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 ...

Core Insights - Quest Diagnostics reported a strong second quarter for 2025, with revenues increasing by 15.2% year-over-year, driven by both organic growth and acquisitions [2][6] - The company raised its full-year guidance for 2025 based on positive performance trends and increased demand for its clinical solutions [2][3] Financial Performance - Net revenues for the second quarter reached $2.76 billion, up from $2.40 billion in 2024, marking a 15.2% increase [2][6] - Diagnostic Information Services revenues also grew by 15.7% to $2.70 billion compared to $2.33 billion in the previous year [2][6] - Adjusted diluted EPS for the quarter was $2.62, reflecting an 11.5% increase from $2.35 in 2024 [2][6] - Operating income rose to $438 million, a 23.3% increase from $355 million in the same quarter last year [2][6] Operational Metrics - Requisition volume increased by 16.3%, while organic requisition volume grew by 2.1% [2][6] - Cash provided by operations for the first half of 2025 was $858 million, up 67.1% from $514 million in 2024 [2][6] Updated Guidance - The updated guidance for full-year 2025 includes net revenues projected between $10.80 billion and $10.92 billion, an increase of 9.4% to 10.6% [3] - Reported diluted EPS is now expected to be between $8.60 and $8.80, while adjusted diluted EPS is forecasted to be between $9.63 and $9.83 [3][6]

Core Viewpoint - Quest Diagnostics Inc. reported strong first-quarter 2025 results, with adjusted earnings per share (EPS) of $2.21, exceeding estimates and showing year-over-year growth [1][2][8] Financial Performance - Adjusted EPS of $2.21 beat the Zacks Consensus Estimate by 2.8% and increased by 8.3% compared to the previous year [1] - GAAP EPS was $1.94, reflecting a 12.8% increase from the same quarter last year [2] - Revenues rose 12.1% year over year to $2.65 billion, surpassing the Zacks Consensus Estimate by 1.5% [3] - Diagnostic Information Services revenues increased by 12.7% year over year to $2.59 billion, exceeding projections [3] - Volumes measured by requisitions were up 12.5% year over year, with revenue per requisition increasing by 0.3% [4] Margin and Cost Analysis - Cost of services was $1.79 billion, up 12.2% year over year, while gross profit reached $863 million, an 11.9% increase [5] - Gross margin stood at 32.5%, nearly unchanged from the previous year [5] - SG&A expenses were $476 million, an 8.1% increase from the first quarter of 2024 [5] - Adjusted operating margin improved by 60 basis points year over year to 14.6% [5] Liquidity and Financial Health - Cash and cash equivalents at the end of Q1 2025 were $188 million, down from $549 million at the end of Q4 2024 [6] - Cumulative net cash from operating activities was $314 million, compared to $154 million at the same time last year [6] - The company has a five-year annualized dividend growth rate of 7.17% [6] 2025 Guidance - Full-year 2025 revenue outlook is reaffirmed at $10.70 billion to $10.85 billion, indicating a year-over-year increase of 8.4% to 9.9% [7] - Adjusted EPS guidance remains unchanged at $9.55 to $9.80, with the Zacks Consensus Estimate at $9.68 [7] Market Reaction and Outlook - Following the earnings report, DGX shares gained nearly 6.7% in pre-market trading [2] - The growth in revenue was attributed to a rebound in demand, contributions from acquisitions, and expanded health plan access [8][9]

Core Insights - Quest Diagnostics reported strong revenue growth of approximately 12% in Q1 2025, driven by demand recovery and contributions from acquisitions [2][7] - The company reaffirmed its revenue and adjusted EPS guidance for the full year 2025 [2] Financial Performance - Net revenues for Q1 2025 were $2.652 billion, up from $2.366 billion in Q1 2024, representing a 12.1% increase [2][12] - Diagnostic Information Services revenues increased by 12.7% to $2.589 billion [2][12] - Operating income rose to $346 million, a 15.4% increase from $300 million in the previous year [2][12] - Net income attributable to Quest Diagnostics was $220 million, up 13.2% from $194 million [2][12] - Diluted EPS for Q1 2025 was $1.94, reflecting a 12.8% increase from $1.72 in Q1 2024 [2][12] Operational Metrics - Requisition volume increased by 12.4%, while organic requisition volume decreased by 0.9% [2] - Revenue per requisition saw a slight increase of 0.3% [2] Updated Guidance for 2025 - The updated guidance for net revenues is projected between $10.70 billion and $10.85 billion, indicating an increase of 8.4% to 9.9% [3] - Reported diluted EPS is expected to range from $8.62 to $8.87, while adjusted diluted EPS remains between $9.55 and $9.80 [3][7] - Cash provided by operations is anticipated to be approximately $1.5 billion, with capital expenditures around $500 million [3] Cash Flow and Capital Expenditures - Cash provided by operations in Q1 2025 was $314 million, a significant increase of 103.4% from $154 million in Q1 2024 [2][16] - Capital expenditures for the quarter were $117 million, up 11.9% from $104 million [2][16] Balance Sheet Highlights - As of March 31, 2025, total assets were $15.797 billion, down from $16.153 billion at the end of 2024 [14] - Current liabilities decreased to $1.441 billion from $2.169 billion [14] - Total stockholders' equity increased to $6.962 billion from $6.813 billion [14]