[PART I - FINANCIAL INFORMATION](index=2&type=section&id=PART%20I%20-%20FINANCIAL%20INFORMATION) This section presents the unaudited consolidated financial statements for Quest Diagnostics and its subsidiaries, along with detailed notes on business, accounting policies, and specific financial items [Item 1. Financial Statements (unaudited)](index=2&type=section&id=Item%201.%20Financial%20Statements%20(unaudited)) This section presents the unaudited consolidated financial statements for Quest Diagnostics Incorporated and its subsidiaries, including statements of operations, comprehensive income, balance sheets, cash flows, and stockholders' equity for the periods ended September 30, 2025 and 2024, along with detailed notes explaining the company's business, accounting policies, and specific financial items [Consolidated Statements of Operations](index=3&type=section&id=Consolidated%20Statements%20of%20Operations) This section provides a summary of the company's financial performance over specific periods, detailing net revenues, operating income, net income, and diluted earnings per share | Metric | Three Months Ended Sep 30, 2025 (in millions) | Three Months Ended Sep 30, 2024 (in millions) | Nine Months Ended Sep 30, 2025 (in millions) | Nine Months Ended Sep 30, 2024 (in millions) | | :----------------------------------- | :--------------------------------------------- | :--------------------------------------------- | :-------------------------------------------- | :-------------------------------------------- | | Net revenues | $2,816 | $2,488 | $8,229 | $7,251 | | Operating income | $386 | $330 | $1,170 | $985 | | Net income attributable to Quest Diagnostics | $245 | $226 | $747 | $649 | | Diluted EPS | $2.16 | $1.99 | $6.57 | $5.74 | [Consolidated Statements of Comprehensive Income](index=4&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) This section outlines the company's total comprehensive income, including net income and other comprehensive income or loss components | Metric | Three Months Ended Sep 30, 2025 (in millions) | Three Months Ended Sep 30, 2024 (in millions) | Nine Months Ended Sep 30, 2025 (in millions) | Nine Months Ended Sep 30, 2024 (in millions) | | :--------------------------------------- | :--------------------------------------------- | :--------------------------------------------- | :-------------------------------------------- | :-------------------------------------------- | | Net income | $259 | $237 | $790 | $685 | | Other comprehensive (loss) income | $(24) | $4 | $48 | $(1) | | Comprehensive income attributable to Quest Diagnostics | $221 | $230 | $795 | $648 | [Consolidated Balance Sheets](index=6&type=section&id=Consolidated%20Balance%20Sheets) This section presents a snapshot of the company's financial position, detailing assets, liabilities, and stockholders' equity at specific points in time | Metric | Sep 30, 2025 (in millions) | Dec 31, 2024 (in millions) | | :-------------------------------- | :------------------------- | :------------------------- | | Total assets | $16,197 | $16,153 | | Total current assets | $2,407 | $2,392 | | Total liabilities | $8,821 | $9,257 | | Total current liabilities | $2,134 | $2,169 | | Total stockholders' equity | $7,295 | $6,813 | [Consolidated Statements of Cash Flows](index=7&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) This section details the cash inflows and outflows from operating, investing, and financing activities, showing the overall change in cash and cash equivalents | Metric | Nine Months Ended Sep 30, 2025 (in millions) | Nine Months Ended Sep 30, 2024 (in millions) | | :------------------------------------ | :------------------------------------------- | :------------------------------------------- | | Net cash provided by operating activities | $1,421 | $870 | | Net cash used in investing activities | $(440) | $(2,046) | | Net cash (used in) provided by financing activities | $(1,101) | $1,254 | | Net change in cash and cash equivalents and restricted cash | $(117) | $78 | | Cash and cash equivalents and restricted cash, end of period | $432 | $764 | [Consolidated Statements of Stockholders' Equity](index=8&type=section&id=Consolidated%20Statements%20of%20Stockholders'%20Equity) This section outlines changes in the company's equity accounts, including retained earnings and treasury stock, over specific periods | Metric | Balance, Dec 31, 2024 (in millions) | Balance, Sep 30, 2025 (in millions) | | :------------------------------------ | :---------------------------------- | :---------------------------------- | | Total Quest Diagnostics stockholders' equity | $6,778 | $7,258 | | Retained earnings | $9,360 | $9,837 | | Treasury stock, at cost | $(4,857) | $(4,896) | - For the nine months ended September 30, 2025, Quest Diagnostics' stockholders' equity increased by **$482 million**, primarily driven by **net income of $747 million**, partially offset by dividends declared of **$270 million** and treasury stock purchases of **$150 million**[17](index=17&type=chunk) [Notes to Consolidated Financial Statements (unaudited)](index=10&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements%20(unaudited)) This section provides detailed explanations and additional information supporting the consolidated financial statements [1. Description of Business](index=10&type=section&id=1.%20DESCRIPTION%20OF%20BUSINESS) This section describes Quest Diagnostics' core business operations, primarily focusing on diagnostic information services and its smaller Diagnostic Solutions group - Quest Diagnostics provides diagnostic information services (DIS) through laboratory testing, offering insights to improve health outcomes for physicians, hospitals, patients, and other healthcare entities[21](index=21&type=chunk) - The DIS business accounts for **over 97% of consolidated net revenues**[21](index=21&type=chunk) - The Diagnostic Solutions (DS) group provides risk assessment services for insurers and healthcare IT solutions[21](index=21&type=chunk) [2. Summary of Significant Accounting Policies](index=10&type=section&id=2.%20SUMMARY%20OF%20SIGNIFICANT%20ACCOUNTING%20POLICIES) This section outlines the key accounting principles and methods used in preparing the interim financial statements, including updates on new accounting standards and their expected impact - The interim financial statements are unaudited and reflect management's necessary adjustments, with accounting policies consistent with the 2024 Annual Report on Form 10-K[22](index=22&type=chunk) - New accounting standards for income tax disclosures (effective 2025) and disaggregation of income statement expenses (effective 2027) are not expected to materially impact financial statements[23](index=23&type=chunk) - The One Big Beautiful Bill Act (OBBBA), enacted in July 2025, making 100% bonus depreciation and domestic research cost expensing permanent, is not expected to materially impact the statement of operations, but increased deferred income tax liabilities to **$378 million** as of September 30, 2025, from **$278 million** at December 31, 2024[28](index=28&type=chunk)[29](index=29&type=chunk)[31](index=31&type=chunk) [3. Earnings Per Share](index=12&type=section&id=3.