Revenue reached $3.8B with a 6.9% net margin in Q3 2026, but operating margin compressed to 10.6% from 12.1% in the prior quarter, suggesting margin recovery remains fragile.
Labcorp Holdings Inc. (LH) annual income statement — 30-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Sales/Revenue | 14.59B | 13.95B | 13.01B | 12.16B | 11.86B | 13.14B | 13.98B | 11.55B | 11.33B | 10.44B | 9.64B | 8.68B | 6.01B | 5.81B | 5.67B | 5.54B | 5B | 4.69B | 4.51B | 4.07B | 3.59B | 3.33B | 3.08B | 2.94B | 2.51B | 2.2B | 1.92B | 1.7B | 1.61B | 1.52B | 1.61B |
| Revenue Growth % | 6.02% | 7.25% | 6.97% | 2.51% | -9.68% | -6.03% | 20.98% | 1.95% | 8.54% | 8.29% | 11.08% | 44.39% | 3.5% | 2.41% | 2.33% | 10.76% | 6.59% | 4.21% | 10.74% | 13.3% | 7.91% | 7.87% | 4.95% | 17.21% | 14% | 14.61% | 12.99% | 5.34% | 6.16% | -5.52% | 12.27% |
| Cost of Goods Sold | 10.52B | 10.22B | 9.38B | 8.8B | 8.15B | 8.14B | 9.03B | 8.3B | 8.16B | 6.98B | 6.46B | 5.78B | 3.81B | 3.59B | 3.42B | 3.27B | 2.91B | 2.72B | 2.63B | 2.38B | 2.06B | 1.94B | 1.8B | 1.71B | 1.45B | 1.27B | 1.1B | 1.02B | 995.8M | 1.02B | 1.13B |
| COGS % of Revenue | - | 73.25% | 72.14% | 72.33% | 68.74% | 61.99% | 64.57% | 71.85% | 71.97% | 66.82% | 67.01% | 66.55% | 63.35% | 61.72% | 60.33% | 58.96% | 58.08% | 58.02% | 58.41% | 58.43% | 57.41% | 58.22% | 58.2% | 58.34% | 57.66% | 57.92% | 57.14% | 59.83% | 61.75% | 67.43% | 70.22% |
| Gross Profit | 4.08B | 3.73B | 3.62B | 3.36B | 3.71B | 4.99B | 4.95B | 3.25B | 3.18B | 3.46B | 3.18B | 2.9B | 2.2B | 2.22B | 2.25B | 2.27B | 2.1B | 1.97B | 1.87B | 1.69B | 1.53B | 1.39B | 1.29B | 1.22B | 1.06B | 925.6M | 822.7M | 682.4M | 616.8M | 494.7M | 478.7M |
| Gross Margin % | 27.95% | 26.75% | 27.86% | 27.67% | 31.26% | 38.01% | 35.43% | 28.15% | 28.03% | 33.18% | 32.99% | 33.45% | 36.65% | 38.28% | 39.67% | 41.04% | 41.92% | 41.98% | 41.59% | 41.57% | 42.59% | 41.78% | 41.8% | 41.66% | 42.34% | 42.08% | 42.86% | 40.17% | 38.25% | 32.57% | 29.78% |
| Gross Profit Growth % | - | 2.98% | 7.71% | -9.28% | -25.71% | 0.8% | 52.28% | 2.4% | -8.3% | 8.91% | 9.55% | 31.78% | -0.9% | -1.18% | -1.1% | 8.43% | 6.44% | 5.18% | 10.8% | 10.58% | 10.01% | 7.83% | 5.28% | 15.33% | 14.71% | 12.51% | 20.56% | 10.64% | 24.68% | 3.34% | 5.65% |
| Operating Expenses | 2.46B | 2.22B | 2.54B | 2.64B | 2.27B | 1.94B | 2.51B | 1.87B | 1.8B | 2.03B | 1.81B | 1.79B | 1.27B | 1.21B | 1.2B | 1.25B | 1.11B | 1.02B | 1.03B | 863.6M | 831.3M | 755.3M | 691.8M | 689.4M | 609.3M | 558M | 572.6M | 532.7M | 489.2M | 586.7M | 574.5M |
| OpEx % of Revenue | - | 15.89% | 19.51% | 21.7% | 19.15% | 14.8% | 17.94% | 16.16% | 15.91% | 19.43% | 18.77% | 20.58% | 21.21% | 20.84% | 21.17% | 22.47% | 22.12% | 21.76% | 22.88% | 21.23% | 23.15% | 22.7% | 22.43% | 23.45% | 24.3% | 25.37% | 29.83% | 31.36% | 30.34% | 38.62% | 35.73% |
