Quest Diagnostics Reports Fourth Quarter and Full Year 2025 Financial Results; Provides Guidance for Full Year 2026; Increases Quarterly Dividend 7.5% to $0.86 Per Share

SECAUCUS, N.J., Feb. 10, 2026 /PRNewswire/ -- Quest Diagnostics Incorporated (NYSE: DGX), a leading provider of diagnostic information services, announced today financial results for the fourth quarter and full year ended December 31, 2025.

"We closed 2025 with a strong fourth quarter, and delivered double-digit growth in revenues and earnings per share for the full year," said Jim Davis, Chairman, CEO, and President. "Our robust performance demonstrates continued execution of our strategy to deliver category-defining clinical innovations that fulfill customers' needs and to form strategic collaborations supporting growth. Our 2026 guidance reflects our continued confidence in our business strengths and market fundamentals."

Key 2025 Highlights:

Serving Clinicians and Health Systems

Serving Consumers

Delivering Clinical Innovations

Driving Operational Excellence

Three Months Ended December 31,

Twelve Months Ended December 31,

2025

2024

Change

2025

2024

Change

(dollars in millions, except per share data)

Reported:

Net revenues

$ 2,806

$ 2,621

7.1 %

$ 11,035

$ 9,872

11.8 %

Diagnostic information services revenues

$ 2,742

$ 2,556

7.3 %

$ 10,785

$ 9,614

12.2 %

Revenue per requisition

(0.1) %

0.1 %

Requisition volume

8.5 %

12.3 %

Organic requisition volume

7.9 %

3.4 %

Operating income (a)

$ 386

$ 361

7.0 %

$ 1,556

$ 1,346

15.6 %

Operating income as a percentage of net revenues

(a)

13.8 %

— %

14.1 %

13.6 %

0.5 %

Net income attributable to Quest Diagnostics (a)

$ 245

$ 222

10.7 %

$ 992

$ 871

13.9 %

Diluted EPS (a)

$ 2.18

$ 1.95

11.8 %

$ 8.75

$ 7.69

13.8 %

Cash provided by operations

$ 465

$ 464

0.5 %

$ 1,886

$ 1,334

41.4 %

Capital expenditures

$ 158

$ 123

27.4 %

$ 527

$ 425

23.8 %

Adjusted (a):

Operating income

$ 429

$ 409

4.7 %

$ 1,759

$ 1,541

14.1 %

Operating income as a percentage of net revenues

15.3 %

15.6 %

(0.3) %

15.9 %

15.6 %

0.3 %

Net income attributable to Quest Diagnostics

$ 273

$ 253

7.4 %

$ 1,118

$ 1,011

10.5 %

Diluted EPS

$ 2.42

$ 2.23

8.5 %

$ 9.85

$ 8.93

10.3 %

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.

Guidance for Full Year 2026

The company estimates its full year 2026 guidance in the table below. The company has included a presentation that includes additional guidance information on the Events and Presentations page of its investor relations website, which can be found at www.QuestDiagnostics.com/investor.

Low

High

Net revenues

$11.70 billion

$11.82 billion

Net revenues increase

6.0 %

7.1 %

Reported diluted EPS

$9.45

$9.65

Adjusted diluted EPS

$10.50

$10.70

Cash provided by operations

Approximately $1.75 billion

Capital expenditures

Approximately $550 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 attached 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 February 10, 2026 until midnight Eastern Time on February 24, 2026, by phone at 866-388-5361 for domestic callers and 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 healthcare to create a healthier world, one life at a time. We help connect people, from clinicians to consumers, with laboratory insights that illuminate a path to better health. With a focus on delivering smarter, simpler testing, our insights reveal new avenues to identify and treat disease, inspire healthy behaviors and improve healthcare management. Quest Diagnostics serves half the physicians and hospitals in the United States and one in three adult Americans each year, and our nearly 57,000 employees work together to deliver diagnostic insights that inspire actions to transform lives. 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 Twelve Months Ended December 31, 2025 and 2024

(in millions, except per share data)

(unaudited)

Three Months Ended

December 31,

Twelve Months Ended

December 31,

2025

2024

2025

2024

Net revenues

$ 2,806

$ 2,621

$ 11,035

$ 9,872

Operating costs and expenses and other operating income:

Cost of services

1,896

1,763

7,370

6,628

Selling, general and administrative

504

466

1,967

1,770

Amortization of intangible assets

154

127

Other operating (income) expense, net

(17)

