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Sep 30
LabCorp Q3 2025 Earnings Report
Labcorp delivered strong third-quarter 2025 results with solid revenue growth, double-digit EPS expansion, and margin improvement across segments.
Key Takeaways
Labcorp reported Q3 2025 revenue of $3.56 billion and net income of $261.1 million. Adjusted EPS grew to $4.18 and operating income improved significantly due to strong Diagnostics and Central Labs demand, innovation, and recent acquisitions.
Revenue grew 8.6% year-over-year to $3.56 billion.
Adjusted EPS rose to $4.18, up from $3.50 in Q3 2024.
Free cash flow increased to $280.5 million in the quarter.
Diagnostics and Biopharma segments showed strong operating margins above 16%.
LabCorp
LabCorp
LabCorp Revenue by Segment
Revenue by Segment
Diagnostics Laboratories Revenue
CapyFin.comBiopharma Lab Services Revenue
CapyFin.com Forward Guidance
Labcorp updated its 2025 full-year guidance, narrowing revenue growth to 7.4–8.0%, raising adjusted EPS midpoint to $16.33, and increasing free cash flow forecast midpoint by $25M.
Positive Outlook
- Raised midpoint of adjusted EPS guidance to $16.33.
- Raised free cash flow midpoint guidance to $1.23 billion.
- Continued strong growth in specialty testing areas like oncology and neurology.
- Signed multiple strategic acquisition and lab management agreements.
- Improved adjusted operating margin across both segments.
Challenges Ahead
- Slight lowering of revenue growth midpoint due to FX and acquisition timing.
- Early Development revenue came in below expectations.
- Company began divesting ~$50 million in low-performing revenue.
- Cash and equivalents decreased significantly since year-end.
- High capital investment and acquisition costs impacted cash flows.
Revenue & Expenses
Visualization of income flow from segment revenue to net income