— Second quarter revenues of $2.76 billion, up 15.2% from 2024
— Second quarter reported diluted earnings per share (“EPS”) of $2.47, up 21.7% from 2024; and adjusted diluted EPS of $2.62, up 11.5% from 2024
— Year-to-date cash provided by operations of $858 million, up 67.1% from 2024
— Full year 2025 reported diluted EPS now expected to be between $8.60 and $8.80; and adjusted diluted EPS is expected to be between $9.63 and $9.83
Quest Diagnostics Incorporated (NYSE: DGX), a leading provider of diagnostic information services, today announced financial results for the second quarter ended June30, 2025.
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“Through continued execution of our strategy, we delivered a strong second quarter, with revenues growing 15.2% which includes 5.2% from organic revenues, as well as adjusted EPS growth of 11.5%,” said Jim Davis, Chairman, CEO and President. “Demand for our innovative clinical solutions and expanded business from enterprise accounts complemented growth from acquisitions. We also realized productivity gains as we continued to deploy automation and digital technologies across our operations. Given our performance in the quarter and continued utilization trends, we are raising our full year 2025 guidance.”
Three Months Ended June 30, Six Months Ended June 30, 2025 2024 Change 2025 2024 Change (dollars in millions, except per share data)Reported:Net revenues $ 2,761 $ 2,397 15.2% $ 5,413 $ 4,763 13.7%Diagnostic Information Services revenues $ 2,699 $ 2,333 15.7% $ 5,288 $ 4,631 14.2%Revenue per requisition (0.4)% -%Requisition volume 16.3% 14.3%Organic requisition volume 2.1% 0.6%Operating income (a) $ 438 $ 355 23.3% $ 784 $ 655 19.7%Operating income as a percentage of net revenues (a) 15.9% 14.8% 1.1% 14.5% 13.7% 0.8%Net income attributable to Quest Diagnostics (a) $ 282 $ 229 23.1% $ 502 $ 423 18.6%Diluted EPS (a) $ 2.47 $ 2.03 21.7% $ 4.41 $ 3.75 17.6%Cash provided by operations $ 544 $ 360 51.5% $ 858 $ 514 67.1%Capital expenditures $ 108 $ 92 17.3% $ 225 $ 196 14.4%Adjusted (a):Operating income $ 466 $ 398 17.3% $ 872 $ 747 16.8%Operating income as a percentage of net revenues 16.9% 16.6% 0.3% 16.1% 15.7% 0.4%Net income attributable to Quest Diagnostics $ 298 $ 266 12.3% $ 549 $ 496 10.7%Diluted EPS $ 2.62 $ 2.35 11.5% $ 4.83 $ 4.39 10.0%
(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 HighNet revenues $10.80 billion $10.92 billion $10.70 billion $10.85 billionNet revenues increase 9.4% 10.6% 8.4% 9.9%Reported diluted EPS $8.60 $8.80 $8.62 $8.87Adjusted diluted EPS $9.63 $9.83 $9.55 $9.80Cash provided by operations Approximately $1.55 billion Approximately $1.5 billionCapital 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 July22, 2025 until midnight Eastern Time on August5, 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 SubsidiariesConsolidated Statements of OperationsFor the Three and SixMonths Ended June30, 2025 and 2024(in millions, except per share data)(unaudited) Three Months Ended Six Months Ended June 30, June 30, 2025 2024 2025 2024Net revenues $ 2,761 $ 2,397 $ 5,413 $ 4,763Operating costs and expenses and other operating income:Cost of services 1,818 1,593 3,607 3,188Selling, general and administrative 486 416 962 856Amortization of intangible assets 39 29 78 58Other operating (income) expense, net (20) 4 (18) 6Total operating costs and expenses, net 2,323 2,042 4,629 4,108Operating income 438 355 784 655Other income (expense):Interest expense, net (67) (44) (134) (87)Other income, net 13 3 10 12Total non-operating expense, net (54) (41) (124) (75)Income before income taxes and equity in earnings of equity method investees 384 314 660 580Income tax expense (97) (74) (156) (140)Equity in earnings of equity method investees, net of taxes 9 – 27 8Net income 296 240 531 448Less: Net income attributable to noncontrolling interests 14 11 29 25Net income attributable to Quest Diagnostics $ 282 $ 229 $ 502 $ 423Earnings per share attributable to Quest Diagnostics' common stockholders:Basic $ 2.51 $ 2.05 $ 4.48 $ 3.79Diluted $ 2.47 $ 2.03 $ 4.41 $ 3.75Weighted average common shares outstanding:Basic 112 111 112 111Diluted 113 112 113 112
