Upside case
Bull case
$853+232.0%
LH would need investors to value it at roughly 48x earnings — about 33x more generous than today's 14x forward P/E. That requires meaningful multiple expansion on top of continued earnings growth.
Analysis OverviewBuyUpdated May 1, 2026
Labcorp Holdings Inc. (LH) Stock Analysis
Wall Street verdict, consensus price target, and analyst rating breakdown — everything needed to frame the risk/reward at today's price.
Analyst consensus
Buy
Covering
35
analysts
26 bullish · 0 bearish · 35 covering LH
Strong Buy
0
Buy
26
Hold
9
Sell
0
Strong Sell
0
Consensus Target
$311
+21.2% vs today
Scenario Range
$172 – $853
Model bear to bull value window
Coverage
35
Published analyst ratings
Valuation Context
14.4x
Forward P/E · Market cap $21.1B
LH price targets
Three scenarios for where LH stock could go
Current
~$257
Confidence
58 / 100
Updated
May 1, 2026
Where we are now
Current · $257
Bear
$172
Base
$359
Bull
$853
Market caseClosest to today
Base case
$359+39.8%
At 20x on FY1 earnings, the base case reflects a reasonable but not stretched valuation. It prices in continued growth without assuming an exceptional setup.
Stress case
Bear case
$172-33.1%
If investor confidence fades or macro conditions deteriorate, a 5x multiple contraction could push LH down roughly 33% from where it trades now.
Not financial advice. Model confidence reflects internal scenario assumptions, not a guarantee of returns. Past performance does not predict future results.
Labcorp Holdings Inc.
LH · NYSEHealthcareMedical - Equipment & ServicesDecember year-end
Labcorp is a leading provider of laboratory testing and drug development services for healthcare providers, pharmaceutical companies, and patients. It generates revenue primarily from diagnostic testing services (~70% of revenue) and drug development services through its Covance segment (~30%), serving both clinical diagnostics and pharmaceutical research markets. The company's competitive advantage lies in its massive scale—processing over 2.5 million patient specimens weekly—and its integrated diagnostics-to-drug-development platform that creates significant switching costs for healthcare systems and pharmaceutical clients.
Market Cap
$21.1B
Revenue TTM
$14.1B
Net Income TTM
$942M
Net Margin
6.7%
LH Revenue and Earnings Performance
Quarterly beat-or-miss track record against analyst estimates, plus forward revenue and EPS outlook for the next two fiscal years.
EPS Beat Rate
83%Exceptional
12 quarters tracked
Revenue Beat Rate
75%Exceptional
vs consensus estimates
Avg EPS Surprise
+1.6%
above Street consensus
Beat / Miss Record
BeatMissLeft = EPS · Right = Revenue
Q2 2025
Q3 2025
Q4 2025
Q1 2026
Last 4 Quarters
EPS beats: 4 of 4Q2 2025
EPS
$3.84/$3.74
Revenue
$3.3B/$3.4B
Q3 2025
EPS
$4.35/$4.17
Revenue
$3.5B/$3.5B
Q4 2025
EPS
$4.18/$4.13
Revenue
$3.6B/$3.6B
Q1 2026
EPS
$4.07/$3.95
Revenue
$3.5B/$3.6B
| Quarter | EPS (Actual / Est) | EPS Surprise | Revenue (Actual / Est) | Rev Surprise |
|---|---|---|---|---|
| Q2 2025 | $3.84/$3.74 | +2.7% | $3.3B/$3.4B | -1.6% |
| Q3 2025 | $4.35/$4.17 | +4.3% | $3.5B/$3.5B | +1.2% |
| Q4 2025 | $4.18/$4.13 | +1.2% | $3.6B/$3.6B | +0.2% |
| Q1 2026 | $4.07/$3.95 | +3.0% | $3.5B/$3.6B | -1.2% |
FY1–FY2 Estimates
Revenue Outlook
FY1
$14.8B
+4.7% YoY
FY2
$15.6B
+5.3% YoY
EPS Outlook
FY1
$14.27
+25.7% YoY
FY2
$14.62
+2.4% YoY
Trailing FCF (TTM)$1.4B
FCF Margin: 9.8%
Next Earnings
—
Expected EPS
—
Expected Revenue
—
LH beat EPS estimates in 4 of 4 tracked quarters. A perfect track record raises the bar for the upcoming report.
