Total Revenue

+5.4%

The 5.4% YoY increase from $3,176.6 million in Q1 2024 to $3,345.1 million in Q1 2025 builds on the firm’s strong baseline performance, indicating improved underlying business performance driven by organic growth and positive mix effects that were already evident in the previous period. " " " "

Dx Revenue

+6.0%

The 6.0% YoY rise in Dx revenue—from $2,479.7 million in Q1 2024 to $2,629.6 million in Q1 2025—reflects robust performance in the Diagnostics segment, continuing the momentum from prior period gains through a combination of organic expansion and favorable pricing and volume trends. " " "

Operating Cash Flow

Reversal from negative (-$29.8M) to positive (+$18.5M)

The dramatic turnaround in operating cash flow from -$29.8 million in Q1 2024 to $18.5 million in Q1 2025 is primarily due to improved working capital management and timing adjustments. This reversal builds upon challenges noted in prior periods and signals enhanced operational efficiency. " "

Enterprise Revenue Growth

FY 2025

6.7% to 8% "

6.7% to 8%, midpoint 7.5% " " "

no change

Diagnostics Revenue Growth

FY 2025

6.5% to 7.7% "

6.5% to 7.7% " "

no change

Biopharma Revenue Growth

FY 2025

3% to 5%, includes 140 basis points headwind "

3% to 5%, includes 30 bp negative impact " "

no change

Adjusted EPS

FY 2025

$15.60 to $16.40 "

$15.70 to $16.40, with midpoint raised by $0.05 " " "

raised

Free Cash Flow

FY 2025

$1.1 billion to $1.25 billion "

$1.1 billion to $1.25 billion " "

no change

Adjusted Tax Rate

FY 2025

Approximately 23% "

Approximately 23% "

no change

Enterprise Margins

FY 2025

Expected improvement across Diagnostics and Biopharma segments, driven by top‐line growth and LaunchPad savings "

Margin improvement in Diagnostics and BLS segments " "

no change

Capital Expenditures

FY 2025

3.8% of revenue "

3.8% of revenue "

no change

Invitae Performance

FY 2025

no prior guidance

Revenue Growth Expectation: 10%, slightly accretive " "

no prior guidance

Impact of PAMA Legislation

FY 2025

no prior guidance

$100 million impact for full year starting January 2026 "

no prior guidance

Foreign Exchange Impact

FY 2025

Diagnostics: 50 basis points headwind; Biopharma: 140 basis points headwind "

no guidance

no current guidance

Invitae Integration

In Q3, executives noted strong progress with complementary genetic testing and operational metric alignment. " " In Q4, integration was described as going well with expectations for >10% revenue growth and a shift to accretive impact in the second half of 2025. " " "

Q1 emphasized that integration is progressing even better than anticipated, with a methodical approach and expectations to be slightly accretive later in 2025. " " "

Consistent improvement with increasingly positive sentiment as integration transitions to accretive performance.

Mixed Margin Impact

Q3 mentioned a negative margin impact (approximately –40 basis points on enterprise margins) with expectations for sequential improvements. " " Q4 discussed early dilution from Invitae as well as a mixed impact on Diagnostics and enterprise margins. " " "

Q1 reported a 20 basis point decline in enterprise margins due to Invitae and weather, while underlying margins would have been up by 60 basis points if those factors were excluded. " "

Steady headwinds persist while management expects improvements later in the year, reflecting similar concerns but with an optimistic view for H2.

Overall Margin Expansion Strategy

In Q3, margin expansion was supported by strong organic demand, cost savings from LaunchPad, and favorable pricing/mix, alongside challenges from Invitae integration and other headwinds. " " In Q4, similar themes surfaced with core margins growing in Diagnostics and Biopharma through savings and organic growth. " " "

Q1 reiterated margin expansion in Diagnostics (50bps improvement adjusted) and Biopharma (80bps improvement), driven by strategic initiatives including LaunchPad, pricing adjustments, and expected accretive Invitae impact. " "

Consistent strategic focus with incremental progress as savings initiatives and operational improvements continue to support future margin gains.