%20EARNINGS%20PER%20SHARE) This section provides a detailed breakdown of basic and diluted earnings per share calculations, including net income attributable to Quest Diagnostics and weighted average common shares outstanding | Metric | Three Months Ended Sep 30, 2025 | Three Months Ended Sep 30, 2024 | Nine Months Ended Sep 30, 2025 | Nine Months Ended Sep 30, 2024 | | :------------------------------------------------ | :------------------------------ | :------------------------------ | :----------------------------- | :----------------------------- | | Net income attributable to Quest Diagnostics (in millions) | $245 | $226 | $747 | $649 | | Basic EPS | $2.18 | $2.01 | $6.66 | $5.80 | | Diluted EPS | $2.16 | $1.99 | $6.57 | $5.74 | | Weighted average common shares outstanding – diluted (in millions) | 113 | 113 | 113 | 112 | [4. Restructuring Activities and Impairment Charges](index=12&type=section&id=4.%20RESTRUCTURING%20ACTIVITIES%20AND%20IMPAIRMENT%20CHARGES) This section details the company's restructuring initiatives, including the 'Invigorate' program, and associated employee separation and asset impairment charges - The company's multi-year 'Invigorate' program aims for **3% annual cost savings** and productivity improvements through automation and AI, focusing on patient services, logistics, laboratory operations, revenue services, IT, and procurement[34](index=34&type=chunk) | Charge Type | Three Months Ended Sep 30, 2025 (in millions) | Three Months Ended Sep 30, 2024 (in millions) | Nine Months Ended Sep 30, 2025 (in millions) | Nine Months Ended Sep 30, 2024 (in millions) | | :------------------------------ | :-------------------------------------------- | :-------------------------------------------- | :------------------------------------------- | :------------------------------------------- | | Employee separation costs | $6 | $7 | $18 | $21 | | Asset impairment charges | $5 | $— | $29 | $— | | Total restructuring and impairment charges | $11 | $7 | $47 | $21 | - Restructuring charges for Q3 2025 included **$6 million** in employee separation costs and **$5 million** in asset impairment charges related to a business exit[37](index=37&type=chunk) - For the nine months ended September 30, 2025, total charges were **$47 million**, including **$18 million** for employee separation and **$29 million** for asset impairment, primarily recorded in the DIS business[37](index=37&type=chunk)[39](index=39&type=chunk) [5. Business Acquisitions](index=13&type=section&id=5.%20BUSINESS%20ACQUISITIONS) This section provides an overview of recent acquisition activities, including the LifeLabs Inc. and Spectra Laboratories deals, and a new venture with Corewell Health - On August 23, 2024, Quest Diagnostics acquired LifeLabs Inc. for approximately **CAN $1.35 billion (USD $1 billion)**, with the purchase price allocation finalized in Q3 2025, resulting in a **$9 million increase** to deferred income tax assets and a corresponding decrease to goodwill[40](index=40&type=chunk) - In February 2025, the Company agreed to acquire select clinical testing assets and dialysis-related water testing assets of Spectra Laboratories, with the clinical testing assets acquisition closing on August 4, 2025, for **$34 million cash**[44](index=44&type=chunk)[45](index=45&type=chunk) - The Spectra Laboratories acquisition included **$25 million** of tax-deductible goodwill and **$9 million** of customer-related intangible assets, with the dialysis-related water testing assets acquisition expected to close by the end of 2025[46](index=46&type=chunk) - In August 2025, Quest Diagnostics and Corewell Health signed an agreement to form a venture for laboratory testing in Michigan, with Quest owning **51%**, expected to close in Q1 2026 with a new facility operational in 2027[49](index=49&type=chunk) [6. Fair Value Measurements](index=15&type=section&id=6.%20FAIR%20VALUE%20MEASUREMENTS) This section details the fair value of the company's assets and liabilities, including debt and contingent consideration, categorized by valuation hierarchy levels | Asset/Liability | September 30, 2025 (in millions) | December 31, 2024 (in millions) | | :------------------------------------ | :------------------------------- | :------------------------------- | | Total Assets Measured at Fair Value | $175 | $136 | | Total Liabilities Measured at Fair Value | $266 | $280 | | Redeemable noncontrolling interest | $81 | $83 | - The fair value of the Company's debt was estimated at **$5.7 billion** as of September 30, 2025, compared to **$6.1 billion** as of December 31, 2024, primarily classified within Level 1 of the fair value hierarchy[66](index=66&type=chunk) - Contingent consideration liabilities, primarily from the Haystack Oncology acquisition, increased from **$106 million** at December 31, 2024, to **$114 million** at September 30, 2025, due to fair value adjustments and classified within Level 3 due to unobservable inputs[59](index=59&type=chunk)[62](index=62&type=chunk) [7. Debt](index=18&type=section&id=7.%20DEBT) This section provides information on the company's debt instruments, including amendments to credit facilities and repayment of senior notes - In April 2025, the Company amended its **$750 million** senior unsecured revolving credit facility, extending its maturity to April 2030 while maintaining borrowing capacity, with no outstanding borrowings as of September 30, 2025[68](index=68&type=chunk) - During the nine months ended September 30, 2025, the Company fully repaid its **$600 million** of 3.50% senior notes that matured on March 30, 2025, and has **$500 million** of 3.45% senior notes due June 2026 now classified as current portion of long-term debt[69](index=69&type=chunk) [8. Financial Instruments](index=18&type=section&id=8.%20FINANCIAL%20INSTRUMENTS) This section describes the company's use of derivative financial instruments to manage interest rate and foreign currency risks - The Company uses derivative financial instruments, such as interest rate swap agreements and foreign currency forward contracts, to manage exposure to interest rate and foreign currency risks, not for speculative purposes[71](index=71&type=chunk) | Debt Instrument | Notional Amount Sep 30, 2025 (in millions) | Notional Amount Dec 31, 2024 (in millions) | | :-------------------------------- | :----------------------------------------- | :----------------------------------------- | | 5.00% Senior Notes due Dec 2034 | $850 | $700 | | 2.80% Senior Notes due Jun 2031 | $550 | $— | | 6.40% Senior Notes due Nov 2033 | $400 | $— | | Total notional amounts | $1,800 | $700 | - The Company increased its notional amount of fixed-to-variable interest rate swaps from **$700 million** at December 31, 2024, to **$1.8 billion** at September 30, 2025, to convert a portion of long-term debt into variable interest rate debt[75](index=75&type=chunk) [9. Stockholders' Equity and Redeemable Noncontrolling Interest](index=21&type=section&id=9.%20STOCKHOLDERS'%20EQUITY%20AND%20REDEEMABLE%20NONCONTROLLING%20INTEREST) This section details changes in stockholders' equity, including accumulated other comprehensive loss, foreign currency translation adjustments, and dividend and share repurchase activities | Component | Balance, Dec 31, 2024 (in millions) | Balance, Sep 30, 2025 (in millions) | | :------------------------------------ | :---------------------------------- | :---------------------------------- | | Accumulated Other Comprehensive Loss | $(88) | $(40) | | Foreign Currency Translation Adjustments | $(93) | $(45) | | Net Deferred Gains on Cash Flow Hedges, net of tax | $5 | $5 | - The accumulated other comprehensive loss decreased from **$(88) million** at December 31, 2024, to **$(40) million** at September 30, 2025, primarily due to a **$48 million** other comprehensive income before reclassifications for the nine months ended September 30, 2025[81](index=81&type=chunk) - The Board of Directors declared a quarterly cash dividend of **$0.80 per common share** for the first three quarters of 2025, an increase from **$0.75 per common share** in 2024[85](index=85&type=chunk) - The Company repurchased **0.9 million shares** of common stock for **$150 million** during the nine months ended September 30, 2025, with **$0.7 billion** remaining under the share repurchase authorization[86](index=86&type=chunk)[87](index=87&type=chunk) [10. Supplemental Cash Flow and Other Data](index=24&type=section&id=10.