Labcorp rises 8.8% after third-quarter results and raised guidance

What happened

Labcorp (LH) rose 8.8% on October 28, 2026, because of third-quarter results that beat consensus and an upgraded full-year outlook. The company reported earnings per share of $4.78 against $4.64 expected, a 3.0% beat, and the four quarters through September 30, 2026, showed revenue of $14.59 billion. Seeking Alpha and Zacks Investment Research reported the quarter delivered revenue and earnings beats across segments, margin expansion and double-digit adjusted EPS growth for the quarter.

How big was the move

The stock rose 8.8% on the session and rose 11.3% over the last five sessions, while the S&P 500 on the day rose 0.3% and fell 0.2% over five sessions. Trading volume was 2.8 times its 20-day average and the move measured 5.2 times a typical daily move for this stock. Compared with its sector, the move was 7.1 percentage points better than the Healthcare sector median on the day, which rose 1.7%.

The market reaction followed the earnings release at the session, making the results the direct cause of the price action. The stock opened 4.0% above the previous close and showed higher-than-normal market interest; its market value was $26.68 billion at the close.

The technical picture

The stock stood 12.5% above its 20-day moving average and 11.9% above its 50-day moving average, with the 50-day average above the 200-day average, a sign of an established uptrend. The stock was 25.7% above its 200-day moving average and had been above the 200-day average for 87 consecutive trading days. The Relative Strength Index (14 days) was 80, above 70, a level often called overbought, and the shares sat 2.9% below the 52-week high.

Shorter-term momentum had been strong heading into the report: the stock rose 16.7% over one month, 14.2% over three months and 30.7% over one year, leaving it 18.0 percentage points ahead of the S&P 500 for the year. Volatility was elevated, with 60-day annualized volatility at 27%, higher than 75% of its own readings over five years, indicating larger swings even as the trend remains upward.

Fundamentals and valuation

For the four quarters through September 30, 2026, revenue was $14.59 billion, which grew 6.0% from a year earlier, and diluted earnings per share were $12.19, which rose 19.7% from a year earlier. Operating margin improved to 11.1% from 9.7% a year earlier, even as gross margin edged down to 27.9% from 28.4% a year earlier. Free-cash-flow margin was 8.8% and return on invested capital was 7.9%.

The balance sheet showed net debt of 3.0 times EBITDA and share count over one year decreased by 2.5%. Those metrics sit alongside a free-cash-flow yield of 4.8%, suggesting the company generates steady cash even after capital needs and a modest degree of leverage.

Valuation metrics showed the stock trading at price to trailing earnings 29.6 times trailing earnings and price to forward earnings 19.6 times expected earnings. The price to trailing earnings is higher than 81% of its own readings over the past five years (five-year median: 26.0 times earnings). That positions the stock at a relatively rich multiple versus its recent history, even as earnings growth has accelerated.

Earnings and analyst expectations

Labcorp reported its last earnings on October 28, 2026, with EPS of $4.78 against $4.64 expected, a 3.0% beat. The company has delivered 13 consecutive quarters beating estimates and an average surprise over the last four reports of 3.5% above estimates. Typical two-day reactions after recent reports were that the stock rose 1.8%.

Following the stronger-than-expected quarter and margin expansion, Labcorp raised the midpoint of its full-year 2026 revenue and earnings outlook, according to Benzinga and Zacks Investment Research. Analysts have a consensus price target of $346.57, which was 3.8% below the closing price, based on 35 analysts with a consensus rating of Buy and 74% of ratings at Buy or Strong Buy.

PromtFinance scores ranked Labcorp positive for Value at 77, positive for Quality at 69 and positive for Momentum at 78; Growth scored 38 and Revisions 52; Stability was 91, an exceptional reading within the sector. Those readings underline a mix of strengths: solid profitability, high stability and momentum, but comparatively weaker growth scores versus the valuation premium.

What to watch

• Next report date: February 16, 2027.
• Consensus price target: $346.57 versus the closing price, 3.8% below the close.
• Balance sheet metric: net debt of 3.0 times EBITDA.
• Valuation: price to trailing earnings 29.6 times trailing earnings and price to forward earnings 19.6 times expected earnings.
• Technical risk: Relative Strength Index (14 days) at 80, above 70.