Financial Data and Key Metrics Changes - Consolidated revenues for the third quarter were $2.82 billion, reflecting a 13.1% increase year-over-year, with organic revenues growing by 6.8% [15][17] - Reported operating income was $386 million, or 13.7% of revenues, compared to $330 million, or 13.3% of revenues last year [16] - Adjusted EPS was $2.60, up from $2.30 the prior year, while reported EPS was $2.16 compared to $1.99 a year ago [17] Business Line Data and Key Metrics Changes - Revenues for diagnostic information services increased by 13.5%, driven by organic growth across physician, hospital, and consumer channels [15] - In the physician channel, revenue grew approximately 17%, with organic growth in the high single digits [8] - The hospital channel saw low single-digit revenue growth, primarily driven by Co-Lab Solutions [9] Market Data and Key Metrics Changes - Total volume measured by requisitions increased by 12.5% year-over-year, with organic volume up 3.9% [15] - The consumer health business experienced strong growth, with direct channel growth between 30%-40% year-to-date [24][33] Company Strategy and Development Direction - The company is focused on delivering solutions that meet the evolving needs of clinical customers and expanding into consumer life sciences and data analytics [6] - Collaborations with Corewell Health and consumer health brands are expected to support future growth [19] - The company is investing in automation and AI technologies to drive operational improvements [13] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about continued strong demand for clinical solutions and the potential for revenue growth in the consumer health segment [3][19] - The company raised its full-year 2025 guidance, expecting revenues between $10.96 billion and $11 billion [18] - Management highlighted the potential impact of PAMA reforms and the need for legislative action to avoid significant payment cuts [5][26] Other Important Information - The company received FDA Breakthrough Device designation for its Haystack MRD test, reinforcing its cancer monitoring innovation [11] - The partnership with Epic Systems for Project Nova aims to modernize the order-to-cash process over the next several years [14][75] Q&A Session Summary Question: Utilization backdrop and expectations into year-end - Management noted that raw REC volume was up 3.9%, with strong demand in various states contributing to growth [23] Question: Latest expectations on PAMA - Management indicated that while the RESULTS Act has been proposed, a delay in PAMA is more likely than its passage [26] Question: Mix performance relative to expectations - Management stated that consumer channels are performing slightly above expectations, with strong growth in wellness and episodic testing [32] Question: 4Q margins and investment impacts - Management expects elevated margins in Q4 but noted potential headwinds from increased employee health expenses and Project Nova investments [40] Question: Cash flow and one-time benefits - Management highlighted strong cash flow but noted that one-time benefits from the CARES Act and tax legislation should not be expected to repeat next year [56] Question: Consumer health momentum and partnerships - Management discussed partnerships with Whoop and Oura, emphasizing the potential for increased requisition volume through these collaborations [62] Question: Oncology initiatives and evidence generation - Management confirmed ongoing studies for the Haystack MRD test and expressed optimism about expanding indications and reimbursement [98]

Financial Data and Key Metrics Changes - Consolidated revenues for the third quarter were $2.82 billion, reflecting a 13.1% increase year-over-year, with organic revenues growing by 6.8% [15] - Reported operating income was $386 million, or 13.7% of revenues, compared to $330 million, or 13.3% of revenues last year; adjusted operating income was $458 million, or 16.3% of revenues, compared to $385 million, or 15.5% last year [16] - Reported EPS was $2.16, up from $1.99 a year ago; adjusted EPS was $2.60 versus $2.30 the prior year [17] - Cash from operations increased to $1.42 billion year-to-date, a 63.1% increase from $870 million in the prior year [17] Business Line Data and Key Metrics Changes - In the physician channel, revenue grew approximately 17%, with organic revenue growth in the high single digits, driven by broad-based demand for clinical solutions [8] - Revenues in the hospital channel grew in low single digits, with COLAB Solutions contributing to growth [9] - The consumer channel saw strong double-digit growth, particularly from the questhealth.com platform and partnerships with companies like Whoop and Oura Health [10] Market Data and Key Metrics Changes - Total volume measured by requisitions