Labcorp Reaffirms 2026–2029 Long-Term Outlook Following Preliminary CMS Fee Schedule Release

Event Overview

On September 22, 2026, Labcorp Holdings Inc. filed a Current Report on Form 8-K under Item 7.01 (Regulation FD Disclosure) addressing the preliminary Clinical Laboratory Fee Schedule (CLFS) payment rates for 2027 through 2029 issued by the Centers for Medicare & Medicaid Services (CMS) under the Protecting Access to Medicare Act (PAMA).

Key Highlights

1. CMS Fee Schedule Response:

   • Labcorp stated that the preliminary rates released on September 21, 2026, rely on data that does not represent the broader commercial lab market and would introduce steep payment reductions.
   • The company expressed continued backing for the bipartisan Reforming and Enhancing Sustainable Updates to Laboratory Testing Services (RESULTS) Act.

2. Reaffirmation of Long-Term Financial Outlook (2026–2029):

   • Labcorp reaffirmed its multi-year outlook originally introduced during its September 10, 2026 Investor Day, noting that anticipated PAMA reimbursement headwinds were already factored into these projections:
     • Revenue: Compound annual growth rate (CAGR) between 5% and 8%.
     • Operating Margin: Adjusted operating margin expansion of 75 to 150 basis points by year-end 2029.
     • Adjusted EPS: CAGR between 8.5% and 11.5%.
     • Free Cash Flow: Compound annual growth in line with adjusted earnings growth.

3. Future Guidance Updates:

   • Labcorp is actively assessing the CMS preliminary payment schedules and intends to present detailed commentary and impact analysis regarding 2027 guidance when formal 2027 annual guidance is released in February 2027.