Quest Diagnostics Incorporated and SubsidiariesConsolidated Balance SheetsJune30, 2025and December31, 2024(in millions, except per share data)(unaudited) June 30, December 31, 2025 2024AssetsCurrent assets:Cash and cash equivalents $ 319 $ 549Accounts receivable, net 1,419 1,304Inventories 187 188Prepaid expenses and other current assets 273 351Total current assets 2,198 2,392Property, plant and equipment, net 2,120 2,113Operating lease right-of-use assets 655 651Goodwill 8,883 8,856Intangible assets, net 1,706 1,763Investments in equity method investees 136 123Other assets 271 255Total assets $ 15,969 $ 16,153Liabilities and Stockholders' EquityCurrent liabilities:Accounts payable and accrued expenses $ 1,349 $ 1,394Current portion of long-term debt 504 602Current portion of long-term operating lease liabilities 171 173Total current liabilities 2,024 2,169Long-term debt 5,169 5,615Long-term operating lease liabilities 540 535Other liabilities 890 938Redeemable noncontrolling interest 81 83Stockholders' equity:Quest Diagnostics stockholders' equity:Common stock, par value $0.01 per share; 600 shares authorized as of both June30, 2025 and 2 2December31, 2024; 162 shares issued as of both June30, 2025 and December31, 2024Additional paid-in capital 2,332 2,361Retained earnings 9,682 9,360Accumulated other comprehensive loss (16) (88)Treasury stock, at cost; 50 and 51 shares as of June30, 2025 and December31, 2024, respectively (4,772) (4,857)Total Quest Diagnostics stockholders' equity 7,228 6,778Noncontrolling interests 37 35Total stockholders' equity 7,265 6,813Total liabilities and stockholders' equity $ 15,969 $ 16,153
Quest Diagnostics Incorporated and SubsidiariesConsolidated Statements of Cash FlowsFor the Six Months Ended June30, 2025 and 2024(in millions)(unaudited) Six Months Ended June 30, 2025 2024Cash flows from operating activities:Net income $ 531 $ 448Adjustments to reconcile net income to net cash provided by operating activities:Depreciation and amortization 283 233Provision for credit losses 2 3Deferred income tax expense (benefit) 8 (36)Stock-based compensation expense 43 42Other, net 26 16Changes in operating assets and liabilities:Accounts receivable (115) (113)Accounts payable and accrued expenses (11) (111)Income taxes payable 9 20Other assets and liabilities, net 82 12Net cash provided by operating activities 858 514Cash flows from investing activities:Business acquisitions, net of cash acquired (17) (248)Capital expenditures (225) (196)Other investing activities, net 3 31Net cash used in investing activities (239) (413)Cash flows from financing activities:Proceeds from borrowings 400 -Repayments of debt (1,001) (301)Exercise of stock options 42 28Employee payroll tax withholdings on stock issued under stock-based compensation plans (42) (23)Dividends paid (174) (163)Distributions to noncontrolling interest partners (29) (18)Other financing activities, net (50) (39)Net cash used in financing activities (854) (516)Effect of exchange rate changes on cash and cash equivalents and restricted cash 5 -Net change in cash and cash equivalents and restricted cash (230) (415)Cash and cash equivalents and restricted cash, beginning of period 549 686Cash and cash equivalents and restricted cash, end of period $ 319 $ 271Cash paid during the period for:Interest $ 145 $ 105Income taxes $ 110 $ 118
Notes to Financial Tables