(6)

(12)

Total operating costs and expenses, net

2,420

2,260

9,479

8,526

Operating income

386

361

1,556

1,346

Other income (expense):

Interest expense, net

(64)

(65)

(264)

(201)

Other income, net

Total non-operating expense, net

(56)

(62)

(238)

(171)

Income before income taxes and equity in earnings of

equity method investees

330

299

1,318

1,175

Income tax expense

(81)

(68)

(314)

(273)

Equity in earnings of equity method investees, net of taxes

Net income

256

236

1,046

921

Less: Net income attributable to noncontrolling interests

Net income attributable to Quest Diagnostics

$ 245

$ 222

$ 992

$ 871

Earnings per share attributable to Quest Diagnostics' common

stockholders:

Basic

$ 2.21

$ 1.98

$ 8.87

$ 7.78

Diluted

$ 2.18

$ 1.95

$ 8.75

$ 7.69

Weighted average common shares outstanding:

Basic

111

Diluted

112

113

Quest Diagnostics Incorporated and Subsidiaries

Consolidated Balance Sheets

December 31, 2025 and 2024

(in millions, except per share data)

(unaudited)

December 31,

2025

December 31,

2024

Assets

Current assets:

Cash and cash equivalents

$ 420

$ 549

Accounts receivable, net

1,408

1,304

Inventories

189

188

Prepaid expenses and other current assets

361

351

Total current assets

2,378

2,392

Property, plant and equipment, net

2,203

2,113

Operating lease right-of-use assets

657

651

Goodwill

8,945

8,856

Intangible assets, net

1,636

1,763

Investment in equity method investees

136

123

Other assets

270

255

Total assets

$ 16,225

$ 16,153

Liabilities and Stockholders' Equity

Current liabilities:

Accounts payable and accrued expenses

$ 1,600

$ 1,394

Current portion of long-term debt

504

602

Current portion of long-term operating lease liabilities

174

173

Total current liabilities

2,278

2,169

Long-term debt

5,167

5,615

Long-term operating lease liabilities

537

535

Other liabilities

957

938

Redeemable noncontrolling interest

Stockholders' equity:

Quest Diagnostics stockholders' equity:

Common stock, par value $0.01 per share; 600 shares authorized as of both December 31, 2025

and 2024; 162 shares issued as of both December 31, 2025 and 2024

Additional paid-in capital

2,381

2,361

Retained earnings

9,994

9,360

Accumulated other comprehensive loss

(27)

(88)

Treasury stock, at cost; 52 shares and 51 shares as of December 31, 2025 and 2024, respectively

(5,180)

(4,857)

Total Quest Diagnostics stockholders' equity

7,170

6,778

Noncontrolling interests

Total stockholders' equity

7,206

6,813

Total liabilities and stockholders' equity

$ 16,225

$ 16,153

Quest Diagnostics Incorporated and Subsidiaries

Consolidated Statements of Cash Flows

For the Twelve Months Ended December 31, 2025 and 2024

(in millions)

(unaudited)

Twelve Months Ended

December 31,

2025

2024

Cash flows from operating activities:

Net income

$ 1,046

$ 921

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization

570

493

Provision for credit losses

Deferred income tax provision

105

Stock-based compensation expense

Other, net

Changes in operating assets and liabilities:

Accounts receivable

(106)

(71)

Accounts payable and accrued expenses

129

(67)

Income taxes payable

Other assets and liabilities, net

(79)

Net cash provided by operating activities

1,886

1,334

Cash flows from investing activities:

Business acquisitions, net of cash acquired

(101)

(2,164)

Capital expenditures

(527)

(425)

Other investing activities, net

(3)

Net cash used in investing activities

(631)

(2,548)

Cash flows from financing activities:

Proceeds from borrowings

410

1,846

Repayments of debt

(1,012)

(303)

Purchases of treasury stock

(450)

(151)

Exercise of stock options

Employee payroll tax withholdings on stock issued under stock-based compensation plans

(45)

(24)

Dividends paid

(353)

(331)

Distributions to noncontrolling interest partners

(56)

(47)

Other financing activities, net

Net cash (used in) provided by financing activities

(1,388)

1,084

Effect of exchange rate changes on cash and cash equivalents and restricted cash

(7)

Net change in cash and cash equivalents and restricted cash

(129)

(137)

