Labcorp is like:

• The Quest Diagnostics of medical lab testing.
• The IBM or Accenture for pharmaceutical research and development services.

• Clinical Diagnostic Testing: Provides a comprehensive range of laboratory testing services to help physicians diagnose, monitor, and prevent disease for patients.
• Drug Development Services: Offers a suite of services, including preclinical research, clinical trials, and commercialization support, to pharmaceutical and biotechnology companies for bringing new drugs to market.

• Pharmaceutical and Biotechnology Companies: These companies are the primary clients for Labcorp's Drug Development segment (formerly Covance). They outsource various stages of drug discovery, nonclinical, and clinical development services to Labcorp.

  • Representative Public Company Examples (typical clients in this industry sector):
    • Pfizer Inc. (PFE)
    • Merck & Co., Inc. (MRK)
    • Johnson & Johnson (JNJ)
    • Amgen Inc. (AMGN)

• Health Plans and Managed Care Organizations: For its Diagnostics segment, Labcorp partners with these organizations. While not direct recipients of testing services, they are critical for network inclusion, reimbursement, and effectively directing a large volume of patients to Labcorp facilities for testing.

  • Representative Public Company Examples (major players in this industry sector):
    • UnitedHealth Group Incorporated (UNH)
    • Elevance Health, Inc. (formerly Anthem) (ELV)
    • CVS Health Corporation (owns Aetna) (CVS)

• Healthcare Providers (Hospitals, Health Systems, and Physician Groups): Labcorp provides diagnostic testing services directly to patients referred by these providers and also partners with hospitals and integrated health systems to manage or provide outsourced laboratory and pathology services.

  • Representative Public Company Examples (typical organizations in this industry sector for hospitals/health systems):
    • HCA Healthcare, Inc. (HCA)
    • (Many large health systems and physician groups are private or non-profit entities.)

Major suppliers for Labcorp (LH) include:

• Roche Holding AG (RHHBY)
• Siemens Healthineers AG (SMMNY)
• Danaher Corporation (DHR)
• Abbott Laboratories (ABT)
• Thermo Fisher Scientific (TMO)

Adam Schechter, Chairman, President, and Chief Executive Officer

Adam Schechter became Chief Executive Officer of Labcorp in November 2019 and assumed the role of Chairman of the Board in May 2020. Prior to joining Labcorp, Mr. Schechter had a distinguished 31-year career at Merck, where he held various leadership positions, including Executive Vice President and President of Global Human Health. His responsibilities at Merck included ensuring global access to medicines and vaccines, leading a large global commercial organization, transforming Merck's commercial model, and overseeing the integration of Merck and Schering-Plough. He began his career at Merck as a sales representative in 1988. Mr. Schechter also served on Labcorp's board of directors starting in 2013, becoming Lead Independent Director in January 2019. He is currently the board chair for Water.org.

Julia Wang, Executive Vice President and Chief Financial Officer

Ms. Julia Wang was appointed Executive Vice President and Chief Financial Officer of Labcorp in 2024. Before joining Labcorp, she served as Senior Advisor and Chief Financial Officer at BeiGene Ltd. Her extensive experience in finance includes leadership roles at Alexion Pharmaceuticals Inc., Quest Diagnostics Inc., Johnson & Johnson, and PepsiCo Inc.

Mark Schroeder, Executive Vice President and President, Diagnostics and Chief Operations Officer

Mark Schroeder has served as Labcorp's Executive Vice President and President, Diagnostics and Chief Operations Officer since 2023. Previously, he held the position of Senior Vice President, Integrated Genetics, Oncology and Supply Chain Operations at Labcorp.

Brian J. Caveney, M.D., J.D., M.P.H., Executive Vice President and President, Early Development Research Laboratories and Chief Medical and Scientific Officer

Dr. Brian J. Caveney serves as Executive Vice President and President, Early Development Research Laboratories and Chief Medical and Scientific Officer at Labcorp.

Sandra D. van der Vaart, J.D., Executive Vice President, Chief Legal Officer and Corporate Secretary

Sandy van der Vaart has been Labcorp's Executive Vice President, Chief Legal Officer and Corporate Secretary since February 2020. Prior to this role, she served as Senior Vice President, Global General Counsel, Chief Compliance Officer and Corporate Secretary for the company.

• Direct-to-Consumer (DTC) and At-Home Testing: The increasing prevalence of companies offering direct-to-consumer health testing, allowing individuals to order tests online and collect samples at home or local facilities, threatens Labcorp's traditional physician-referral model. This trend, exemplified by companies like Everlywell and LetsGetChecked, bypasses established lab collection centers and captures a growing segment of the diagnostic market driven by convenience and consumer empowerment.
• Expansion of Point-of-Care (POC) Diagnostics: Advances in technology are enabling more diagnostic tests to be performed rapidly and accurately outside of central laboratories, such as in physician offices, pharmacies, or even at home. This trend, significantly accelerated and validated by the widespread adoption of rapid COVID-19 tests, threatens to reduce the volume of samples sent to traditional central labs for processing, as an increasing array of common and specialized tests become available at the point of care.
• Decentralized Clinical Trials (DCTs): The growing adoption of decentralized or virtual clinical trials, which leverage technology (e.g., wearables, telemedicine, remote monitoring, home nursing visits) to conduct research outside of traditional investigator sites, poses a clear emerging threat to Labcorp's drug development (CRO) segment. This shift challenges the traditional site-centric clinical trial model, potentially altering the demand for conventional CRO services and creating new competitive landscapes dominated by technology-focused or specialized DCT providers.

