Labcorp Holdings Inc. raised its annual profit forecast after reporting second-quarter earnings that exceeded analyst estimates. The company cited strength in cancer tests and new genetic screenings as primary drivers for the improved outlook.
Overall second-quarter revenue rose 5.8% to $3.73 billion, surpassing estimates of $3.71 billion. Adjusted earnings per share reached $4.99, topping expectations of $4.78.
Labcorp raised its 2026 adjusted earnings forecast to a range of $18.10 to $18.55 per share from a previous range of $17.70 to $18.35. The midpoint of this new earnings range, $18.33, is above the analysts' estimate of $18.01 per share. Additionally, the company lifted its annual revenue forecast to a range of $14.71 billion to $14.83 billion from a previous projection of $14.65 billion to $14.80 billion.
Segment Performance
Revenue at the Diagnostics Laboratories segment grew 5.5% to $2.90 billion, a figure slightly below the analyst expectation of $2.91 billion. The company stated that this business benefited from specialty testing and laboratory management agreements.
In contrast, the Biopharma Laboratory Services segment saw revenue rise 6.5% to $836.2 million, exceeding estimates of $797.3 million. Labcorp attributed this performance to improved pharmaceutical and biotechnology spending supporting its research services business.
Market Reaction and Analyst View
Despite the raised guidance, Labcorp shares fell approximately 6% in premarket trading. Leerink Partners analyst Michael Cherny said investors were likely focused on softer-than-expected organic growth in the Diagnostics Laboratories segment.
The broader sector showed similar trends, as rival Quest Diagnostics also raised its full-year profit forecast after demand for routine diagnostic testing helped it beat second-quarter estimates.