%20SUPPLEMENTAL%20CASH%20FLOW%20AND%20OTHER%20DATA) This section provides additional details on cash flow components, including depreciation, interest, income taxes, and business acquisitions | Metric | Three Months Ended Sep 30, 2025 (in millions) | Three Months Ended Sep 30, 2024 (in millions) | Nine Months Ended Sep 30, 2025 (in millions) | Nine Months Ended Sep 30, 2024 (in millions) | | :------------------------------------ | :-------------------------------------------- | :-------------------------------------------- | :------------------------------------------- | :------------------------------------------- | | Depreciation and amortization expense | $142 | $125 | $425 | $358 | | Interest expense, net | $(66) | $(49) | $(200) | $(136) | | Interest paid | $22 | $62 | $167 | $167 | | Income taxes paid | $2 | $61 | $112 | $179 | | Business acquisitions, net of cash acquired | $34 | $1,533 | $51 | $1,781 | - During the nine months ended September 30, 2025, the Company received a **$46 million payroll tax credit** under the CARES Act for employee retention, recorded in other operating expense, net[93](index=93&type=chunk) [11. Commitments and Contingencies](index=25&type=section&id=11.%20COMMITMENTS%20AND%20CONTINGENCIES) This section outlines the company's outstanding commitments, including letters of credit, and details ongoing legal matters and associated reserves - The Company has **$78 million** in outstanding letters of credit under its Secured Receivables Credit Facility as of September 30, 2025, supporting its risk management program[96](index=96&type=chunk) - The Company is involved in several legal matters, including class action lawsuits related to its 401(k) plan (appeal ongoing), the AMCA Data Security Incident (discovery and class certification ongoing), and alleged internet communications tracking with Facebook (appeal ongoing)[99](index=99&type=chunk)[102](index=102&type=chunk)[104](index=104&type=chunk) - Legal matter reserves totaled **$21 million** as of September 30, 2025, significantly up from **$4 million** at December 31, 2024, while reserves for general and professional liability claims remained at **$169 million**[114](index=114&type=chunk)[117](index=117&type=chunk) [12. Business Segment Information](index=28&type=section&id=12.%20BUSINESS%20SEGMENT%20INFORMATION) This section provides financial data segmented by the company's primary business operations, Diagnostic Information Services (DIS) and Diagnostic Solutions (DS) - The Diagnostic Information Services (DIS) business is the Company's only reportable segment, accounting for **over 97% of net revenues** in both 2025 and 2024[120](index=120&type=chunk) - The Diagnostic Solutions (DS) group comprises risk assessment services and healthcare information technology businesses[121](index=121&type=chunk) | Segment | Three Months Ended Sep 30, 2025 (in millions) | Three Months Ended Sep 30, 2024 (in millions) | Nine Months Ended Sep 30, 2025 (in millions) | Nine Months Ended Sep 30, 2024 (in millions) | | :------------------------ | :-------------------------------------------- | :-------------------------------------------- | :------------------------------------------- | :------------------------------------------- | | DIS Net revenues | $2,755 | $2,427 | $8,043 | $7,058 | | DS revenues | $61 | $61 | $186 | $193 | | Total Net revenues | $2,816 | $2,488 | $8,229 | $7,251 | | DIS operating income | $482 | $407 | $1,390 | $1,200 | | DS operating income | $9 | $6 | $24 | $23 | | Total operating income | $386 | $330 | $1,170 | $985 | [13. Revenue Recognition](index=29&type=section&id=13.%20REVENUE%20RECOGNITION) This section explains the company's policies for recognizing revenue, including how consideration is estimated across different payer customer groups - The DIS business recognizes revenue primarily upon completion of testing or service rendering, estimating consideration based on payer customer groups (healthcare insurers, government payers, client payers, and patients), including contractual allowances and patient price concessions[127](index=127&type=chunk) | Payer Customer Type | Three Months Ended Sep 30, 2025 | Three Months Ended Sep 30, 2024 | Nine Months Ended Sep 30, 2025 | Nine Months Ended Sep 30, 2024 | | :------------------------------------------ | :------------------------------ | :------------------------------ | :------------------------------ | :------------------------------ | | Healthcare insurers | 39 % | 41 % | 39 % | 40 % | | Government payers | 16 % | 13 % | 16 % | 12 % | | Client payers | 31 % | 33 % | 31 % | 33 % | | Patients | 12 % | 10 % | 12 % | 12 % | | Total DIS | 98 % | 97 % | 98 % | 97 % | | DS | 2 % | 3 % | 2 % | 3 % | | Payer Customer Type | Sep 30, 2025 | Dec 31, 2024 | | :------------------------------------------ | :----------- | :----------- | | Healthcare Insurers | 29 % | 26 % | | Government Payers | 9 % | 7 % | | Client Payers | 41 % | 45 % | | Patients | 19 % | 20 % | | Total DIS | 98 % | 98 % | | DS | 2 % | 2 % | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=31&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on the company's financial performance, condition, and results of operations for the three and nine months ended September 30, 2025, compared to the prior year, covering revenue drivers, cost trends, acquisitions, strategic programs, regulatory outlook, and liquidity | Metric | Three Months Ended Sep 30, 2025 (in millions) | Three Months Ended Sep 30, 2024 (in millions) | $ Change (YoY) | % Change (YoY) | | :------------------------------------ | :-------------------------------------------- | :-------------------------------------------- | :------------- | :------------- | | Total net revenues | $2,816 | $2,488 | $328 | 13.1 % | | Total operating costs and expenses, net | $2,430 | $2,158 | $272 | 12.6 % | | Operating income | $386 | $330 | $56 | 16.8 % | | Net income attributable to Quest Diagnostics | $245 | $226 | $19 | 8.5 % | | Diluted earnings per common share | $2.16 | $1.99 | $0.17 | 8.5 % | | Metric | Nine Months Ended Sep 30, 2025 (in millions) | Nine Months Ended Sep 30, 2024 (in millions) | $ Change (YoY) | % Change (YoY) | | :------------------------------------ | :------------------------------------------- | :------------------------------------------- | :------------- | :------------- | | Total net revenues | $8,229 | $7,251 | $978 | 13.5 % | | Total operating costs and expenses, net | $7,059 | $6,266 | $793 | 12.6 % | | Operating income | $1,170 | $985 | $185 | 18.7 % | | Net income attributable to Quest Diagnostics | $747 | $649 | $98 | 15.0 % | | Diluted earnings per common share | $6.57 | $5.74 | $0.83 | 14.5 % | - For the three months ended September 30, 2025, diluted EPS decreased by **$0.44** due to amortization expense (**$0.25**), legal matters and impairment charges (**$0.15**), and restructuring costs (**$0.07**), partially offset by excess tax benefits (**$0.03**)[148](index=148&type=chunk) - For the nine months, diluted EPS decreased by **$0.86** due to amortization (**$0.76**), impairment/legal/contingent consideration (**$0.36**), and restructuring (**$0.24**), partially offset by CARES Act payroll tax credit and lease