1) The computation of basic and diluted earnings per common share is as follows: Three Months Ended Six Months Ended June 30, June 30, 2025 2024 2025 2024 (in millions, except per share data)Amounts attributable to Quest Diagnostics' common stockholders:Net income attributable to Quest Diagnostics $ 282 $ 229 $ 502 $ 423Less: earnings allocated to participating securities 1 1 2 2Earnings available to Quest Diagnostics' common stockholders – basic and diluted $ 281 $ 228 $ 500 $ 421Weighted average common shares outstanding – basic 112 111 112 111Effect of dilutive securities:Stock options and performance share units 1 1 1 1Weighted average common shares outstanding – diluted 113 112 113 112Earnings per share attributable to Quest Diagnostics' common stockholders:Basic $ 2.51 $ 2.05 $ 4.48 $ 3.79Diluted $ 2.47 $ 2.03 $ 4.41 $ 3.75
2) The following tables reconcile reported GAAP results to non-GAAP adjusted results: Three Months Ended June 30, 2025 (dollars in millions, except per share data) Operating Operating Income tax Equity in Net income Diluted EPS income income as a expense (e) earnings of attributable to percentage of equity method Quest net revenues investees, net Diagnostics of taxesAs reported $ 438 15.9% $ (97) $ 9 $ 282 $ 2.47Restructuring and integration charges (a) 7 0.3 (2) – 5 0.04Other charges (b) 28 1.0 (6) – 22 0.19Gains and losses on investments (c) – – 1 (1) (2) (0.01)Other gains (d) (46) (1.7) 12 – (34) (0.30)Amortization expense 39 1.4 (11) – 28 0.25ETB – – (3) – (3) (0.02)As adjusted $ 466 16.9% $ (106) $ 8 $ 298 $ 2.62 Six Months Ended June 30, 2025 (dollars in millions, except per share data) Operating Operating Income tax Equity in Net income Diluted EPS income income as a expense (e) earnings of attributable to percentage of equity method Quest net revenues investees, net Diagnostics of taxesAs reported $ 784 14.5% $ (156) $ 27 $ 502 $ 4.41Restructuring and integration charges (a) 26 0.5 (7) – 19 0.17Other charges (b) 30 0.6 (6) – 24 0.21Gains and losses on investments (c) – – 1 (1) (2) (0.01)Other gains (d) (46) (0.9) 14 (8) (40) (0.36)Amortization expense 78 1.4 (20) – 58 0.51ETB – – (12) – (12) (0.10)As adjusted $ 872 16.1% $ (186) $ 18 $ 549 $ 4.83 Three Months Ended June 30, 2024 (dollars in millions, except per share data) Operating Operating Income tax Equity in Net income Diluted EPS income income as a expense (e) earnings of attributable to percentage of equity method Quest net revenues investees, net Diagnostics of taxesAs reported $ 355 14.8% $ (74) $ – $ 229 $ 2.03Restructuring and integration charges (a) 10 0.4 (3) – 7 0.06Other charges (b) 4 0.2 – – 4 0.03Gains and losses on investments (c) – – (3) 9 6 0.05Amortization expense 29 1.2 (8) – 21 0.19ETB – – (1) – (1) (0.01)As adjusted $ 398 16.6% $ (89) $ 9 $ 266 $ 2.35 Six Months Ended June 30, 2024 (dollars in millions, except per share data) Operating Operating Income tax Equity in Net income Diluted EPS income income as a expense (e) earnings of attributable to percentage of equity method Quest net revenues investees, net Diagnostics of taxesAs reported $ 655 13.7% $ (140) $ 8 $ 423 $ 3.75Restructuring and integration charges (a) 27 0.6 (7) – 20 0.17Other charges (b) 7 0.2 – – 7 0.06Gains and losses on investments (c) – – (3) 9 6 0.05Amortization expense 58 1.2 (15) – 43 0.39ETB – – (3) – (3) (0.03)As adjusted $ 747 15.7% $ (168) $ 17 $ 496 $ 4.39
(a) For each of the three and six months ended June 30, 2025 and 2024, the pre-tax impact represents costs primarily associated with workforce reductions and integration costs incurred in connection with further restructuring and integrating our business. The following table summarizes the pre-tax impact of restructuring and integration charges on our consolidated statements of operations:
Three Months Ended Six Months Ended June 30, June 30, 2025 2024 2025 2024 (dollars in millions)Cost of services $ 1 $ 1 $ 7 $ 14Selling, general and administrative 6 9 19 13Operating income $ 7 $ 10 $ 26 $ 27
