At a glance
Laboratory Corporation of America Holdings is worth $28.87B, about 34 times its fiscal 2025 earnings. Revenue grew 7.2% to $13.95B in fiscal 2025, with 6.3% kept as profit; over 4 years it has grown 1.5% a year. It pays a 0.81% dividend yield, and returned $5.40B to shareholders in dividends and buybacks over FY2021–FY2025. The stock returned +41.4% over the past year with dividends reinvested and +8.8% a year over five years, against +11.5% and +11.7% for the S&P 500. At its worst it fell 45.4% in the 2020 crash (S&P 500: 33.7%) and 31.1% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 4 months and 28 months after the lows.
The business in plain English
Labcorp runs medical laboratories. Doctors, hospitals, drug companies, researchers and patients send it samples, and it returns test results that guide treatment and drug development. In 2025 it had nearly 71,000 employees, served clients in about 100 countries and performed more than 750 million tests. Revenue for that year was $13.95 billion.
The Diagnostics segment earned $10.88 billion, or 78% of revenue, almost all in the US. It runs routine tests such as blood counts, thyroid checks, hemoglobin A1C and PSA. It also runs specialty tests, with a focus on cancer, women's health, autoimmune disease and neurology. Patients give samples at more than 2,200 patient service centers or to more than 7,000 phlebotomists (staff who draw blood) who work inside customers' offices. Health plans were the biggest payers, at 37% of total revenue. Next came doctors and other providers (23%), patients (10%), and Medicare and Medicaid (8%).
Biopharma Laboratory Services earned $3.10 billion, about 22% of revenue. It provides lab work to drug, biotech and medical device makers and to contract research organizations (firms that run trials for drug makers). That work includes central laboratory testing for clinical trials. About 59% of this segment's revenue came from outside the US. Labcorp says it supported more than 85% of the new drugs and therapies the FDA approved in 2025.
Price history
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LH +41.4% over the year to Nov 2, 2026, total return with dividends reinvested.
How it makes money
By business segment
| Diagnostics | $10.88B | 78% |
| Biopharma Laboratory Services | $3.10B | 22.2% |
Latest results
- In Q3 FY2026 (ended Sep 30, 2026), revenue was $3.81B, up 6.9% from a year earlier, and net income was $262.8M (+0.7%).
- For fiscal 2025, revenue was $13.95B (+7.2% year over year; +1.5% a year from FY2021 to FY2025) with a 6.3% net margin.
Financial health check
| Revenue growth a year (FY2021–FY2025) | +1.5% watch |
|---|---|
| Operating margin | 9.9% watch |
| Free cash flow margin | 8.6% watch |
| Return on equity (FY2025) | 10.2% watch |
| Return on assets (FY2025) | 4.8% watch |
| Net cash (cash minus debt) | $-5.59B weak |
| Fiscal year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2020 | $13.98B | $1.56B | $1.75B |
| FY2021 | $13.14B | $2.38B | $2.69B |
| FY2022 | $11.86B | $1.28B | $1.53B |
| FY2023 | $12.16B | $418.0M | $874.1M |
| FY2024 | $13.01B | $746.0M | $1.10B |
| FY2025 | $13.95B | $876.5M | $1.21B |
Valuation snapshot
| Market value | $28.87B |
|---|---|
| P/E ratio | 34 |
| Dividend yield | 0.81% |
Rank among 1514 US companies
Market value at each year end
Laboratory Corporation of America Holdings’s market value went from $11.40B at the end of 2016 to $28.87B on Nov 2, 2026, about 2.5 times as much; since the end of 2025 it is up 39%.
