Third quarter reported diluted earnings per share ("EPS") of $2.16, up 8.5% from 2024; and adjusted diluted EPS of $2.60, up 13.0% from 2024
Year-to-date cash provided by operations of $1.4 billion, up 63.1% from 2024
Full year 2025 reported diluted EPS now expected to be between $8.58 and $8.66; and adjusted diluted EPS is expected to be between $9.76 and $9.84
SECAUCUS, N.J., Oct. 21, 2025 /PRNewswire/ -- Quest Diagnostics Incorporated (NYSE:DGX), a leading provider of diagnostic information services, today announced financial results for the third quarter ended September 30, 2025.
"We delivered another quarter of robust top- and bottom-line growth, underscoring strong demand for our clinical solutions and diligent execution of our strategy," said Jim Davis, Chairman, CEO and President. "Revenues grew 13.1%, including 6.8% organic growth, driven by broad-based adoption of our clinical innovations, contributions from acquisitions, and growth in our consumer channel as we build our presence as the preferred lab engine inside top health and wellness brands. We also announced an agreement with Corewell Health to create a major lab services joint venture serving the state of Michigan. In addition, we will deploy our comprehensive Co-Lab Solutions across Corewell's nearly two dozen hospitals. Given our strong performance year-to-date, we are again raising our full year 2025 guidance."
Recent highlights:
Entered into an agreement with Corewell Health to establish a lab services joint venture in Michigan. In addition, Quest will deploy a comprehensive suite of Co-Lab Solutions, from reference testing and lab analytics to supply chain and blood management, supporting quality, innovation access and productivity. With this collaboration, annual revenues for Co-Lab Solutions are expected to reach approximately $1 billion next year as services scale across 21 Corewell hospitals.
Completed the acquisition of select dialysis testing assets from Fresenius Medical Care and, under a separate enterprise agreement, began to scale clinical lab testing for Fresenius Medical Care's U.S. dialysis centers serving approximately 200,000 dialysis patients annually.
Formed collaborations to be the lab engine inside the mobile apps of WHOOP, the human performance company, and ŌURA Health, maker of the world's leading smart ring, to serve growing consumer interest in wellness and preventive health.
Announced a collaboration with Epic to be the technology partner for Project Nova, a multi-year initiative to streamline systems and improve experiences for patients and providers, regardless of the electronic health record system they use.
Published data in Neurology® Clinical Practice on the confirmatory accuracy of two Quest AD-Detect® tests for aiding Alzheimer's disease diagnosis.
Announced collaborations that leverage Quest's national scale in phlebotomy and connectivity to broaden access to cancer-screening liquid biopsy tests.
Secured FDA breakthrough device designation for our Haystack MRD™ test and formed collaborations with Mass General Brigham and Rutgers Cancer Institute to trial Haystack MRD in guiding postoperative therapy decisions.
Named Thomas Koch, a veteran of the lab and medical device industries, to be the company's senior vice president of R&D.
Recognized as a Top Corporate Wellness Innovator by Fast Company for our leadership in employee well-being.
Three Months Ended September 30,
Nine Months Ended September 30,
2025
2024
Change
2025
2024
Change
(dollars in millions, except per share data)
Reported:
Net revenues
$ 2,816
$ 2,488
13.1 %
$ 8,229
$ 7,251
13.5 %
Diagnostic Information Services revenues
$ 2,755
$ 2,427
13.5 %
$ 8,043
$ 7,058
14.0 %
Revenue per requisition
0.8 %
0.2 %
Requisition volume
12.5 %
13.8 %
Organic requisition volume
3.9 %
1.8 %
Operating income (a)
$ 386
$ 330
16.8 %
$ 1,170
$ 985
18.7 %
Operating income as a percentage of net revenues (a)
13.7 %
13.3 %
0.4 %
14.2 %
13.6 %
0.6 %
Net income attributable to Quest Diagnostics (a)
$ 245
$ 226
8.5 %
$ 747
$ 649
15.0 %
Diluted EPS (a)
$ 2.16
$ 1.99
8.5 %
$ 6.57
$ 5.74
14.5 %
Cash provided by operations
$ 563
$ 356
57.4 %
$ 1,421
$ 870
63.1 %
Capital expenditures
$ 144
$ 106
37.0 %
$ 369
$ 302
22.3 %
Adjusted (a):
Operating income
$ 458
$ 385
18.9 %
$ 1,330
$ 1,132
17.5 %
Operating income as a percentage of net revenues
16.3 %
15.5 %
0.8 %
16.2 %
15.6 %
0.6 %
Net income attributable to Quest Diagnostics
$ 296
$ 262
13.1 %
$ 845
$ 758
11.5 %
Diluted EPS
$ 2.60
$ 2.30
13.0 %
$ 7.43
$ 6.70
10.9 %
(a)
For further details impacting the year-over-year comparisons related to operating income, operating income as a percentage of net revenues, net income attributable to Quest Diagnostics, and diluted EPS, see note 2 of the financial tables attached below.
