LH · 10-Q · 2026Q2 · Full report

Income Tax Rate Changes

LABCORP HOLDINGS INC. · 2026-08-05 · Importance 41 · Surprise 48 · In source text

Second-quarter income tax expense increased to $87.3 million from $66.4 million. The quarterly effective tax rate increased to 22.6% from 21.8%, primarily because of the jurisdictional mix of earnings. Six-month tax expense was essentially unchanged at $129.0 million versus $128.6 million, while the effective tax rate fell to 18.3% from 22.2%. The six-month reduction primarily reflected discrete benefits from tax restructuring of certain foreign entities.

Key facts

• Provision for income taxes as a percentage of earnings from operations before income taxes was 22.6% for the three months ended June 30, 2026, compared to 21.8% in the corresponding period in 2025. source
• Provision for income taxes as a percentage of earnings from operations before income taxes was 18.3% for the six months ended June 30, 2026, compared to 22.2% in the corresponding period in 2025. source
• The decrease in the effective tax rate for the six months ended June 30, 2026, was primarily attributable to discrete benefits recognized from the tax restructuring of certain foreign entities. source
• Provision for income taxes for the three months ended June 30, 2026, was $87.3 compared to $66.4 in the corresponding period in 2025. source
• Provision for income taxes for the six months ended June 30, 2026, was $129.0 compared to $128.6 in the corresponding period in 2025. source

Impact estimates