LH earnings analysis
What we found in LH's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Labcorp Holdings Inc. reported Q1 2026 results with strong revenue growth and a notable EPS beat, demonstrating resilience in its operational performance. Despite increases in some costs, the company maintained its margins and significantly improved its cash flow metrics, indicating robust cash generation capabilities.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Strong Revenue Growth
- Q1 2026 revenue reached $3.54 billion, up 5.8% from $3.35 billion in Q1 2025.
- EPS Beat
- Diluted EPS for Q1 2026 was $4.25, exceeding the estimate of $4.11.
- Improved Operating Cash Flow
- Net cash provided by operating activities increased to $191.5 million, up from $18.5 million in Q1 2025.
- Positive Segment Performance
- Dx segment revenue rose 5.0% to $2.76 billion, while BLS segment revenue increased 8.2% to $780.6 million.
- Cost Control Enhancements
- Cost of revenues decreased to 71.3% of revenues, improving from 71.7% in the prior year.
- Increased Cash Reserves
- Cash and cash equivalents rose to $981.1 million from $369.4 million in Q1 2025.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Increased Equity Method Losses
- Equity method losses increased to $(5.1) million from $(0.3) million, primarily due to issues related to the SYNLAB investment.
- Foreign Currency Risks
- Foreign currency transaction losses escalated, with net losses of $13.1 million in Q1 2026, indicating exposure to exchange rate fluctuations.
- Regulatory Changes Impact
- Recent changes from the OBBA could affect the revenue and coverage for laboratory tests in future periods.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $4.25
- Gross margin
- 28.7%
- Operating margin
- 10.8%
- Segment
- Diagnostic Solutions
- Segment
- BLS
What they said about what is next.
Management raised full-year revenue growth guidance to between 5.0% and 6.1%.
The filing reads better than the one before it.
What came before.
- 10-Q · October 31, 2025
- Labcorp reported Q3 revenue of $3,563.5 million (up from $3,282.0 million a year ago) with gross profit of $1,025.1 million and operating income of $396.6 million. Diluted EPS was $3.12 versus $2.00 in Q3 2024.…
- 10-Q · August 1, 2025
- Labcorp reported revenue of $3,527.3M for Q2 (three months ended June 30, 2025), up vs prior quarter and year, with expanding gross and operating margins that drove diluted EPS of $2.84. Operating cash flow for the six…
- 10-Q · April 29, 2025
- Labcorp reported Q1 results with revenue of $3,345.1M, up $168.5M (+5.3%) versus Q1 2024 revenue of $3,176.6M, and gross profit of $948.0M (gross margin ~28.3%). Operating income was $326.0M (operating margin ~9.8%)…
- 10-Q · October 29, 2024
- Labcorp reported Q3 revenues of $3,282.0 million, up $225.2 million versus Q3 2023 ($3,056.8 million), while gross profit rose to $904.4 million but margins compressed and diluted EPS fell to $2.00 from $2.11 a year…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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