Labcorp raises full-year forecasts on steady diagnostics demand

April 30 (Reuters) - Labcorp LH.N raised its full-year profit and revenue forecast on Thursday after posting quarterly results above expectations as demand for diagnostic testing remained steady.

Routine and specialty diagnostic testing has helped boost Labcorp's core business, cushioning the impact of softer biotech spending in its drug development services unit.

Over the past year, Labcorp and peer Quest Diagnostics DGX.N have benefited from agreements to manage hospital laboratories, which helped them expand their market share.

Labcorp now expects annual adjusted earnings per share to be in the $17.70-$18.35 range, up from its prior forecast of $17.55-$18.25.

Analysts on average expected adjusted earnings of $17.87 per share for the full year, according to data compiled by LSEG.

The laboratory operator projected 2026 revenue of $14.65 billion-$14.80 billion, up from its previous forecast of $14.61 billion-$14.79 billion. Analysts expected $14.66 billion.

"Labcorp delivered another quarter of strong results... driven by continued momentum across our Diagnostics and Central Laboratory businesses," said CEO Adam Schechter.

The firm said it had also been expanding specialty and companion diagnostics offerings and investing in automation and artificial intelligence.

Revenue in Labcorp's diagnostics laboratories segment, its largest business, rose 5% to $2.76 billion in the first quarter, driven by organic growth and contributions from acquisitions.

Sales at the Biopharma Laboratory Services segment, which provides contract research and central laboratory services to drugmakers, jumped 8.2% to $780.6 million, helped primarily by growth in central laboratory services, the company said.

Its total revenue increased 5.8% to $3.54 billion in the three months ended March 31, above analysts' average estimate of $3.51 billion. Adjusted quarterly profit of $4.25 per share beat estimates of $4.09.