increased by 12.5% year-over-year, with organic volume up 3.9% [15] - Revenue per requisition increased by 0.8% year-over-year, driven by an increase in the number of tests per requisition [16] Company Strategy and Development Direction - The company is focused on delivering solutions that meet the evolving needs of core clinical customers and expanding into higher growth areas such as consumer life sciences and data analytics [6] - Strategic acquisitions are emphasized as key growth drivers, particularly in hospital outreach and independent labs [7] - The company announced a joint venture with Corewell Health to establish a laboratory services partnership in Michigan, which is expected to generate approximately $1 billion in annual revenues from COLAB Solutions once fully scaled [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about continued strong demand for clinical solutions and the execution of their strategy, raising the full-year 2025 guidance [3][19] - The management highlighted the potential impact of PAMA reforms and the need for legislative action to avoid significant payment cuts [5] - The company expects to continue seeing elevated utilization levels and strong performance in the consumer health channel [24] Other Important Information - The company received FDA Breakthrough Device designation for its Haystack MRD test, reinforcing its cancer monitoring innovation [11] - The partnership with Epic Systems aims to modernize the order-to-cash process, enhancing patient and provider experiences [14][75] Q&A Session Summary Question: Utilization backdrop and expectations into year-end - Management noted that raw REC volume was up 3.9%, with strong growth in autoimmune and advanced cardiometabolic testing, and expects utilization levels to continue into Q4 [23] Question: Latest expectations on PAMA - Management indicated that while the RESULTS Act has been proposed, a delay in PAMA is more likely than its passage, with a potential $100 million impact next year [26] Question: Mix performance relative to expectations - Management stated that consumer channels are performing slightly above expectations, with strong growth in episodic testing and wellness testing [32] Question: Q4 margins and Project Nova investments - Management expects elevated margins in Q4 but noted potential headwinds from increased employee health expenses and Project Nova investments [39] Question: Cash flow and one-time benefits - Management highlighted strong cash flow but noted that some one-time benefits, such as the CARES Act payment, are not expected to recur next year [56] Question: Consumer health momentum and partnerships - Management discussed partnerships with Whoop and Oura, emphasizing the potential for increased requisition volume through these collaborations [62] Question: Oncology initiatives and Haystack integration - Management confirmed that the Haystack MRD test is fully integrated and ongoing studies are expected to broaden coverage for multiple cancer indications [98]

Financial Data and Key Metrics Changes - Consolidated revenues for Q3 2025 were $2,820 million, reflecting a 13.1% increase year-over-year, with organic revenue growth of 6.8% [13][16] - Reported operating income was $386 million, or 13.7% of revenues, compared to $330 million, or 13.3% of revenues last year [15][16] - Adjusted EPS for the quarter was $2.60, up from $2.30 a year ago, while reported EPS was $2.16 compared to $1.99 last year [16] - Cash from operations increased to $1,420 million year-to-date, a 63.1% increase from the prior year [17] Business Line Data and Key Metrics Changes - Revenues for Diagnostic Information Services increased by 13.5%, driven by organic growth across physician, hospital, and consumer channels [13] - The physician channel saw approximately 17% revenue growth, with organic growth in the high single digits [4][5] - The hospital channel experienced low single-digit revenue growth, supported by collaborative lab solutions [6] - The consumer channel showed strong double-digit growth, particularly from the questhealth.com platform [7][8] Market Data and Key Metrics Changes - Total volume measured by requisitions increased by 12.5% year-over-year, with organic volume up 3.9% [13][14] - The company noted broad-based demand across clinical solutions, particularly in advanced diagnostics areas such as autoimmune and brain health [4][9] Company Strategy and Development Direction - The company is focused on delivering solutions that meet the evolving needs of core clinical customers and expanding into higher growth areas like consumer health and data analytics [3][4] - Recent acquisitions are emphasized as key growth drivers, particularly in hospital outreach and independent labs [4] - The company is investing in automation and AI to improve operational