Labcorp delivered mixed third-quarter results, with higher sales and raised profit guidance but a lower full-year revenue forecast as it “takes action” on an underperforming unit.
First, overall sales for the third quarter rose 8.6% to $3.56 billion. Labcorp’s diagnostics division drove much of that growth—its revenue jumped 8.5% to $2.77 billion—while its lab services business rose 8.3% to $799.1 million.
Meanwhile, its contract drug development unit, Central Labs, saw sales climb 10.3%. But, in its Early Development segment, revenue was up only 3.3%, prompting Labcorp to say it is “taking action” in that unit—either divesting or restructuring via site consolidation around $50 million in annual revenue.
The move comes as the biotech sector—particularly firms with earlier-stage assets—has struggled this year to draw investment.
Labcorp also trimmed its full-year revenue growth forecast, narrowing the range from between 7.5% and 8.6% to between 7.4% and 8%. The company attributed the change largely to recent acquisitions and the ongoing strength of the U.S. dollar.
While revenue guidance dipped slightly, profit projections moved higher. Labcorp now expects 2025 adjusted earnings of $16.15 to $16.50 per share, up from its prior outlook of $16.05 to $16.50.
“Labcorp's third-quarter performance reflects continued momentum in our Diagnostics and Central Laboratory businesses, resulting in strong revenue growth and margin improvement,” said Adam Schechter, chairman and CEO of Labcorp, in a statement.
“We advanced our strategy by forming new partnerships with health systems and regional laboratories, introducing innovative tests in key specialty areas and leveraging science and technology to improve customer experience and operational efficiency. We expect to finish the year strong as we remain focused on delivering value to our customers and shareholders."