Labcorp Holdings Inc. Reports 9.5% Revenue Growth in Q2 2025

Labcorp Holdings Inc. reported a notable increase in financial performance for the second quarter of 2025, with revenues reaching $3,527.3 million, a 9.5% rise from $3,220.9 million in the same period of 2024. For the first half of 2025, total revenues were $6,872.4 million, up 7.4% from $6,397.5 million year-over-year. The growth was attributed to organic revenue growth of 5.4%, acquisitions contributing 3.5%, and favorable foreign currency translation effects of 0.6%. The company’s operating income also saw a significant increase, rising 33.8% to $394.5 million compared to $294.8 million in the prior year.

In terms of profitability, net earnings attributable to Labcorp Holdings Inc. for the second quarter were $237.9 million, up from $205.3 million in the same quarter of 2024. This translated to a diluted earnings per share of $2.84, compared to $2.43 in the previous year. The company’s gross profit margin improved, with cost of revenues as a percentage of revenues decreasing to 70.3% from 71.2% in the prior year, reflecting enhanced operational efficiency and increased demand.

Strategically, Labcorp has been active in expanding its business through acquisitions. During the first half of 2025, the company acquired several businesses for a total cash consideration of $63.5 million, which included approximately $46.4 million in identifiable intangible assets. Additionally, Labcorp announced agreements to acquire select assets from OPKO Health, Inc. and Community Health Systems, Inc., with expected closing dates in the latter half of 2025. These acquisitions are anticipated to enhance Labcorp's capabilities in oncology and outreach services.

Operationally, Labcorp reported a 4.9% increase in total volume measured by requisitions for the second quarter, with organic volume growth of 3.4% and contributions from acquisitions. The Diagnostics Laboratories segment generated $2,748.8 million in revenues, an 8.9% increase, while the Biopharma Laboratory Services segment saw an 11.0% rise to $784.8 million. The company’s employee headcount remained stable, supporting its operational needs amid ongoing growth.

Looking ahead, Labcorp is evaluating the potential impacts of the recently enacted One Big Beautiful Bill Act, which includes significant changes to federal tax law and healthcare regulations. The company does not currently expect these changes to materially affect its financial statements but will continue to assess their implications. With a strong liquidity position, including $647.3 million in cash and cash equivalents and available borrowings under its revolving credit facility, Labcorp is well-positioned to meet its operational and strategic objectives in the coming months.