On September 21, 2026, the Centers for Medicare & Medicaid Services ("CMS") released preliminary Clinical Laboratory Fee Schedule payment rates applicable from 2027 through 2029 pursuant to the Protecting Access to Medicare Act ("PAMA"). Labcorp Holdings Inc. (the "Company") believes the payment rates are based on data that is not fully representative of the broader commercial laboratory market and would impose steep annual payment cuts that threaten patient access to laboratory services. Therefore, the Company continues to support the bipartisan Reforming and Enhancing Sustainable Updates to Laboratory Testing Services ("RESULTS") Act, a bipartisan solution that would ensure the U.S. has a sustainable and innovative laboratory system.


 

The Company previously considered the anticipated continuation of PAMA-related reimbursement pressure in developing the 2026-2029 long-term outlook announced at its Investor Day on September 10, 2026, and the Company is now reaffirming that outlook, which is:


 

•Compound annual revenue growth between 5% and 8%.

•Adjusted operating margin expansion between 75 and 150 basis points by the end of 2029.

•Compound annual adjusted EPS growth between 8.5% and 11.5%.

•Compound annual free cash flow growth in line with adjusted earnings growth.


 

The Company is continuing to evaluate the CMS payment rates and expects to provide additional information regarding the impact of the CMS payment rates on its 2027 financial guidance when that guidance is announced in February 2027.


 

Other than the 2026-2029 long-term outlook referenced above, all of the information included in the Company’s September 10, 2026, Investor Day presentation is presented as of the dates indicated.