Labcorp Holdings Inc. research snapshot
LH AI stock analysis reads Labcorp as a high-scale diagnostics and central laboratory services business that beat expectations and raised full-year guidance on July 30, 2026, as of the August 2, 2026 data cutoff. The stock closed near $309.20 on July 31, 2026, at a market capitalization near $25.01 billion. Q2 2026 revenue rose 5.8% to $3.731 billion, adjusted EPS grew 14.9% to $4.99, enterprise adjusted operating margin expanded 70 basis points to 15.8%, and management raised 2026 adjusted EPS guidance to $18.10 to $18.55 from $17.70 to $18.35 while keeping free cash flow guidance at $1.24 billion to $1.36 billion. The setup is not a clean bargain because the stock trades near the top of its 52-week range, about 16.3x forward earnings and 21.7x trailing free cash flow, with a 14-day RSI near 67. The LH AI stock forecast should therefore be treated as scenario analysis rather than a precise price prediction, and this page is for information only, not investment advice.
Current price
$309.20
Market cap
$25.01 billion
AI score
73 / 100
Rating
Beat-and-raise diagnostics compounder with durable demand and a full valuation near 52-week highs
Trend status
Uptrend above the 20-day, 50-day, 100-day, and 200-day moving averages, near the top of the 52-week range
Data cutoff (updated monthly)
August 4, 2026
Informational use only. This page is not investment advice.
| Dimension | Conclusion | Confidence |
|---|---|---|
| Business quality | Labcorp runs a scaled diagnostics lab network, a specialty testing menu, and a central laboratory business serving physicians, hospitals, patients, biopharma customers, and health systems, with TTM revenue near $14.35 billion. | High |
| Moat | The moat comes from test menu breadth, national logistics, payer contracts, physician relationships, health-system partnerships, data, and scale. It is meaningful but exposed to reimbursement and service quality pressure. | Medium-high |
| Management | Chairman and CEO Adam Schechter and CFO Julia Wang delivered a beat-and-raise quarter: 5.8% revenue growth, 70 basis points of adjusted margin expansion, adjusted EPS up 14.9%, a $1.0 billion buyback authorization increase, and continued M&A and buyback discipline. | High |
| Financial trend | Q2 2026 revenue rose 5.8% to $3.731 billion with 4.2% organic growth, adjusted EPS grew 14.9% to $4.99, enterprise adjusted operating margin hit 15.8%, and FY2026 adjusted EPS guidance was raised to $18.10 to $18.55. | High |
| Valuation | At $309.20, verified math shows about 25.6x trailing EPS, 16.3x forward earnings, 21.7x free cash flow, 2.9x book value, and 1.7x sales, with an EV/EBITDA near 14.4x. | Medium-high |
| Technical trend | LH closed near $309.20 on July 31, 2026, above its 20-day, 50-day, 100-day, and 200-day moving averages, with a 14-day RSI near 67 and a 14-day ADX near 30 confirming a trending move toward the 52-week high of $316.11. | Medium-high |
| Risk level | Risk is moderate. Demand is defensive, but ACA and Medicaid headwinds of roughly 30 basis points are built into guidance, reimbursement policy such as PAMA, labor costs, acquisitions, payer mix, cyber and data privacy, and central lab demand can pressure earnings. | Medium-high |
| AI confidence | Descriptive confidence is high because filings, the Q2 2026 earnings call, and market data are rich and cross-validated. Forecast confidence is lower because margin, multiple, reimbursement, and acquisition assumptions drive much of the upside. | High data confidence |
| Investment certainty | Medium certainty. LH looks like a high-quality compounder whose execution is improving, but the current price already reflects much of the raised guidance, so the risk-reward is less asymmetric than at lower prices. | Medium |
LH AI stock forecast
The LH AI stock forecast is scenario math, not a guaranteed target. Using the August 2, 2026 research cutoff, a $309.20 stock price, the $18.10 to $18.55 FY2026 adjusted EPS guidance midpoint, and a three-year model, the tested outcomes span a bearish area near $253, a base area near $359, and a bullish area near $463 before dividends.
