Financial Analysis

BUSINESS ACQUISITIONS AND DISPOSITIONS 2025 During the year ended December 31, 2025, the Company acquired various businesses and related assets for approximately $582.0, net of cash acquired. The preliminary purchase considerations for these acquisitions were allocated under the acquisition method of accounting to the estimated fair market value of the net assets acquired. A residual amount of tax deductible goodwill, including measurement period adjustments relating to prior acquisitions, of $298.2 was recorded at December 31, 2025. The purchase price allocations for these acquisitions were preliminary at December 31, 2025. The valuation of acquired assets and assumed liabilities included the following: BioReference Health (2025) Community Health Systems Inc. Other Acquisitions Closed During the Year Ended December 31, 2025 Measurement Period Adjustments Amounts Acquired During Year Ended December 31, 2025 Cash and cash equivalents $ $ $ 0.2 $ $ 0.2 Accounts receivable 0.6 0.6 Inventories 0.9 0.9 Property, plant, and equipment 7.9 (0.8) 7.1 Goodwill 105.8 91.4 90.6 10.4 298.2 Intangible assets 119.2 103.1 100.8 (23.3) 299.8 Total assets acquired 225.0 194.5 201.0 (13.7) 606.8 Accrued expenses and other 32.5 25.3 (20.6) 37.2 Lease liabilities 3.0 3.0 Other liabilities 2.5 6.9 9.4 Total liabilities acquired 32.5 30.8 (13.7) 49.6 Net assets acquired 192.5 194.5 170.2 557.2 Escrow payments for pending acquisitions 25.0 Cash paid for acquisitions $ 192.5 $ 194.5 $ 170.2 $ $ 582.2 …

BusinessCombinationDisclosureTextBlock · excerpt; the full note is in the filing

COMMITMENTS AND CONTINGENCIES Commitments The Company has a noncancelable contract with a vendor to purchase inventory supplies pursuant to which the Company is obligated to make expected total future minimum payments of $129.2, including $34.7 in 2026, $20.5 in 2027, and $74.0 in 2028. Legal Contingencies The Company is involved from time to time in various claims and legal actions, including arbitrations, class actions, and other litigation (including those described in more detail below), arising in the ordinary course of business. Some of these actions involve claims that are substantial in amount. These matters include, but are not limited to, intellectual property disputes, commercial and contract disputes, professional liability claims, employee-related matters, transaction-related disputes, securities and corporate law matters, and inquiries, including subpoenas and other civil investigative demands, from governmental agencies, Medicare or Medicaid payers, and MCOs reviewing billing practices or requesting comment on allegations of billing irregularities that are brought to their attention through billing audits or third parties. The Company receives civil investigative demands or other inquiries from various governmental bodies in the ordinary course of its business. Such inquiries can relate to the Company or other parties, including physicians and other health care providers. The Company works cooperatively to respond to appropriate requests for information. The Co …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

DEBT Short-term borrowings and the current portion of long-term debt consisted of the following: December 31, 2025 2024 3.60% senior notes due 2025 $ $ 1,000.0 1.55% senior notes due 2026 500.0 Debt issuance costs (0.2) (0.1) Current portion of note payable 0.3 0.4 Total Short-term borrowings and current portion of long-term debt $ 500.1 $ 1,000.3 Long-term debt consisted of the following: December 31, 2025 2024 1.55% senior notes due 2026 $ $ 500.0 3.60% senior notes due 2027 600.0 600.0 2.95% senior notes due 2029 650.0 650.0 4.35% senior notes due 2030 650.0 650.0 2.70% senior notes due 2031 447.3 423.2 4.55% senior notes due 2032 500.0 500.0 4.80% senior notes due 2034 850.0 850.0 4.70% senior notes due 2045 900.0 900.0 Debt issuance costs (37.7) (42.3) AR facility 525.0 300.0 Note payable 0.3 Total Long-term debt $ 5,084.6 $ 5,331.2 Credit Facilities The Company maintains a senior revolving credit facility, which was amended and restated on June 27, 2025. It consists of a five-year revolving facility in the principal amount of up to $1,000.0, with the option of increasing the facility by up to an additional $500.0, subject to certain conditions, including obtaining additional commitments from new or existing lenders. The revolving credit facility also provides for a subfacility of up to $100.0 for swing line borrowings and a subfacility of up to $150.0 for issuances of letters of credit. Borrowings under the revolving credit facility bear interest at a floating rate equa …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

