Laboratory Corporation of America Holdings (LH) AI Stock Analysis

Laboratory Corporation of America Holdings operates through two primary segments: Labcorp Diagnostics and Labcorp Drug Development. The company delivers essential information to physicians, hospitals, pharmaceutical firms, researchers, and patients worldwide. Its diagnostic offerings cover routine blood chemistry analyses, urinalyses, thyroid panels, and PAP tests, as well as specialized genetic, esoteric, oncology, cardiovascular, and infectious disease testing. It also provides occupational testing, medical drug monitoring, chronic disease management, and kidney stone prevention programs. In drug development, the company provides end-to-end solutions spanning early-stage research, clinical trials, medical device testing, and companion diagnostic development through to commercial market access.

After revenue fell 6.0% in FY2021 to $13.14B and dropped 9.7% in FY2022 to $11.86B, top-line performance rebounded with 2.5% growth in FY2023 to $12.16B, 7.0% in FY2024 to $13.01B, and 7.2% in FY2025 to $13.95B. Net income was $876.5M in FY2025, producing a net margin of 6.3% and diluted EPS of $16.44, up from $418.0M and $13.92 in FY2023. Over the trailing twelve months, revenue reached $14.35B with an operating margin of 12.2% and EPS of $12.09. For the latest quarter ended June 30, 2026, quarterly revenue grew 5.8% year-over-year, while quarterly earnings grew 28.2%.

As of June 30, 2026, Laboratory Corporation of America Holdings held $141.8M in cash and short-term investments against $6.77B in total debt, resulting in net debt of $6.62B. Total assets stood at $18.53B and shareholders' equity was $8.61B, reflecting a debt-to-equity ratio of 0.79 and a current ratio of 1.80. In FY2025, the company generated $1.64B in operating cash flow and $1.21B in free cash flow. Capital allocation in FY2025 included $434.5M in capital expenditures, $450.0M in share buybacks, and $240.7M in dividends paid.

LH trades at a trailing P/E of 26.3x and a forward P/E of 16.2x, compared to medians of 28.9x and 16.6x for its S&P 500 Healthcare peers. Its enterprise value of $31.28B reflects an EV to EBITDA multiple of 14.5x, below the peer group median of 15.7x, while its price-to-sales multiple of 1.8x is below the peer median of 3.4x. The company's PEG ratio sits at 1.21. Over the past year, LH stock returned 13.2%, trailing the S&P 500 return of 16.8%, and its 5-year return of 43.7% lagged the index return of 83.0%.

Laboratory Corporation of America Holdings pays a quarterly dividend with an annual forward payout of $2.88, representing a dividend yield of 0.91%. The company has paid dividends for 5 consecutive years and maintains a payout ratio of 16.5%. Its last ex-dividend date was August 28, 2026, following $240.7M paid in dividends during FY2025.

Wall Street sentiment includes 11 Strong Buy, 2 Buy, 4 Hold, and 1 Sell ratings. The mean price target of $345.12 suggests an upside of 8.5% compared to the last close of $317.95 on October 16, 2026. For the current fiscal year ending December 31, 2026, consensus estimates project revenue of $14.75B and EPS of $18.35, representing 11.6% EPS growth. The company has beaten EPS expectations in all 4 of the last 4 quarters, with its next earnings report scheduled for October 28, 2026.

This page is an AI-written research summary of Laboratory Corporation of America Holdings (LH). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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