Ahead of its investor day Thursday, Labcorp put numbers behind a long runway tied to personalized medicine. The North Carolina-based lab operator is targeting compounded revenue growth of 5% to 8% a year through 2029 and expects adjusted earnings per share to compound 8.5% to 11.5% over the same stretch.
The company also kept its 2026 targets intact, calling for revenue to rise 5.4% to 6.3%. Year to date, the stock is up 28%, versus the S&P 500's 12% gain.
CEO Adam Schechter said the strategy leans into high-need specialties. "What's driving the revenue growth is our focus on specialty areas: oncology, neurology, autoimmune disease and women's health," he said. "Those parts and segments of the market are growing significantly faster than the underlying market."
Schechter added that diagnostics in these fields can both improve outcomes and trim costs. In cancer care, for example, Labcorp's testing helps match patients to appropriate chemotherapy and spot recurrence sooner than traditional imaging.
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Deals are part of the math, too. Schechter said 1.5% to 2.5% of revenue growth is expected to come from a "strong pipeline of acquisitions," pointing to the recent purchase of MLM Medical Labs to widen Labcorp's research lab network for clinical trials. Drugmakers want partners that are strong at trial execution, which he called a reliable income stream.
Schechter also flagged a "very strong pipeline of hospital laboratory deals," with potential arrangements ranging from running a hospital's lab to buying the outreach testing hospitals do for outside providers.
On the consumer front, Labcorp's direct-to-consumer business offers 140 tests, including testosterone and sexually transmitted infection screens. "We see consumers moving much more actively towards managing their health," Schechter said. "It continues to drive strong double-digit growth, and we expect that's going to continue into the future."
The playbook mixes steady organic expansion through 2029 with a lift from acquisitions, hospital partnerships, and consumer testing. If personalized medicine keeps spreading and trial work stays brisk, more of Labcorp's sales could skew toward faster-growing niches.
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