LH · 10-Q · 2026Q2 · Full report

Gross Margin Drivers

LABCORP HOLDINGS INC. · 2026-08-05 · Importance 43 · Surprise 32 · No source text

Second-quarter 2026 cost of revenues increased 5.6% to $2,619.1 million from $2,481.1 million. Cost of revenues declined to 70.2% of revenue from 70.3% year over year, implying a 10-basis-point improvement in gross margin. The improvement was primarily attributable to organic growth and operating efficiencies, partly offset by increased personnel costs. For the six months, cost of revenues was 70.8% of revenue versus 71.0% in 2025.

Key facts

• Cost of revenues for the three months ended June 30, 2026, were $2,619.1, an increase of 5.6% from $2,481.1 in the corresponding period in 2025. source
• Cost of revenues for the six months ended June 30, 2026, were $5,142.9, an increase of 5.4% from $4,878.2 in the corresponding period in 2025. source
• Cost of revenues as a percentage of revenues decreased to 70.2% for the three months ended June 30, 2026, from 70.3% in the corresponding period in 2025. source
• Cost of revenues as a percentage of revenues decreased to 70.8% for the six months ended June 30, 2026, from 71.0% in the six months ended June 30, 2025. source
• The decrease in cost of revenues percentage for the three months ended June 30, 2026, was primarily due to organic growth and operating efficiencies, partially offset by increased personnel costs. source

Impact estimates