efficiency and customer experience [11] Management's Comments on Operating Environment and Future Outlook - Management raised the full-year 2025 guidance due to strong performance year-to-date, expecting revenues between $10,960 million and $11,000 million [17][18] - The company is optimistic about potential PAMA reforms, although the passage of the Results Act is uncertain [2][27] - Management expects continued strong demand for clinical solutions and a positive outlook for the consumer health channel [20][36] Other Important Information - The company announced a joint venture with CoreWell Health to establish lab services in Michigan, which is expected to generate approximately $1 billion in annual revenues once fully scaled [7][18] - The company is implementing Project Nova, a multi-year order to cash transformation, with significant investments expected in 2025 [11][18] Q&A Session Summary Question: Utilization backdrop and expectations into year-end - Management noted that raw requisition volume was up 3.9%, with strong growth in autoimmune and advanced cardiometabolic testing, and expects utilization levels to continue into Q4 [22][24][26] Question: Latest expectations on PAMA - Management indicated a likelihood of a PAMA delay, with a potential $100 million impact if PAMA is reinstated, but they can offset some of this impact through controlled investments [27][28] Question: Mix performance relative to expectations - Management stated that consumer channels are performing slightly above expectations, with strong growth in episodic testing and wellness testing [32][34][36] Question: Q4 margins and impacts - Management highlighted strong Q3 margins but noted elevated employee health expenses and increased investments in Project Nova as potential headwinds for Q4 [40][44] Question: Cash flow and one-time benefits - Management confirmed strong cash flow guidance of $1,800 million, noting one-time benefits from the CARES Act and recent tax legislation that may not recur in 2026 [60][62] Question: Consumer health momentum and partnerships - Management discussed partnerships with WHOOP and Aura, highlighting the potential for significant growth in the consumer health segment [68][71] Question: Oncology initiatives and Haystack integration - Management provided updates on the integration of the Haystack MRD test and ongoing studies to expand its indications, with positive market response expected [96][98][112]

Financial Data and Key Metrics Changes - Consolidated revenues for Q3 2025 were $2.82 billion, reflecting a 13.1% increase year-over-year, with organic revenue growth of 6.8% [13][16] - Adjusted operating income was $458 million, or 16.3% of revenues, compared to $385 million, or 15.5% of revenues in the prior year [15] - Reported EPS was $2.16, up from $1.99 a year ago, while adjusted EPS increased to $2.60 from $2.30 [16] - Cash from operations year-to-date reached $1.42 billion, a 63.1% increase compared to the prior year [16] Business Line Data and Key Metrics Changes - Revenue from diagnostic information services grew by 13.5%, driven by organic growth across physician, hospital, and consumer channels [13] - In the physician channel, revenue grew approximately 17%, with organic growth in the high single digits [7] - The hospital channel saw low single-digit revenue growth, primarily driven by COLAB Solutions [8] - The consumer channel experienced strong double-digit growth, particularly from the questhealth.com platform [9] Market Data and Key Metrics Changes - Total volume measured by requisitions increased by 12.5% year-over-year, with organic volume up 3.9% [14] - The company noted a benefit of approximately 50 basis points in volume due to disruptions from the previous year [14] Company Strategy and Development Direction - The company is focused on delivering solutions for core clinical customers and expanding into consumer life sciences and data analytics [6] - Recent acquisitions are emphasized as key growth drivers, particularly in hospital outreach and independent labs [6] - The company announced a joint venture with Corewell Health to establish a lab services partnership in Michigan [2][8] - Project Nova aims to modernize the order-to-cash process, with significant investments expected in 2025 [12][17] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism regarding the potential delay of PAMA legislation, which could mitigate a projected $100 million impact next year [26] - The company anticipates continued strong demand for clinical solutions and is raising its full-year 2025 guidance [19] - Management highlighted the importance of consumer health channels, which are expected to maintain momentum into the next year [32] Other Important Information - The company received FDA Breakthrough Device designation for its Haystack