Diagnostic testing and hospital lab partnerships fuel optimistic 2026 outlook
Dallas, 18 February 2026 – Laboratory services provider Labcorp has projected annual profits above Wall Street expectations, signaling steady momentum as demand for diagnostic testing continues to grow across the United States.
The North Carolina-based company says its positive outlook is supported by sustained demand for non-urgent medical procedures, particularly among older Americans. These procedures often require routine testing, which has helped strengthen business for major diagnostic service providers over the past few quarters.
Looking ahead to 2026, Labcorp expects its core diagnostics segment to grow between 5 percent and 6 percent. The company also forecasts adjusted earnings per share in the range of $17.55 to $18.25. This projection comes in above analysts’ average estimate of $17.50, based on data compiled by LSEG.
Company leadership remains confident
“We expect continued strong performance in 2026 as we remain focused on growth,” said Adam Schechter, chief executive officer of Labcorp, in a company statement.
Labcorp also expects annual revenue to fall between $14.61 billion and $14.79 billion, closely aligning with analysts’ expectations of about $14.63 billion. Industry observers say the company’s outlook reflects a stable healthcare environment with consistent demand for testing services.
Michael Cherny, an analyst at Leerink Partners, noted that Labcorp’s results show steady expansion supported by a healthy market. He also pointed out that similar growth trends have been seen at peer company Quest Diagnostics, which has also benefited from strong demand and operational efficiencies.
Hospital lab deals drive expansion
Both Labcorp and Quest Diagnostics have gained from agreements to manage hospital laboratories over the past year. These partnerships have helped the companies expand their reach, improve efficiency, and increase market share in the highly competitive diagnostics space.
In addition to its forward-looking guidance, Labcorp reported better-than-expected financial performance for the fourth quarter. The company posted adjusted earnings of $4.07 per share for the three months ended December 31, beating analysts’ estimates of $3.94 per share.
Segment performance highlights
Labcorp’s diagnostics business grew 5.5 percent during the quarter, reflecting steady demand for routine and specialized testing. Its biopharma laboratory services segment, which provides contract research support for biopharmaceutical companies, recorded a 3.4 percent increase in sales.
Total quarterly revenue reached $3.52 billion, slightly below analysts’ expectations of $3.56 billion, but still underscored the company’s overall stable performance.
Outlook for the diagnostics industry
The latest forecast suggests that diagnostic testing companies are entering 2026 on solid footing. With an aging population, ongoing medical procedures, and increased reliance on outsourced lab services, industry experts expect demand for laboratory testing to remain resilient.