By Sahil Pandey
April 30 (Reuters) – Labcorp raised its full-year profit and revenue forecast on Thursday after posting quarterly results above expectations as demand for diagnostic testing remained steady.
Shares of the laboratory operator ticked up more than 2% in morning trading.
Demand for routine and specialty diagnostic tests continued to support Labcorp’s core diagnostics business, helping cushion softer spending by biotechnology clients in its drug‑development services unit.
Faster growth in specialty areas, such as oncology, neurology, women’s health and autoimmune diseases, are leading doctors to refer more testing to Labcorp, Chief Executive Adam Schechter said.
“These specialty areas are growing two to three times faster than the broader diagnostics market; and when providers choose Labcorp for specialty testing, they often consolidate more of their routine testing with us,” he said on a call with analysts.
Hospitals and regional laboratories, faced with financial pressure, remained strongly interested in partnering with Labcorp to achieve scale and efficiency, Schechter added.
The firm has expanded through laboratory management agreements and selective acquisitions.
Labcorp said adverse weather weighed on testing volumes during the first quarter, estimating an impact of about $15 million, largely in its diagnostics business.
The quarter showed the company’s operating leverage as adjusted operating margin expanded and both business segments posted higher adjusted operating income, Evercore ISI’s Elizabeth Anderson said.
Adjusted operating margin for the three months ended March 31 expanded about 30 basis points to 14.4%.
The company now expects annual adjusted profit of $17.70 to $18.35 per share, up from its prior forecast of $17.55 to $18.25 per share. Analysts on average estimated an adjusted profit of $17.87 per share, according to data compiled by LSEG.
Labcorp forecast 2026 revenue of $14.65 billion-$14.80 billion, a little above its previous outlook of $14.61 billion-$14.79 billion; analysts’ expected about $14.66 billion.
First‑quarter revenue of $3.54 billion came in above an estimated $3.51 billion. Adjusted earnings of $4.25 per share beat expectations of $4.09.
(Reporting by Sahil Pandey in Bengaluru; Editing by Joyjeet Das)
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