Labcorp (NYSE: LH) delivered a commanding performance in its second quarter of 2025, underscoring its leadership in innovative and comprehensive laboratory services. The company reported a robust 9.5% year-over-year revenue increase to \(3.53 billion, up from \)3.22 billion in Q2 2024, alongside a significant rise in diluted earnings per share (EPS) to \(2.84 from \)2.43. Adjusted EPS surged 10.4% to $4.35, reflecting operational excellence and strategic growth initiatives.
Labcorp’s financial strength is further highlighted by its raised full-year guidance, with enterprise revenue growth now projected between 7.5% and 8.6%, a 70 basis point increase at the midpoint. Adjusted EPS guidance was also elevated to a range of \(16.05 to \)16.50, with free cash flow expected between \(1.13 billion and \)1.28 billion, signaling strong cash generation capabilities.
The company’s Diagnostics Laboratories segment achieved \(2.75 billion in revenue, an 8.9% increase driven by 4.5% organic growth and strategic acquisitions. Adjusted operating margin remained steady at 17.6%, demonstrating efficient cost management despite margin pressures from Invitae. Meanwhile, the Biopharma Laboratory Services segment posted an 11.0% revenue increase to \)784.8 million, fueled by 7.8% organic growth and a 3.2% favorable foreign exchange impact. Adjusted operating margin improved by 50 basis points to 15.7%, reflecting operational efficiencies.
Labcorp’s strategic expansion continued with key acquisitions, including select assets from Incyte Diagnostics and BioReference Health, enhancing its clinical and oncology testing capabilities. The company also announced a post-quarter agreement to acquire outreach assets from Community Health Systems across 13 states, broadening its geographic footprint.
Innovation remains a cornerstone of Labcorp’s growth, with new product launches such as Labcorp® Plasma Detect™, a liquid biopsy test for colon cancer recurrence risk, and PGDx elio® plasma focus™, the first FDA-authorized pan-solid tumor liquid biopsy test for targeted treatment guidance. The company is advancing its leadership in Alzheimer’s disease diagnostics and expanding consumer health offerings through Labcorp OnDemand and the enhanced Ovia app.
From a capital allocation perspective, Labcorp maintained disciplined financial management, repurchasing \(200 million of common stock and declaring a quarterly dividend of \)0.72 per share. The company ended the quarter with \(647 million in cash and cash equivalents and \)5.58 billion in total debt, reflecting a balanced approach to liquidity and leverage.
Labcorp’s second quarter results and raised guidance underscore its resilience and strategic positioning in the healthcare diagnostics sector amid ongoing economic uncertainties and evolving healthcare regulations. As CEO Adam Schechter stated, “We remain committed to delivering sustained value to our customers, employees, and shareholders as we execute on our long-term strategy.”
For investors and industry observers, Labcorp’s performance signals robust growth potential driven by innovation, strategic acquisitions, and operational efficiency. The company’s focus on high-growth specialty areas such as oncology and Alzheimer’s disease diagnostics positions it well for continued market leadership.
Source Document: Labcorp 8-K Q2 2025
Tags: LH, Labcorp, Q2 2025, oncology diagnostics, laboratory services growth, healthcare innovation