| Selling, General & Admin | 2.28B | 2.22B | 2.23B | 2.02B | 2B | 1.69B | 1.73B | 1.62B | 1.57B | 1.81B | 1.63B | 1.62B | 1.2B | 1.13B | 1.11B | 1.16B | 1.03B | 958.9M | 935.1M | 808.7M | 779.1M | 703.9M | 649.1M | 651.8M | 585.5M | 516.5M | 483M | 448.2M | 405M | 499.9M | 490M |
| SG&A % of Revenue | - | 15.89% | 17.14% | 16.62% | 16.83% | 12.87% | 12.37% | 14.06% | 13.86% | 17.36% | 16.91% | 18.69% | 19.93% | 19.43% | 19.65% | 20.92% | 20.67% | 20.43% | 20.76% | 19.88% | 21.7% | 21.15% | 21.04% | 22.17% | 23.35% | 23.48% | 25.17% | 26.38% | 25.11% | 32.91% | 30.48% |
| Research & Development | 0 | 0 | 0 | 2M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | 0.02% | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 2M | 0 | 307.7M | 615.9M | 275.8M | 253.5M | 778.1M | 243.2M | 167.7M | -7.6M | 2.6M | -7.8M | 10.4M | 2.1M | -7.2M | 85.8M | 72.7M | 62.6M | 57.9M | 54.9M | 52.2M | 51.4M | 42.7M | 37.6M | 23.8M | 41.5M | 89.6M | 84.5M | 84.2M | 86.8M | 84.5M |
| Operating Income | 1.62B | 1.52B | 1.09B | 725.6M | 1.44B | 3.05B | 2.45B | 1.33B | 1.33B | 1.36B | 1.31B | 1B | 910.4M | 990.9M | 1.02B | 948.4M | 978.8M | 935.9M | 842.9M | 777M | 697.1M | 618.1M | 598.4M | 533.7M | 435M | 367.6M | 250.1M | 149.7M | 127.6M | -92M | -95.8M |
| Operating Margin % | 11.12% | 10.87% | 8.35% | 5.97% | 12.11% | 23.21% | 17.49% | 11.51% | 11.7% | 13.07% | 13.61% | 11.55% | 15.14% | 17.06% | 18.05% | 17.11% | 19.56% | 19.94% | 18.71% | 19.1% | 19.41% | 18.57% | 19.4% | 18.16% | 17.35% | 16.71% | 13.03% | 8.81% | 7.91% | -6.06% | -5.96% |
| Operating Income Growth % | - | 39.52% | 49.77% | -49.49% | -52.88% | 24.67% | 83.84% | 0.34% | -2.82% | 3.95% | 30.86% | 10.16% | -8.12% | -3.19% | 7.92% | -3.11% | 4.58% | 11.03% | 8.48% | 11.46% | 12.78% | 3.29% | 12.12% | 22.69% | 18.34% | 46.98% | 67.07% | 17.32% | 238.7% | 3.97% | -242.56% |
| EBITDA | 2.33B | 2.2B | 1.73B | 1.3B | 1.97B | 3.63B | 3.07B | 1.91B | 1.88B | 1.9B | 1.81B | 1.46B | 1.16B | 1.07B | 1.11B | 1.03B | 1.05B | 998.5M | 900.8M | 939.8M | 852.1M | 767.9M | 737.2M | 669.3M | 536.8M | 471.6M | 339.7M | 234.2M | 211.8M | -5.2M | -11.3M |
| EBITDA Margin % | 15.97% | 15.75% | 13.3% | 10.71% | 16.64% | 27.6% | 21.96% | 16.51% | 16.57% | 18.17% | 18.79% | 16.83% | 19.23% | 18.47% | 19.57% | 18.66% | 21.01% | 21.27% | 19.99% | 23.1% | 23.73% | 23.08% | 23.9% | 22.77% | 21.41% | 21.44% | 17.7% | 13.79% | 13.13% | -0.34% | -0.7% |
| EBITDA Growth % | 15.85% | 27% | 32.8% | -33.99% | -45.56% | 18.09% | 60.96% | 1.58% | -1.03% | 4.74% | 24.02% | 26.37% | 7.77% | -3.35% | 7.31% | -1.65% | 5.31% | 10.85% | -4.15% | 10.29% | 10.96% | 4.16% | 10.14% | 24.68% | 13.83% | 38.83% | 45.05% | 10.58% | 4173.08% | 53.98% | -108.09% |
