Labcorp reported third‑quarter 2025 revenue of $3.56 billion, an 8.6% year‑over‑year increase, and adjusted earnings per share of $4.18, up 19.4% from $3.50 in the prior year. Operating income rose to $396.6 million, while adjusted operating income reached $513.3 million, giving an operating margin of 11.1%.
Diagnostics revenue was $2.77 billion, up 8.5% YoY, and biopharma services revenue was $799.1 million, up 8.3% YoY. The diagnostics segment achieved a 16.3% operating margin, and the biopharma services segment maintained a 16.5% margin, both supported by organic volume growth and cost efficiencies. Organic revenue growth for diagnostics was 6.3% and for biopharma services 5.3%.
Labcorp updated its full‑year 2025 guidance to a revenue growth range of 7.4% to 8.0%, reflecting a slight narrowing from the previous 7.5%‑8.6% range. Adjusted EPS guidance was raised to $16.15–$16.50, a modest $0.05 midpoint increase over the prior forecast. The free‑cash‑flow outlook was revised to $1.165 billion to $1.285 billion, up $25 million from the previous $1.140 billion to $1.260 billion range. The guidance adjustment was driven by currency headwinds and the timing of recent acquisitions.
Capital allocation moves included a $0.72 quarterly dividend, declared on October 8 and payable December 11, and a $25 million share‑repurchase program during the quarter. The company also highlighted ongoing investments in its LaunchPad initiative, which is expected to deliver $100 million to $125 million in annual savings. Labcorp’s diluted earnings per share for Q3 were $3.12, up from $2.00 in the prior year, and net earnings attributable to Labcorp were $261.1 million, up from $169.3 million.
Additional context: Labcorp announced the launch of the first FDA‑cleared blood test to rule out Alzheimer’s‑related amyloid pathology in primary care settings, a development announced shortly before the earnings release. The company is also deploying generative AI in digital pathology and microbiology workflows to improve efficiency. Recent acquisitions contributing to Q3 growth include the purchase of a specialty testing firm and a laboratory services provider, which have bolstered diagnostics revenue.
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