The Companys revenue by segment payer groups is as follows: Year Ended December 31, 2025 Year Ended December 31, 2024 Year Ended December 31, 2023 North America Europe Other Total North America Europe Other Total North America Europe Other Total Dx: Clients 23 % % % 23 % 24 % % % 24 % 24 % % % 24 % Patients 10 % % % 10 % 10 % % % 10 % 9 % % % 9 % Medicare and Medicaid 8 % % % 8 % 8 % % % 8 % 8 % % % 8 % Third party 37 % % % 37 % 36 % % % 36 % 36 % % % 36 % Total Dx revenues 78 % % % 78 % 78 % % % 78 % 77 % % % 77 % BLS: Pharmaceutical, biotechnology, medical device, and diagnostic companies, and CROs 9 % 9 % 4 % 22 % 9 % 9 % 4 % 22 % 10 % 9 % 4 % 23 % Total Revenues 87 % 9 % 4 % 100 % 87 % 9 % 4 % 100 % 87 % 9 % 4 % 100 % …

DisaggregationOfRevenueTableTextBlock · excerpt; the full note is in the filing

STOCK COMPENSATION PLANS Stock Incentive Plans In May 2025, the shareholders approved the Labcorp Holdings Inc. 2025 Omnibus Incentive Plan (the 2025 Plan). Under the 2025 Plan, at December 31, 2025, there were 3.1 shares authorized for future issuance and 3.0 shares available for future grant. With the adoption of the 2025 Plan, there are no shares authorized for future issuance or future grant under the previous Labcorp Holdings Inc. Amended and Restated 2016 Omnibus Incentive Plan. Stock Options The following table summarizes grants of non-qualified options made by the Company to officers, key employees, and non-employee directors under all plans. Stock options are typically granted at an exercise price equal to or greater than the fair market price per share on the date of grant, vest ratably over a period of three years on the anniversaries of the grant date, and have a contractual exercise period of 10 years subject to their earlier expiration or termination. Changes in options outstanding were as follows: Number of Options Weighted-Average Exercise Price per Option Weighted-Average Remaining Contractual Term (in Years) Aggregate Intrinsic Value Outstanding at December 31, 2024 0.6 $ 180.29 Granted 0.1 $ 245.14 Outstanding at December 31, 2025 0.7 $ 187.16 4.9 $ 43.7 Exercisable at December 31, 2025 0.5 $ 174.47 3.9 $ 41.1 Cash received by the Company from option exercises, the actual tax benefit realized for the tax deductions and the aggregate intrinsic value of optio …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

FAIR VALUE MEASUREMENTS The Companys population of financial assets and liabilities subject to fair value measurements were as follows: Fair Value Measurements December 31, 2025 Consolidated Balance Sheets Classification Fair Value at December 31, 2025 Using Fair Value Hierarchy Level 1 Level 2 Level 3 Noncontrolling interest put Noncontrolling interest $ 16.9 $ $ 16.9 $ Cross currency swaps Other liabilities $ 274.0 $ $ 274.0 $ Interest rate swaps Other liabilities $ 52.7 $ $ 52.7 $ Cash surrender value of life insurance policies Other assets, net $ 99.6 $ $ 99.6 $ Deferred compensation asset Other assets, net $ 53.1 $ $ 53.1 $ Deferred compensation liability Other liabilities $ 150.5 $ $ 150.5 $ Contingent consideration Accrued expenses and other/Other liabilities $ 50.0 $ $ $ 50.0 Fair Value Measurements December 31, 2024 Consolidated Balance Sheets Classification Fair Value at December 31, 2024 Using Fair Value Hierarchy Level 1 Level 2 Level 3 Noncontrolling interest put Noncontrolling interest $ 14.3 $ $ 14.3 $ Cross currency swaps Other liabilities $ 142.7 $ $ 142.7 $ Interest rate swaps Other liabilities $ 76.8 $ $ 76.8 $ Cash surrender value of life insurance policies Other assets, net $ 102.1 $ $ 102.1 $ Deferred compensation asset Other assets, net $ 35.7 $ $ 35.7 $ Deferred compensation liability Other liabilities $ 132.5 $ $ 132.5 $ Contingent consideration Accrued expenses and other/Other liabilities $ 10.8 $ $ $ 10.8 Fair Value Measurement of Level 3 Liabilitie …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