| D&A (Non-Cash Add-back) | 708.3M | 681.1M | 643.5M | 577.3M | 537.2M | 577M | 624.7M | 577.2M | 552.1M | 533.2M | 499.2M | 457.8M | 245.5M | 81.7M | 86.3M | 85.8M | 72.7M | 62.6M | 57.9M | 162.8M | 155M | 149.8M | 138.8M | 135.6M | 101.8M | 104M | 89.6M | 84.5M | 84.2M | 86.8M | 84.5M |
| EBIT | 1.45B | 1.33B | 1.17B | 768.5M | 1.42B | 3.1B | 2.43B | 1.35B | 1.51B | 1.31B | 1.32B | 1B | 930.1M | 1.01B | 1.04B | 953.6M | 985.6M | 947.5M | 857.7M | 827.6M | 698.1M | 635M | 597.5M | 535.2M | 452.5M | 367.6M | 250.1M | 149.7M | 127.6M | -69.3M | 89.2M |
| Net Interest Income | -207.6M | -208.9M | -208.3M | -199.6M | -179.8M | -211.8M | -207.4M | -240.7M | -244.2M | -235.1M | -219.1M | -274.9M | -109.5M | -96.5M | -94.5M | -87.5M | -70M | -61.3M | -69.5M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 22.7M | 15.2M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1.6M | 2.5M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 230.3M | 224.1M | 208.3M | 199.6M | 179.8M | 211.8M | 207.4M | 240.7M | 244.2M | 235.1M | 219.1M | 274.9M | 109.5M | 96.5M | 94.5M | 87.5M | 70M | 62.9M | 72M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | -398.2M | -408.7M | -127.2M | -156.7M | -199.1M | -161M | -226.3M | -225.3M | -57.4M | -227.7M | -206.9M | -270.8M | -83.7M | -75.3M | -79.3M | -82.3M | -63.2M | -51.3M | -57.2M | 25.3M | 23.8M | 22.6M | 16.9M | 6.7M | -2.7M | -35.3M | -42.5M | -44.2M | -46.1M | -92M | -92.5M |
| Pretax Income | 1.22B | 1.11B | 959.5M | 568.9M | 1.24B | 2.89B | 2.22B | 1.1B | 1.27B | 1.13B | 1.11B | 732.1M | 826.7M | 915.6M | 944.2M | 866.1M | 915.6M | 884.6M | 772.4M | 802.3M | 720.9M | 640.7M | 615.3M | 540.4M | 432.3M | 332.3M | 207.6M | 105.5M | 81.5M | -161.3M | -188.3M |
| Pretax Margin % | 8.39% | 7.94% | 7.38% | 4.68% | 10.43% | 21.98% | 15.88% | 9.56% | 11.19% | 10.87% | 11.47% | 8.43% | 13.75% | 15.76% | 16.65% | 15.63% | 18.3% | 18.84% | 17.14% | 19.72% | 20.08% | 19.25% | 19.95% | 18.38% | 17.24% | 15.11% | 10.82% | 6.21% | 5.05% | -10.62% | -11.71% |
| Income Tax | 219.6M | 229.8M | 212.4M | 188.5M | 233.9M | 690M | 662.1M | 280M | 384.4M | -139.1M | 372.3M | 294.1M | 314.1M | 340.2M | 359.4M | 333M | 344M | 329M | 307.9M | 325.5M | 289.3M | 254.5M | 252.3M | 219.4M | 177.7M | 149.6M | 95.5M | 40.1M | 12.7M | -54.4M | -34.8M |
| Effective Tax Rate % | 17.93% | 20.75% | 22.14% | 33.13% | 18.9% | 23.9% | 29.84% | 25.34% | 30.31% | -12.26% | 33.68% | 40.17% | 37.99% | 37.16% | 38.06% | 38.45% | 37.57% | 37.19% | 39.86% | 40.57% | 40.13% | 39.72% | 41% | 40.6% | 41.11% | 45.02% | 46% | 38.01% | 15.58% | 33.73% | 18.48% |
| Net Income | 1B | 876.5M | 746M | 418M | 1.28B | 2.38B | 1.56B | 823.8M | 883.7M | 1.27B | 732.1M | 436.9M | 511.2M | 573.8M | 583.1M | 519.7M | 558.2M | 543.3M | 464.5M | 476.8M | 431.6M | 386.2M | 363M | 321M | 254.6M | 179.5M | 112.1M | 65.4M | 68.8M | -106.9M | -153.5M |