Cash and cash equivalents and restricted cash, beginning of period

549

686

Cash and cash equivalents and restricted cash, end of period

$ 420

$ 549

Cash paid during the period for:

Interest

$ 280

$ 262

Income taxes

$ 169

$ 256

Notes to Financial Tables

1) The computation of basic and diluted earnings per common share is as follows:

Three Months Ended

December 31,

Twelve Months Ended

December 31,

2025

2024

2025

2024

(in millions, except per share data)

Amounts attributable to Quest Diagnostics' common stockholders:

Net income attributable to Quest Diagnostics

$ 245

$ 222

$ 992

$ 871

Less: Earnings allocated to participating securities

—

Earnings available to Quest Diagnostics' common stockholders - basic and

diluted

$ 245

$ 220

$ 988

$ 866

Weighted average common shares outstanding - basic

111

Effect of dilutive securities:

Stock options and performance share units

Weighted average common shares outstanding - diluted

112

113

Earnings per share attributable to Quest Diagnostics' common

stockholders:

Basic

$ 2.21

$ 1.98

$ 8.87

$ 7.78

Diluted

$ 2.18

$ 1.95

$ 8.75

$ 7.69

2) The following tables reconcile reported GAAP results to non-GAAP adjusted results:

Three Months Ended December 31, 2025

(dollars in millions, except per share data)

Operating

income

Operating

income as a

percentage of

net revenues

Income tax

expense (f)

Equity in

earnings of

equity method

investees, net

of taxes

Net income

attributable

to Quest

Diagnostics

Diluted EPS

As reported

$ 386

13.8 %

$ (81)

$ 7

$ 245

$ 2.18

Restructuring and

integration charges (a)

0.6

—

0.15

Change in fair value of

contingent consideration

(b)

(18)

(0.7)

—

(18)

(0.16)

Other charges (c)

0.3

(1)

—

0.05

Gains and losses on

investments (d)

—

(2)

(0.02)

Amortization expense

1.3

(9)

—

0.25

ETB

—

(3)

—

(3)

(0.03)

As adjusted

$ 429

15.3 %

$ (93)

$ 10

$ 273

$ 2.42

Twelve Months Ended December 31, 2025

(dollars in millions, except per share data)

Operating

income

Operating

income as a

percentage of

net revenues

Income tax

expense (f)

Equity in

earnings of

equity method

investees, net

of taxes

Net income

attributable

to Quest

Diagnostics

Diluted EPS

As reported

$ 1,556

14.1 %

$ (314)

$ 42

$ 992

$ 8.75

Restructuring and

integration charges (a)

0.5

(8)

—

0.39

Change in fair value of

contingent consideration

(b)

(10)

(0.1)

—

(10)

(0.09)

Other charges (c)

0.4

(13)

—

0.34

Gains and losses on

investments (d)

—

(4)

(0.03)

Other gains (e)

(46)

(0.4)

(8)

(41)

(0.36)

Amortization expense

154

1.4

(39)

—

115

1.01

ETB

—

(18)

—

(18)

(0.16)

As adjusted

$ 1,759

15.9 %

$ (377)

$ 36

$ 1,118

$ 9.85

Three Months Ended December 31, 2024

(dollars in millions, except per share data)

Operating

income

Operating

income as a

percentage of

net revenues

Income tax

expense (f)

Equity in

earnings of

equity method

investees, net

of taxes

Net income

attributable

to Quest

Diagnostics

Diluted EPS

As reported

$ 361

13.8 %

$ (68)

$ 5

$ 222

$ 1.95

Restructuring and

integration charges (a)

0.6

(5)

—

0.11

Change in fair value of

contingent consideration

(b)

(8)

(0.2)

—

(8)

(0.07)

Other charges (c)

—

0.01

Gains and losses on

investments (d)

—

(1)

0.03

Other gains (e)

—

(3)

(0.02)

Amortization expense

1.4

(9)

—

0.25

ETB

—

(3)

—

(3)

(0.03)

As adjusted

$ 409

15.6 %

$ (85)

$ 9

$ 253

$ 2.23

Twelve Months Ended December 31, 2024

(dollars in millions, except per share data)

Operating

income

Operating

income as a

percentage of

net revenues

Income tax

expense (f)

Equity in

earnings of

equity method

investees, net

of taxes

Net income

attributable

to Quest

Diagnostics

Diluted EPS

As reported

$ 1,346

13.6 %

$ (273)