LH Revenue Breakdown by Segment
Product and geographic revenue mix from the latest annual disclosure, with year-over-year growth by segment.
Latest disclosure
FY 2025
Total disclosed revenue $10.9B
Product Mix
Latest annual revenue by segment or product family
LabCorp Diagnostics
100.0%
+7.2% YoY
Tap, hover, or focus a slice to inspect segment detail.
Geographic Mix
Latest annual revenue by reported region
Segment breakdown not available for this company.
LabCorp Diagnostics is the largest disclosed segment at 100.0% of FY 2025 revenue, up 7.2% YoY.
LH Valuation Snapshot
Current multiples compared to the S&P 500, the company's sector, and its own five-year average.
Relative Value Signal
Slightly Overvalued
Fair value est. $242 — implies -5.2% from today's price.
Premium to Fair Value
5.2%
above fair value
Deep DiscountFair ValueVery Expensive
vs S&P 500 Trailing P/E
LH
24.6x
vs
S&P 500
25.2x
In line with benchmark
vs Healthcare Trailing P/E
LH
24.6x
vs
Healthcare
22.1x
+11% premium
vs LH 5Y Avg P/E
Today
24.6x
vs
5Y Average
24.6x
In line with benchmark
Forward PE
14.4x
S&P 500
19.1x
-25%
Healthcare
19.0x
-24%
5Y Avg
—
—
Trailing PE
24.6x
S&P 500
25.2x
-3%
Healthcare
22.1x
+11%
5Y Avg
24.6x
-0%
PEG Ratio
—
S&P 500
1.75x
—
Healthcare
1.52x
—
5Y Avg
—
—
EV/EBITDA
12.7x
S&P 500
15.3x
-17%
Healthcare
14.1x
-10%
5Y Avg
13.5x
-6%
Price/FCF
17.5x
S&P 500
21.3x
-18%
Healthcare
18.7x
-6%
5Y Avg
16.1x
+9%
Price/Sales
1.5x
S&P 500
3.1x
-52%
Healthcare
2.8x
-47%
5Y Avg
1.6x
-8%
Dividend Yield
1.12%
S&P 500
1.88%
-40%
Healthcare
1.40%
-20%
5Y Avg
1.18%
-5%
| Metric | LH | S&P 500 | Healthcare | 5Y Avg LH |
|---|---|---|---|---|
| Forward PE | 14.4x | 19.1x-25% | 19.0x-24% | — |
| Trailing PE | 24.6x | 25.2x | 22.1x+11% | 24.6x |
| PEG Ratio | — | 1.75x | 1.52x | — |
| EV/EBITDA | 12.7x | 15.3x-17% | 14.1x-10% | 13.5x |
| Price/FCF | 17.5x | 21.3x-18% | 18.7x | 16.1x |
| Price/Sales | 1.5x | 3.1x-52% | 2.8x-47% | 1.6x |
| Dividend Yield | 1.12% | 1.88% | 1.40% | 1.18% |
LH trades above S&P 500 benchmarks on 0 of 5 measured multiples — appears modestly priced relative to the S&P 500 on most measures.
Forward P/E and PEG reflect analyst consensus estimates. Historical averages use trailing ratios where forward data is unavailable.S&P 500 and sector benchmarks both use trailing median P/E — similar readings indicate the broader index and sector are priced alike.
Open valuation toolLH Financial Health
Verdict
Strong
LH generates $1.4B in free cash flow at a 9.8% margin — returns 3.2% of market cap to shareholders annually.
