Labcorp Beats Q3, Lifts 2026 Guidance, Quantifies $125M PAMA Hit
LH sits 48% above its 52-week low of $244.52.
Summary
Labcorp beat on both lines and raised full-year guidance: Q3 adjusted EPS of $4.78 topped the $4.66 consensus, and revenue of $3.81B (up 6.9%) cleared the $3.759B estimate. Diagnostics grew 6.5% to $2.9B with 40 basis points of margin expansion, while Biopharma Laboratory Services rose 8.5% to $867M. FY2026 adjusted EPS guidance moves to $18.30-$18.70 from $18.10-$18.55, and revenue to $14.779B-$14.887B from $14.71B-$14.827B. Management put a number on the CMS overhang for the first time: roughly $125M of 2027 PAMA reimbursement pressure, which it expects to partly offset with Diagnostics momentum, biopharma business development and LaunchPad savings, and it reaffirmed the 2026-2029 outlook that already assumed those cuts. The stock is up 10.50% at $365.95, a new 52-week high, extending the run that began with the September CMS fee schedule selloff. The three pending deals — BioReference assets, Myriad's prenatal business and Millennium Health — are framed as accretive to adjusted EPS in year one and returning cost of capital by year three.
At the time of this announcement, LH was trading at $362.21 on NYSE in the Life Sciences sector, with a market capitalization of approximately $29.4B. The 52-week trading range was $244.52 to $371.00. This news item was assessed with positive market sentiment and an importance score of 8 out of 10. Source: Benzinga.