Labcorp Layers AI Across Consumer Health and Diagnostics as Growth Accelerates

Labcorp reported higher revenue and earnings in the second quarter while outlining how artificial intelligence is becoming part of its consumer health, diagnostics, and clinical research operations. From consumer health applications to clinical research services, executives described AI as one component of the company's ongoing investments in diagnostics, digital services, and laboratory workflows.

The healthcare diagnostics company reported revenue of $3.7 billion for the quarter ended June 30, up 5.8% year over year, while adjusted earnings per share increased 14.9% to $4.99. Following the results, Labcorp raised its full-year revenue and adjusted EPS guidance, citing momentum across both its Diagnostics and Biopharma Laboratory Services businesses. Official financial results are available through Labcorp's Investor Relations website and the company's earnings release.

The quarter also showed where Labcorp is investing. Specialty diagnostics contributed an increasing share of growth, while consumer healthcare became more digital. Executives described AI as supporting patient engagement, physician workflows, and laboratory operations through services the business already offers.

AI Moves Closer to the Patient

The clearest example of that strategy is in Labcorp's consumer business, where the company is using AI to simplify how patients access and interpret their health information.

One example is MyLabcorp, the AI-powered mobile application that allows patients to schedule appointments, review laboratory results, and receive AI-generated health insights. Adam Schechter, Chairman and Chief Executive Officer of Labcorp, said the application has already been downloaded by millions of consumers.

Consumer testing also remains a growing business. Labcorp said its OnDemand platform continues to deliver double-digit growth while expanding beyond traditional laboratory testing. The company plans to launch Marker by Labcorp, a genetic health panel that combines biomarker and genetic testing within a single platform.

Specialty Diagnostics Continue to Drive Growth

Consumer applications received much of the attention during the call, but Labcorp's financial performance continued to be driven by specialty diagnostics.

The Diagnostics segment generated $2.9 billion in quarterly revenue, an increase of 5.5%, while adjusted operating margin expanded to 18%. Management also noted that Diagnostics volume continued to outperform the broader laboratory market despite modest headwinds from Affordable Care Act and Medicaid eligibility changes.

Schechter said oncology, neurology, autoimmune disease, and women's health all delivered double-digit revenue growth during the first half of the year. He noted that oncology represents more than a single diagnostic test because cancer patients typically require many laboratory tests throughout treatment.

That investment strategy continued through several launches announced during the quarter.

Labcorp launched ColoSense nationwide, describing it as the first FDA-approved RNA-based colorectal cancer screening test with an at-home collection option. The company also expanded access to Roche's companion diagnostic for prostate cancer patients, broadened its minimal residual disease (MRD) portfolio, introduced additional pharmacogenomic testing, and expanded kidney transplant monitoring and liver disease diagnostics.

Executives also pointed to an increase in tests performed per patient encounter as an important contributor to Diagnostics growth. During the earnings call, management explained that oncology and other specialty patients typically require more laboratory tests over the course of treatment, helping increase tests per accession and contributing to favorable price mix alongside patient volume growth.

Technology Supports Clinical Research

The same strategy extends beyond diagnostics into Labcorp's pharmaceutical services business.

Biopharma Laboratory Services generated $836 million in quarterly revenue, increasing 6.5% year over year. Central Laboratories, which support global clinical trials through standardized laboratory testing, remained the segment's strongest performer.

Labcorp reported an $8.7 billion backlog and a quarterly book-to-bill ratio of 1.14, indicating demand for future clinical trial work continues to exceed current revenue conversion.

The business also expanded its collaboration with Epic Aura during the quarter, making more than 6,500 Labcorp diagnostic tests available directly through the healthcare platform. The integration gives physicians easier access to genetic testing, oncology diagnostics, and specialty laboratory services within existing clinical workflows. Additional information about the integration is available through Labcorp's newsroom and Epic partnership announcements.

Executives also linked these investments to productivity and margin improvement. Enterprise adjusted operating margin increased 70 basis points to 15.8%, while both the Diagnostics and Biopharma Laboratory Services segments expanded margins year over year.

Labcorp also continued investing in its laboratory network through acquisitions of outreach laboratory assets from Parkview Health and Tribal Diagnostics while securing another Department of Defense laboratory services contract.

With guidance raised for the full year, Labcorp enters the second half of 2026 with continued investment in specialty diagnostics, consumer health, and laboratory services. The quarter also showed AI becoming more integrated into patient engagement, laboratory workflows, and clinical research across the company's existing businesses.