$445 to $475
More likely if revenue growth stays near the high end of guidance, specialty testing and central labs compound at high single digits, acquisitions integrate cleanly, margins keep expanding, and investors pay an 18x to 19x multiple on higher adjusted EPS.
$345 to $370
More likely if Labcorp delivers roughly 7% annual adjusted EPS growth from the FY2026 guidance midpoint and the market values the business near a 16x forward earnings multiple consistent with its recent trading range.
$245 to $265
More likely if reimbursement pressure, ACA or Medicaid headwinds, wage inflation, integration costs, central lab softness, or payer mix pressure keeps EPS growth near 2% and the market applies a lower 13x multiple.
LH AI technical analysis
LH AI technical analysis is bullish as of the August 2, 2026 data cutoff. The stock closed near $309.20 on July 31, 2026, above its 20-day, 50-day, 100-day, and 200-day moving averages, with a 14-day RSI near 67 and a 14-day ADX near 30 confirming trend strength. The 52-week high of $316.11 sits just overhead as the next resistance.
| Level | Value | Why it matters |
|---|---|---|
| Current price | $309.20 | StockAnalysis.com real-time quote at the July 31, 2026 close, down 2.01% for the day after touching the 52-week high zone. |
| Near support | $288 to $305 | The July 31, 2026 day low was near $305.06 and the 20-day moving average sits near $288.37, forming the first support zone. |
| Next support | $274 to $275 | Barchart and StockAnalysis both placed the 50-day moving average near $274, a natural deeper support reference. |
| Deeper support | $268 to $269 | The 100-day moving average near $268.93 and the 200-day near $268.26 cluster together as the long-term trend reference. |
| Near resistance | $315 to $317 | The July 31, 2026 day high was near $314.83 and the 52-week high is $316.11, capping the immediate upside. |
| 50-day moving average | $274.09 | Barchart and StockAnalysis both reported the 50-day moving average near $274.09, well below price and confirming the uptrend. |
| 200-day moving average | $268.26 | Barchart and StockAnalysis both reported the 200-day moving average near $268.26, below price and rising. |
| 100-day moving average | $268.93 | Barchart reported the 100-day moving average near $268.93, just above the 200-day and supporting the medium-term uptrend. |
| Momentum | RSI near 67, ADX near 30 | The 14-day RSI near 67.26 on Barchart is strong but not overbought, and the 14-day ADX near 29.79 with +DI above -DI confirms a trending move. |
| Volume | About 777,600 average shares | Barchart listed 20-day average volume near 777,579 shares, with 1,091,255 shares traded on July 31, 2026, useful for judging breakout quality. |
| Volatility | Elevated after earnings | Barchart reported 14-day historical volatility near 32% and a 14-day ATR near $9.28, so position sizing should account for larger swings after results and guidance. |
| Invalidation | Close below $288 | A decisive close below the 20-day moving average near $288 would weaken the short-term uptrend; a close below the 200-day near $268 would turn the trend read bearish. |
LH AI trading strategy
The LH AI trading strategy below is a planning framework for risk control, not personal investment advice. It combines price confirmation with evidence that Labcorp can deliver the raised FY2026 revenue, adjusted EPS, free cash flow, and integration targets.
Watch for LH to hold above the 20-day moving average near $288 and to build volume on a move through the $315 to $317 resistance zone up to the 52-week high of $316.11, then confirm with Q3 commentary and margin data.
A daily close below the 20-day moving average or a failed breakout back below the $305 area should trigger a stop and review. A close below the 200-day moving average invalidates the trend setup.
If LH pulls back toward the $268 to $275 moving-average cluster, compare the lower price with the raised FY2026 adjusted EPS guidance of $18.10 to $18.55, free cash flow guidance, acquisition integration updates, and Diagnostics organic growth before acting.
Do not average down without a defined exit. A guidance cut, reimbursement reset, or margin setback matters more than the apparent discount to the 52-week high.