gain (**$0.36**), investment gains (**$0.01**), and excess tax benefits (**$0.13**)[148](index=148&type=chunk) [Our Company](index=31&type=section&id=Our%20Company) This section describes Quest Diagnostics' core business segments, Diagnostic Information Services (DIS) and Diagnostic Solutions (DS), and how revenue performance is assessed - Quest Diagnostics' Diagnostic Information Services (DIS) business, comprising **over 97% of consolidated net revenues**, provides diagnostic insights from laboratory testing to a wide range of customers including physicians, hospitals, and patients[132](index=132&type=chunk) - Revenue performance is assessed by test requisitions and revenue per requisition, influenced by fee schedule changes, test mix, payer mix, business mix, and tests per requisition[133](index=133&type=chunk) - The Diagnostic Solutions (DS) group offers risk assessment services for insurers and healthcare information technology solutions for providers and payers, representing the balance of consolidated net revenues[134](index=134&type=chunk) [Third Quarter Highlights](index=32&type=section&id=Third%20Quarter%20Highlights) This section summarizes key financial and operational performance metrics for the third quarter of 2025 | Metric | Three Months Ended Sep 30, 2025 (in millions, except per share data) | Three Months Ended Sep 30, 2024 (in millions, except per share data) | | :------------------------------------ | :------------------------------------------------------------------- | :------------------------------------------------------------------- | | Net revenues | $2,816 | $2,488 | | DIS revenues | $2,755 | $2,427 | | Revenue per requisition change | 0.8% | 3.3% | | Requisition volume change | 12.5% | 5.5% | | Organic requisition volume change | 3.9% | 0.5% | | Operating income | $386 | $330 | | Net income attributable to Quest Diagnostics | $245 | $226 | | Diluted earnings per share | $2.16 | $1.99 | | Net cash provided by operating activities | $563 | $356 | | Capital expenditures | $144 | $106 | [Acquisition of select clinical testing assets of Spectra Laboratories](index=32&type=section&id=Acquisition%20of%20select%20clinical%20testing%20assets%20of%20Spectra%20Laboratories) This section details the acquisition of specific clinical testing assets from Spectra Laboratories and its integration into the DIS business - On August 4, 2025, Quest Diagnostics acquired select clinical testing assets of Fresenius Medical Care's Spectra Laboratories for **$34 million** in cash, integrated into the Company's DIS business[136](index=136&type=chunk) [Invigorate Program](index=32&type=section&id=Invigorate%20Program) This section describes the company's multi-year 'Invigorate' program, its objectives for cost savings and productivity, and associated restructuring charges - The multi-year 'Invigorate' program aims to achieve **3% annual cost savings** and productivity improvements across the value chain, leveraging automation and artificial intelligence to offset inflationary pressures, focusing on patient services, logistics, laboratory operations, revenue services, IT, procurement, reducing denials, enhancing digital experience, and talent management[137](index=137&type=chunk) - For the nine months ended September 30, 2025, the Company incurred **$37 million** in pre-tax charges for restructuring and integration activities, including **$18 million** in employee separation costs[138](index=138&type=chunk) [Outlook and Trends](index=32&type=section&id=Outlook%20and%20Trends) This section discusses the impact of recent legislative changes, such as the One Big Beautiful Bill Act (OBBBA), and the expiration of Premium Tax Credits on the company's financial outlook - The One Big Beautiful Bill Act (OBBBA), enacted in July 2025, makes permanent **100% bonus depreciation** and domestic research cost expensing, accelerating tax deductions and potentially lowering cash tax payments[139](index=139&type=chunk) - While not expected to materially impact the statement of operations, OBBBA increased deferred income tax liabilities by **$100 million** to **$378 million** as of September 30, 2025[142](index=142&type=chunk) - The OBBBA and the planned expiration of enhanced Premium Tax Credits (PTC) at the end of 2025 are not expected to materially impact consolidated revenues for 2025 and 2026[139](index=139&type=chunk) - For 2026-2028, these changes could reduce consolidated revenues by up to **50-60 basis points by 2028**, primarily affecting ACA-related Exchange Plans revenues[140](index=140&type=chunk) [Critical Accounting Policies](index=33&type=section&id=Critical%20Accounting%20Policies) This section confirms that there have been no significant changes to the company's critical accounting policies since its last annual report - There have been no significant changes to the Company's critical accounting policies from those disclosed in its 2024 Annual Report on Form 10-K[144](index=144&type=chunk) [Impact of New Accounting Standards](index=33&type=section&id=Impact%20of%20New%20Accounting%20Standards) This section refers to the notes to the financial statements for details on the adoption and impact of new accounting standards - The adoption of new accounting standards and the impact of recent pronouncements not yet effective are discussed in Note 2 to the interim unaudited consolidated financial statements[145](index=145&type=chunk) [Results of Operations](index=34&type=section&id=Results%20of%20Operations) This section provides a detailed analysis of the company's financial performance, examining changes in revenues, costs, and expenses over the reporting periods [Net Revenues](index=37&type=section&id=Net%20Revenues) This section analyzes the drivers of changes in total net revenues, including organic growth, acquisitions, and revenue per requisition - For the three months ended September 30, 2025, total net revenues increased by **13.1%** year-over-year, with organic growth of **6.8%**[149](index=149&type=chunk) - DIS revenues grew by **13.5%**, driven by recent acquisitions (**6.5% contribution**) and organic volume growth of **3.9%**[150](index=150&type=chunk) - Total revenue per requisition increased by **0.8%**, with organic revenue per requisition up **3.0%**[151](index=151&type=chunk) - DS revenues decreased by **1.0%** due to lower risk assessment services[152](index=152&type=chunk) - For the nine months ended September 30, 2025, total net revenues increased by **13.5%** year-over-year, with organic growth of **4.8%**[153](index=153&type=chunk) - DIS revenues grew by **14.0%**, primarily from recent acquisitions (**8.9% contribution**) and organic volume growth of **1.8%**[160](index=160&type=chunk) - Revenue per requisition was flat, with organic revenue per requisition up **3.3%**[160](index=160&type=chunk) - DS revenues decreased by **4.0%** due to lower risk assessment services[160](index=160&type=chunk) [Cost of Services](index=38&type=section&id=Cost%20of%20Services) This section examines the factors contributing to changes in the cost of services, including acquisitions, wage increases, and program savings - For the three months ended September 30, 2025, cost of services increased by **$190 million**, primarily due to recent acquisitions, wage increases, and higher employee healthcare costs, partially offset by savings from the Invigorate program[155](index=155&type=chunk) - For the nine months ended September 30, 2025, cost of services increased by **$609 million**, driven by recent acquisitions, wage increases, and higher supplies expense, partially offset by Invigorate program