Labcorp raises annual profit forecast on strong testing demand

July 30 (Reuters) - Labcorp raised its annual profit forecast on Thursday after reporting better-than-expected second-quarter results, as steady demand for diagnostic testing and growth in its drug-development services business boosted performance.

The company's diagnostics business has benefited from specialty testing and laboratory management agreements, while improved pharmaceutical and biotechnology spending has supported its research services business.

Here are the details:

• Labcorp raised its 2026 adjusted earnings forecast to $18.10 to $18.55 per share from $17.70 to $18.35 previously.
• The midpoint of the new range, $18.33, is above analysts' estimate of $18.01 per share, according to data compiled by LSEG.
• The company lifted its annual revenue forecast to $14.71 billion to $14.83 billion from $14.65 billion to $14.80 billion previously. Analysts expect revenue of $14.71 billion.
• Industry peer Quest Diagnostics last week raised its full-year profit forecast after demand for routine diagnostic testing helped the company beat second-quarter estimates.
• Labcorp's Diagnostics Laboratories segment's revenue grew 5.5% to $2.90 billion, just below analysts' expectation of $2.91 billion.
• Biopharma Laboratory Services revenue rose 6.5% to $836.2 million, exceeding estimates of $797.3 million.
• Second-quarter revenue rose 5.8% to $3.73 billion, above estimates of $3.71 billion. Adjusted earnings per share of $4.99 topped expectations of $4.78.