LabCorp What to Know from LH‘s 2Q Earnings & Follow-Up with Management; Updating Our Estimates

Research evidence excerpt

LabCorp What to Know from LH‘s 2Q Earnings & Follow-Up with Management; Updating Our Estimates

J P M O R G A N North America Equity Research

31 July 2026

LabCorp Overweight

LH, LH US

What to Know from LH’s 2Q Earnings & Follow-Up with Price (31 Jul 26):$309.20

Management; Updating Our Estimates ▲Price Target (Dec-27):$360.00 Prior (Dec-26):$330.00

LH’s 2Q earnings demonstrated positive momentum across the business, with

Diagnostics showing solid margin gains on accelerating organic growth, coupled Managed Care and Facilities

with an improved BLS outlook supported by Central Lab stability and more Lisa C. Gill AC

profitable Early Development operations that are also seeing improving end- (1-212) 622-6466

market trends (see our summary of the print here). Management framed the quarter lisa.c.gill@jpmorgan.com

as high quality, pointing to continued operating margin traction with both segments Cole Harris

and the enterprise seeing y/y margin expansion for the last five consecutive (1-212) 622-9068

cole.harris@jpmorgan.com

quarters (up ~80bps on a TTM basis), and emphasizing the ability to drive further

John Stansel, CFA

operating leverage on topline growth. While we await more concrete commentary

(1-212) 622-0083

on both 2027 and the longer-term outlook at the company’s upcoming Investor Day john.stansel@jpmorgan.com

(September 10th in New York City), we remain positive on both lab fundamentals Benjamin Rossi

as well as LH’s focus on execution in the areas investors remain focused on. We (1-212) 622-9603

establish a December 2027 price target of $360 (up from $330 prior) based on an benjamin.rossi@jpmorgan.com

unchanged ~17x target multiple now applied to our updated 2028 adj EPS estimate. J.P. Morgan Securities LLC