Labcorp Holdings Inc (LH) shares plummeted 5.07% during intraday trading on Tuesday, reversing from an initial pre-market gain. The significant drop came despite the company reporting better-than-expected fourth-quarter earnings.
The diagnostic testing company posted Q4 adjusted earnings of $4.07 per share, exceeding analyst estimates of $3.89-$3.94. However, revenue of $3.515 billion fell short of the $3.558 billion consensus estimate, marking a 1.22% miss. This revenue disappointment appears to have outweighed the positive earnings surprise in regular trading.
For the full year 2026, Labcorp provided an optimistic outlook with adjusted EPS guidance of $17.55-$18.25, above the $17 analyst estimate. Revenue is projected between $14.61 billion and $14.79 billion, representing midpoint growth of 5.4%. The mixed quarterly results - strong earnings but weaker revenue - likely contributed to the stock's volatility throughout the trading session.