MRD test, reinforcing its cancer monitoring innovation [10] - The company is targeting 3% annual cost savings and productivity improvements through its Invigorate program [11] Q&A Session Summary Question: What are the expectations for utilization levels into year-end? - Management noted that utilization levels are expected to continue as seen in Q3, with strong growth in the consumer health business contributing to this trend [24] Question: What are the latest expectations regarding PAMA? - Management indicated that while the RESULTS Act has been proposed, a delay in PAMA is considered more likely than the act passing, with a potential $100 million impact next year [26] Question: How is the consumer health channel performing relative to expectations? - The consumer health channel is performing slightly above expectations, with strong growth in both direct and indirect channels [30] Question: Can you provide insights on the impact of Project Nova investments? - Management confirmed that there will be a ramp-up in Project Nova investments in Q4, but this is not expected to negatively impact 2026 [110] Question: What is the status of the Haystack MRD test integration? - The Haystack MRD test is fully integrated into the company, with ongoing studies and positive market response expected to enhance its presence [94][95]

分组1 - Quest Diagnostics reported quarterly earnings of $2.6 per share, exceeding the Zacks Consensus Estimate of $2.51 per share, and showing an increase from $2.3 per share a year ago, resulting in an earnings surprise of +3.59% [1][2] - The company achieved revenues of $2.82 billion for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 3.45%, compared to $2.49 billion in the same quarter last year [2] - Quest Diagnostics has consistently outperformed consensus EPS and revenue estimates over the last four quarters [2][6] 分组2 - The stock has gained approximately 26.2% since the beginning of the year, outperforming the S&P 500's gain of 14.5% [3] - The current consensus EPS estimate for the upcoming quarter is $2.42 on revenues of $2.72 billion, and for the current fiscal year, it is $9.74 on revenues of $10.85 billion [7] - The Zacks Industry Rank for Medical - Outpatient and Home Healthcare is in the top 19% of over 250 Zacks industries, indicating a favorable outlook for the sector [8]

Q3 2025 Performance Highlights - Total revenue increased by 13.1% to $2.82 billion[1, 5, 14] - Adjusted diluted EPS reached $2.60 per share[1, 14] - Operating income increased 16.8% to $386 million[14] - Adjusted operating income increased 18.9% to $458 million[14] - Net income attributable to Quest Diagnostics increased 8.5% to $245 million[14] Growth Drivers - Organic revenue growth was 6.8%[5] - Total requisition volume increased by 12.5%[14] - Organic requisition volume increased by 3.9%[14] Strategic Initiatives - Established a lab services joint venture with Corewell Health, expecting Co-Lab Solutions annual revenues to reach approximately $1 billion[6] - Announced Epic as the technology partner for Project Nova[7] 2025 Full Year Guidance - Updated net revenue guidance to $10.96 billion - $11.00 billion, representing an increase of 11.0% - 11.4%[16] - Updated adjusted diluted EPS guidance to $9.76 - $9.84[16]

Core Insights - Digi Power X Inc. is expanding its AI data center capacity by adding five new ARMS-200 GPU modules, set to be operational in March 2026, which will increase its total GPU capacity to 2,304 [1][2] - The company is also developing a retail compute platform named "NeoCloudz," expected to launch in January 2026, aimed at providing on-demand GPU compute access to a wider market [3][4] - Digi Power X maintains a strong financial position with approximately $60 million in cash and no long-term debt, allowing for continued expansion and investment in AI infrastructure [4] Expansion Plans - The expansion will enhance Digi Power X's capabilities as an independent provider of GPU-as-a-Service for AI, cloud, and blockchain workloads in North America [2] - The Alabama data center currently has a power capacity of up to 55 MW, with further expansion plans to accommodate increasing demand from AI and decentralized computing clients [5] Product Development - NeoCloudz will utilize a Supermicro enterprise-grade backbone and is designed to offer scalable, high-performance AI and HPC capabilities through a consumer-friendly interface [3] - The platform aims to combine enterprise-grade reliability with retail accessibility, broadening the company's market reach [4]

Core Insights - Quest Diagnostics has raised its full-year profit and revenue forecast due to strong demand for its diagnostic tests [1] Company Summary - The company is experiencing robust demand for its diagnostic tests, which has led to an optimistic revision of its financial outlook for the year [1]