Cash Engine
Revenue, margins, and cash generation
Revenue (TTM)
Trailing-twelve-month sales base
$14.1B
Revenue Growth
TTM vs prior year
+7.3%
Gross Margin
Gross profit as a share of revenue
27.8%
Operating Margin
Operating income divided by revenue
11.0%
Net Margin
Net income divided by revenue
6.7%
EPS (TTM)
Diluted earnings per share, trailing twelve months
$11.36
Free Cash Flow (TTM)
Cash generation after capex
$1.4B
FCF Margin
FCF as share of revenue — the primary cash quality signal
9.8%
Capital Quality
ROIC, leverage, and debt serviceability
ROIC
Return on invested capital — primary competitive quality signal
7.8%
ROA
Return on assets, trailing twelve months
5.1%
Cash & Equivalents
Liquid assets on the balance sheet
$532M
Net Debt
Total debt minus cash
$6.7B
Debt Serviceability
Net debt as a multiple of annual free cash flow
4.8× FCF
~4.8 years to full repayment at current FCF run-rate
ROE
Return on equity, trailing twelve months
10.9%
Shareholder Returns
How capital is returned to owners
Total shareholder yield
3.2%
Dividend
1.1%
Buyback
2.1%
Share Repurchases
Trailing buyback outflow — dollar magnitude of capital returned
$450M
Dividend / Share
Annualized trailing dividend per share
$2.87
Payout Ratio
Share of earnings distributed as dividends
27.5%
Shares Outstanding
Declining as buybacks retire shares
82M
All figures from the trailing twelve months. ROIC uses invested capital (equity + net debt).
Open full ratios pageLH Stock Risk Factors
Key factors that could pressure the stock price, compress the multiple, or weigh on future results.
AI analysis · updated April 29, 2026
High Risk
Fuel Shortages and Prices
Lufthansa has faced significant operational disruptions, including the cancellation of 20,000 summer flights due to a severe jet fuel shortage and sharply increased prices. This situation is exacerbated by geopolitical events and disproportionately affects short-haul routes, which have a higher fuel burn per passenger kilometer.
High Risk
High Debt Levels
The company's debt-to-equity ratio remains elevated due to increased long-term debt taken on during the COVID-19 pandemic. This high level of debt poses a risk to financial stability and could impact the company's ability to navigate future economic challenges.
High Risk
Negative Net Income
Lufthansa has been experiencing persistent negative net income, raising concerns about its profitability. Continued losses could lead to bankruptcy if the trend does not reverse.
High Risk
Labor Disputes and Strikes
Pilots at Lufthansa CityLine and Eurowings have authorized or are voting on strike action due to stalled negotiations on salary adjustments and pension agreements. Coordinated industrial action could significantly disrupt intra-European capacity.
Medium
Geopolitical Crises
Ongoing conflicts such as the war in Ukraine and the Middle East conflict, along with the risk of terrorist attacks, can directly impact Lufthansa's business operations and safety. These situations may lead to increased costs, including higher insurance premiums and fuel costs due to airspace closures.
Medium
Economic Downturns
Slower economic growth, inflation, and geopolitical crises can negatively impact demand and bookings for Lufthansa. This could lead to reduced revenue and further financial strain on the company.
Medium
Climate Change Regulations
EU climate protection policies, including reforms to emissions trading and potential kerosene taxes, are expected to increase costs for European airlines like Lufthansa. These regulations could create competitive disadvantages in the market.
Lower
IT System Failures
Malfunctions in data centers during maintenance can cause widespread disruptions to flight operations, scheduling, and passenger services. Past incidents have grounded hundreds of flights, highlighting the potential impact of IT system failures.
These are risk mechanisms, not predictions. The key question is which would force a cut to earnings estimates or a lower multiple than the market currently prices in.
Why LH Stock Could Outperform
Structural drivers behind the upside case and why the stock could outperform over the next 12 months.
