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Second quarter revenues of $3.04 billion, up 10.2% from 2025, with 10.0% organic revenue growth Second quarter reported diluted earnings per share ("EPS") of $2.84, up 15.0% from 2025; and adjusted diluted EPS of $3.12, up 19.1% from 2025 Full year 2026 revenues now expected to be between $11.95 billion and $12.05 billion Full year 2026 reported diluted EPS now expected to be between $9.97 and $10.17; and adjusted diluted EPS expected to be between $11.05 and $11.25 , /PRNewswire/ -- Quest Diagnostics Incorporated (NYSE: DGX), a leading provider of diagnostic information services, today announced financial results for the second quarter ended June 30, 2026.

"Our robust top- and bottom-line growth in the second quarter demonstrates focused execution of our strategy to connect people and providers to innovative testing and actionable insights that illuminate paths for better health," said Jim Davis, Chairman, CEO and President. "Revenues increased by over 10%, almost all from organic revenue growth across our physician, hospital and consumer channels, and adjusted diluted EPS grew over 19%. With strong growth and sustained demand for our diagnostic insights, we are again raising our full year guidance."

Recent Highlights:

Serving Customers and Delivering Innovations

Continued to advance our Co-Lab Solutions implementation and joint venture laboratory with Corewell Health in Michigan and developed new capabilities in kidney care through our collaboration with Fresenius Medical Care in the United States. Generated robust revenue growth through questhealth.com and our consumer, wearable and wellness partners. Grew revenues by double-digits in several areas of Advanced Diagnostics, including Quest AD-Detect® blood tests for Alzheimer's disease and advanced cardiometabolic and endocrine tests, including liver fibrosis testing. Granted New York State approval for our Haystack MRD® test and became the largest reference lab to utilize Flatiron Health's OncoEMR® Molecular Profiling Integration (MPI) platform for select cancer tests, including Haystack MRD, starting with a pilot with American Oncology Network (AON). Driving Operational Excellence

In the lab, extended automation solutions to improve quality and productivity in cervical cancer screening and front-end specimen processing to additional labs. Outside the lab, launched IntelliDraw™ to guide clinical staff of our physician customers through specimen collection, to enhance quality and the service experience.
Three Months Ended June 30,

Six Months Ended June 30,

2026

2025

Change

2026

2025

Change

(dollars in millions, except per share data)

Reported:

Net revenues

$       3,043

$       2,761

10.2 %

$     5,938

$     5,413

9.7 %

Diagnostic Information Services
revenues

$       2,978

$       2,699

10.3 %

$     5,810

$     5,288

9.9 %

Revenue per requisition

(2.8) %

(2.1) %

Requisition volume

13.1 %

12.0 %

  Organic requisition volume

13.0 %

11.9 %

Operating income (a)

$          459

$          438

4.6 %

$         858

$         784

9.4 %

Operating income as a percentage of net
   revenues (a)

15.1 %

15.9 %

(0.8) %

14.4 %

14.5 %

(0.1) %

Net income attributable to Quest
Diagnostics (a)

$          320

$          282

13.4 %

$         572

$         502

13.9 %

Diluted EPS (a)

$         2.84

$         2.47

15.0 %

$        5.08

$        4.41

15.2 %

Cash provided by operations

$          597

$          544

9.7 %

$         875

$         858

1.9 %

Capital expenditures

$          138

$          108

27.0 %

$         252

$         225

12.1 %

Adjusted (a):

Operating income

$          502

$          466

7.8 %

$         949

$         872

8.8 %

Operating income as a percentage of net
revenues

16.5 %

16.9 %

(0.4) %

16.0 %

16.1 %

(0.1) %

Net income attributable to Quest
Diagnostics

$          350

$          298

17.3 %

$         631

$         549

14.9 %

Diluted EPS

$         3.12

$         2.62

19.1 %

$        5.62

$        4.83

16.4 %

(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 2026

The company updates its full year 2026 guidance as follows:

Updated Guidance

Prior Guidance

Low

High

Low

High

Net revenues

$11.95 billion

$12.05 billion

$11.78 billion

$11.90 billion

Net revenues increase

8.3 %

9.2 %

6.8 %

7.8 %

Reported diluted EPS

$9.97

$10.17

$9.58

$9.78

Adjusted diluted EPS

$11.05

$11.25

$10.63

$10.83

Cash provided by operations

Approximately $1.80 billion

Approximately $1.75 billion

Capital expenditures

  Approximately $550 million

Approximately $550 million

Based on the favorable resolution of various tax contingencies in the second quarter, the full year adjusted effective tax rate is expected to be consistent with 2025.

