# Labcorp Q3 2026 Earnings Report Highlights Growth and Strategic Moves

> Labcorp reports 6.9% revenue growth and expanded margins despite PAMA reimbursement pressures.
- Title: Labcorp Q3 2026 Earnings Report Highlights Growth and…
- Summary: Labcorp reports 6.9% revenue growth and expanded margins despite PAMA reimbursement pressures. Labcorp reported Q3 2026 earnings with $3.81 billion revenue…
- Keywords: labcorp, q3 2026, earnings call, revenue growth, adjusted eps, pama, biopharma laboratory services, diagnostics, acquisitions, launchpad initiative, finance, money
- Source: The Motley Fool — https://fool.com/earnings/call-transcripts/2026/10/28/labcorp-lh-q3-2026-earnings-call-transcript
- Author: Motley Fool Transcribing
- Published: 2026-10-28T17:38:28+00:00
- Read time: 2 min
- Topics: labcorp, q3 2026, earnings call, revenue growth, adjusted eps, pama, biopharma laboratory services, diagnostics, acquisitions, launchpad initiative, finance, money
## 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.
## Key takeaway

Labcorp reported Q3 2026 earnings with $3.81 billion revenue, 14.5% EPS growth, and updated 2026 guidance after strategic acquisitions and PAMA concerns.