Executive Summary & Business Highlights [Third Quarter 2025 Performance Overview](index=1&type=section&id=1.1.%20Third%20Quarter%202025%20Performance%20Overview) Quest Diagnostics reported robust financial performance for the third quarter of 2025, demonstrating significant top- and bottom-line growth driven by strong demand for clinical solutions, strategic acquisitions, and expansion in its consumer channel - The company achieved robust top- and bottom-line growth, underscoring strong demand for clinical solutions and diligent execution of its strategy[3](index=3&type=chunk) Third Quarter 2025 Key Financial Highlights | Metric | Q3 2025 Value | Change from Q3 2024 | Source | | :-------------------------------- | :-------------- | :------------------ | :----- | | Revenues | $2.82 billion | +13.1% | chunk_num: [5] | | Organic Growth (Revenues) | N/A | +6.8% | chunk_num: [3] | | Reported Diluted EPS | $2.16 | +8.5% | chunk_num: [5] | | Adjusted Diluted EPS | $2.60 | +13.0% | chunk_num: [5] | | Year-to-date Cash provided by operations | $1.4 billion | +63.1% | chunk_num: [5] | | Requisition volume | N/A | +12.5% | chunk_num: [7] | | Organic requisition volume | N/A | +3.9% | chunk_num: [7] | [Key Strategic Developments and Collaborations](index=1&type=section&id=1.2.%20Key%20Strategic%20Developments%20and%20Collaborations) Quest Diagnostics advanced its strategic objectives through a major joint venture, key acquisitions, and several collaborations aimed at expanding its market reach, enhancing service offerings, and driving innovation in diagnostic testing - Entered into an agreement with Corewell Health to establish a lab services joint venture in Michigan, with Quest deploying comprehensive Co-Lab Solutions across 21 Corewell hospitals, expected to reach approximately **$1 billion in annual revenues next year**[3](index=3&type=chunk)[6](index=6&type=chunk) - Completed the acquisition of select dialysis testing assets from Fresenius Medical Care and began scaling clinical lab testing for approximately **200,000 dialysis patients annually**[6](index=6&type=chunk) - Formed collaborations with WHOOP and ŌURA Health to integrate lab services into their mobile apps, catering to growing consumer interest in wellness and preventive health[6](index=6&type=chunk) - Announced a collaboration with Epic for Project Nova, a multi-year initiative to streamline systems and improve experiences for patients and providers[6](index=6&type=chunk) - Secured FDA breakthrough device designation for the Haystack MRD™ test and formed collaborations with Mass General Brigham and Rutgers Cancer Institute for trials[6](index=6&type=chunk) [Updated Full Year 2025 Guidance](index=1&type=section&id=1.3.%20Updated%20Full%20Year%202025%20Guidance) Quest Diagnostics raised its full-year 2025 financial guidance, reflecting strong year-to-date performance and a positive outlook for net revenues, adjusted diluted EPS, and cash provided by operations Updated Full Year 2025 Guidance Comparison | Metric | Updated Guidance (Low) | Updated Guidance (High) | Prior Guidance (Low) | Prior Guidance (High) | | :-------------------------- | :--------------------- | :---------------------- | :------------------- | :-------------------- | | Net revenues | $10.96 billion | $11.00 billion | $10.80 billion | $10.92 billion | | Net revenues increase | 11.0% | 11.4% | 9.4% | 10.6% | | Reported diluted EPS | $8.58 | $8.66 | $8.60 | $8.80 | | Adjusted diluted EPS | $9.76 | $9.84 | $9.63 | $9.83 | | Cash provided by operations | Approximately $1.8 billion | N/A | Approximately $1.55 billion | N/A | | Capital expenditures | Approximately $500 million | N/A | Approximately $500 million | N/A | Consolidated Financial Statements [Consolidated Statements of Operations](index=4&type=section&id=2.1.%20Consolidated%20Statements%20of%20Operations) The consolidated statements of operations show significant year-over-year growth in net revenues and operating income for both the three and nine months ended September 30, 2025, reflecting strong operational performance Consolidated Statements of Operations Highlights (Three Months Ended September 30) | Metric | 2025 (Millions) | 2024 (Millions) | Change (%) | | :------------------------------------ | :-------------- | :-------------- | :--------- | | Net revenues | $2,816 | $2,488 | 13.1% | | Operating income | $386 | $330 | 16.8% | | Net income attributable to Quest Diagnostics | $245 | $226 | 8.4% | | Diluted EPS | $2.16 | $1.99 | 8.5% | Consolidated Statements of Operations Highlights (Nine Months Ended September 30) | Metric | 2025 (Millions) | 2024 (Millions) | Change (%) | | :------------------------------------ | :-------------- | :-------------- | :--------- | | Net revenues | $8,229 | $7,251 | 13.5% | | Operating income | $1,170 | $985 | 18.8% | | Net income attributable to Quest Diagnostics | $747 | $649 | 15.1% | | Diluted EPS | $6.57 | $5.74 | 14.5% | [Consolidated Balance Sheets](index=5&type=section&id=2.2.