Labcorp Reports Strong Q3 Growth, Adjusts Full-Year Outlook

Labcorp, a leading global life sciences company, has announced its third-quarter results for 2025, showcasing robust growth across its primary business segments while adjusting its full-year revenue forecast. The company's performance reflects the ongoing dynamics in the diagnostics and pharmaceutical services sectors.

Diagnostics and Lab Services Drive Revenue Increase

Labcorp reported an 8.6% increase in overall sales for the third quarter, reaching $3.56 billion. The diagnostics division emerged as the primary growth driver, with revenue surging 8.5% to $2.77 billion. Similarly, the laboratory services business experienced an 8.3% rise, contributing $799.1 million to the total revenue.

The company's contract drug development unit, Central Labs, also performed well, registering a 10.3% increase in sales. However, the Early Development segment showed more modest growth at 3.3%, prompting strategic actions from the company.

Strategic Adjustments and Full-Year Guidance

In response to the underperformance in its Early Development segment, Labcorp announced plans to take action, including potential divestitures or restructuring. This move is expected to impact approximately $50 million in annual revenue through site consolidation.

Despite strong quarterly results, Labcorp has revised its full-year revenue growth forecast. The company narrowed its projection from 7.5%-8.6% to 7.4%-8%, citing recent acquisitions and the strong U.S. dollar as contributing factors.

Notably, while trimming revenue expectations, Labcorp raised its profit outlook. The company now anticipates 2025 adjusted earnings of $16.15 to $16.50 per share, an increase from the previous forecast of $16.05 to $16.50.

Executive Commentary and Future Focus

Adam Schechter, Chairman and CEO of Labcorp, expressed satisfaction with the company's performance, stating, "Labcorp's third-quarter performance reflects continued momentum in our Diagnostics and Central Laboratory businesses, resulting in strong revenue growth and margin improvement."

Schechter also highlighted the company's strategic initiatives, including new partnerships with health systems and regional laboratories, the introduction of innovative tests in key specialty areas, and leveraging science and technology to enhance customer experience and operational efficiency.

Looking ahead, Labcorp remains focused on delivering value to customers and shareholders, with expectations of a strong finish to the year despite the adjusted revenue guidance.