Strong Financial Performance: Labcorp reported Q2 2025 revenue of $3.5 billion, marking a 10% year-over-year growth. Diagnostics revenue increased by 9% to $2.7 billion, primarily driven by organic growth and acquisitions, while the Biopharma Laboratory Services (BLS) segment grew 11% to $785 million. Adjusted earnings per share rose 10% year-over-year to $4.35, with a strong operating cash flow of $621 million.

Guidance Expectations Raised: The company raised its full-year revenue guidance by 70 basis points at the midpoint, now expecting growth of 7.5% to 8.6%. For Diagnostics, revenue guidance was raised to a range of 7% to 8%, while BLS revenue guidance is now projected to grow between 6.1% and 7.5%. Adjusted EPS guidance has been updated to a range of $16.05 to $16.50.

Challenges with PAMA Regulations: There are ongoing uncertainties around the Protecting Access to Medicare Act (PAMA) and its impact on Labcorp's businesses, with a potential $100 million top and bottom-line impact expected if the cuts come into effect next year. The company is actively working towards legislation to modify or delay these cuts.