Labcorp (LH) Q3 2026 earnings summary

Executive summary

• Q3 revenue was $3.810B, up 6.9% YoY; adjusted operating margin rose 60 bps to 15.0%, and adjusted EPS increased 14.5% to $4.78.

• Organic revenue growth was 5.5%; acquisitions contributed 1.5%, partly offset by a 0.1% foreign currency impact.

Financial highlights

• Adjusted operating income was $570.0M versus $513.3M YoY; adjusted net income was $390.3M versus $349.8M.

• GAAP diluted EPS was $3.22 versus $3.12 YoY; Q3 free cash flow was $412.2M versus $281M, primarily reflecting improved working capital.

• 9M revenue was $11.079B versus $10.436B; adjusted EPS was $14.02 versus $12.37.

Outlook and guidance

• FY26 enterprise revenue growth guidance rose to 5.9%–6.7% from 5.4%–6.3%; adjusted EPS guidance increased to $18.30–$18.70 from $18.10–$18.55.

• FY26 diagnostics growth guidance is 5.5%–6.2%, and BLS growth guidance is 7.4%–8.4%; FY26 free cash flow guidance remains $1.24B–$1.36B.

• Enterprise margin expansion is expected in FY26; LaunchPad remains on track for $125M in full-year savings, with capex near 4% of revenue.

• The estimated FY27 PAMA impact is $125M, with a portion expected to be offset; FY27 guidance is planned for February.