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- **Revenue Growth & Margin Expansion**: Q3 revenue up 8.6% to $3.6 billion, adjusted EPS +19% to $4.18, with Diagnostics margin improving 110 bps to 16.3%.
- **Segment Strength**: Diagnostics driven by Invitae and cost savings; BLS Central Labs up 10%, offsetting Early Development softness.
- **PAMA Risk Management**: $100M 2026 impact mitigated by $25M savings from LaunchPad and AI.
- **Consumer Growth**: Labcorp OnDemand and Ovia Health fueling esoteric test expansion in oncology, neurology, and women's health.
- **Guidance Update**: 2025 revenue 7.2-7.8%, narrowed from prior 7.5-8.0%, with EPS up 12% at midpoint.

**【CEO Summary Section】**
- Labcorp reported Q3 2025 revenue of $3.6 billion, up 8.6% year-over-year, driven by organic growth of 6.2% and acquisitions. Adjusted EPS rose 19% to $4.18, supported by margin expansion and strong free cash flow of $281 million.
- Diagnostics segment revenue grew 8.5% to $2.8 billion, with margin improving 110 basis points to 16.3%, fueled by Invitae's integration and LaunchPad cost savings.
- Biopharma Laboratory Services (BLS) revenue increased 8.3% to $799 million, with Central Labs up 10% and Early Development softness prompting $50 million in site consolidation to streamline operations.

**【CFO Financial Commentary】**
- Full year 2025 guidance updated to 7.2-7.8% revenue growth (narrowed from 7.5-8.0%), reflecting currency headwinds and acquisition timing. Adjusted EPS guidance raised to $16.15-$16.50, up 12% at midpoint.
- Free cash flow projected at $1.165-$1.285 billion, up $25 million from prior guidance, driven by strong cash generation and disciplined capital allocation.
- BLS margin improved 20 basis points to 16.5%, with Central Labs growth offsetting Early Development delays, while Diagnostics maintained momentum with Invitae accretion.

**【Q&A Highlights】**
- **PAMA Impact**: Anticipated $100 million 2026 top-line impact, with $25 million mitigation via LaunchPad and AI efficiency gains. Bipartisan RESULTS Act advocacy for delay.
- **Consumer Testing**: Labcorp OnDemand and Ovia Health driving double-digit growth in esoteric tests, with launches for lead exposure, heart health, and oncology.
- **BLS Book-to-Bill**: Q3 book-to-bill 0.9 (trailing 12-month 1.09), Central Labs strength offsetting Early Development study start delays.
- **Acquisition Strategy**: Pipeline remains robust, with 1.5-2.5% annual growth contribution, focusing on high-margin specialty areas.


Labcorp Holdings Inc. (LH) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

LH

LH fundamentals

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