savings[156](index=156&type=chunk) [Selling, General and Administrative Expenses ("SG&A")](index=38&type=section&id=Selling,%20General%20and%20Administrative%20Expenses%20(%22SG%26A%22)) This section analyzes the changes in selling, general, and administrative expenses, attributing them to acquisitions and compensation costs - For the three months ended September 30, 2025, SG&A increased by **$53 million**, mainly due to recent acquisitions and higher compensation costs[157](index=157&type=chunk) - For the nine months ended September 30, 2025, SG&A increased by **$159 million**, primarily driven by recent acquisitions, higher compensation costs, and increased depreciation expense[158](index=158&type=chunk) [Amortization Expense](index=39&type=section&id=Amortization%20Expense) This section details the increase in amortization expense, primarily linked to recent business acquisitions - Amortization expense increased by **$7 million** for the three months and **$27 million** for the nine months ended September 30, 2025, compared to prior year periods, primarily due to recent acquisitions[161](index=161&type=chunk) [Other Operating Expense, Net](index=39&type=section&id=Other%20Operating%20Expense,%20Net) This section breaks down the components of other operating expense, net, including legal charges, asset impairments, and contingent consideration adjustments - For the three months ended September 30, 2025, other operating expense, net, included a **$15 million charge** for legal matters, a **$5 million asset impairment charge**, and **$2 million** in losses from contingent consideration accrual increases[163](index=163&type=chunk) - For the nine months ended September 30, 2025, this category included a **$46 million CARES Act payroll tax credit gain**, offset by a **$29 million asset impairment charge**, a **$15 million legal matters charge**, and **$8 million** in losses from contingent consideration accrual increases[164](index=164&type=chunk) [Interest Expense, Net](index=39&type=section&id=Interest%20Expense,%20Net) This section explains the increase in net interest expense, primarily due to the issuance of senior notes in the prior year - Interest expense, net, increased by **$17 million** for the three months and **$64 million** for the nine months ended September 30, 2025, primarily due to the issuance of **$1.85 billion** in senior notes in August 2024[166](index=166&type=chunk) [Other Income, Net](index=39&type=section&id=Other%20Income,%20Net) This section details the components of other income, net, including gains from deferred compensation plan investments and foreign exchange contracts - For the three and nine months ended September 30, 2025, other income, net, included **$7 million** and **$16 million**, respectively, in gains from deferred compensation plan investments[167](index=167&type=chunk) - In 2024, both periods included an additional **$8 million gain** from a foreign exchange forward contract related to an acquisition[168](index=168&type=chunk) [Income Tax Expense](index=39&type=section&id=Income%20Tax%20Expense) This section provides an overview of income tax expense and effective tax rates for the reporting periods, noting benefits from stock-based compensation - Income tax expense for the three months ended September 30, 2025, was **$77 million (effective rate 23.6%)**, up from **$65 million (21.9%)** in 2024[169](index=169&type=chunk) - For the nine months, it was **$233 million (23.6%)** in 2025, up from **$205 million (23.4%)** in 2024, with both periods benefiting from excess tax benefits related to stock-based compensation[170](index=170&type=chunk) [Equity in Earnings of Equity Method Investees, Net of Taxes](index=40&type=section&id=Equity%20in%20Earnings%20of%20Equity%20Method%20Investees,%20Net%20of%20Taxes) This section explains the changes in equity in earnings from equity method investees, highlighting a non-recurring gain in 2025 - Equity in earnings of equity method investees, net of taxes, increased by **$2 million** for the three months and **$21 million** for the nine months ended September 30, 2025[171](index=171&type=chunk) - The nine-month increase was primarily due to an **$8 million non-recurring gain** related to a lease in 2025, compared to **$11 million** in net losses from strategic investments in 2024[172](index=172&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=41&type=section&id=Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section details the company's strategies for managing market risks, particularly interest rate risk, and assesses potential impacts of interest rate changes - The Company manages interest rate risk through derivative financial instruments, maintaining a balanced mix of fixed-rate and variable-rate debt, with foreign exchange and commodity price impacts not considered material[174](index=174&type=chunk) - As of September 30, 2025, the fair value of the Company's debt was estimated at **$5.7 billion**, with a hypothetical **10% increase in interest rates** potentially reducing its fair value by approximately **$141 million**[175](index=175&type=chunk) - The notional amount of fixed-to-variable interest rate swaps increased to **$1.8 billion** from **$700 million** at December 31, 2024[177](index=177&type=chunk) - A hypothetical **10% change in the SOFR curve (36 basis points)** could change the fair value of fixed-to-variable interest rate swaps by **$46 million**[178](index=178&type=chunk) [Liquidity and Capital Resources](index=42&type=section&id=Liquidity%20and%20Capital%20Resources) This section analyzes the company's cash position, cash flow activities, and available capital resources to meet its financial obligations and investment needs | Metric | Nine Months Ended Sep 30, 2025 (in millions) | Nine Months Ended Sep 30, 2024 (in millions) | Change (YoY) | | :------------------------------------ | :------------------------------------------- | :------------------------------------------- | :----------- | | 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 and restricted cash | $(117) | $78 | $(195) | [Cash and Cash Equivalents](index=42&type=section&id=Cash%20and%20Cash%20Equivalents) This section reports the total cash and cash equivalents held by the company, including amounts held outside the United States - Cash and cash equivalents totaled **$432 million** as of September 30, 2025, a decrease from **$549 million** at December 31, 2024, with approximately **17%** held outside the United States[184](index=184&type=chunk) [Cash Flows from Operating Activities](index=42&type=section&id=Cash%20Flows%20from%20Operating%20Activities) This section details the increase in net cash provided by operating activities, driven by improved operating income, tax benefits, and collection efficiency - Net cash provided by operating activities increased by **$551 million** to **$1.4 billion** for the nine months ended September 30, 2025, driven by increased operating income, timing of non-income tax payments, decreased income tax payments due to OBBBA, and the CARES Act payroll tax credit[185](index=185&type=chunk) - Days sales outstanding (DSO) improved to **47 days** as of September 30, 2025, from **48 days** at December 31, 2024, and **49 days** at September 30, 2024, indicating improved billing and collection efficiency[186](index=186&type=chunk) [Cash Flows from Investing Activities](index=42&type=section&id=Cash%20Flows%20from%20Investing%20Activities) This section explains the decrease in net cash used in investing activities, primarily due to reduced spending on business acquisitions - Net cash used in investing activities decreased by **$1.6 