Short answer
Labcorp (LH) filed its fiscal 2025 10-K annual report with the SEC on Feb 24, 2026. It reported revenue of $14.0B (+7.2% year over year) and net income of $877M.
- Top risk flagged: Ravgen patent verdict: $272M jury award + $100M enhanced damages + $2.6M supplemental + $100/test ongoing royalty through patent life
FY2025 key financial metrics · XBRL
- Revenue
- $14.0B
- +7.2% YoY
- Net income
- $877M
- +17.5% YoY
- Operating margin
- 9.9%
- +1.6 pp YoY
- Gross margin
- 28.8%
- +0.9 pp YoY
- EPS (diluted)
- $10.46
- +18.3% YoY
- ROE
- 10.2%
- +0.9 pp YoY
- Operating cash flow
- $1.6B
- +3.4% YoY
Source: XBRL data from the Labcorp (LH) FY2025 10-K on SEC EDGAR. USD.
Labcorp FY2025 10-K analysis
AI summary of each section, grounded in the filing text
Business Overview
- Dual-segment lab services platform: Dx (clinical testing, $10.9B revenue) and BLS (drug development services, $3.1B revenue), total revenues $13.95B
- New specialty test launches in 2025: Alzheimer's disease diagnostics, molecular residual disease detection, expanded oncology precision testing; also nationwide self-collection HPV/STI testing via Labcorp OnDemand
- Strategic pivot toward health system partnerships (13 signed/completed in 2025) and international expansion via minority stake acquisition in SYNLAB, Europe's diagnostic services leader
- BLS supported 85% of FDA-approved drugs/therapeutic products in 2025; $582M deployed in acquisitions; $450M in share buybacks at avg $254.17/share
- Launched more than 130 new Dx tests in 2025 while expanding cell and gene therapy lab capacity in Madison, WI: targeting ~2,000 active global CGT clinical trials representing ~20% of biopharma pipelines
Management Discussion & Analysis
- Revenue $13,951.7 in FY2025, up 7.2% YoY from $13,008.9; driven by 4.4% organic growth, 2.5% acquisitions net of divestitures, 0.4% FX tailwind
- Operating margin 9.9% vs 8.4% YoY; cost of revenues fell to 71.2% vs 72.1%; SG&A fell to 15.9% vs 17.1% of revenue
- Best segment: Dx operating income $1,779.9 (+10.8% YoY), margin 16.4% vs 15.8%; BLS operating income $498.5 (+8.6%), margin 16.1% vs 15.7%
- Operating cash flow $1,640.5 vs $1,585.8; capex $434.5 (3.1% of revenue); dividends $240.7; share repurchase authorization remaining $830.4
- OBBBA legislation risk flagged: potential Medicaid/ACA coverage reduction; capex guided higher to ~4.0% of revenue in 2026; pending acquisitions (Empire City, Parkview) up to $415.0
Risk Factors
- Ravgen patent verdict: $272M jury award + $100M enhanced damages + $2.6M supplemental + $100/test ongoing royalty through patent life
- PAMA Medicare reimbursement cuts frozen 2026, resuming 2027–2029 capped at 15%/year with further reductions possible thereafter
- Senior notes $5.2B outstanding, $500M due within 12 months, plus $1.0B revolving credit facility with leverage ratio covenants
- FDA's April 2024 LDT final rule rescinded after legal challenge, but potential reissuance could impose device-level regulatory burden on core lab testing
- BLS dependent on specialized research animal supply; import restrictions or activist disruption could halt preclinical services with no short-term substitute
Generated from the filing text; verify against the original. How to read a 10-K
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