Track enterprise organic revenue growth, adjusted operating margin, specialty testing growth, central lab and early development trends, ACA and Medicaid headwinds, PAMA developments, free cash flow, acquisitions, debt reduction, and the $1.4 billion remaining buyback authorization.
Keep position size tied to evidence. Defensive healthcare demand does not remove reimbursement, execution, leverage, or multiple risk after a strong run.
Investment research summary
Labcorp gets paid to run about 750 million medical tests a year, plus specialty diagnostics, health-system laboratory services, and central lab work for drug development customers. The customer pays for accuracy, speed, access, compliance, and workflow reliability.
The moat is built from national scale, specimen logistics, payer relationships, a menu of 6,500-plus tests, specialty capabilities, hospital outreach partnerships, data, and operational density. It can narrow if reimbursement falls or service quality slips.
The thesis fails if reimbursement resets faster than productivity gains, ACA and Medicaid headwinds or PAMA cut volumes, wage inflation persists, acquisitions dilute returns, central lab demand weakens, or the stock multiple compresses after a strong 2026 run.
Management has used acquisitions, partnerships, dividends, and buybacks while investing in specialty tests and laboratory infrastructure. In Q2 2026 it invested $225.7 million in acquisitions, repurchased $353.8 million of stock, paid $58.7 million in dividends, retired $500 million in senior notes, and raised the buyback authorization by $1.0 billion.
Labcorp sits in long-term demand for diagnostics, aging demographics, precision medicine, oncology, neurology, autoimmune testing, women health, consumer-initiated testing, and biopharma services. The industry is attractive but regulated and cost sensitive.
At $309.20, LH is no longer priced as a distress asset and trades near the top of its 52-week range. Margin of safety depends on Labcorp converting the raised 2026 adjusted EPS guidance into durable free cash flow while avoiding reimbursement or integration surprises.
Source-backed data
Every metric below includes a source and last verification date.
| Metric | Value | Source | Last verified |
|---|---|---|---|
| LH price | $309.20 at the July 31, 2026 close, down 2.01% | StockAnalysis.com real-time quote | July 31, 2026 |
| Market capitalization | $25.01 billion, verified as $309.20 x 80.90 million shares with 0.02% deviation | financial_rigor.py market cap verification | August 2, 2026 |
| Shares outstanding | 80.90 million, down 1.49% year over year | StockAnalysis.com statistics | August 2, 2026 |
| Q2 2026 revenue | $3,731.1 million, up 5.8% from $3,527.3 million, with 4.2% organic growth, 1.2% acquisitions net of divestitures, and 0.4% foreign exchange | Labcorp Q2 2026 earnings release | July 30, 2026 |
| Q2 2026 earnings | Diluted EPS $3.64 up 28.5%, adjusted EPS $4.99 up 14.9%, net earnings attributable to Labcorp $298.7 million | Labcorp Q2 2026 earnings release | July 30, 2026 |
| Q2 2026 margins | Operating income $451.6 million at 12.1% of revenue, adjusted operating income $588.7 million at 15.8%, up 70 basis points | Labcorp Q2 2026 earnings release | July 30, 2026 |
| H1 2026 results | Revenue $7,268.7 million up 5.8%, adjusted EPS $9.24 up 12.8%, adjusted operating income $1,096.6 million at 15.1% of revenue | Labcorp Q2 2026 earnings release | July 30, 2026 |
| FY2026 guidance | Enterprise revenue growth 5.4% to 6.3%, adjusted EPS $18.10 to $18.55 raised from $17.70 to $18.35, free cash flow $1.24 billion to $1.36 billion, adjusted tax rate near 23% | Labcorp Q2 2026 earnings release and earnings call | July 30, 2026 |
| Diagnostics segment, Q2 2026 | Revenue $2,900.7 million up 5.5% with 3.6% organic growth, adjusted operating income $522.6 million at 18.0% of revenue, up 50 basis points | Labcorp Q2 2026 earnings release | July 30, 2026 |