Robust M&A Pipeline and Inorganic Growth Opportunities

Q3 discussions focused on a robust M&A pipeline in hospital and regional laboratory businesses with revised guidance for inorganic growth (1.5%-2.5%). " " In Q4, executives highlighted 10 acquisitions in 2024 and a strong pipeline with a refined capital allocation strategy. "

Q1 leaders emphasized a very strong M&A pipeline spurred by macro factors such as tariff implications, along with recent strategic collaborations and acquisitions that strengthen areas like oncology. " "

Maintained high confidence with proactive deal-making and capital allocation, reinforcing the growth strategy through inorganic opportunities.

Regulatory Uncertainties and PAMA Impact

Q3 noted that PAMA had been delayed (providing upside to long‐term guidance) while continuing to factor its impact into models. " Q4 focused on working with legislators, expecting PAMA implementation in 2026 if no changes occur. " "

Q1 is now planning for a near-term PAMA impact estimated at approximately $100 million in the following January and continues to adapt its regulatory strategy while actively monitoring broader regulatory shifts. " " "

Increased focus on near-term impact planning while uncertainties persist; management’s proactive approach remains consistent but with sharper emphasis on timing and financial impact.

Growth in Esoteric Testing and Oncology Offerings

Q3 highlighted a broad oncology testing portfolio, including advanced liquid biopsy tests with recent FDA milestones, while Q4 emphasized esoteric testing growing at three times the historical rate in oncology, women’s health, and related areas. " " "

Q1 announced new consumer and clinical testing launches such as Labcorp Plasma complete for personalized cancer treatment and reinforced acquisitions that strengthen its oncology portfolio. " " "

Positive growth momentum with continued innovation and strategic focus on oncology, maintaining accelerated growth rates and expanding test offerings.

Declining Emphasis on Tariff Risks

Q4 discussed tariffs as “very manageable” with a focus on flexible supply chains. " Notably, Q3 did not feature any discussion of tariff risks. "

Q1 addressed tariff risks by noting that their impact is minimal due to robust contract coverage and flexible supply chains; tariffs are now embedded within guidance. " "

A clear reduction in emphasis as management deems the risk minimal and manageable, reflecting a declining focus compared to earlier periods.

Emerging Inflationary Pressures and Labor Cost Concerns

Q3 acknowledged some competitive labor market challenges and increased costs, mitigated by LaunchPad savings. " " Q4 assumed 3%-3.5% annual inflation in labor costs with similar concerns being offset by cost efficiencies. "

Q1 described higher personnel costs as typical inflation (3%-3.5%) and noted that such pressures are being actively managed through cost initiatives, though they partially offset operating gains. " "

Consistent recognition of inflationary pressures; sentiment remains cautious yet proactive in mitigating impacts through strategic cost management.

Cost Management Initiatives (LaunchPad Savings)

Q3 confirmed the initiative was on track to deliver $100 million to $125 million in savings, effectively offsetting wage inflation and other pressures. " " Q4 reiterated similar targets and its significant role in margin support despite higher personnel expenses. " "

Q1 reiterated that LaunchPad Savings are crucial in counterbalancing margin headwinds and inflation, contributing to margin improvement across both Diagnostics and Biopharma. " " "

Steady performance with consistent savings targets that remain central to cost management; its role in offsetting inflationary pressures is validated across periods.

Pipeline of Clinical Trials and Order Backlog

Q3 reported an $8.1 billion backlog with a trailing 12-month book-to-bill ratio of 1.02, and Q4 noted an $8 billion backlog with expected conversions of around $2.5 billion over 12 months. " " " "

Q1 revealed an $8.2 billion backlog and a strong book-to-bill ratio (1.13 for the quarter, 1.07 trailing 12 months), highlighting robust clinical trial demand and revenue conversion expectations. " " "

Stable and slightly improving outlook with a consistently strong pipeline, ensuring ongoing revenue visibility and robust clinical trial activity.

LabCorp OnDemand Performance in Consumer Testing

Q3 mentioned substantial growth in adding test offerings (e.g., luteinizing hormone and syphilis tests) though it was not yet material enough for separate reporting. " " Q4 saw launches of consumer tests focusing on vitamins and heart health markers like homocysteine. "

Q1 expanded its portfolio with several new tests (electrolytes, GGT, hepatitis A, total testosterone for women) and introduced self-collection options, enhancing convenience and consumer engagement. "

Continued expansion and innovation in the consumer testing segment; growth remains robust as new tests are consistently rolled out to overcome screening barriers.