billion** to **$440 million** for the nine months ended September 30, 2025, primarily due to decreased cash used for business acquisitions, partially offset by higher capital expenditures[187](index=187&type=chunk) [Cash Flows from Financing Activities](index=42&type=section&id=Cash%20Flows%20from%20Financing%20Activities) This section outlines the shift from cash provided to cash used in financing activities, driven by debt repayments and share repurchases - Net cash used in financing activities was **$(1.1) billion** for the nine months ended September 30, 2025, compared to **$1.3 billion** provided in the prior year, due to the repayment of **$600 million** senior notes and **$150 million** in share repurchases in 2025, contrasting with **$1.85 billion** in senior note issuances in 2024[188](index=188&type=chunk) [Dividend Program](index=43&type=section&id=Dividend%20Program) This section reports the quarterly cash dividend declared by the Board of Directors, noting an increase from the prior year - The Board of Directors declared a quarterly cash dividend of **$0.80 per common share** for the first three quarters of 2025, an increase from **$0.75 per common share** in 2024[190](index=190&type=chunk) [Share Repurchase Program](index=43&type=section&id=Share%20Repurchase%20Program) This section provides information on the remaining authorization under the company's share repurchase program - As of September 30, 2025, **$0.7 billion** remained available under the Company's share repurchase authorization, which has no set expiration date[191](index=191&type=chunk) [Share Repurchases](index=43&type=section&id=Share%20Repurchases) This section details the number of shares and total cost of common stock repurchased during the reporting period - For the nine months ended September 30, 2025, the Company repurchased **0.9 million shares** of its common stock for **$150 million**[192](index=192&type=chunk) - No shares were repurchased in the same period of 2024[193](index=193&type=chunk) [Contractual Obligations](index=43&type=section&id=Contractual%20Obligations) This section refers to the annual report for detailed information on the company's contractual obligations - Details regarding the Company's indebtedness, debt service requirements, lease obligations, and noncancellable commitments to purchase products or services are contained in the 2024 Annual Report on Form 10-K[194](index=194&type=chunk)[195](index=195&type=chunk) [Equity Method Investees](index=43&type=section&id=Equity%20Method%20Investees) This section describes the company's equity method investees and confirms the absence of material obligations or impairment - The Company's equity method investees, primarily a diagnostic information services joint venture and an investment fund, represent **less than 5%** of consolidated total assets and income before income taxes[196](index=196&type=chunk) - No material unconditional obligations or guarantees exist for these investees, and no impairment was identified as of September 30, 2025[197](index=197&type=chunk) [Requirements and Capital Resources](index=43&type=section&id=Requirements%20and%20Capital%20Resources) This section outlines the company's estimated capital expenditures and available borrowing capacity to support future operations and growth - The Company estimates **$500 million** in capital expenditures for 2025 to support and grow existing operations, including investments in laboratory equipment, facilities, automation, and IT[198](index=198&type=chunk) - A multi-year 'Project Nova' was committed in February 2025 to modernize 'Order-to-Cash' business processes and IT infrastructure[199](index=199&type=chunk) - As of September 30, 2025, the Company had **$1.3 billion** in available borrowing capacity under existing credit facilities (**$522 million** from secured receivables and **$750 million** from senior unsecured revolving credit facility), with no outstanding borrowings[201](index=201&type=chunk) - The Company believes its cash, operations, and borrowing capacity provide sufficient financial flexibility for future needs[203](index=203&type=chunk) [Forward-Looking Statements](index=44&type=section&id=Forward-Looking%20Statements) This section cautions that certain statements in the document are forward-looking and subject to various risks and uncertainties that could cause actual results to differ materially - This section highlights that certain statements in the document are forward-looking and subject to risks and uncertainties, including economic conditions, government investigations, competition, billing complexities, regulatory changes, and acquisitions[204](index=204&type=chunk) - Actual results may differ materially from these statements[204](index=204&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=44&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section refers to the detailed discussion on market risk disclosures provided in Item 2, 'Management's Discussion and Analysis of Financial Condition and Results of Operations,' covering the company's exposure to interest rate changes and its risk management strategies - The Company's quantitative and qualitative disclosures about market risk are incorporated by reference from Item 2, 'Management's Discussion and Analysis of Financial Condition and Results of Operations'[205](index=205&type=chunk) [Item 4. Controls and Procedures](index=44&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective as of September 30, 2025, with no material changes to internal control over financial reporting during the third quarter of 2025 - The Chief Executive Officer and Chief Financial Officer concluded that the Company's disclosure controls and procedures were effective as of September 30, 2025[205](index=205&type=chunk) - No material changes in internal control over financial reporting occurred during the third quarter of 2025[206](index=206&type=chunk) [PART II - OTHER INFORMATION](index=44&type=section&id=PART%20II%20-%20OTHER%20INFORMATION) This section provides additional information not covered in the financial statements, including legal proceedings, risk factors, equity security sales, other disclosures, and exhibits [Item 1. Legal Proceedings](index=44&type=section&id=Item%201.%20Legal%20Proceedings) This section refers to Note 11 of the interim unaudited consolidated financial statements for detailed information regarding the status of legal proceedings involving the Company - Information regarding the status of legal proceedings involving the Company is provided in Note 11 to the interim unaudited consolidated financial statements[208](index=208&type=chunk) [Item 1A. Risk Factors](index=46&type=section&id=Item%201A.%20Risk%20Factors) This section states that there have been no material changes to the risk factors previously described in the Company's Annual Report on Form 10-K for the year ended December 31, 2024 - There have been no material changes in the risk factors described in the Company's Annual Report on Form 10-K for the year ended December 31, 2024[209](index=209&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=46&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section details the Company's common stock repurchases during the third quarter of 2025 under its share repurchase program and employee transactions, along with the remaining authorization | Period | Total Number of Shares Purchased | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | | :-------------------------------- | :------------------------------- | :--------------------------- | :------------------------------------------------------------------- | | July 1, 2025 – July 31, 2025 | 220,867 | $169.78 | 220,867 | | August 1, 2025 - August 31, 2025 | 588,957 | $178.16 | 588,957 | | September 1, 2025 – September 30, 2025 | 42,070 | $179.82 | 42,070 | | Total (Share Repurchase Program) | 851,894 | $176.07 | 851,894 | - As of September 30, 2025, **$0.7 billion** remained available under the Company's share repurchase authorization, which has no set expiration or termination date[211](index=211&type=chunk) - The program has authorized **$13 billion** in share repurchases since its inception in May 2003[213](index=213&type=chunk) [Item 5. Other Information](index=46&type=section&id=Item%205.