Labcorp said it raised its full-year adjusted earnings and revenue guidance after reporting second-quarter results that exceeded some market expectations, driven by steady diagnostic testing demand and expansion in its drug-development services business. Despite the upgraded outlook, the company's stock traded lower in premarket activity, falling about 6%.
The Diagnostics Laboratories segment saw revenue rise 5.5% to $2.90 billion, a figure that was marginally under analysts' expectations of $2.91 billion. Management pointed to specialty testing and laboratory management agreements as contributors to the diagnostics business's performance.
At the same time, Labcorp's Biopharma Laboratory Services business recorded revenue of $836.2 million, up 6.5% and above the estimate of $797.3 million. The company said improved spending by pharmaceutical and biotechnology customers supported growth in its research services operations.
Overall, second-quarter revenue increased 5.8% to $3.73 billion, beating the $3.71 billion estimate. Adjusted earnings per share for the quarter were $4.99, above consensus of $4.78.
Following the quarter, Labcorp raised its 2026 adjusted earnings per share guidance to a range of $18.10 to $18.55, up from the prior $17.70 to $18.35 range. The midpoint of the new guidance, $18.33, is above the analysts' estimate of $18.01 per share, based on data compiled by LSEG.
The company also increased its annual revenue forecast to a range of $14.71 billion to $14.83 billion, from a previous range of $14.65 billion to $14.80 billion. Analysts' consensus revenue expectation stood at $14.71 billion.
Market commentary highlighted investor focus on the Diagnostics Laboratories segment's organic growth, which some saw as softer than expected. Leerink Partners analyst Michael Cherny said investors were likely attentive to that softer-than-expected organic growth after rival Quest Diagnostics reported stronger results the prior week.
The report noted that Quest Diagnostics last week raised its full-year profit forecast following demand for routine diagnostic testing that helped it beat second-quarter estimates.
- Q2 revenue: $3.73 billion, up 5.8% (est. $3.71 billion)
- Diagnostics Laboratories revenue: $2.90 billion, up 5.5% (est. $2.91 billion)
- Biopharma Laboratory Services revenue: $836.2 million, up 6.5% (est. $797.3 million)
- Adjusted EPS: $4.99 (est. $4.78)
- 2026 adjusted EPS guidance: $18.10 to $18.55 (prior $17.70 to $18.35)
- 2026 revenue guidance: $14.71 billion to $14.83 billion (prior $14.65 billion to $14.80 billion)
The results underscore mixed signals for investors: beat-and-raise company-level metrics accompanied by segment-level growth that some market participants judged as less robust than competitors. The company attributed revenue gains to both specialty diagnostic testing and stronger biopharma client spending, without providing additional detail beyond the reported segment figures.