Labcorp raises FY23 guidance, Q2 revenue up 9.3% YoY to $3.53 bln.

• Labcorp Q2 2025 revenue at $3.53 bln, up from $3.22 bln in Q2 2024. • Diluted EPS at $2.84, adjusted EPS at $4.35. • Raised guidance for revenue, adjusted EPS, and free cash flow.

Burlington, N.C., July 2, 2025 — Labcorp (NYSE: LH), a leading provider of laboratory services, has released its second-quarter 2025 earnings, reporting significant growth and raising its full-year guidance. The company's revenue for Q2 2025 was $3.53 billion, an increase of $0.31 billion (10%) over the same period in 2024. Adjusted earnings per share (EPS) came in at $4.35, up from $3.94 in the same period last year [2].

Key highlights from the report include:

- Revenue Growth: Labcorp's revenue for Q2 2025 was $3.53 billion, representing a 10% increase from the previous year's $3.22 billion.
- Earnings Per Share: Diluted EPS was $2.84, while adjusted EPS was $4.35, both showing strong growth compared to the same period in 2024.
- Full-Year Guidance: The company raised its full-year revenue guidance to 7.5% to 8.6% and adjusted EPS to $16.05 to $16.50. Free cash flow was also increased to $1.13 billion to $1.28 billion [2].

Labcorp's performance was driven by several factors, including strong growth in its Diagnostics (Dx) and Biopharma Laboratory Services (BLS) segments. The Dx segment saw revenue growth of 8.7% year-over-year, while the BLS segment experienced a 5.1% increase. These segments are benefiting from technological advancements, strategic acquisitions, and operational efficiencies [1].

Additionally, Labcorp has continued to expand its portfolio of innovative tests and services. New offerings include the Labcorp® Plasma Detect™, a liquid biopsy test for colon cancer recurrence risk assessment, and the PGDx elio® plasma focus™ Dx, the first-and-only FDA-authorized pan-solid tumor liquid biopsy test for targeted treatment guidance. These new tests are expected to drive further revenue growth and margin expansion [2].

The company's financial health remains robust, with a debt-to-equity ratio of 0.78x and strong free cash flow generation. Labcorp's ability to maintain a balance between growth and financial stability has positioned it as a preferred partner for hospitals, health systems, and regional/local laboratories [1].

Investors should closely monitor Labcorp's earnings momentum, which has exceeded consensus estimates in four consecutive quarters. The company's track record of outperforming expectations suggests that it is well-positioned to continue its growth trajectory [1].

References:

[1] https://www.ainvest.com/news/labcorp-q2-2025-earnings-outlook-leveraging-diagnostic-innovation-strategic-acquisitions-outperform-expectations-2507/
[2] https://www.marketscreener.com/news/labcorp-announces-2025-second-quarter-results-ce7c5cd3df8df321