%20Other%20Information) This section provides information on Rule 10b5-1 trading arrangements adopted by the Company's directors and officers during the third quarter of 2025, including details on the individuals, type of arrangement, and covered securities | Name | Title | Type of Trading Arrangement | Security | Action | Date of Action | Duration of Trading Arrangement | Aggregate Number of Securities Covered | | :--------- | :-------------------------- | :-------------------------- | :------- | :------- | :--------------- | :------------------------------ | :------------------------------------- | | Jim Davis | Chairman, CEO, and President | Rule 10b5-1 plan to sell | Common Stock | Adoption | August 26, 2025 | August 26, 2025 to December 4, 2026 | Up to 95,093 | | Mark Delaney | SVP and Chief Commercial Officer | Rule 10b5-1 plan to sell | Common Stock | Adoption | August 18, 2025 | August 18, 2025 to May 11, 2026 | Up to 7,946 | - During the third quarter of 2025, Jim Davis (Chairman, CEO, and President) and Mark Delaney (SVP and Chief Commercial Officer) adopted Rule 10b5-1 trading arrangements to sell common stock[214](index=214&type=chunk)[215](index=215&type=chunk) - These plans cover shares expected to vest from stock options, restricted stock units, and performance share awards, with actual shares sold being net of tax withholding obligations[215](index=215&type=chunk) [Item 6. Exhibits](index=48&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed as part of the Form 10-Q report, including certifications, XBRL documents, and other supporting materials - The exhibits include Subsidiary Guarantors of Securities, Rule 13a-14(a) Certifications of the CEO and CFO, Section 1350 Certifications of the CEO and CFO, and various Inline XBRL documents (Instance, Schema, Calculation, Definition, Label, and Presentation Linkbase Documents), along with the Cover Page Interactive Data File[219](index=219&type=chunk) [Signatures](index=49&type=section&id=Signatures) This section contains the official signatures of the authorized representatives of Quest Diagnostics Incorporated, including the Chairman, Chief Executive Officer, and President, James E. Davis, and the Executive Vice President and Chief Financial Officer, Sam A. Samad, certifying the report on October 21, 2025 - The report was signed on October 21, 2025, by James E. Davis, Chairman, Chief Executive Officer, and President, and Sam A. Samad, Executive Vice President and Chief Financial Officer, on behalf of Quest Diagnostics Incorporated[220](index=220&type=chunk)

Core Insights - Quest Diagnostics (DGX) is scheduled to release its third-quarter 2025 results on October 21, before market opening, with adjusted EPS of $2.62 in the last quarter, exceeding the Zacks Consensus Estimate by 1.95% [1] - The Zacks Consensus Estimate for Q3 2025 revenues is $2.72 billion, reflecting a 9.3% increase year-over-year, while EPS is projected to rise 9.1% to $2.51 [2] Revenue and Earnings Estimates - The revenue estimate for Q3 2025 indicates a significant growth trajectory, with a 9.3% increase from the previous year [2] - The EPS estimate suggests a 9.1% rise, indicating strong earnings potential for the quarter [2] Performance Trends - Earnings estimates for Q3 have remained stable over the past 30 days, suggesting confidence in the company's performance [3] - The company has consistently surpassed earnings estimates in the last four quarters, with an average surprise of 2.09% [1] Factors Influencing Q3 Results - The core Diagnostics Information Services (DIS) business is expected to show strong revenue growth, driven by physician and hospital channels [4] - Increased test orders per requisition and demand for clinical solutions are anticipated to sustain revenue momentum [4] - The partnership with Fresenius Medical Care is likely to enhance revenues from physician channels, supporting over 200,000 kidney dialysis patients [5] M&A Contributions - M&A activities contributed 10% growth in the previous quarter, with expectations for continued positive momentum in Q3 [6] - The acquisition of clinical testing assets from Fresenius Medical Care is projected to add a 7.1% contribution to DIS revenues [6] Strategic Developments - Collaborative Lab Solutions and strategic acquisitions are expected to drive growth in the hospital channel [7] - The enhanced questhealth.com platform and partnerships with consumer brands are likely to complement revenue growth [8] Advanced Diagnostics Performance - Robust revenues are anticipated in Advanced Diagnostics, particularly in Advanced Cardiometabolic and Brain Health areas [9] - The launch of a molecular test for diagnosing Oropouche virus is expected to positively impact revenues [10] Operational Excellence - The company is likely to continue leveraging automation, robotics, and AI to enhance operational efficiency and productivity [11] - Projected operating income (non-GAAP) is expected to increase by 21.4% year-over-year in Q3 [11] Earnings ESP and Zacks Rank - Quest Diagnostics has an Earnings ESP of +0.49%, indicating a higher chance of beating estimates [12] - The company currently holds a Zacks Rank of 3, suggesting a stable outlook [12]

Core Insights - Quest Diagnostics Incorporated (DGX) is valued at $20.6 billion and provides diagnostic testing services both in the U.S. and internationally, including routine and advanced clinical testing [1] Financial Performance - Analysts expect DGX to report an adjusted profit of $2.51 per share for Q3, reflecting a 9.1% increase from $2.30 per share in the same quarter last year [2] - For the full fiscal year 2025, DGX is projected to achieve an adjusted EPS of $9.74, a 9.1% increase from $8.93 in 2024, with further growth expected in fiscal 2026 to $10.40 per share, representing a 6.8% year-over-year increase [3] Stock Performance - DGX stock has increased by 24.5% over the past 52 weeks, significantly outperforming the Healthcare Select Sector SPDR Fund's 7% decline and the S&P 500 Index's 13.4% gain during the same period [4] - Following the release of strong Q2 results, DGX stock rose by 7.1%, with net revenues for the quarter reaching $2.8 billion, a 15.2% year-over-year increase, surpassing expectations by 1.5% [5] Analyst Ratings - The consensus rating for DGX is "Moderate Buy," with 8 out of 18 analysts recommending "Strong Buys" and 10 suggesting "Holds," while the stock is trading slightly below the mean price target of $189.94 [6]

Albert Anthony is the pen name of a Croatian-American business author who is a media contributor on investor platform Seeking Alpha, where he has over +1K followers, & also writes for platforms like Investing dot com and is launching a book on Amazon in 2025 called Real Estate Investment Trusts (REITs): A Fundamental Analysis.The author comes from a non-traditional financial background having been an analyst in the IT sector for several Fortune 500 companies in the US, as well as the technical support team ...