%20Consolidated%20Balance%20Sheets) As of September 30, 2025, Quest Diagnostics maintained a stable financial position with total assets slightly increasing, while managing its debt and enhancing stockholders' equity Consolidated Balance Sheet Highlights (September 30, 2025 vs. December 31, 2024) | Metric | Sep 30, 2025 (Millions) | Dec 31, 2024 (Millions) | Change (Millions) | | :-------------------------------- | :---------------------- | :---------------------- | :---------------- | | Total assets | $16,197 | $16,153 | +$44 | | Cash and cash equivalents | $432 | $549 | -$117 | | Accounts receivable, net | $1,456 | $1,304 | +$152 | | Goodwill | $8,901 | $8,856 | +$45 | | Total current liabilities | $2,134 | $2,169 | -$35 | | Long-term debt | $5,171 | $5,615 | -$444 | | Total Quest Diagnostics stockholders' equity | $7,258 | $6,778 | +$480 | [Consolidated Statements of Cash Flows](index=6&type=section&id=2.3.%20Consolidated%20Statements%20of%20Cash%20Flows) For the nine months ended September 30, 2025, Quest Diagnostics generated significantly more cash from operating activities compared to the prior year, while cash used in investing activities decreased substantially due to lower business acquisition spending Consolidated Statements of Cash Flows Highlights (Nine Months Ended September 30) | Metric | 2025 (Millions) | 2024 (Millions) | Change (Millions) | | :------------------------------------ | :-------------- | :-------------- | :---------------- | | Net cash provided by operating activities | $1,421 | $870 | +$551 | | Net cash used in investing activities | $(440) | $(2,046) | +$1,606 | | Net cash (used in) provided by financing activities | $(1,101) | $1,254 | -$2,355 | | Net change in cash and cash equivalents | $(117) | $78 | -$195 | | Business acquisitions, net of cash acquired | $(51) | $(1,781) | +$1,730 | | Repayments of debt | $(1,011) | $(302) | -$709 | | Purchases of treasury stock | $(150) | — | -$150 | Non-GAAP Financial Measures and Reconciliations [Definition and Rationale for Non-GAAP Measures](index=2&type=section&id=3.1.%20Definition%20and%20Rationale%20for%20Non-GAAP%20Measures) Quest Diagnostics utilizes non-GAAP 'adjusted' financial measures, which exclude specific special items, to provide a clearer view of the company's core operating performance and underlying business trends, complementing GAAP results for management and investor analysis - The term 'reported' refers to measures under GAAP, while 'adjusted' refers to non-GAAP operating performance measures that exclude special items[9](index=9&type=chunk) - Special items excluded from adjusted measures include restructuring and integration charges, amortization expense, excess tax benefits (ETB) from stock-based compensation, gains/losses on strategic investments, impairment charges, and other items[9](index=9&type=chunk) - Management uses these non-GAAP measures to evaluate performance, analyze underlying business trends, establish budgets, and for incentive compensation purposes, believing they are useful to investors and analysts[10](index=10&type=chunk)[11](index=11&type=chunk) [Reconciliation of Reported to Adjusted Results - Three Months Ended September 30, 2025](index=7&type=section&id=3.2.%20Reconciliation%20of%20Reported%20to%20Adjusted%20Results%20-%20Three%20Months%20Ended%20September%2030%2C%202025) For the third quarter of 2025, adjusted financial results, which exclude specific non-recurring and non-operational items, show higher operating income and diluted EPS compared to reported GAAP figures Q3 2025 GAAP to Adjusted Reconciliation | Metric | As Reported (GAAP) | Adjustments (Millions) | As Adjusted (Non-GAAP) | | :------------------------------------ | :----------------- | :--------------------- | :--------------------- | | Operating income | $386 | +$72 | $458 | | Operating income as a percentage of net revenues | 13.7% | +2.6% | 16.3% | | Net income attributable to Quest Diagnostics | $245 | +$51 | $296 | | Diluted EPS | $2.16 | +$0.44 | $2.60 | [Reconciliation of Reported to Adjusted Results - Nine Months Ended September 30, 2025](index=8&type=section&id=3.3.%20Reconciliation%20of%20Reported%20to%20Adjusted%20Results%20-%20Nine%20Months%20Ended%20September%2030%2C%202025) For the nine months ended September 30, 2025, adjusted financial results, excluding various special items, demonstrate a stronger underlying performance with higher operating income and diluted EPS compared to reported GAAP figures YTD 2025 GAAP to Adjusted Reconciliation | Metric | As Reported (GAAP) | Adjustments (Millions) | As Adjusted (Non-GAAP) | | :------------------------------------ | :----------------- | :--------------------- | :--------------------- | | Operating income | $1,170 | +$160 | $1,330 | | Operating income as a percentage of net revenues | 14.2% | +2.0% | 16.2% | | Net income attributable to Quest Diagnostics | $747 | +$98 | $845 | | Diluted EPS | $6.57 | +$0.86 | $7.43 | [Reconciliation of Reported to Adjusted Results - Three Months Ended September 30, 2024](index=8&type=section&id=3.4.