Medical Testing Giant Labcorp Projects Strong Earnings Growth for 2026

Laboratory Corporation of America announced Tuesday it expects annual profits to exceed Wall Street predictions, driven by increased demand for medical diagnostic services. The company's optimistic outlook reflects growing business from non-emergency medical procedures, particularly among senior patients.

Laboratory Corporation of America released an optimistic financial outlook Tuesday, projecting annual earnings that surpass Wall Street expectations thanks to increased demand for medical testing services.

The medical testing giant has seen consistent growth in recent months as non-emergency medical procedures continue to rebound, particularly among elderly patients seeking routine care and diagnostics.

The North Carolina-headquartered corporation anticipates its diagnostic division will expand by 5% to 6% during 2026.

Company executives predict adjusted earnings per share will fall between $17.55 and $18.25 for the year, with the middle range exceeding the $17.50 average projected by financial analysts, based on LSEG data compilation.

“We expect continued strong performance in 2026 as we remain focused on growth,” CEO Adam Schechter said in a statement.

The laboratory services provider forecasts yearly revenue between $14.61 billion and $14.79 billion, closely aligned with analyst projections of $14.63 billion.

“Overall, we see this print giving Labcorp the ability to continue its steady growth, supported by a healthy end market that also saw outperformance from peer Quest Diagnostics,” said Leerink Partners analyst Michael Cherny.

Both Labcorp and competitor Quest Diagnostics have strengthened their market position through strategic partnerships with hospitals to operate their laboratory facilities, expanding their overall market presence.

The company also exceeded fourth-quarter earnings expectations, buoyed by consistent demand across its diagnostic testing and central laboratory operations.

For the quarter ending December 31, Labcorp reported adjusted earnings of $4.07 per share, surpassing analyst estimates of $3.94 per share.

Revenue in the company’s biopharmaceutical laboratory services division, which provides research facilities for drug companies, increased 3.4%, while diagnostic services revenue climbed 5.5% during the same timeframe.

Total quarterly revenue reached $3.52 billion, slightly below the anticipated $3.56 billion.