Laboratory Corporation of America announced Thursday it has increased its annual profit and revenue projections after delivering first-quarter financial results that surpassed analyst expectations, driven by consistent demand for medical testing services.
The company’s core diagnostic testing operations, including both routine and specialized laboratory work, have provided strong performance that helped balance out reduced spending from biotechnology companies using its drug development services division.
During the previous 12 months, both Labcorp and competitor Quest Diagnostics have secured valuable contracts to operate hospital laboratory facilities, allowing both companies to grow their market presence significantly.
The laboratory giant has revised its annual adjusted earnings projection upward to a range of $17.70-$18.35 per share, compared to its earlier estimate of $17.55-$18.25. Wall Street analysts had anticipated adjusted earnings of $17.87 per share for the full year, based on LSEG data.
For 2026 revenue, the company increased its forecast to between $14.65 billion and $14.80 billion, up from the previous range of $14.61 billion to $14.79 billion. Industry analysts had projected revenue of $14.66 billion.
“Labcorp delivered another quarter of strong results… driven by continued momentum across our Diagnostics and Central Laboratory businesses,” CEO Adam Schechter stated.
The company reported it has been broadening its specialty and companion diagnostic services while making significant investments in automation technology and artificial intelligence capabilities.
First-quarter revenue for Labcorp’s diagnostic laboratories division, which represents its primary business segment, climbed 5% to reach $2.76 billion, powered by internal growth and recent acquisitions.
The Biopharma Laboratory Services division, which offers contract research and central laboratory support to pharmaceutical companies, saw sales surge 8.2% to $780.6 million, primarily due to expansion in central laboratory services, according to company officials.
Overall company revenue grew 5.8% to $3.54 billion during the three-month period ending March 31, surpassing the analyst consensus estimate of $3.51 billion. The company’s adjusted quarterly earnings of $4.25 per share exceeded projections of $4.09.