| Net Margin % | 6.88% | 6.28% | 5.73% | 3.44% | 10.78% | 18.1% | 11.13% | 7.13% | 7.8% | 12.15% | 7.59% | 5.03% | 8.5% | 9.88% | 10.28% | 9.38% | 11.16% | 11.57% | 10.31% | 11.72% | 12.02% | 11.61% | 11.77% | 10.92% | 10.15% | 8.16% | 5.84% | 3.85% | 4.27% | -7.04% | -9.55% |
| Net Income Growth % | 17.4% | 17.49% | 78.47% | -67.32% | -46.2% | 52.77% | 88.89% | -6.78% | -30.32% | 73.23% | 67.57% | -14.53% | -10.91% | -1.59% | 12.2% | -6.9% | 2.74% | 16.96% | -2.58% | 10.47% | 11.76% | 6.39% | 13.08% | 26.08% | 41.84% | 60.12% | 71.41% | -4.94% | 164.36% | 30.36% | -1147.97% |
| Net Income (Continuing) | 1B | 877.7M | 747.1M | 380.4M | 1B | 2.2B | 1.56B | 824.9M | 883.9M | 1.23B | 733.2M | 438.7M | 512.6M | 575.4M | 584.8M | 533.1M | 571.6M | 555.6M | 477.8M | 476.8M | 431.6M | 386.2M | 363M | 321M | 254.6M | 182.7M | 112.1M | 65.4M | 68.8M | -106.9M | -153.5M |
| Discontinued Operations | 0 | 0 | 0 | 38.8M | 277.1M | 181.9M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 16.1M | 16.9M | 14.3M | 15.5M | 18.9M | 20.6M | 20.7M | 20.1M | 19.1M | 20.8M | 15.2M | 14.9M | 17.7M | 19.4M | 20.7M | 20.2M | 20.6M | 0 | 121.3M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 12.30 | 10.46 | 8.84 | 4.77 | 13.96 | 24.38 | 15.88 | 8.36 | 8.61 | 12.21 | 7.02 | 4.34 | 5.91 | 6.25 | 5.99 | 5.11 | 5.29 | 4.98 | 4.60 | 3.93 | 3.24 | 2.71 | 2.45 | 2.11 | 1.77 | 1.27 | 0.81 | 0.29 | 0.50 | -2.17 | -3.12 |
| EPS Growth % | 19.74% | 18.33% | 85.32% | -65.83% | -42.74% | 53.53% | 89.95% | -2.9% | -29.48% | 73.93% | 61.75% | -26.57% | -5.44% | 4.34% | 17.22% | -3.4% | 6.22% | 8.26% | 17.05% | 21.3% | 19.56% | 10.61% | 16.11% | 19.21% | 39.37% | 56.79% | 179.31% | -42% | 123.04% | 30.45% | -1055.56% |
| EPS (Basic) | - | 10.54 | 8.89 | 4.80 | 14.04 | 24.58 | 15.99 | 8.41 | 8.71 | 12.39 | 7.14 | 4.42 | 6.03 | 6.70 | 6.24 | 5.31 | 5.45 | 4.98 | 4.60 | 4.08 | 3.48 | 2.89 | 2.60 | 2.23 | 1.78 | 1.29 | 0.83 | 0.30 | 0.50 | -2.17 | -3.12 |
| Diluted Shares Outstanding | 81.6M | 83.8M | 84.4M | 87.6M | 91.6M | 97.5M | 98M | 98.6M | 102.6M | 103.9M | 104.3M | 100.6M | 86.4M | 91.8M | 97.4M | 101.8M | 105.4M | 109.1M | 113.2M | 121.32M | 133.21M | 142.51M | 148.16M | 152.13M | 143.84M | 141.34M | 56.14M | 54.48M | 50.4M | 49.17M | 49.12M |
| Basic Shares Outstanding | 81.1M | 83.2M | 83.9M | 87.1M | 91.1M | 96.7M | 97.3M | 97.9M | 101.4M | 102.4M | 102.5M | 98.8M | 84.8M | 85.7M | 93.5M | 97.8M | 102.4M | 109.1M | 111.7M | 116.86M | 124.02M | 133.63M | 139.62M | 143.95M | 143.03M | 139.15M | 52.46M | 53.56M | 50.4M | 49.17M | 49.12M |
| Dividend Payout Ratio | - | 27.46% | 32.59% | 60.77% | 15.26% | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | 8.47% | 28.29% | 26.89% | - | - |
Quick answers to the most common questions about buying LH stock.
