Labcorp (LH) · Q2 2026 results and valuation

At 5.6% growth a year (3-year revenue growth), the model's fair value is $171.02 a share — the stock trades 118% above it. Today's price assumes 13.5% growth a year.

1. Guidance ↑

   LH raised the revenue guidance for Early Development.

   Source quote

   “And that's why we're able to raise the revenue guidance for Early Development.”

2. Guidance

   BLS margin expansion is still expected to outpace Diagnostics for full-year 2026.

   Source quote

   “Lastly, I would say, we also reiterated our expectation that for full year 2026, the margin expansion for BLS as a segment is expected to outpace that for Diagnostics.”

3. Figure

   Revenue grew 6% to $3.7 billion, reflecting a change in the company's top-line performance for the quarter.

   Source quote

   “Revenue grew 6% to $3.7 billion.”

4. Fading

   The Early Development business remained relatively flat with Central Labs growing 11% or 5% on an organic constant currency basis.

   Source quote

   “And then the Early Development business was relatively flat. Central Labs grew 11% or 5% if you look at it on an organic constant currency basis. We still make a lot -- we made a lot of progress on our strategic actions in Early Development, and those will be completed by the end of the second quarter.”

Script and answers carried a similar tone, so the script's message held up under questioning.

Sentences that drove the tone

“First, we delivered another strong quarter of financial performance, including solid revenue growth, significant margin expansion and double-digit adjusted EPS growth.”

“Key accomplishments include broadening our specialty test portfolio; expanding partnerships with leading health systems, biopharmaceutical clients, and regional and local laboratories; continuing to grow our consumer business; and increasing the...”

“Labcorp delivered another very strong quarter driven by solid revenue growth, margin expansion, and progress across our strategic priorities.”