GOODWILL AND INTANGIBLE ASSETS The balances, net of impairment, and changes in the carrying amount of goodwill were as follows: Dx BLS Total December 31, 2025 December 31, 2024 December 31, 2025 December 31, 2024 December 31, 2025 December 31, 2024 Beginning Balance $ 5,102.5 $ 4,813.9 $ 1,267.2 $ 1,328.6 $ 6,369.7 $ 6,142.5 Goodwill acquired, excluding measurement period adjustments 287.8 390.5 287.8 390.5 Foreign currency impact and other adjustments to goodwill 44.5 (101.9) 87.5 (61.4) 132.0 (163.3) Ending Balance $ 5,434.8 $ 5,102.5 $ 1,354.7 $ 1,267.2 $ 6,789.5 $ 6,369.7 During 2025, the Company recorded $0.0 and $16.0 of goodwill and intangible assets impairment charges, respectively. These intangible asset impairment charges are associated with the restructuring of ED and are reflected in Restructuring and other charges in the Consolidated Statements of Operations. During 2024, the Company did not record goodwill or intangible asset impairment charges. During 2023, the Company recorded goodwill and other asset impairment charges of $349.0 which was primarily comprised of goodwill impairment for the ED reporting unit and the impairment of a technology intangible asset, which are reflected in Goodwill and other asset impairments in the Consolidated Statements of Operations. The cumulative goodwill impairment for the Company at December 31, 2025, and 2024 was $648.5 and primarily represents the goodwill of the Companys ED reporting unit within the BLS segment. The compone …

GoodwillAndIntangibleAssetsDisclosureTextBlock · excerpt; the full note is in the filing

INCOME TAXES The sources of Earnings from continuing operations before income taxes, classified between domestic and foreign entities, are as follows: Year Ended December 31, 2025 2024 2023 Domestic $ 728.9 $ 629.7 $ 504.0 Foreign 378.6 329.8 64.9 Total Earnings from continuing operations before income taxes $ 1,107.5 $ 959.5 $ 568.9 The components of income tax expense attributable to continuing operations are as follows: Year Ended December 31, 2025 2024 2023 Current tax expense: Federal $ 64.6 $ 125.9 $ 183.1 State 12.5 46.2 38.9 Foreign 55.1 60.4 44.6 $ 132.2 $ 232.5 $ 266.6 Deferred tax expense (benefit): Federal $ 83.1 $ (6.3) $ (63.1) State 15.9 (11.1) (31.6) Foreign (1.4) (2.7) 16.6 97.6 (20.1) (78.1) Total Provision for income taxes $ 229.8 $ 212.4 $ 188.5 The effective tax rates on earnings before income taxes are reconciled to statutory U.S. income tax rates as follows: Year Ended December 31, 2025 2024 2023 Amount % Amount % Amount % Statutory U.S. rate $ 232.6 21.0 % $ 201.5 21.0 % $ 119.5 21.0 % State and local income taxes, net of federal income tax effects (1) 24.3 2.2 % 23.4 2.4 % 2.7 0.5 % Foreign tax effects: Canada: Deferred tax adjustments 0.4 % 0.5 0.1 % 9.9 1.7 % Other 1.1 0.1 % (2.5) (0.3) % 3.3 0.6 % Germany: Deferred tax adjustments (0.2) % (0.2) % (6.8) (1.2) % Other 1.1 0.1 % 1.1 0.1 % 5.8 1.0 % United Kingdom: Goodwill impairment % % 39.1 6.9 % Deferred tax adjustments 0.3 % % 12.9 2.3 % Other (0.3) % (0.4) % 5.1 0.8 % Switzerland: Foreign rate di …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

Recent Accounting Pronouncements Not Yet Adopted In July 2025, the FASB issued Accounting Standards Update (ASU) 2025-05, Financial Instruments Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets . This accounting pronouncement provides all entities with a practical expedient to assume that current conditions as of the balance sheet date do not change for the remaining life of the assets when measuring credit losses. ASU 2025-05 is effective for fiscal years beginning after December 15, 2025. The Company anticipates that adopting this accounting pronouncement will not have a material impact on its Consolidated Financial Statements. In September 2025, the FASB issued ASU 2025-06, Intangibles Goodwill and Other Internal-Use-Software (Topic 350): Targeted Improvements to the Accounting for Internal-Use Software . This accounting pronouncement improves the operability of the existing guidance by removing all references to software development project stages so that the guidance is neutral to different software development methods. ASU 2025-06 is effective for fiscal years beginning after December 15, 2027. The Company is currently assessing the impact that adopting this accounting pronouncement will have on its Consolidated Financial Statements. In December 2025, the FASB issued ASU 2025-11, Interim Reporting (Topic 270): Narrow-Scope Improvements . This accounting pronouncement is intended to improve the navigability of guidance in …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