Core Insights - Quest Diagnostics (DGX) has announced a collaboration with Epic to enhance laboratory testing experiences for healthcare providers and patients in the U.S. [1][9] Collaboration Details - The partnership, named Project Nova, is a multi-year initiative aimed at streamlining customer-facing processes across all EHR platforms by utilizing Epic's Diagnostic Enterprise system [2][9] - The implementation will focus on consolidating technologies to improve operational agility, efficiency, and quality, including account onboarding, lab ordering, results reporting, appointment scheduling, billing, and customer service [3] Patient Experience Enhancement - The initiative aims to enhance the patient experience through solutions like MyChart, which will provide greater transparency in health plan reimbursement and simplify appointment scheduling at Quest's 2,000 patient service centers across the U.S. [3][9] Industry Prospects - The global clinical laboratory tests market is projected to reach $213.04 billion by 2030, with a CAGR of 8.88% from 2025 to 2030, driven by rising life expectancy and increasing demand for diagnostic testing [4] Additional Updates - Haystack Oncology, a Quest Diagnostics company, has collaborated with the Rutgers Cancer Institute to evaluate a highly sensitive ctDNA MRD test for optimizing postoperative therapy in stage II/III non-small cell lung cancer patients [5] - Quest Diagnostics has also formed a joint venture with Corewell Health to expand access to innovative and affordable laboratory services in Michigan [6]

Core Insights - Digi Power X Inc. has achieved Tier III certification for its ARMS 200 modular AI data center platform, positioning itself among a select few globally to offer such certified solutions [3][11] - The company plans to deliver its first Tier III certified ARMS 200 pod to its Alabama facility by the end of November 2025, with commissioning scheduled for December 2025 [3][11] - Digi Power X is expanding its cryptocurrency holdings and reported a cash and digital asset balance of approximately $29 million as of September 30, 2025, maintaining its Bitcoin and Ethereum positions [8][10] Production and Operations Update - For September 2025, Digi Power X reported production of approximately 25 BTC, valued at about $2.8 million based on a BTC price of $113,300 [14] - The company has increased its Bitcoin inventory from approximately 85 BTC to 100 BTC, representing an 18% increase over the previous month [8] - The company operates with approximately 100 MW of available power across three sites, with plans to expand to over 200 MW through organic growth and acquisitions [10] Strategic Partnerships and Infrastructure - Digi Power X has strengthened its partnership with Supermicro to integrate AI-optimized rack-scale systems into its ARMS platform, enhancing its position as a turnkey provider of Tier III-ready AI infrastructure [5] - Each ARMS unit is designed for rapid deployment within approximately 180 days, offering a faster path to AI capacity compared to traditional data centers [4] Financial Position and Investments - The company has invested approximately $5.8 million year-to-date in capital expenditures and mining infrastructure support equipment, including about $0.3 million in September [14] - Digi Power X's Ethereum position is currently staked to generate an annualized return of roughly 3%, providing an additional revenue stream while maintaining exposure to Ethereum's long-term appreciation potential [8]

Core Insights - Quest Diagnostics (DGX) has partnered with Haystack Oncology and Rutgers Cancer Institute to evaluate the Haystack MRD test for optimizing postoperative therapy in stage II/III non-small cell lung cancer (NSCLC) patients [1][3][9] Company Developments - Haystack MRD is a lab-developed test (LDT) validated in a CLIA-certified laboratory and is commercially available through Quest Diagnostics [2][9] - The MRD-PORT Trial (NCT06979661) is a prospective phase II study assessing the use of Haystack MRD to guide postoperative radiation and systemic therapies based on residual tumor DNA presence [3][4] - In addition to the lung cancer study, a previous collaboration in 2023 focused on using Haystack MRD for early-stage triple-negative breast cancer treatment [3] Industry Prospects - The global minimal residual disease (MRD) market was valued at $2.50 billion in 2024 and is projected to grow at a compound annual growth rate (CAGR) of 10.1% through 2030, driven by rising cancer incidence, technological advancements, and integration with personalized medicine [6] - The FDA granted Breakthrough Device Designation to Haystack MRD for identifying MRD-positive patients with stage II colorectal cancer, indicating its potential in guiding adjuvant therapy [5] Other Developments in the Industry - Quest Diagnostics has introduced an advanced pharmacogenomic (PGx) laboratory test service to help providers understand patients' genetic responses to drug therapies, aiming to prevent therapeutic failures and adverse drug interactions [7] - Competitors like QIAGEN and Exact Sciences are also advancing in the molecular diagnostics space, with QIAGEN achieving CE-IVDR certification for its testing systems and Exact Sciences launching a multi-cancer early detection blood test [8][11]

Question-and-Answer SessionMaybe to kick it off, I was able to sit in on some of the group meetings. And I think 1 of the things you're talking a little bit about is some of the consumer initiations and applications. Maybe just talk a little bit about how you're thinking about some of these new initiatives, including the WHOOP partnership?Sam SamadExecutive VP & CFO Yes. Sure, Tycho. And first of all, thanks for having us today and hosting us. The consumer health business that we have is something that we'r ...

Quest Diagnostics Conference Call Summary Company Overview - **Company**: Quest Diagnostics (NYSE: DGX) - **Industry**: Healthcare Diagnostics Key Points Consumer Health Business - The consumer health market is valued at approximately $2.5 billion, with a target of capturing 10% market share, equating to around $250 million in revenue [2] - Quest Diagnostics operates questhealth.com, allowing patients to order tests online, with results available the next day, enhancing convenience and direct payment [2] - The partnership with WHOOP focuses on integrating laboratory testing with wearable health technology, indicating a shift towards wellness and preventive medicine [3] Partnerships and Revenue Models - Function Health partnership offers a membership model where patients receive annual testing panels, with Quest as the exclusive lab provider [4] - Revenue from partnerships is based on negotiated prices per test, with potential for higher margins compared to traditional payer models due to direct patient payments [5][6] Oncology Initiatives - Quest is actively pursuing partnerships in oncology, including a recent collaboration with Guardant Health for the Shield test, which will be promoted to primary care physicians [9][10] - The company is also exploring colorectal cancer screening tests in partnership with Universal DX, although this is still in early clinical trial phases [11][12] - The Minimal Residual Disease (MRD) market is estimated at $1 billion, with potential growth to over $5 billion in five years, prompting Quest to acquire Haystack Oncology for its promising MRD test [14][15] Reimbursement Strategies - Quest is working on obtaining reimbursement for MRD tests from Medicare, with expectations for reimbursement to begin in early 2026 [20] - The company has received PLA codes for MRD testing, which will facilitate reimbursement processes [19] Market Dynamics and Utilization Trends - Post-COVID, Quest has observed a structural increase in testing utilization, driven by an aging population and a shift in market share due to acquisitions of physician outreach businesses [37][38] - The company anticipates continued growth from M&A activities, targeting 1% to 2% top-line growth annually from acquisitions [40] Pricing and Revenue Growth - Revenue per requisition has improved, with an increase in tests per requisition from approximately 3.8 to 4.2, driven by a better payer mix and advanced diagnostics [54] - Pricing stability has been achieved through value-based incentives with payers, contrasting with previous years of price erosion [55] Medicaid and Future Outlook - Medicaid revenue represents 8% of total revenue, with minimal expected impact from potential cuts in the next two years [56] - The company remains optimistic about its growth trajectory, focusing on expanding its diagnostic capabilities and partnerships in both consumer health and oncology sectors [57] Conclusion - Quest Diagnostics is strategically positioning itself in the healthcare diagnostics market through innovative partnerships, a focus on consumer health, and a robust approach to reimbursement and market share growth. The company is well-prepared to navigate upcoming challenges while capitalizing on emerging opportunities in the diagnostics landscape.

Accessibility StatementSkip Navigation Quest Diagnostics to Improve Laboratory Testing Experience with Industry-First Epic Collaboration Quest Diagnostics (NYSE: DGX) and Epic today announced a first-of-its-kind collaboration designed to streamline and improve experiences for... SECAUCUS, N.J., Sept. 25, 2025 /PRNewswire/ -- Quest Diagnostics Incorporated (NYSE:Â DGX), a leader in diagnostic information services, today announced that it will report third quarter 2025 financial results on Tuesday, October 21 ...