Abstract

Labcorp Holdings Inc will release its quarterly results on February 17, 2026 Pre-Market, and this preview compiles recent financial metrics, segment trends, and consensus forecasts to frame expectations for revenue, margin, and adjusted EPS.

Market Forecast

Consensus and company-level forecast indicators suggest Labcorp Holdings Inc expects current-quarter revenue of $3.56 billion, EBIT of $0.49 billion, and adjusted EPS of $3.94, implying estimated year-over-year growth of 7.55% for revenue, 12.56% for EBIT, and 16.38% for EPS; management’s reported last-quarter gross margin baseline was 28.77% and net profit margin 7.33%, serving as a reference for margin trajectory. The main business is Clinical Laboratory Diagnostics, which continues to anchor revenue with stable demand drivers; Biopharma Laboratory Services is positioned for incremental growth tied to new program wins and improving sponsor activity. The most promising segment is Biopharma Laboratory Services, which generated $0.80 billion last quarter and is expected to expand on a mid-single to low-double-digit trajectory year over year as backlog conversion improves.

Last Quarter Review

Labcorp Holdings Inc delivered last-quarter revenue of $3.56 billion, a gross profit margin of 28.77%, GAAP net profit attributable to the parent company of $0.26 billion, a net profit margin of 7.33%, and adjusted EPS of $4.18, with year-over-year growth of 8.58% for revenue and 19.43% for EPS. A notable highlight was net profit growth of 9.75% quarter on quarter, reflecting operational leverage and disciplined cost control despite mixed pricing headwinds. The main business delivered a revenue breakdown of $2.77 billion from Clinical Laboratory Diagnostics and $0.80 billion from Biopharma Laboratory Services, indicating a balanced mix with diagnostics contributing the majority of revenue; internal eliminations were $0.01 billion.

Current Quarter Outlook

Clinical Laboratory Diagnostics

The Clinical Laboratory Diagnostics segment remains the primary revenue engine, supported by routine testing volumes, insurer coverage stability, and a broad national footprint. Near-term, test mix shifts toward higher-acuity and specialty assays could support yield even as core volumes normalize post seasonal peaks. Pricing dynamics with payers and health systems will be a key variable; any reimbursement adjustments or contract renewals can influence realized margins. Operational efficiency initiatives, including lab automation and logistics optimization, should sustain cost discipline, helping preserve the gross margin anchor around the recent 28.77% baseline. On balance, the segment’s revenue is likely to grow modestly in line with the consolidated outlook, with upside tied to specialty testing mix and downside risk if flu and respiratory testing trends underperform seasonality.

Biopharma Laboratory Services

Biopharma Laboratory Services appears poised for faster growth this quarter, supported by expanding sponsor activity, improved enrollment trends, and backlog conversion across therapeutic areas. This business benefits from diversified programs and a pipeline of early- to late-stage trials, which offers resilience against single-study volatility. If new awards ramp and existing programs progress on schedule, revenue can track to mid-single to low-double-digit year-over-year gains, consistent with management’s consolidated revenue growth forecast. Margin cadence will hinge on utilization and project phasing; higher throughput of contract services typically lifts EBIT sensitivity above revenue growth, aligning with the forecasted 12.56% EBIT growth. Watchpoints include the timing of regulatory milestones and any sponsor-driven delays, which can push revenue recognition into subsequent periods.

Key Stock Price Drivers This Quarter

Investor focus is likely to center on the interplay between revenue growth and margin preservation, given the last quarter’s 28.77% gross margin and 7.33% net profit margin benchmarks. The EPS forecast of $3.94 implies healthy operational leverage; delivering in line or above that level would validate management’s cost and mix strategies. Segment commentary will matter: confirmation of stable diagnostic demand and visible biopharma backlog conversion can reinforce the growth narrative, while any indication of reimbursement pressure or project delays could weigh on sentiment. Cash generation and capital allocation updates, including potential buyback activity and disciplined M&A, may also influence the stock, though operating performance will be the decisive driver around the event.

Analyst Opinions

Across recent institutional commentary, the majority view has been cautiously bullish, expecting Labcorp Holdings Inc to meet or slightly exceed consolidated forecasts given steady diagnostics volume and strengthening biopharma services momentum. Analysts note that the current-quarter revenue estimate of $3.56 billion and EPS estimate of $3.94 embed conservative assumptions on reimbursement and project timing, leaving room for limited upside if specialty test mix and backlog conversion overdeliver. Leading sell-side voices emphasize margin resilience as the swing factor; reiteration of cost control and productivity gains could underpin EBIT growth near the forecasted 12.56%, supporting the cautiously constructive stance into February 17, 2026.