$ 19

$ 871

$ 7.69

Restructuring and

integration charges (a)

0.6

(15)

—

0.42

Change in fair value of

contingent consideration

(b)

—

0.02

Other charges (c)

0.1

—

0.02

Gains and losses on

investments (d)

—

(4)

0.10

Other gains (e)

—

(9)

(0.08)

Amortization expense

127

1.3

(32)

—

0.84

ETB

—

(9)

—

(9)

(0.08)

As adjusted

$ 1,541

15.6 %

$ (330)

$ 34

$ 1,011

$ 8.93

(a)

For both the three and twelve months ended December 31, 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

December 31,

Twelve Months Ended

December 31,

2025

2024

2025

2024

(dollars in millions)

Cost of services

$ 4

$ 8

$ 12

$ 27

Selling, general and administrative

Other operating (income) expense, net

—

(2)

Operating income

$ 16

$ 17

$ 53

$ 62

(b)

The pre-tax impact for all periods relates to the change in the fair value of the contingent consideration accrual associated with previous acquisitions. Such impact is recorded in other operating (income) expense, net in our consolidated statement of operations.

(c)

The pre-tax impact for the three and twelve months ended December 31, 2025 primarily includes $7 million of charges to earnings related to legal matters (recorded in selling, general and administrative expenses in our consolidated statement of operations). The pre-tax impact for the twelve months ended December 31, 2025 also includes an impairment charge of $29 million on certain long-lived assets related to the exit of a business and $15 million of charges to earnings related to legal matters. Such amounts are recorded in other operating (income) expense, net in our consolidated statement of operations. The following table summarizes the pre-tax impact of these other items on our consolidated statement of operations:

Three Months Ended

December 31,

Twelve Months Ended

December 31,

2025

2024

2025

2024

(dollars in millions)

Cost of services

$ —

$ 2

$ —

$ 2

Selling, general and administrative

—

Other operating (income) expense, net

—

Operating income

$ 8

$ 2

$ 52

$ 4

(d)

For all periods presented, the pre-tax impact represents gains and losses associated with changes in the carrying value of our strategic investments, principally recorded in other income, net.

(e)

The twelve months ended December 31, 2025 includes 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 associated with the retention of employees. Also, the twelve months ended December 31, 2025 includes a pre-tax gain, recorded in equity in earnings of equity method investees, net of taxes, representing a non-recurring gain related to a lease. The twelve months ended December 31, 2024 principally includes a non-recurring $8 million pre-tax gain, recorded in other income, net, associated with a foreign exchange forward contract utilized in conjunction with an acquisition. The following table summarizes the pre-tax impact of these other gains on our consolidated statements of operations:

Three Months Ended

December 31,

Twelve Months Ended

December 31,

2025

2024

2025

2024

(dollars in millions)

Other operating (income) expense, net

$ —

$ 46

$ —

Other income, net

$ —

$ 3

$ —

$ 12

Equity in earnings of equity method investees, net of taxes

$ —

$ 8

$ —

(f)

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. No income tax impact was recorded on gains/losses associated with the change in the fair value of the contingent consideration accrual associated with previous acquisitions. The three and twelve months ended December 31, 2025 include $5 million of income tax expense related to the disposal of a business.

For the twelve months ended December 31, 2025, we repurchased 2.5 million shares of our common stock for $452 million. As of December 31, 2025, $0.4 billion remained available under our share repurchase authorization.

The outlook for adjusted diluted EPS represents management's estimates for the full year 2026 before the impact of special items. Further impacts to earnings related to special items may occur throughout 2026. 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 2026 outlook for diluted EPS under GAAP to our outlook for adjusted diluted EPS:

Low

High

Diluted EPS

$ 9.45

$ 9.65

Restructuring and integration charges (a)

0.07

Amortization expense (b)

1.03

Other charges (c)

0.11

ETB

(0.16)

Adjusted diluted EPS

$ 10.50

$ 10.70

(a)

Represents estimated pre-tax charges of $12 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 $155 million. Income tax benefits were primarily calculated using a combined statutory income tax rate of 25.5%.

(c)

Principally includes estimated pre-tax net charges of $12 million associated with the estimated change in the fair value of the contingent consideration accrual associated with previous acquisitions. Such estimate is subject to the risks and uncertainties discussed in the "Forward Looking Statements" section above. No income tax impacts were recorded on the change associated with the contingent consideration accrual.

SOURCE Quest Diagnostics