AI analysis · updated April 29, 2026
Record Earnings in 2025
Lufthansa achieved record financial results in 2025, with revenue increasing by 5% to €39.6 billion and adjusted operating profit climbing 20% to €2 billion. This strong performance was driven by a record seat load factor of 83.2% from 135 million passengers, indicating robust travel demand.
Strong Pricing Power and Growth
Lufthansa demonstrated strong pricing power and yield growth, with ancillary revenues surging 15% driven by premium product uptake. This reflects the company's ability to capitalize on increasing travel demand and enhance profitability.
Ambitious Margin Targets
Lufthansa has set ambitious margin targets of 8-10%, which analysts believe are achievable due to historical performance and peer benchmarks. The high margins in the MRO division support these targets, indicating potential for improved profitability.
Strategic ITA Airways Integration
The integration of ITA Airways is expected to add significant upside to Lufthansa's operations and market position. This strategic move is anticipated to enhance revenue streams and strengthen Lufthansa's competitive edge in the European airline market.
Favorable Cost Environment
The company benefited from lower fuel prices and a weaker US dollar, which improved profitability. Additionally, flight disruption expenses fell year-on-year, contributing to a more favorable cost structure.
Dominant Market Position
Lufthansa holds a near-monopolistic position on some flight routes within Europe, contributing to its solid financial data. This dominance allows the company to maintain pricing power and secure a stable revenue base.
A real bull case compounds — each driver matters most when it strengthens margins, supports capital returns, and keeps the company above the market's minimum growth bar simultaneously.
LH Stock Price Performance
52-week range context and price returns across multiple time horizons. Dividend contribution is shown separately in the Capital Return section.
Current Price
$256.93
52W Range Position
32%
52-Week Range
Current price plotted between the 52-week low and high.
52-Week Low
$239.67
+7.2% from the low
52-Week High
$293.72
-12.5% from the high
1 Month
-6.39%
3 Month
-7.31%
YTD
+2.1%
1 Year
+5.3%
3Y CAGR
+10.4%
5Y CAGR
+1.5%
10Y CAGR
+9.2%
Range context matters because valuation compression and earnings misses rarely hit from the same starting point. A stock already far below its high can still fall, but it is no longer carrying the same embedded optimism as one pressing a fresh peak.
LH vs Peers
Valuation, growth, and margin comparison against the closest publicly traded peers for this company.
Peer Set
Accurate peer set
Forward PE
14.4x
vs 21.4x median
-33% below peer median
Revenue Growth
+4.7%
vs +16.5% median
-72% below peer median
Net Margin
6.7%
vs 6.5% median
+2% above peer median
| Company | Mkt Cap | Fwd PE | Rev Grw | Margin | Rating | Upside |
|---|---|---|---|---|---|---|
LH LH Labcorp Holdings Inc. | $21.1B | 14.4x | +4.7% | 6.7% | Buy | +21.2% |
DGX DGX Quest Diagnostics Incorporated | $20.9B | 17.6x | +6.6% | 9.1% | Hold | +16.6% |
SLN SLNO Soleno Therapeutics, Inc. | $2.8B | 13.4x | +81.8% | 11.0% | Buy | +51.1% |
EXA EXAS Exact Sciences Corporation | $20.0B | 582.8x | +16.5% | -6.4% | Buy | -1.6% |
BIO BIO Bio-Rad Laboratories, Inc. | $7.0B | 25.2x | -0.1% | 6.5% | Buy | +20.6% |
NTR NTRA Natera, Inc. | $29.6B | — | +31.7% | -14.6% | Buy | +22.0% |
This peer comparison reflects companies with similar business models, product lines, or market positioning, supplemented by industry grouping when direct matches are limited.
LH Dividend and Capital Return
LH returns capital mainly through $450M/year in buybacks (2.1% buyback yield), with a modest 1.12% dividend — combining for 3.2% total shareholder yield.
