Labcorp Holdings Inc. Reported significant financial growth for the fourth quarter and the full year of 2025 during its earnings call on February 17, 2026. The company announced an enterprise revenue increase of over 7% for the year, culminating in fourth-quarter revenue of $3.5 billion, which represents a 5.6% rise compared to the previous year.
Key factors contributing to this growth included a 3.8% organic growth rate, 1.2% from acquisitions, and a 0.6% boost from favorable foreign currency exchange rates. Adjusted earnings per share (EPS) also saw a boost, growing 13% for the year and 18% in the fourth quarter, reaching $4.07.
During the call, CEO Adam Schechter highlighted the company’s strategic focus on increasing partnerships with health systems and local laboratories, noting that these collaborations have contributed more than $1 billion in revenue growth. In total, Labcorp executed 13 partnerships in this area over the past three years.
Diagnostics revenue specifically rose by 5.5% in the fourth quarter to $2.7 billion, driven by organic growth of 4.1% and contributions from acquisitions. The Biopharma Laboratory Services (BLS) segment also reported growth, with revenue increasing 3.4% to $793 million. Central Laboratory revenue grew 11.1% in the same period, underscoring robust demand in this sector.
Labcorp’s disciplined expense management and the successful implementation of its LaunchPad initiative, which aims for annual savings of $100 million to $125 million, were credited for margin improvements. The company reported that full-year enterprise margins improved by over 50 basis points, with significant contributions from both diagnostics and BLS segments.
Looking ahead, Labcorp has provided guidance for 2026, projecting enterprise revenue growth between 4.7% and 6%, with diagnostics revenue expected to increase by 5% to 6%. Adjusted EPS is forecasted to be between $17.55 and $18.25, indicating a growth rate of approximately 9% at the midpoint. The company expects capital expenditures to be about 4% of revenue, primarily directed toward strategic facility investments to bolster its central laboratory and kit production capabilities.
Julia Wang, Labcorp’s Chief Financial Officer, added that the company ended 2025 with strong cash flow of $1.2 billion, despite a decline in fourth-quarter free cash flow attributed to working capital timing. Labcorp maintained a cash balance of $532 million, with total debt standing at $5.6 billion, reflecting a leverage ratio of 2.3 times gross debt to trailing twelve-month adjusted EBITDA.
Management noted a slight impact on fourth-quarter volume due to lower referrals from a major consumer genetic client and adverse weather conditions, which are expected to be isolated incidents. Wang assured analysts that the company anticipates strong recovery in 2026.
Labcorp’s ongoing focus on esoteric testing, which now constitutes 41.5% of total testing revenue, also stands out as a key growth area. The company has launched over 130 new tests in areas such as oncology, women’s health, and neurology, aligning its offerings with high-growth therapeutic areas.
Labcorp’s strong financial performance in 2025, bolstered by strategic partnerships and a focus on specialty testing, positions the company for potential growth in 2026, as management remains optimistic about continuing to deliver value to shareholders and enhancing its market position.
