What Happened?
Shares of healthcare diagnostics company Labcorp Holdings (NYSE: LH) fell 2.7% in the afternoon session after the company reported fourth-quarter revenue that fell short of Wall Street's expectations, overshadowing an earnings beat.
The healthcare diagnostics company posted revenue of $3.52 billion, which was below analyst forecasts of $3.57 billion. While sales grew 5.6% compared to the same period in the previous year, the failure to meet market expectations seemed to have concerned investors. On a positive note, Labcorp's adjusted earnings per share came in at $4.07, higher than the consensus estimate of $3.94. For its full-year 2026 outlook, the company's revenue guidance was in line with analysts' estimates, while its adjusted earnings forecast was slightly ahead of expectations. Despite the earnings beat and solid outlook, the market focused on the revenue miss, leading to the stock's decline.
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What Is The Market Telling Us
Labcorp’s shares are not very volatile and have only had 4 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was 7 months ago when the stock gained 6.8% on the news that the company reported second-quarter earnings that beat analyst expectations and raised its full-year financial outlook.
The laboratory network operator posted an adjusted EPS of $4.35, which surpassed consensus estimates. Revenue for the quarter increased 9.5% year-over-year to $3.53 billion, driven by growth in both its Diagnostics and Biopharma segments. In a significant show of confidence, Labcorp boosted its full-year 2025 guidance, projecting adjusted earnings per share between $16.05 and $16.50 and revenue growth between 7.5% and 8.6%. The company also noted that it had repurchased $200 million of its common stock during the quarter, further underscoring the strength of its financial position and business performance.
Labcorp is up 9.7% since the beginning of the year, and at $276.02 per share, it is trading close to its 52-week high of $290.93 from October 2025. Investors who bought $1,000 worth of Labcorp’s shares 5 years ago would now be looking at an investment worth $1,136.
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