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Labcorp Q3 2026 Earnings Report Highlights Growth and Strategic Moves
Labcorp reports 6.9% revenue growth and expanded margins despite PAMA reimbursement pressures.
In brief
Labcorp reports 6.9% revenue growth and expanded margins despite PAMA reimbursement pressures. Labcorp reported Q3 2026 earnings with $3.81 billion revenue, 14.5% EPS growth, and updated 2026 guidance after strategic acquisitions and PAMA concerns. Originally reported by The Motley Fool.
Q3 2026 Financial Results
Labcorp reported total revenue of $3.81 billion, representing 6.9% growth driven by organic volume and acquisitions.
Adjusted EPS Growth
Adjusted EPS increased to $4.78, a 14.5% year-over-year rise.
Operating Margin Expansion
Adjusted operating income margin expanded to 15.0%, increasing 60 basis points through organic growth and efficiencies.
Diagnostics Revenue
Diagnostics revenue reached $2.95 billion, rising 6.5% with 3.1% organic volume growth and 1.3% favorable price/mix.
Biopharma Laboratory Services
Biopharma laboratory services revenue grew 8.5% to $866.7 million with Central Lab Services providing 11.5% growth.
Backlog and Conversion
Backlog reached $8.92 billion, a 3.9% year-over-year increase, with $2.82 billion expected to convert to revenue over 12 months.
Free Cash Flow
Free cash flow increased to $412.2 million from $280.5 million last year due to working capital improvements.
Updated 2026 Guidance
Updated 2026 adjusted EPS guidance increased to $18.30 to $18.70, and enterprise revenue growth guidance raised to 5.9% to 6.7%.
Acquisition Strategy
Labcorp entered agreements to acquire BioReference, Myriad Genetics, and Millennium Health assets, expected to be accretive to EPS in year one.
PAMA Reimbursement Impact
PAMA reimbursement impact estimated at $125 million reduction for 2027 based on preliminary fee schedule.
LaunchPad Initiative
LaunchPad initiative achieved $125 million in savings, representing full-year target for productivity improvements.
Central Lab Services Growth
Central Lab Services grew 11.5% driven by healthy underlying demand and favorable timing of study starts.
FDA Approvals
Labcorp received FDA approval for PGDx elio tissue complete CDx as companion diagnostic for advanced melanoma.
Alzheimer's Testing
Labcorp launched FDA-cleared Elecsys pTau-217 blood test to expand Alzheimer's testing in primary and specialty care.
Global Expansion
Labcorp became the only central laboratory provider with wholly owned laboratory network across four continents after MLM Medical Labs acquisition.
Collaborations
Labcorp announced collaboration with Waters Corporation for first commercial laboratory availability of BD Onclarity HPV assay for self-collected screening.
The short version
Labcorp reported Q3 2026 earnings with $3.81 billion revenue, 14.5% EPS growth, and updated 2026 guidance after strategic acquisitions and PAMA concerns.
