Labcorp Holdings Inc. (NYSE:LH) delivered fourth-quarter adjusted earnings above expectations on Tuesday, though revenue came in marginally below Wall Street estimates as the diagnostics group closed out fiscal 2025.
Shares were little changed in pre-market trading following the release.
The Burlington, North Carolina-based company reported adjusted earnings per share of $4.07 for the quarter, exceeding analyst projections of $3.93. Revenue totaled $3.52 billion, just under the $3.56 billion consensus forecast. Compared with the same period last year, revenue increased 5.6% from $3.33 billion, while adjusted EPS rose 18% from $3.45.
“In 2025, Labcorp grew revenue over 7% and delivered double-digit adjusted EPS growth, margin expansion and strong free cash flow. Performance was driven by continued strength in our Diagnostics and Central Laboratory businesses,” said Adam Schechter, Chairman and CEO of Labcorp.
For full-year 2025, Labcorp posted revenue of $13.95 billion, up 7.2% from $13.01 billion in 2024. Annual adjusted earnings per share climbed to $16.44 from $14.57 the prior year.
The Diagnostics Laboratories segment, the company’s largest division, generated fourth-quarter revenue of $2.73 billion, up 5.5% year over year. Adjusted operating margin for the segment improved to 15.4%, compared with 13.9% a year earlier.
Looking ahead to fiscal 2026, Labcorp forecast adjusted earnings in a range of $17.55 to $18.25 per share, with the midpoint slightly above the analyst consensus of $17.52.
The company expects enterprise revenue between $14.61 billion and $14.79 billion, implying midpoint growth of 5.4%.
During the quarter, Labcorp expanded its network of health system and laboratory partnerships, completing several acquisitions, including selected outreach laboratory services from Parkview Health and anatomic pathology assets from Incyte Diagnostics.