Labcorp Holdings Inc. stock research
FY2025 Q4
Labcorp Holdings (LH) Gross Margin — Quarter Ended Dec 31, 2025
Current quarter gross margin improved compared to the same quarter last year but weakened relative to the prior quarter. Revenue and gross profit both increased year-over-year, while sequentially they declined and cost of revenue remained unchanged.
Gross margin takeaway
Quarter ended Dec 31, 2025 · FY2025 Q4
Current quarter gross margin improved compared to the same quarter last year but weakened relative to the prior quarter. Revenue and gross profit both increased year-over-year, while sequentially they declined and cost of revenue remained unchanged.
- The sequential margin decline was associated with a decrease in revenue while cost of revenue held steady, resulting in a lower gross profit margin.
- Compared to the year-ago quarter, revenue and gross profit were higher, and gross margin improved. Compared to the immediately preceding quarter, revenue and gross profit were lower, and gross margin weakened.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
28.2%
Gross profit
$993.2M
Revenue
$3.5B
Cost of revenue
$2.5B
Quarter-over-quarter change
-0.5 pts
Year-over-year change
+1.3 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Mar 31, 2025 | $3.3B | $948.0M | $2.4B | 28.3% |
| Jun 30, 2025 | $3.5B | $1.0B | $2.5B | 29.7% |
| Sep 30, 2025 | $3.6B | $1.0B | $2.5B | 28.8% |
| Dec 31, 2025 | $3.5B | $993.2M | $2.5B | 28.2% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2025
-0.5 pts
Year-over-year change
Dec 31, 2024
+1.3 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The sequential margin decline was associated with a decrease in revenue while cost of revenue held steady, resulting in a lower gross profit margin.
Compared to the year-ago quarter, revenue and gross profit were higher, and gross margin improved. Compared to the immediately preceding quarter, revenue and gross profit were lower, and gross margin weakened.
Monitor the relationship between revenue and cost of revenue, as cost of revenue remained stable despite a sequential decline in revenue.