Laboratory Corporation of America

LH
Financial Analysis · Updated May 13, 2026 · Coverage 2026-Q2
Latest Q Revenue
$3.5B
Q1 2026 · +5.8% YoY
TTM ROIC
5.7%
FY2025 · NOPAT / Invested Capital (all assets including goodwill/intangibles; GuruFocus methodology) · WACC ~8.26% · Moat spread +-2.56pp

Financial Snapshot


ticker: LH step: 04 generated: 2026-05-12 source: quick-research

Laboratory Corporation of America Holdings (LH) — Financial Snapshot

Income Statement Summary

Metric FY2022 FY2023 FY2024 YoY
Revenue $14.95B $12.16B $13.01B +7.0%
Gross Margin ~30% ~28% ~29%
Operating Margin ~10% ~7% ~7.4%
Net Income ~$1.5B ~$750M ~$830M
EPS (diluted, non-GAAP) ~$16.50 ~$14.00 ~$15.80 +13%

FY2022 revenue was elevated by residual COVID-19 PCR testing volumes. FY2023 decline reflects the COVID testing winddown and the Fortrea CRO spin-off (mid-2023), which removed ~$2.5B in CRO revenue from the consolidated entity. FY2024 and forward comparisons are on the cleaner, post-Fortrea diagnostics-focused basis.

Cash Flow & Balance Sheet (FY2024)

Metric Value
Operating Cash Flow ~$1.6B
Free Cash Flow ~$1.1B
Capital Expenditures ~$500M
Cash & Equivalents ~$800M
Total Debt ~$5.5B

Key Ratios (approximate)

  • P/E: ~15x (non-GAAP) | EV/EBITDA: ~10x | FCF Yield: ~5.5%
  • Revenue Growth (FY2024): +7.0% | FCF Margin: ~8.5%
  • Dividend Yield: ~1.2%

Growth Profile

Post-Fortrea spin-off, Labcorp is a cleaner diagnostics and biopharma services story. The FY2023 base was depressed by the COVID testing cliff and Fortrea removal; FY2024's +7% growth reflects organic Diagnostics volume recovery, hospital partnership acquisitions, and Biopharma Central Lab growth. FY2025 continued strong at ~$14.0B revenue (+7.7% YoY), driven by specialty testing expansion (130+ new tests launched), hospital partnership wins (13 transactions), and sustained biopharma demand. Specialty testing (oncology, women's health, NGS genomics) carries materially higher margins than routine testing and is the primary earnings growth driver.

Forward Estimates

  • FY2025 Revenue: ~$14.0B (actual, +7.7% YoY)
  • FY2026 Revenue Guidance: +4.7%–6.0% growth (~$14.7B–$14.8B)
  • FY2026 Adjusted EPS Guidance: $17.55–$18.25 (midpoint $17.90, +8.9% YoY)
  • FY2026 FCF Guidance: $1.24B–$1.36B
  • PAMA reimbursement cuts frozen for 2026 (resume in 2027 at max 15%/year through 2029)

Deeper Financial Analysis

The fundamental tier adds 9 additional research dimensions for $LH.

Revenue Breakdown
Segment revenue, geographic mix, product-line contribution margins, and cohort dynamics.
Financial Trends
Quarter-over-quarter momentum, leading indicators, and inflection point analysis.
Balance Sheet
Debt structure, liquidity runway, dilution risk, and working capital dynamics.
Capital Allocation
Buyback cadence, M&A appetite, dividend policy, and reinvestment priorities.
Returns on Capital (ROIC)
Multi-year ROIC vs. WACC, marginal returns on reinvestment, sales-to-invested-capital efficiency, and moat spread.
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