Labcorp (LH) Q4 2025 earnings summary

Executive summary

• Revenue grew 7.2% year-over-year to $13.95 billion for 2025, with Q4 revenue up 5.6% to $3.52 billion compared to 2024.

• Adjusted EPS increased 12.8% to $16.44 for 2025, with Q4 adjusted EPS up 18% to $4.07.

• Free cash flow for 2025 was $1.21 billion, up 10% from 2024.

• Strategic progress included 13 new or expanded partnerships, multiple acquisitions, and over 130 new specialty tests launched in oncology, women's health, neurology, and autoimmune disease.

• Successfully integrated Invitae, advanced AI and automation, and expanded leadership in genetic testing.

Financial highlights

• Diagnostics Laboratories contributed 77.4% of Q4 2025 revenue, with Biopharma Laboratory Services at 22.6%.

• Diagnostics Laboratories Q4 2025 revenue grew 5.5% year-over-year to $2.73 billion; Biopharma Laboratory Services Q4 revenue was $793 million, up 3.4%.

• Adjusted operating margin for 2025 was 14.3%, up 50 bps year-over-year; Q4 adjusted operating margin was 13.9%, up from 12.7%.

• Adjusted EBITDA for Q4 2025 was $584.1 million, with a trailing twelve-month total of $2.38 billion.

• Q4 free cash flow was $490 million.

Outlook and guidance

• 2026 revenue guidance: $14.61–$14.79 billion, representing 4.7–6.0% growth; midpoint 5.4%.

• Diagnostics Laboratories 2026 revenue expected to grow 5–6%; Biopharma Laboratory Services 3–5%.

• Adjusted EPS guidance for 2026: $17.55–$18.25, implying 6.8–11.0% growth; midpoint 8.9%.

• Free cash flow guidance for 2026: $1.24–$1.36 billion, with higher capital expenditures due to new central lab facility investment.

• Enterprise margins expected to increase, with BLS margin expansion outpacing Diagnostics.