For fiscal year 2025, Labcorp Holdings Inc. (LH) reported total revenue of $13.95B. This represents a 767.8% increase compared to $1.61B in 1996.
Labcorp Holdings Inc. (LH) is profitable, generating $876.5M in net income for the fiscal year ending 2025 with a net profit margin of 6.3%.
Labcorp Holdings Inc. (LH) reported an operating income of $1.52B, resulting in an operating profit margin of 10.9%. This margin reflects the operational efficiency of the business before interest and taxes.
Labcorp Holdings Inc. (LH) generated $3.73B in gross profit for the year, representing a gross profit margin of 26.8%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
PAMA reimbursement and LDT regulation
Metrics are mathematically derived from official filings.
Mid-Single-Digit Growth With Stable Momentum
Based on reported quarterly figures, LH's revenue grew 6.9% year over year in Q3 2026 to $3.8B, with trailing growth near 7.2%, suggesting steady rather than accelerating expansion across the diagnostics base.
The reported quarterly revenue trajectory from $3.2B in Q2 2024 to $3.8B in Q3 2026 points to consistent mid-single-digit expansion rather than a step change. Growth rates have oscillated between roughly 5% and 9%, which may suggest a combination of organic test volume recovery and contribution from acquisitions, though the split is not disclosed in the supplied data. Investors should monitor whether organic volume growth can sustain this pace without reliance on bolt-on deals.
Gross Margin Recovery Remains Fragile
As reported in the income statement, LH's gross margin moved from 26.2% in Q4 2025 to 29.1% in Q3 2026, a recovery that appears meaningful but sits below the 31.9% reported by peer Quest Diagnostics.
The gross margin improvement over the last three quarters may indicate favorable test mix or cost discipline in reagents and logistics. However, the persistent gap to Quest suggests LH has not yet fully captured pricing or scale advantages in comparable lines. The margin appears sensitive to quarterly volume swings, implying limited structural pricing power against fixed-reimbursement payers.
Operating Income Lagging Gross Profit Growth
Based on reported figures, LH's operating margin fell from 12.1% in Q2 2026 to 10.6% in Q3 2026 while SG&A rose to $611.4M, indicating overhead growth outpacing gross profit gains in the latest quarter.
SG&A has risen from roughly $558M in Q2 2024 to $611M in Q3 2026, growing faster than the top line in recent quarters. This pattern suggests operating leverage has been limited, and gross profit gains are being absorbed by administrative and selling costs. Continued overhead creep would warrant scrutiny of whether automation investments are translating into efficiency.
EPS Volatility Outpaces Operating Trends
According to the reported quarterly figures, LH's diluted EPS swung from $1.98 in Q4 2025 to $3.64 in Q2 2026, a volatility far larger than the relatively narrow range of operating margins over the same period.
Net income has fluctuated more sharply than operating income, which may reflect non-operating items, tax rate variation, or share count changes not fully visible in the supplied data. Stock-based compensation of roughly $30M to $35M per quarter appears modest relative to net income, limiting its distortive effect. Analysts should normalize for one-time restructuring tied to the Fortrea separation before drawing conclusions about core earnings power.
Margin Compression Risk Under Reimbursement Pressure
Based on the reported data, LH's 6.9% net margin in Q3 2026 sits well below DGX's 9.0%, and short-sellers may argue the gap reflects structural reimbursement and cost headwinds rather than temporary timing effects.
The bear case centers on whether LH's gross margin recovery is durable or merely a quarterly fluctuation tied to seasonal volumes. Rising SG&A relative to revenue and a lower net margin than the closest peer may suggest that pricing pressure from PAMA and labor inflation is eroding the economics of routine testing. Investors should monitor whether operating margin can hold above 10% if reimbursement rates decline further.