Updated Guidance for Full Year 2025
The company updates its full year 2025 guidance as follows:
Updated Guidance
Prior Guidance
Low
High
Low
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
Approximately $1.55 billion
Capital expenditures
Approximately $500 million
Approximately $500 million
Note on Non-GAAP Financial Measures
As used in this press release the term "reported" refers to measures under accounting principles generally accepted in the United States ("GAAP"). The term "adjusted" refers to non-GAAP operating performance measures that exclude special items such as restructuring and integration charges, amortization expense, excess tax benefits ("ETB") associated with stock-based compensation, gains and losses associated with changes in the carrying value of our strategic investments, impairment charges and other items.
Non-GAAP adjusted measures are presented because management believes those measures are useful adjuncts to GAAP results. Non-GAAP adjusted measures should not be considered as an alternative to the corresponding measures determined under GAAP. Management may use these non-GAAP measures to evaluate our performance period over period and relative to competitors, to analyze the underlying trends in our business, to establish operational budgets and forecasts and for incentive compensation purposes. We believe that these non-GAAP measures are useful to investors and analysts to evaluate our performance period over period and relative to competitors, as well as to analyze the underlying trends in our business and to assess our performance. The additional tables below include reconciliations of non-GAAP adjusted measures to GAAP measures.
Conference Call Information
Quest Diagnostics will hold its quarterly conference call to discuss financial results beginning at 8:30 a.m. Eastern Time today. The conference call can be accessed by dialing 888-455-0391 within the U.S. and Canada, or 773-756-0467 internationally, passcode: 7895081; or via live webcast on our website at www.QuestDiagnostics.com/investor. We suggest participants dial in approximately 10 minutes before the call.
A replay of the call may be accessed online at www.QuestDiagnostics.com/investor or, from approximately 10:30 a.m. Eastern Time on October 21, 2025 until midnight Eastern Time on November 4, 2025, by phone at 866-388-5361 for domestic callers or 203-369-0416 for international callers. Anyone listening to the call is encouraged to read our periodic reports, on file with the Securities and Exchange Commission, including the discussion of risk factors and historical results of operations and financial condition in those reports.
About Quest Diagnostics
Quest Diagnostics works across the healthcare ecosystem to create a healthier world, one life at a time. We provide diagnostic insights from the results of our laboratory testing to empower people, physicians and organizations to take action to improve health outcomes. Derived from one of the world's largest databases of de-identifiable clinical lab results, Quest's diagnostic insights reveal new avenues to identify and treat disease, inspire healthy behaviors and improve healthcare management. Quest Diagnostics annually serves one in three adult Americans and half the physicians and hospitals in the United States, and our more than 55,000 employees understand that, in the right hands and with the right context, our diagnostic insights can inspire actions that transform lives and create a healthier world. www.QuestDiagnostics.com.
Forward Looking Statements
The statements in this press release which are not historical facts may be forward-looking statements. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date that they are made and which reflect management's current estimates, projections, expectations or beliefs and which involve risks and uncertainties that could cause actual results and outcomes to be materially different. Risks and uncertainties that may affect the future results of the company include, but are not limited to, uncertain and volatile economic conditions, adverse results from pending or future government investigations, lawsuits or private actions, the competitive environment, the complexity of billing, reimbursement and revenue recognition for clinical laboratory testing, changes in government policies, including related to trade, and regulations, changing relationships with customers, payers, suppliers or strategic partners, acquisitions and other factors discussed in the company's most recently filed Annual Report on Form 10-K and in any of the company's subsequently filed Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, including those discussed in the "Business," "Risk Factors," "Cautionary Factors that May Affect Future Results" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" sections of those reports.
This earnings release, including the attached financial tables, is available online in the Newsroom section at www.QuestDiagnostics.com.
ADDITIONAL TABLES FOLLOW
Quest Diagnostics Incorporated and Subsidiaries
Consolidated Statements of Operations
For the Three and Nine Months Ended September 30, 2025 and 2024
(in millions, except per share data)
(unaudited)
Three Months Ended September 30,
Nine Months Ended September 30,
2025
2024
2025
2024
Net revenues
$ 2,816
$ 2,488
$ 8,229
$ 7,251
Operating costs and expenses and other operating income:
Cost of services
1,867
1,677
5,474
4,865
Selling, general and administrative
501
448
1,463
1,304
Amortization of intangible assets
39
32
117
90
Other operating expense, net
23
1
5
7
Total operating costs and expenses, net
2,430
2,158
7,059
6,266
Operating income
386
330
1,170
985
Other income (expense):
Interest expense, net
(66)
(49)
(200)
(136)
Other income, net
8
15
18
27
Total non-operating expense, net
(58)
(34)
(182)
(109)
Income before income taxes and equity in earnings of equity method investees
328
296
988
876
Income tax expense
(77)
(65)
(233)
(205)
Equity in earnings of equity method investees, net of taxes
8
6
