Australian Healthcare: Healthcare Daily: News, research & industry feedback

Research evidence excerpt

Australian Healthcare: Healthcare Daily: News, research & industry feedback

Global Research

31 July 2026ab

First Read

EquitiesAustralian Healthcare

Healthcare Daily: News, research & industry Australia

feedback Healthcare

David Low

Analyst

david.low@ubs.com

Stocks covered: SHL, CSL, RMD, TLX +61-2-9324 2843

James Meares

Competitor results Analyst

james.meares@ubs.com

+61-29-324 3575

SHL - Labcorp 2Q 2026 Results (Labcorp PR, 30-Jul)

Grace Allen

Associate Analyst

Labcorp reported its June quarter. Key points from the result include. grace-za.allen@ubs.com

Diagnostics lab 3.6% organic growth with organic volume +1.8% and +61-2-9324 2000

1.8% price/mix. Management called out growing tests per accession and reported

specialty testing is growing more quickly than routine testing.

Above market growth reflects hospital deals.

Diagnostic margin lifted ~40bps. The improvement was attributed to organic

growth and operating efficiencies. The ACA changes caused a 20-30bps

headwind and management retained its guidance of -30bps from this source for

2026.

DTC growth in the double-digits despite pricing pressure. Labcorp's

OnDemand service now offers about 200 biomarkers.

M&A pipeline remains full. Labcorp reported its pipeline is strong and

suggested hospitals are cautious of the potential impact of PAMA funding cuts on

their lab operations.

Diagnostics guidance upgraded to 5.3 - 6.0% total growth (previous 5.1 -

5.9%).

UBS view: Labcorp reported positive volume trends albeit below its larger competitor.

However we believe Sonic's US operations are less exposed to the supportive trends

given its lack of hospital deals or a DTC offering. We also note the weak XiFin data

points to continued soft conditions.

See the Q2 writeup from UBS covering analyst, Kevin Caliendo, here.