%20Reconciliation%20of%20Reported%20to%20Adjusted%20Results%20-%20Three%20Months%20Ended%20September%2030%2C%202024) For the third quarter of 2024, adjusted financial results, which exclude specific non-recurring and non-operational items, also showed higher operating income and diluted EPS compared to reported GAAP figures Q3 2024 GAAP to Adjusted Reconciliation | Metric | As Reported (GAAP) | Adjustments (Millions) | As Adjusted (Non-GAAP) | | :------------------------------------ | :----------------- | :--------------------- | :--------------------- | | Operating income | $330 | +$55 | $385 | | Operating income as a percentage of net revenues | 13.3% | +2.2% | 15.5% | | Net income attributable to Quest Diagnostics | $226 | +$36 | $262 | | Diluted EPS | $1.99 | +$0.31 | $2.30 | [Reconciliation of Reported to Adjusted Results - Nine Months Ended September 30, 2024](index=8&type=section&id=3.5.%20Reconciliation%20of%20Reported%20to%20Adjusted%20Results%20-%20Nine%20Months%20Ended%20September%2030%2C%202024) For the nine months ended September 30, 2024, adjusted financial results, excluding various special items, indicated a stronger underlying performance with higher operating income and diluted EPS compared to reported GAAP figures YTD 2024 GAAP to Adjusted Reconciliation | Metric | As Reported (GAAP) | Adjustments (Millions) | As Adjusted (Non-GAAP) | | :------------------------------------ | :----------------- | :--------------------- | :--------------------- | | Operating income | $985 | +$147 | $1,132 | | Operating income as a percentage of net revenues | 13.6% | +2.0% | 15.6% | | Net income attributable to Quest Diagnostics | $649 | +$109 | $758 | | Diluted EPS | $5.74 | +$0.96 | $6.70 | [Notes on Adjustments to Financial Measures](index=9&type=section&id=3.6.%20Notes%20on%20Adjustments%20to%20Financial%20Measures) The adjustments to GAAP results primarily include restructuring and integration charges, legal and impairment charges, gains/losses on strategic investments, and other non-recurring gains, with income tax impacts calculated using a combined statutory rate of 25.5% - Restructuring and integration charges primarily relate to workforce reductions and integration costs, impacting cost of services and selling, general and administrative expenses[32](index=32&type=chunk) - Other charges for 2025 include a **$15 million charge for legal matters** and impairment charges of **$5 million (Q3)** and **$29 million (YTD)** on long-lived assets due to a business exit, plus losses from contingent consideration accruals[32](index=32&type=chunk) - Other gains for 2025 include a **$46 million pre-tax gain** from a CARES Act payroll tax credit and a non-recurring gain related to a lease[34](index=34&type=chunk) - Income tax impacts for most adjustments were calculated using a combined statutory income tax rate of **25.5%** for both 2025 and 2024[33](index=33&type=chunk)[37](index=37&type=chunk) [Reconciliation of Full Year 2025 EPS Guidance](index=10&type=section&id=3.7.%20Reconciliation%20of%20Full%20Year%202025%20EPS%20Guidance) The company provided a reconciliation of its full-year 2025 diluted EPS outlook from GAAP to adjusted figures, detailing the estimated impact of various special items Full Year 2025 Diluted EPS Guidance Reconciliation | Metric | Low (Dollars) | High (Dollars) | | :-------------------------------- | :------------ | :------------- | | Diluted EPS (GAAP) | $8.58 | $8.66 | | Restructuring and integration charges (a) | +$0.30 | +$0.30 | | Amortization expense (b) | +$1.02 | +$1.02 | | Other charges (c) | +$0.39 | +$0.39 | | Other gains (d) | -$0.36 | -$0.36 | | Gains and losses on investments (e) | -$0.01 | -$0.01 | | ETB | -$0.16 | -$0.16 | | Adjusted diluted EPS | $9.76 | $9.84 | - The outlook for adjusted diluted EPS represents management's estimates before the impact of special items, which are subject to further changes and difficult to predict[36](index=36&type=chunk) - As of September 30, 2025, **$0.7 billion remained available** under the company's share repurchase authorization, with **0.9 million shares repurchased for $150 million** during the three and nine months ended September 30, 2025[36](index=36&type=chunk) Additional Information [Conference Call Details](index=3&type=section&id=4.1.