PENSION AND POSTRETIREMENT PLANS Defined Contribution Retirement Plans The Company has various U.S. defined contribution retirement plans (401K Plans). Under these 401K Plans, employees can contribute a portion of their salary to the plan and the Company makes minimum non-elective contributions, discretionary contributions, and matching contributions, depending on the terms of the specific plan. On January 1, 2021, all of the 401K Plans were modified to provide for 100% match of employee contributions up to 5% of their salary. Total expense relating to the 401K Plans for the years ended December 31, 2025, 2024, and 2023 was $166.1, $153.5, and $167.6, respectively. Defined Benefit Pension Plans The Company sponsors both funded and unfunded defined benefit pension plans which provide benefits based on various criteria such as years of service and salary. The Company maintained two plans in the U.S., two plans in the U.K., and one in Germany. The two plans in the U.S. (U.S. Plans) were closed to new entrants and the accrual of service credits at the end of 2009. The U.K. pension plan was closed to new entrants and the accrual of service credits for one plan as of December 31, 2002, and the accrual of service credits for the other plan as of December 31, 2019. The German plan was closed to new entrants on December 31, 2009, but participants continue to accrue service credits. The U.K. and German plans are aggregated for disclosure as the Non-U.S. Plans. Net Periodic Benefit Cost …

PensionAndOtherPostretirementBenefitsDisclosureTextBlock · excerpt; the full note is in the filing

. RESTRUCTURING AND OTHER CHARGES Restructuring and other charges represent amounts incurred in connection with the elimination of redundant positions and facilities within the organization in connection with cost saving initiatives, the Spin-off, and acquisitions or dispositions of businesses by the Company. The components of Restructuring and other charges were as follows: Year Ended December 31, 2025 2024 2023 Severance and other personnel costs $ 27.2 $ 43.0 $ 33.4 Facility-related costs 17.9 5.9 22.3 Contract termination costs 13.9 Long-lived asset impairment and other non-cash charges 101.3 Reversal of previously established restructuring accruals (33.1) (2.9) (6.6) Total Restructuring and other charges (1) $ 127.2 $ 46.0 $ 49.1 (1) Includes $105.5 of costs and charges associated with the restructuring of ED for the year ended December 31, 2025, which mainly consisted of impairment charges related to property, plant, and equipment, intangible assets, and other assets of $61.4, $16.0, and $8.2, respectively. The activity within the restructuring liabilities established were as follows: Severance and Other Personnel Costs Facility-related Costs Contract Termination Costs Total Liability balance at December 31, 2023 $ 7.6 $ 13.0 $ $ 20.6 Restructuring charges 43.0 5.9 48.9 Reduction of prior restructuring accruals (2.5) (0.4) (2.9) Cash payments and other adjustments (39.7) (5.6) (45.3) Liability balance at December 31, 2024 8.4 12.9 21.3 Restructuring charges 27.2 17.9 13 …

RestructuringAndRelatedActivitiesDisclosureTextBlock · excerpt; the full note is in the filing

REVENUES Description of Revenues Dx attributes revenues to a geographical region based upon where the diagnostic test is performed, while BLS attributes revenues to a geographical region based upon where the services are performed. The Companys revenue by segment payer groups is as follows: Year Ended December 31, 2025 Year Ended December 31, 2024 Year Ended December 31, 2023 North America Europe Other Total North America Europe Other Total North America Europe Other Total Dx: Clients 23 % % % 23 % 24 % % % 24 % 24 % % % 24 % Patients 10 % % % 10 % 10 % % % 10 % 9 % % % 9 % Medicare and Medicaid 8 % % % 8 % 8 % % % 8 % 8 % % % 8 % Third party 37 % % % 37 % 36 % % % 36 % 36 % % % 36 % Total Dx revenues 78 % % % 78 % 78 % % % 78 % 77 % % % 77 % BLS: Pharmaceutical, biotechnology, medical device, and diagnostic companies, and CROs 9 % 9 % 4 % 22 % 9 % 9 % 4 % 22 % 10 % 9 % 4 % 23 % Total Revenues 87 % 9 % 4 % 100 % 87 % 9 % 4 % 100 % 87 % 9 % 4 % 100 % Revenues in the U.S. were $11,650.1 (83.5%), $10,858.3 (83.5%), and $10,177.7 (83.7%) for the years ended December 31, 2025, 2024, and 2023. The following is a description of the current revenue recognition policies of the Company: Dx Revenues Dx offers a comprehensive menu of frequently requested and specialty diagnostic tests through an integrated network of primary and specialty laboratories across the U.S. In addition to diagnostic testing along with occupational and wellness testing for employers and forensic deoxyribonucleic …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

