capital and returns

• Free cash flow fell to $313.9 million: Operating cash flow was $445.5 million against $620.6 million. Capital expenditures were $131.6 million against $77.9 million, leaving free cash flow of $313.9 million against $542.7 million. Source
• Senior notes retired, debt reduced: Labcorp retired $500.0 million of senior notes in June. Total debt was $5.86 billion at quarter end, against $6.33 billion at March 31, which the prior release tied to pre-funding of maturing debt. Source
• Buybacks and deals in the quarter: Labcorp repurchased $353.8 million of stock, invested $225.7 million in acquisitions, and paid $58.7 million in dividends. Six-month repurchases totaled $451.8 million. Source
• Cash balance fell to $141.8 million: Cash and cash equivalents ended the quarter at $141.8 million, down from $981.1 million at March 31 and $532.3 million at December 31, 2025. Source

Coming up, as management said on 30 July 2026

• Quarterly dividend payable September 11: A quarterly cash dividend of $0.72 per share was declared July 9, payable September 11, 2026, to holders of record at the close of business August 28, 2026. Source

Figures management reported

Risks management discussed

• Financial: Free cash flow was lower than a year earlier, which management attributed to working capital timing and planned increases in capital expenditures. Source
• Demand: Biopharma backlog growth slowed to 0.2% year over year, compared with 5.6% reported at March 31. Source
• External: Guidance assumes exchange rates as of June 30, 2026, with currency translation adding 0.4% to enterprise guidance and 1.5% to Biopharma guidance. Source

Earlier plans management reported on

• Not stated: Management said Labcorp remains committed to disciplined capital allocation, citing acquisitions, buybacks, dividends and debt repayment in the quarter. Source
• Met: The prior release said the MyLabcorp app would launch in May. The second quarter release states that the app has launched and has been downloaded by millions of consumers.

Other quarters

• Q1 FY2026 earnings call
• Q4 FY2025 earnings call
• Q3 FY2025 earnings call
• Q2 FY2025 results

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.