Dividend SustainableFCF Well Covered
Total Shareholder Yield
3.2%
Dividend + buyback return per year
Buyback Yield
2.1%
Dividend Yield
1.12%
Payout Ratio
27.5%
How LH Splits Its Return
Div 1.12%
Buyback 2.1%
Dividend 1.12%Buybacks 2.1%
Dividend Profile
Yield, cadence, and growth quality
Dividend / Share
Trailing annualized cash dividend
$2.87
Growth Streak
Consecutive years of dividend increases
0Y
3Y Div CAGR
15.8%
5Y Div CAGR
—
Ex-Dividend Date
—
Payment Cadence
Semi-Annual
5 payments over the last 12 months
Buyback Engine
How much per-share support comes from repurchases
Repurchases (TTM)
Cash used for buybacks in the latest trailing period
$450M
Estimated Shares Retired
2M
Approx. Share Reduction
2.1%
Shares Outstanding
Current diluted share count from the screening snapshot
82M
At 2.1%/year, buybacks mechanically lift EPS even with flat earnings — each remaining share represents a slightly larger piece of the company.
| Year | Div / Share | YoY Grw | BB Yield | Total Yield |
|---|---|---|---|---|
| 2026 | $1.44 | — | — | — |
| 2025 | $2.88 | 0.0% | 2.1% | 3.3% |
| 2024 | $2.88 | +7.6% | 1.3% | 2.5% |
| 2023 | $2.68 | +44.3% | 5.2% | 6.5% |
| 2022 | $1.86 | — | 6.2% | 7.3% |
FAQ
7 questionsLH Investor Questions
Common questions answered from live analyst data and company financials.
01Is Labcorp Holdings Inc. (LH) stock a buy or sell in 2026?
Labcorp Holdings Inc. (LH) is rated Buy by Wall Street analysts as of 2026. Of 35 analysts covering the stock, 26 rate it Buy or Strong Buy, 9 rate it Hold, and 0 rate it Sell or Strong Sell. The consensus 12-month price target is $311, implying +21.2% from the current price of $257. The bear case scenario is $172 and the bull case is $853.
02What is the LH stock price target for 2026?
The Wall Street consensus price target for LH is $311 based on 35 analyst estimates. The high-end target is $334 (+30.0% from today), and the low-end target is $300 (+16.8%). The base case model target is $359.
03Is Labcorp Holdings Inc. (LH) stock overvalued in 2026?
LH trades at 14.4x times forward earnings. The stock's valuation is broadly in line with the broader market. Based on current multiples versus the peer group, the relative model signals slightly overvalued. Whether the stock is over or undervalued ultimately depends on whether consensus earnings estimates are achievable.
04What are the main risks for Labcorp Holdings Inc. (LH) stock in 2026?
The primary risks for LH in 2026 are: (1) Fuel Shortages and Prices — Lufthansa has faced significant operational disruptions, including the cancellation of 20,000 summer flights due to a severe jet fuel shortage and sharply increased prices. (2) High Debt Levels — The company's debt-to-equity ratio remains elevated due to increased long-term debt taken on during the COVID-19 pandemic. (3) Negative Net Income — Lufthansa has been experiencing persistent negative net income, raising concerns about its profitability. Each factor has the potential to pressure earnings or compress the stock's valuation multiple.
05What is Labcorp Holdings Inc.'s revenue and earnings forecast?
Analyst consensus estimates LH will report consensus revenue of $14.8B (+4.7% year-over-year) and EPS of $14.27 (+25.7% year-over-year) for the upcoming fiscal year. The following year, analysts project $15.6B in revenue.
06When does Labcorp Holdings Inc. (LH) report its next earnings?
A confirmed upcoming earnings date for LH is not yet available. Check the Earnings section above for the most recent quarterly report dates and forward estimates.
07How much free cash flow does Labcorp Holdings Inc. generate?
Labcorp Holdings Inc. (LH) generated $1.4B in free cash flow over the trailing twelve months — a free cash flow margin of 9.8%. LH returns capital to shareholders through dividends (1.1% yield) and share repurchases ($450M TTM).