. BUSINESS SEGMENT INFORMATION The following table is a summary of segment information for the year ended December 31, 2025, 2024, and 2023. The management approach has been used to present the following segment information. This approach is based upon the way the management of the Company organizes segments within an enterprise for making operating decisions and assessing performance. Financial information is reported on the basis that it is used internally by the CODM for evaluating segment performance and deciding how to allocate resources to segments. The Companys chief executive officer has been identified as the CODM. The Companys CODM uses segment operating income to evaluate segment performance and to allocate resources. This segment performance measure excludes the amortization of intangibles and other assets, restructuring and other charges, goodwill and other asset impairments, and certain corporate charges for items such as transaction costs, and other special items. Other operating expenses are comprised primarily of rent, maintenance, sendout testing, utilities, travel and entertainment, and other segment expenses, including shipping costs for Dx. Segment asset information is not presented because it is not used by the CODM. Year Ended December 31, 2025 Revenues: Dx BLS Intercompany eliminations and other LHI Revenues $ 10,876.5 $ 3,098.2 $ (23.0) $ 13,951.7 Operating Earnings: Labor 4,687.6 1,221.6 Supplies 2,357.0 478.5 Shipping costs 398.8 Depreciation 258.8 …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Financial Statement Presentation Labcorp Holdings Inc. is a global leader of innovative and comprehensive laboratory services that provides vital information to help doctors, hospitals, pharmaceutical companies, researchers, and patients make clear and confident decisions. By leveraging its unparalleled diagnostics and drug development capabilities, the Company provides insights and accelerates innovations to improve health and improve lives. The Company reports its business in two segments, Diagnostics Laboratories and Biopharma Laboratory Services. In 2025 and 2024, Dx and BLS contributed approximately 78% and 22%, respectively, of Revenues to the Company. These Consolidated Financial Statements include the accounts of the Company and its majority-owned subsidiaries for which it exercises control. Long-term investments in affiliated companies in which the Company exercises significant influence, but which it does not control, are accounted for using the equity method. All significant intercompany transactions and accounts have been eliminated. The Company does not have any significant variable interest entities or special purpose entities whose financial results are not included in these Consolidated Financial Statements. The financial statements of the Companys operating foreign subsidiaries are measured using the local currency as the functional currency. Assets and liabilities are translated at exchange rates as of the …

SignificantAccountingPoliciesTextBlock · excerpt; the full note is in the filing

PREFERRED STOCK AND COMMON SHAREHOLDERS EQUITY The Company is authorized to issue up to 265.0 shares of its Common Stock. The Company is authorized to issue up to 30.0 shares of preferred stock, par value $0.10 per share. There were no preferred shares outstanding at December 31, 2025, and 2024. The changes in the Companys shares of Common Stock issued and outstanding are summarized below: Year Ended December 31, 2025 2024 2023 Beginning balance 83.4 83.9 88.2 Shares issued under employee stock plans 0.6 0.6 0.5 Shares repurchased (1.8) (1.1) (4.8) Ending balance 82.2 83.4 83.9 Share Repurchase Program On July 24, 2024, the Companys Board adopted a share repurchase plan authorizing the repurchase of up to $1,000.0 maximum value of the Companys shares in addition to the remaining amount outstanding under the previous plan. During the twelve months ended December 31, 2025, the Company purchased 1.8 shares of its Common Stock at an average price of $254.17 for a total cost of $450.0. During the twelve months ended December 31, 2024, the Company purchased 1.1 shares of its Common Stock at an average price of $219.57 for a total cost of $250.1. At December 31, 2025, the Company had outstanding authorization from its Board to purchase up to $830.4 maximum value of the Companys Common Stock. On August 8, 2023, the Company entered into accelerated share repurchase agreements (collectively, the ASR Agreements) with two different banks, Goldman Sachs & Co. LLC and Morgan Stanley &a …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing