Labcorp Holdings Earnings Preview: What to Expect

Burlington, North Carolina-based Labcorp Holdings Inc. (LH) provides laboratory services to doctors, hospitals, pharmaceutical companies, researchers and patients. With a market cap of $20.6 billion, the company operates through two segments, Diagnostics Laboratories and Biopharma Laboratory Services.

LH is scheduled to report its Q2 earnings on Thursday, July 24, before the market opens. Ahead of the event, analysts expect the company to report a profit of $4.14 per share, representing a 5.1% increase from $3.94 per share in the same quarter of the previous year. The company has surpassed Wall Street's bottom-line estimates in each of the past four quarters. 

For fiscal 2025, analysts expect LH to report earnings of $16.05 per share, up 10.2% from $14.57 in fiscal 2024. Moreover, the earnings are expected to rise 9.6% year-over-year to $17.59 per share in fiscal 2026.

LH stock has grown 14.6% over the past 52 weeks, outperforming the S&P 500 Index's ($SPX) 12.7% gain and the Health Care Select Sector SPDR Fund’s (XLV) 11.8% decline over the same time frame.

LH shares rose 4.7% following the release of its Q1 earnings on Apr. 29. The company posted a revenue of $3.4 billion, driven by a 6% growth in its Diagnostics Laboratories business to $2.6 billion, but fell behind the Street’s estimates. Moreover, its adjusted EPS of $3.84 beat the consensus estimate by 3%.

Analysts’ consensus opinion on LH stock is highly optimistic, with an overall “Strong Buy” rating. Out of 17 analysts covering the stock, 14 advise a “Strong Buy” rating and three recommend a “Hold.” The stock’s average analyst price target is $281.94, indicating a 14% potential upside from the current levels.