Quarterly Results
Diagnostics Laboratories revenue increased 5.5% to $2.73 billion, with adjusted operating margins expanding 150 basis points to 15.4%. Biopharma Laboratory Services revenue rose 3.4% to $793.0 million, supported by 11.1% growth in Central Labs, which offset a 13.5% decline in Early Development.
Annual Performance Context
For the full year 2025, Labcorp generated $13.95 billion in revenue, a 7.2% increase over the $13.01 billion reported in 2024. Operating income margin for the full year expanded to 9.9% from 8.4%. Adjusted EPS for the year was $16.44, up from $14.57. Operating cash flow totaled $1.64 billion, while free cash flow improved to $1.21 billion compared to $1.10 billion in the prior year. The company recorded $127.2 million in restructuring and other charges for the year.
Business and Operations Update
“In 2025, Labcorp grew revenue over 7% and delivered double-digit adjusted EPS growth, margin expansion and strong free cash flow,” said Adam Schechter, Chairman and CEO. The company progressed on strategic priorities, including the launch of over 130 new tests, such as the first FDA-cleared blood test for Alzheimer’s assessment in primary care.
During the quarter, Labcorp invested $258.0 million in acquisitions, including assets from Parkview Health and Incyte Diagnostics. Biopharma backlog increased 9.2% year-over-year to $8.72 billion. Capital allocation included $450 million in share repurchases for the full year and $240.7 million in dividend payments. Management also announced a strategic investment to build a new 500,000-square-foot Central Laboratory facility in Indiana.
Forward Outlook
The company provided the following full-year 2026 enterprise guidance: “Revenue of $14.61 billion to $14.79 billion; midpoint growth of 5.4%”. Management also forecasts “Adjusted EPS of $17.55 to $18.25; midpoint growth of 8.9%” and “Free Cash Flow of $1.24 billion to $1.36 billion; midpoint growth of 7.8%”. Segment guidance anticipates Diagnostics Laboratories growth of 5.0% to 6.0% and Biopharma Laboratory Services growth of 3.0% to 5.0%.
Performance Summary
Labcorp concluded the fiscal year with solid growth in both revenue and adjusted earnings, supported by organic performance and targeted acquisitions. The Diagnostics segment demonstrated margin expansion, while Central Labs drove gains in Biopharma services. The company enters 2026 with a positive outlook for continued financial improvement and cash flow generation.