Show as a table
| Year end | Market value | Change |
|---|---|---|
| Nov 2, 2026 | $28.87B | +38.8% |
| 2025 | $20.80B | +8.4% |
| 2024 | $19.18B | -0.6% |
| 2023 | $19.30B | +7.3% |
| 2022 | $17.99B | -30.6% |
| 2021 | $25.92B | +51.7% |
| 2020 | $17.09B | +20.7% |
| 2019 | $14.16B | +28.8% |
| 2018 | $10.99B | -21.5% |
| 2017 | $14.00B | +22.8% |
| 2016 | $11.40B |
Price behavior
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | |
|---|---|---|---|---|---|
| LH price data to Nov 2, 2026 | +42.8% | +41.4% | +21.7% | +8.8% | +13.4% |
Show as a table
| Year | Price data |
|---|---|
| 2026 (to date) | +42.8% |
| 2025 | +10.6% |
| 2024 | +2.6% |
| 2023 | +13.4% |
| 2022 | -24.4% |
| 2021 | +54.4% |
| 2020 | +20.3% |
| 2019 | +33.9% |
| 2018 | -20.8% |
| 2017 | +24.3% |
| 2016 | +3.8% |
| 2015 | +14.6% |
| 2014 | +18.1% |
| 2013 | +5.5% |
| 2012 | +0.8% |
| 2011 | -2.2% |
| 2010 | +17.5% |
| 2009 | +16.2% |
| 2008 | -14.7% |
| 2007 | +2.8% |
| 2006 | +36.4% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Lost 31.5% over that stretch · deepest drop along the way 33.5%, back to its old high 13.4 months after the low |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 45.1% over that stretch · deepest drop along the way 45.4%, back to its old high 3.8 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 30.9% over that stretch · deepest drop along the way 31.1%, back to its old high 27.6 months after the low |
Insider activity
Form 4 filings from 2025-10-31 to 2026-10-31 (25 read): 0 open-market purchases and 12 sales ($8.1M), 8 of them under pre-arranged 10b5-1 trading plans.
| Date | Insider | Type | Value |
|---|---|---|---|
| Mar 3, 2026 | Adam H Schechter President & CEO, Director | sell | $2.4M |
| May 11, 2026 | Adam H Schechter President & CEO, Director | sell (plan) | $1.5M |
| Aug 11, 2026 | Adam H Schechter President & CEO, Director | sell (plan) | $1.5M |
| Aug 17, 2026 | Kerrii B Anderson Director | sell (plan) | $954K |
| Mar 27, 2026 | Peter J Wilkinson SVP, Chief Accounting Officer | sell (plan) | $436K |
Who owns it
Large shareholders (13G filings)
| BlackRock, Inc. | 7.6% | Mar 31, 2025 |
| Vanguard Capital Management | 7.52% | Mar 31, 2026 |
ETFs with the most weight in LH
| CAMX Cambiar Aggressive Value ETF | 4.37% |
| ASLV Allspring Special Large Value ETF | 3.19% |
| KNO AXS Knowledge Leaders ETF | 2.87% |
| IHF iShares U.S. Healthcare Providers ETF | 2.86% |
| BLCV iShares Large Cap Value Active ETF | 2.62% |
| TSME Thrivent Small-Mid Cap Equity ETF | 2.1% |
| XHS SPDR S&P Health Care Services ETF | 1.83% |
| RSPH Invesco S&P 500 Equal Weight Health Care ETF | 1.68% |
What could go wrong
- Insurers and Medicare keep cutting test prices. Health plans keep pushing payments down. Medicare already cut many test rates under a law called PAMA. Further cuts are frozen for 2026 but may reach 15% a year in 2027–2029.
- FDA rules for lab-developed tests. Labs often design and run their own tests, called lab-developed tests. Labcorp warns that FDA regulation of these tests, or similar rules abroad, could seriously hurt its business.
- Reliance on drug companies' research budgets. Biopharma Laboratory Services, about 22% of revenue, depends on research spending by drug, biotech and device companies. Budget cuts, industry mergers or new regulations could shrink demand, and underpriced contracts can lose money.
