Labcorp’s $100 Million PAMA Challenge: Can AI Save The Day?

Labcorp Holdings delivered a solid performance in the third quarter of 2025, marked by both commendable revenue growth and margin improvement. The company’s total revenue increased by 9% year over year, reaching $3.6 billion, with a notable adjusted earnings per share (EPS) growth of 19%. The Diagnostics segment, which is significant within the company’s structure, contributed to the robust performance with an 8.5% increase in revenue driven by organic growth and acquisitions. The integration of Invitae played a critical role in this segment’s success, indicating strong market demand for specialized diagnostics solutions. Central Laboratories, part of the Biopharma Laboratory Services (BLS), reported a 10% growth, offsetting a lower-than-anticipated performance in Early Development, which led Labcorp to consider restructuring initiatives. The company outlined plans to streamline this segment through divestiture and site consolidation, targeting non-core operations to better align resources and improve operating income.