Labcorp HoldingsLH +0.62%79 Gross Margin % is 28.66% as of Mar. 2026, which is 2% below its 10-year median of 29.32. GuruFocus rates LH with a GF Score™ of 79/100 and a GF Value™ of $271.41 (Fairly Valued). The stock has 6 warning signs investors should review. Among 195 Medical Diagnostics & Research companies, Labcorp Holdings ranks worse than 78.97% on this metric.
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Labcorp Holdings had a gross margin of 28.66% for the quarter that ended in Mar. 2026 => Competition eroding margins
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Labcorp Holdings Gross Margin % Related Terms
Labcorp Holdings Gross Margin % Historical Data
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The historical data trend for Labcorp Holdings's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Diagnostics & Research subindustry, Labcorp Holdings's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Labcorp Holdings Gross Margin % vs Medical Diagnostics & Research Industry
For the Medical Diagnostics & Research industry and Healthcare sector, Labcorp Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Labcorp Holdings's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Labcorp Holdings (LH) has a Gross Margin % of 28.66% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Labcorp Holdings and its competitors. This is near median its historical median of 29.32. Over the past decade, Labcorp Holdings' Gross Margin % has ranged from 27.67 to 38.01. According to the industry distribution chart, Labcorp Holdings ranks #154 out of 195 companies in the Medical Diagnostics & Research industry, placing it in the top 79%.
Is Labcorp Holdings' Gross Margin % too high?
Labcorp Holdings' current Gross Margin % of 28.66% is near median its 10-year median of 29.32. Over the past 10 years, this metric has ranged from a low of 27.67 to a high of 38.01. The Medical Diagnostics & Research industry median Gross Margin % is 50.97. Labcorp Holdings' value of 28.66% is 43.8% below this industry median. Based on the distribution chart, Labcorp Holdings ranks #154 out of 195 companies in the Medical Diagnostics & Research industry, which is in the bottom quartile relative to peers. Overall, Labcorp Holdings has a GF Score™ of 79/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Labcorp Holdings' Gross Margin % compare to DGX and MTD?
According to the Medical Diagnostics & Research industry distribution chart, Labcorp Holdings ranks #154 out of 195 companies for Gross Margin %. This places Labcorp Holdings in the lower half of its industry. The industry median Gross Margin % is 50.97. Labcorp Holdings' value of 28.66% is 43.8% below this benchmark. Historically, Labcorp Holdings' own Gross Margin % has ranged from 27.67 to 38.01 over the past decade. While the company's 10-year median is 29.32 vs. the industry median of 50.97, Labcorp Holdings has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Medical Diagnostics & Research company?
The median Gross Margin % among Medical Diagnostics & Research companies is 50.97, based on 195 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Labcorp Holdings's current Gross Margin % of 28.66% is 43.8% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Labcorp Holdings and its competitors. For the Medical Diagnostics & Research industry, the median Gross Margin % is 50.97 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Labcorp Holdings's current Gross Margin % is 28.66%, which is near median its own 10-year median of 29.32. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Labcorp Holdings stock overvalued right now?
Based on GuruFocus' analysis, Labcorp Holdings (LH) is currently considered Fairly Valued. The stock's GF Value™ is $271.41, compared to a current price of $266.82 — trading 1.7% below its estimated fair value. The current Gross Margin % is 28.66%, which is near median its 10-year median of 29.32 and 43.8% below the Medical Diagnostics & Research industry median of 50.97. Labcorp Holdings' overall GF Score™ is 79/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Labcorp Holdings (LH), the current Gross Margin % is 28.66% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Labcorp Holdings (LH) Overvalued in 2026?
Based on GuruFocus' analysis, Labcorp Holdings stock appears to be undervalued.
The current stock price of $266.82 is trading 1.7% below its estimated GF Value™ of $271.41.
GuruFocus considers Labcorp Holdings to be Fairly Valued.
Key valuation signals for LH:
Gross Margin %: 28.66% (near median its 10-year median of 29.32)
GF Value™: $271.41 vs. price of $266.82 (1.7% below fair value)
Industry Position: 43.8% below the Medical Diagnostics & Research median (#154 of 195)
No single metric tells the full story. See the LH stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Labcorp is one of the nation's two largest independent clinical laboratories, with roughly 20% of the independent lab market. The company operates approximately 2,000 patient-service centers, offering a broad range of 5,000 clinical lab tests, ranging from uncomplicated routine blood and urine screens to complex oncology and genomic testing.
79GF Score
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