| Biopharma Laboratory Services, Q2 2026 | Revenue $836.2 million up 6.5% with 6.2% organic constant currency growth, Central Labs up 9.8% and Early Development down 1.4%, adjusted operating income $142.2 million at 17.0%, up 130 basis points | Labcorp Q2 2026 earnings release | July 30, 2026 |
| BLS backlog and book-to-bill | Backlog $8.73 billion with $2.75 billion expected to convert in the next twelve months, quarterly book-to-bill 1.14 and trailing twelve-month book-to-bill 1.03 | Labcorp Q2 2026 earnings release and earnings call | July 30, 2026 |
| Q2 2026 capital returns | $225.7 million in acquisitions, $353.8 million in buybacks, $58.7 million in dividends, $500.0 million in senior notes retired, and a $1.0 billion increase in the buyback authorization leaving $1.4 billion remaining | Labcorp Q2 2026 earnings release | July 30, 2026 |
| Cash and total debt | Cash and cash equivalents of $141.8 million and total debt near $5.86 billion as of June 30, 2026 | Labcorp Q2 2026 earnings release | July 30, 2026 |
| Net debt | -$5.72 billion, calculated as cash of $141.8 million minus total debt of $5,858.5 million | financial_rigor.py exact calculator | August 2, 2026 |
| TTM financials | Revenue $14,348 million up 6.4%, net income $1,002 million, EPS $12.08, free cash flow $1,155 million, operating cash flow $1,638 million | StockAnalysis.com financials | August 1, 2026 |
| FY2025 revenue and earnings | Revenue $13.952 billion up 7.25%, net earnings attributable to Labcorp $876.5 million, free cash flow $1.206 billion | StockAnalysis.com financials and Labcorp FY2025 release | August 1, 2026 |
| Valuation check | 25.60x trailing EPS, 16.32x forward PE, 1.74x sales, 2.91x book value, 21.65x free cash flow, 0.93% dividend yield | financial_rigor.py valuation verification | August 2, 2026 |
| Enterprise valuation | Enterprise value $31.64 billion, EV/EBITDA 14.43, EV/FCF 27.39, PEG 1.70 | StockAnalysis.com statistics | August 2, 2026 |
| Analyst consensus | Buy with an average target of $332.44 across 18 analysts, low $270 and high $385, median $339 | StockAnalysis.com forecast and analyst ratings | July 31, 2026 |
| Analyst rating mix, July 2026 | 11 Strong Buy, 2 Buy, 5 Hold, 0 Sell out of 18 analysts | StockAnalysis.com forecast recommendation trends | July 31, 2026 |
| Recent analyst target updates | UBS $320 to $361, Truist $320 to $350, Baird $338 to $352, Morgan Stanley $308 to $338, BofA $320 to $360, Barclays $290 to $320, Deutsche Bank $276 to $306 | StockAnalysis.com forecast and TipRanks | July 31, 2026 |
| 2026 and 2027 consensus estimates | FY2026 revenue estimate $14.71 billion with adjusted EPS $18.01, FY2027 revenue $15.42 billion with adjusted EPS $19.41 | StockAnalysis.com forecast financial forecast | July 31, 2026 |
| Short interest | 2.72 million shares short, 3.36% of shares outstanding, 4.19 days to cover | StockAnalysis.com statistics short selling | August 2, 2026 |
| Technical snapshot | 20-day SMA near $288.37, 50-day SMA near $274.09, 100-day SMA near $268.93, 200-day SMA near $268.26, 14-day RSI near 67.26, 14-day ADX near 29.79 | Barchart and StockAnalysis.com technical snapshots | July 31, 2026 |
| 52-week range and dividend | 52-week range $244.52 to $316.11, quarterly dividend $0.72 per share with ex-dividend date August 28, 2026 | StockAnalysis.com quote and Labcorp dividend release | August 1, 2026 |
This LH AI stock analysis is an informational research tool only and is not investment advice, a recommendation, or a promise of future performance. Forecast scenarios are based on available public data as of August 2, 2026 and can be wrong if reimbursement, ACA or Medicaid policy, labor costs, acquisition execution, central lab demand, market multiples, or company guidance change.
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