Labcorp Holdings Inc.

Strong Q1 performance; margin expansion and EPS growth - Enterprise revenue $3.5B, up ~5.8% YoY (organic ~3.1%, acquisitions ~1.4%, FX ~1.3%). - Adjusted operating margin expanded 30+ bps to 14.4%; adjusted EPS $4.25, up ~10.6% YoY. - Free cash flow: +$71M (vs use of cash $108M last year). Company reiterated Q1 is typically its *lowest* FCF quarter.

Business momentum + specific growth drivers (Diagnostics and Central Labs) - Diagnostics revenue: $2.8B, up ~5% YoY; organic volume growth impacted by weather (see below), while price/mix +2.6% supported results. - Biopharma Lab Services (BLS): revenue $781M, up ~8.2% YoY (includes ~5.5% FX benefit). Organic growth ~3.7%, partially offset by Early Development strategic actions (~1%). - Central Labs growth highlighted as the main BLS engine (+11% reported / +5% organic constant currency). - Strategic priorities: expansion as partner to health systems/regional labs; growth in specialty testing (neurology/Alzheimer’s, oncology including liquid biopsy/MRD access, women’s health, autoimmune) and tech/AI/robotics.

Weather and policy-driven volume risks/challenges (key negative) - Adverse weather impact estimated at ~$15M in Q1, with implied hit to Diagnostics organic volume growth (organic volume would have been ~2% without weather vs reported ~1.1% organic volume growth). - ACA exchange (affects insured volume/testing): management previously modeled ~30 bps impact to diagnostic volume for 2026; Q1 impact was described as immaterial, but company continues to monitor enrollment-to-utilization conversion. 30 bps remains the guidance assumption. - A note on policy/regulatory uncertainty: questions covered CMS fraud/waste initiatives (CRUSH) and PAMA/RESULTS Act timing; management is supportive of fair competition but emphasizes risk of unintended consequences that could affect patient access.