Labcorp's main products and services primarily fall into two categories: clinical laboratory services (diagnostics) and drug development services.

Clinical Laboratory Services (Diagnostics)

• The global clinical laboratory services market was valued between approximately USD 233.95 billion and USD 319.13 billion in 2024. This market is projected to reach between approximately USD 376.61 billion and USD 569.17 billion by 2032-2034.
• The addressable market size for clinical laboratory services in the U.S. was between approximately USD 68.23 billion and USD 116.15 billion in 2024.

Drug Development and Discovery Services

Labcorp's Biopharma Laboratory Services segment provides drug development, medical device, and diagnostic development services.

• The global pharmaceutical drug development services market was valued at approximately USD 18.6 billion in 2024 and is expected to reach USD 46.8 billion by 2031.
• The global drug discovery services market size was approximately USD 21.26 billion in 2024 and is expected to exceed USD 79.71 billion by 2034.
• The U.S. drug discovery services market was evaluated at approximately USD 6.55 billion in 2024 and is projected to be worth around USD 25.01 billion by 2034.

Labcorp (symbol: LH) is expected to drive future revenue growth over the next 2-3 years through several key initiatives:

1. Organic Growth in Diagnostics and Biopharma Laboratory Services: Labcorp consistently emphasizes strong organic growth in both its Diagnostics Laboratories and Biopharma Laboratory Services segments. The company's Diagnostics segment showed an 8.5% revenue increase in Q3 2025, with organic growth at 6.3%, and its Biopharma segment grew 8.3%. This organic expansion is a primary driver of overall revenue. Labcorp projects enterprise revenue growth of 7.4% to 8.0% for the full year 2025, with Diagnostics Laboratories expected to grow 7.2% to 7.8% and Biopharma Laboratory Services projected to grow 5.7% to 7.1%.
2. Strategic Acquisitions and Partnerships: Labcorp is actively pursuing strategic acquisitions and partnerships to strengthen its market position and expand its service offerings. Recent examples include agreements to acquire select assets from Empire City Laboratories and Laboratory Alliance of Central New York. These acquisitions contribute to revenue growth and enhance the company's market presence.
3. Expansion of Innovative and Specialty Testing: The company is focused on introducing innovative tests in high-growth specialty areas such as oncology, women's health, autoimmune disease, and neurology, which are expected to grow up to three times faster than other therapeutic areas. A notable recent example is the offering of the first FDA-cleared blood test to rule out Alzheimer's-related amyloid pathology in primary care settings. This focus on specialized and advanced testing platforms drives demand and revenue.
4. Leveraging Technology and AI for Efficiency and Growth: Labcorp is increasingly utilizing technology, robotics, and artificial intelligence (AI) to enhance operational efficiency and accelerate growth. This includes leveraging AI and digital tools to improve efficiency and customer experience.
5. Growth in Consumer-Initiated Testing: While not yet a standalone reporting segment, analysts have inquired about Labcorp's strategy for consumer testing growth, and management has noted that growth in consumer-driven testing is accelerating. This indicates a strategic focus on expanding direct-to-consumer offerings which could become a more significant revenue driver in the future.

Share Repurchases

• Labcorp authorized a new $2.5 billion share repurchase program in December 2021, which included a $1 billion accelerated share repurchase plan.
• The company repurchased $1.1 billion in shares in 2022 and $1 billion in 2023.
• In July 2024, the Board of Directors approved a $1.0 billion increase to the share repurchase authorization, bringing the total authorized amount to $1.4 billion.

Share Issuance

• Information regarding the specific dollar amount of shares issued by Labcorp over the last 3-5 years is not readily available.
• The number of outstanding shares has generally declined, with a 4.37% decrease in 2023 to 0.088 billion and a 3.65% decrease in 2024 to 0.084 billion, indicating that share repurchases have outweighed any issuance.

Outbound Investments

• Labcorp made strategic investments in acquisitions, including $458.1 million in Q3 2024 and $268.4 million in Q3 2025, to expand its services.
• Key acquisitions and agreements in 2024 include assets from Invitae (for specialty testing in oncology and rare diseases) and select assets from BioReference Health's diagnostic business (to enhance clinical diagnostics and women's health).
• In 2023, Labcorp formed a strategic partnership with Baystate Health and acquired its outreach laboratory business, and also completed the acquisition of select assets from Legacy Health, managing their inpatient hospital laboratories.

Capital Expenditures

• Capital expenditures totaled $133.8 million in Q1 2024, an increase from $78.2 million in the prior year.
• In Q4 2023, capital expenditures were $165.4 million, compared to $99.1 million in Q4 2022.
• The primary focus of capital expenditures includes investments in science, innovation, new technologies, and expanding capabilities in high-growth areas such as oncology, Alzheimer's, autoimmune, and women's health.