Feb 17 (Reuters) - Laboratory services provider Labcorp forecast annual profit above Wall Street estimates on Tuesday, banking on robust demand for its diagnostic tests.
Steady demand for non-urgent surgeries, especially among older Americans, has been boosting the business of companies such as Labcorp over the past few quarters.
The North Carolina-based company expects its diagnostic segment to grow between 5% and 6% in 2026.
It expects its annual adjusted profit per share to be between $17.55 and
$18.25, with the midpoint above analysts' average estimate of $17.50, according to data compiled by LSEG.
"We expect continued strong performance in 2026 as we remain focused on growth," CEO Adam Schechter said in a statement.
Labcorp expects its annual revenue in the range of $14.61 billion to $14.79 billion, while analysts estimate $14.63 billion.
"Overall, we see this print giving Labcorp the ability to continue its steady growth, supported by a healthy end market that also saw outperformance from peer Quest Diagnostics," said Leerink Partners analyst Michael Cherny.
Over the past year, Labcorp and Quest have benefited from agreements to manage hospital laboratories, which helped them expand their market share.
Labcorp also beat fourth-quarter profit estimates, helped by steady demand in its diagnostics and central laboratory businesses.
The company posted adjusted profit of $4.07 per share for the three months ended December 31, compared with the estimate of $3.94 per share.
Sales at its biopharma laboratory services segment, which offers contract research facilities for biopharmaceutical companies, rose 3.4%, while the diagnostics business grew 5.5% during the period.
Labcorp's total quarterly sales were at $3.52 billion, compared with the estimate of $3.56 billion.
(Reporting by Siddhi Mahatole in Bengaluru; Editing by Shilpi Majumdar)