%20Conference%20Call%20Details) Quest Diagnostics hosted a conference call to discuss its financial results, providing access via dial-in and live webcast, with a replay available for a limited period - A quarterly conference call was held on **October 21, 2025, at 8:30 a.m. Eastern Time** to discuss financial results[12](index=12&type=chunk) - Access was available via phone (**888-455-0391 U.S./Canada, 773-756-0467 international, passcode: 7895081**) or live webcast at www.QuestDiagnostics.com/investor[12](index=12&type=chunk) - A replay of the call is accessible online or by phone until midnight Eastern Time on **November 4, 2025**[13](index=13&type=chunk) [About Quest Diagnostics](index=3&type=section&id=4.2.%20About%20Quest%20Diagnostics) Quest Diagnostics is a leading provider of diagnostic information services, leveraging its extensive network and data to empower healthcare decisions and improve health outcomes for a significant portion of the U.S. population - Quest Diagnostics provides diagnostic insights from laboratory testing to empower people, physicians, and organizations to improve health outcomes[14](index=14&type=chunk) - The company serves **one in three adult Americans** and **half the physicians and hospitals** in the United States annually, with over **55,000 employees**[14](index=14&type=chunk) - Diagnostic insights are derived from one of the world's largest databases of de-identifiable clinical lab results[14](index=14&type=chunk) [Forward-Looking Statements](index=3&type=section&id=4.3.%20Forward-Looking%20Statements) The press release contains forward-looking statements that are subject to various risks and uncertainties, which could cause actual results to differ materially from current expectations - Statements in the press release that are not historical facts are considered forward-looking statements, reflecting management's current estimates and expectations[15](index=15&type=chunk) - Readers are cautioned not to place undue reliance on these statements, as they involve risks and uncertainties that could materially affect actual results[15](index=15&type=chunk) - Risks include uncertain economic conditions, adverse government investigations or lawsuits, competitive environment, billing complexities, changes in government policies, and other factors detailed in SEC filings[15](index=15&type=chunk) [Investor Relations Contact](index=3&type=section&id=4.4.%20Investor%20Relations%20Contact) Contact information for media and investor inquiries is provided, along with details on where to access the full earnings release - Media inquiries can be directed to Wendy Bost at **973-520-2800**[16](index=16&type=chunk) - Investor inquiries can be directed to Shawn Bevec at **973-520-2900**[16](index=16&type=chunk) - The earnings release, including financial tables, is available online in the Newsroom section at www.QuestDiagnostics.com[16](index=16&type=chunk)

Core Insights - Quest Diagnostics reported a strong financial performance for Q3 2025, with revenues increasing by 13.1% year-over-year, driven by organic growth of 6.8% and contributions from acquisitions [2][6] - The company has raised its full-year 2025 guidance due to robust year-to-date performance [2][5] Financial Performance - Q3 2025 net revenues reached $2.82 billion, up from $2.49 billion in Q3 2024, marking a 13.1% increase [4] - Diagnostic Information Services revenues were $2.76 billion, a 13.5% increase from $2.43 billion in the previous year [4] - Operating income for Q3 2025 was $386 million, an increase of 16.8% compared to $330 million in Q3 2024 [4] - Net income attributable to Quest Diagnostics was $245 million, up 8.5% from $226 million in Q3 2024 [4] - Diluted EPS for Q3 2025 was $2.16, reflecting an 8.5% increase from $1.99 in Q3 2024 [4] Year-to-Date Performance - Year-to-date cash provided by operations was $1.42 billion, a significant increase of 63.1% from $870 million in the same period last year [6] - For the first nine months of 2025, net revenues totaled $8.23 billion, up 13.5% from $7.25 billion in 2024 [4] Updated Guidance - The updated guidance for full-year 2025 includes net revenues projected between $10.96 billion and $11.00 billion, an increase from the previous range of $10.80 billion to $10.92 billion [5] - Reported diluted EPS is now expected to be between $8.58 and $8.66, while adjusted diluted EPS is projected to be between $9.76 and $9.84 [5][6] Strategic Developments - Quest Diagnostics entered into a joint venture with Corewell Health to provide lab services in Michigan, with expected annual revenues for Co-Lab Solutions reaching approximately $1 billion [2][7] - The company completed the acquisition of dialysis testing assets from Fresenius Medical Care, enhancing its clinical lab testing capabilities [7] - Collaborations with WHOOP and URA Health aim to integrate Quest's services into wellness and preventive health applications [7]