(b) For both the three and six months ended June 30, 2025, the pre-tax impact primarily represents a $24 million impairment charge on certain long-lived assets related to the potential exit of a business. Additionally, each of the three and six months ended June 30, 2025 and June 30, 2024 include losses associated with the change in the fair value of the contingent consideration accrual associated with previous acquisitions. The following table summarizes the pre-tax impact of these other charges on our consolidated statements of operations:
Three Months Ended Six Months Ended June 30, June 30, 2025 2024 2025 2024 (dollars in millions)Selling, general and administrative $ – $ 1 $ – $ 1Other operating (income) expense, net 28 3 30 6Operating income $ 28 $ 4 $ 30 $ 7
(c) For each of the three and six months ended June 30, 2025 and 2024, the pre-tax impact represents gains and losses associated with changes in the carrying value of our strategic investments, recorded in equity in earnings of equity method investees, net of taxes, and other income, net. (d) The three and six months ended June 30, 2025 include a $46 million pre-tax gain, recorded in other operating (income) expense, net, from a payroll tax credit under the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) associated with the retention of employees. Additionally, the six months ended June 30, 2025 includes an $8 million gain, recorded in equity in earnings of equity method investees, net of taxes, representing a non-recurring gain related to a lease. (e) For restructuring and integration charges, other gains/charges, gains and losses on investments and amortization expense, income tax impacts, where recorded, were primarily calculated using combined statutory income tax rates of 25.5% for both 2025 and 2024.
3) The outlook for adjusted diluted EPS represents management's estimates for the full year 2025 before the impact of special items. Further impacts to earnings related to special items may occur throughout 2025. Additionally, the amount of ETB is dependent upon employee stock option exercises and our stock price, which are difficult to predict. The following table reconciles our 2025 outlook for diluted EPS under GAAP to our outlook for adjusted diluted EPS:
Low HighDiluted EPS $ 8.60 $ 8.80Restructuring and integration charges (a) 0.24 0.24Amortization expense (b) 1.03 1.03Other charges (c) 0.27 0.27Other gains (d) (0.36) (0.36)Gains and losses on investments (0.01) (0.01)ETB (0.14) (0.14)Adjusted diluted EPS $ 9.63 $ 9.83
(a) Represents estimated pre-tax charges of $37 million primarily associated with workforce reductions and integration costs incurred in connection with further restructuring and integrating our business. Income tax benefits were primarily calculated using a combined statutory income tax rate of 25.5%. (b) Represents estimated pre-tax amortization expenses of $157 million. Income tax benefits were primarily calculated using a combined statutory income tax rate of 25.5%. (c) Principally represents a $24 million pre-tax impairment charge on certain long-lived assets related to the potential exit of a business. Also includes estimated pre-tax net charges of $12 million associated with the increase in the fair value of the contingent consideration accrual associated with previous acquisitions. Income tax benefits on the impairment charge were calculated using a combined statutory income tax rate of 25.5%. No income tax benefits were recorded on the changes associated with the contingent consideration accrual. (d) Includes a pre-tax gain of $46 million related to a payroll tax credit under the CARES Act associated with the retention of employees. Also, includes a non-recurring pre-tax gain of $8 million related to a lease. Income tax impacts on the gains were calculated using a combined statutory income tax rate of 25.5%.
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