Labcorp (NYSE: LH) has announced its financial results for the third quarter of 2025, revealing a revenue of $3.56 billion, marking an increase from the $3.28 billion reported in the same period in 2024. This represents an 8.6% growth in total revenue.
The diluted earnings per share (EPS) for the third quarter of 2025 were $3.12, a significant rise from the $2.00 reported in the third quarter of 2024. Adjusted EPS also showed substantial growth, reaching $4.18 in the third quarter of 2025, up from $3.50 in the same period in 2024, reflecting a 19.4% increase.
Furthermore, Labcorp's operating income for the third quarter of 2025 stood at $396.6 million, an increase from the $254.1 million reported in the third quarter of 2024. Adjusted operating income (AOI) for the same period in 2025 reached $513.3 million, up from $441.1 million in the third quarter of 2024. The AOI as a percentage of revenue saw an increase of 100 basis points to 14.4% in the third quarter of 2025.
In terms of cash flow, Labcorp reported an operating cash flow of $387.2 million for the third quarter of 2025, compared to $277.3 million in the same period in 2024. This resulted in a free cash flow of $280.5 million for the third quarter of 2025, a notable increase from the $161.5 million reported in the third quarter of 2024.
The company also provided updated full-year guidance, with a revised revenue guidance of 7.4% to 8.0%, representing a 40 basis points decrease at the midpoint due to currency and acquisition timing. The adjusted EPS range for the full year was raised to $16.15 to $16.50, indicating a $0.05 increase at the midpoint. Additionally, the free cash flow range was raised to $1.17 billion to $1.29 billion, reflecting a $25 million increase at the midpoint.
Labcorp highlighted its strategic agreements with health systems and regional/local laboratories, as well as advancements in high-growth specialty testing areas such as oncology and neurology. The company also introduced Labcorp Test Finder and new digital pathology, cytology, and microbiology capabilities.
Furthermore, the press release noted the company's expansion in oncology and genetic testing, as well as its leadership in neurology with the introduction of new Alzheimer’s tests. Labcorp also demonstrated momentum in its consumer business with the introduction of several new tests through Labcorp OnDemand.
In the quarter, Labcorp announced a quarterly cash dividend of $0.72 per share of common stock, payable on December 11, 2025, and reported repurchasing $25 million of common stock.
Labcorp's Diagnostics Laboratories segment reported total revenue of $2.77 billion for the third quarter of 2025, showing an 8.5% increase from the same period in 2024. The Biopharma Laboratory Services segment recorded a total revenue of $799.1 million, marking an 8.3% growth from the third quarter of 2024.
The market has reacted to these announcements by moving the company's shares -1.37% to a price of $275.66. Check out the company's full 8-K submission here.