- Billing, fraud and lab-licensing rules. Breaking anti-fraud laws could bring large fines and exclusion from Medicare and Medicaid. Losing a lab license, or having one suspended, under CLIA (the federal lab-quality rules) could also hurt the business.
- Growth relies on health-system deals. Labcorp grows partly by acquiring or partnering with health systems and local labs. It signed or completed 13 such deals in 2025. Failing to find, close or integrate deals could hurt revenue and profits.
- A large debt load. As of June 30, 2026, Labcorp had about $5.86 billion of debt and $141.8 million of cash and investments. The company warns that debt payments could strain its cash and hurt results.
Recent events
- Quarterly results released
- Investor presentation or announcement
- Investor presentation or announcement
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- Investor presentation or announcement
- Executive or board change
- Quarterly results released
- Investor presentation or announcement
- Investor presentation or announcement
For income and retirement investors
Labcorp pays a small dividend. It paid none in 2020 or 2021, then $2.16 a share in 2022 and $2.88 in each of 2023, 2024 and 2025, so it has no streak of yearly increases. The 2025 dividend used about 27.5% of earnings and 20% of free cash flow (cash left after running and investing in the business). The yield was 0.8% as of October 28, 2026, so the shares offer little income. Buybacks matter more. Labcorp spent $4.47 billion on them from 2021 through 2025, versus $933 million on dividends. Its share count fell about 15% between November 2021 and August 2026.
The stock has fallen hard in downturns. It dropped 33.5% in the 2008 financial crisis and recovered by April 2010. It fell 45.4% in the 2020 COVID crash and recovered by July 2020. It lost 31.1% in the 2022 bear market and did not recover until January 2025. A single stock carries more risk than a diversified fund.
Questions investors ask
How does Labcorp make money?
Labcorp makes money by running laboratory tests and charging for them. Its Diagnostics segment brought in 78% of 2025 revenue. It tests patient samples ordered by doctors and hospitals, and health plans pay most of the bills, along with providers, patients, and Medicare and Medicaid. Its Biopharma Laboratory Services segment brought in about 22%. It does lab work for drug, biotech and medical device companies, including testing for clinical trials. Total revenue was $13.95 billion in 2025, and net income was $876.5 million.
Does Labcorp raise its dividend every year?
No. Labcorp paid $2.16 a share in 2022 and raised the dividend to $2.88 in 2023. It then kept it at $2.88 in 2024 and 2025. It paid no dividend in 2020 or 2021. The 2025 dividend used about 27.5% of earnings, and the yield was 0.8% as of October 28, 2026. The company returns more cash through buybacks. It spent $450 million on them in 2025, against $240.7 million in dividends.
How much of Labcorp's revenue comes from Medicare?
Medicare and Medicaid together made up about 8% of Labcorp's 2025 revenue. Health plans, at 37%, were a much larger source. Medicare still matters because a federal law known as PAMA has already cut Medicare payment rates for many lab tests, and the company expects more cuts. Its 10-K says cuts are frozen for 2026 and capped at 15% a year for 2027 through 2029. The company also warns that more business from government payers and managed-care plans, which pay lower rates, could hurt revenue.
How has Labcorp stock performed?
As of October 28, 2026, Labcorp's share price was up 40.1% over one year. It had gained about 9.2% a year over five years and 13.6% a year over ten years. It was up 44.7% for 2026 to that date, which is not a full year. Returns have been uneven: the stock fell 24.4% in 2022 and 20.8% in 2018. At that price, it traded at about 34.4 times its 2025 earnings per share of $10.46. That figure is its price-to-earnings ratio.
How much debt does Labcorp have?
Labcorp had about $5.86 billion of total debt as of June 30, 2026. It held $141.8 million in cash and investments, so net debt was about $5.72 billion. Shareholders' equity was about $8.61 billion. Free cash flow, the cash left after running and investing in the business, was $1.21 billion in 2025. The company's 10-K lists its debt and interest payments as a risk. It warns they could strain its liquidity (ready access to cash) and hurt its results.