Labcorp Q1 Profit Beats, Revenue Grows 5.3%

Labcorp Holdings reported adjusted Q1 2025 earnings per share of $3.84, exceeding analyst estimates by about 3%, although GAAP EPS declined compared to the prior year. Revenue rose 5.3% year-over-year to $3.35 billion, driven by higher demand for diagnostic testing and recent acquisitions, but still missed Wall Street forecasts. The Diagnostics Laboratories segment saw a 6% revenue increase, while Biopharma Laboratory Services grew 1.5%. Labcorp slightly increased the lower end of its 2025 adjusted profit forecast, citing confidence in core areas such as oncology and women's health. Operating margins and free cash flow remained stable, though long-term organic revenue growth trails industry benchmarks. Shares responded positively in pre-market trading, despite mixed performance in recent months amid a dynamic macroeconomic backdrop.