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 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 July 23, 2026 until midnight Eastern Time on August 6, 2026, 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 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 60,000 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 Six Months Ended June 30, 2026 and 2025
(in millions, except per share data)
(unaudited)

Three Months Ended
June 30,

Six Months Ended
June 30,

2026

2025

2026

2025

Net revenues

$    3,043

$    2,761

$  5,938

$    5,413

Operating costs and expenses and other operating income:

Cost of services

2,016

1,818

3,969

3,607

Selling, general and administrative

529

486

1,033

962

Amortization of intangible assets

38

39

75

78

Other operating expense (income), net

1

(20)

3

(18)

Total operating costs and expenses, net

2,584

2,323

5,080

4,629

Operating income

459

438

858

784

Other income (expense):

Interest expense, net

(63)

(67)

(126)

(134)

Other income, net

16

13

14

10

Total non-operating expense, net

(47)

(54)

(112)

(124)

Income before income taxes and equity in earnings of equity method
   investees

412

384

746

660

Income tax expense

(88)

(97)

(162)

(156)

Equity in earnings of equity method investees, net of taxes

10

9

14

27

Net income

334

296

598

531

Less: Net income attributable to noncontrolling interests

14

14

26

29

Net income attributable to Quest Diagnostics

$       320

$       282

$     572

$       502

Earnings per share attributable to Quest Diagnostics' common
   stockholders:

Basic

$      2.88

$      2.51

$    5.15

$      4.48

Diluted

$      2.84

$      2.47

$    5.08

$      4.41

Weighted average common shares outstanding:

Basic

111

112

110

112

Diluted

112

113

112

113

Quest Diagnostics Incorporated and Subsidiaries
Consolidated Balance Sheets
June 30, 2026 and December 31, 2025
(in millions, except per share data)
(unaudited)

June 30,
2026

December 31,
2025

Assets

Current assets:

Cash and cash equivalents

$                 626

$                420

Accounts receivable, net

1,666

1,408

Inventories

233

189

Prepaid expenses and other current assets

319

361

Total current assets

2,844

2,378

Property, plant and equipment, net

2,219

2,203

Operating lease right-of-use assets

678

657

Goodwill

9,112

8,945

Intangible assets, net

1,672

1,636

Investments in equity method investees

137

136

Other assets

277

270

Total assets

$            16,939

$           16,225

Liabilities and Stockholders' Equity

Current liabilities:

Accounts payable and accrued expenses

$              1,598

$             1,600

Current portion of long-term debt

10

504

Current portion of long-term operating lease liabilities

180

174

Total current liabilities

1,788

2,278

Long-term debt

5,632

5,167

Long-term operating lease liabilities

561

537

Other liabilities

1,059

957

Redeemable noncontrolling interest

80

80

Stockholders' equity:

Quest Diagnostics stockholders' equity:

Common stock, par value $0.01 per share; 600 shares authorized as of both June 30, 2026 and
December 31, 2025; 162 shares issued as of both June 30, 2026 and December 31, 2025

2

2

Additional paid-in capital

2,374

2,381

Retained earnings

10,374

9,994

Accumulated other comprehensive loss

(62)

(27)

Treasury stock, at cost; 52 shares as of both June 30, 2026 and December 31, 2025

(5,172)

(5,180)

Total Quest Diagnostics stockholders' equity

7,516

7,170

Noncontrolling interests

303

36

Total stockholders' equity

7,819

7,206

Total liabilities and stockholders' equity

$            16,939

$           16,225

Quest Diagnostics Incorporated and Subsidiaries
Consolidated Statements of Cash Flows
For the Six Months Ended June 30, 2026 and 2025
(in millions)
(unaudited)

Six Months Ended June 30,

2026

2025

Cash flows from operating activities:

Net income

$              598

$              531

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

Depreciation and amortization

293

283

Provision for credit losses

3

2

Deferred income tax expense

46

8

Stock-based compensation expense

43

43

Other, net

14

26

Changes in operating assets and liabilities:

Accounts receivable

(259)

(115)

Accounts payable and accrued expenses

130

(11)

Income taxes payable

4

9

Other assets and liabilities, net

3

82

Net cash provided by operating activities

875

858

Cash flows from investing activities:

Business acquisitions, net of cash acquired

(38)

(17)

Capital expenditures

(252)

(225)

Other investing activities, net

4

3

Net cash used in investing activities

(286)

(239)

Cash flows from financing activities:

Proceeds from borrowings

494

400

Repayments of debt

(501)

(1,001)

Purchases of treasury stock

(102)

—

Exercise of stock options

81

42

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

(38)

(42)

Dividends paid

(184)

(174)

Distributions to noncontrolling interest partners

(22)

(29)

Other financing activities, net

(109)

(50)

Net cash used in financing activities

(381)

(854)

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

(2)

5

Net change in cash and cash equivalents and restricted cash

206

(230)

Cash and cash equivalents and restricted cash, beginning of period

420

549

Cash and cash equivalents and restricted cash, end of period

$              626

$              319

Cash paid during the period for:

Interest

$              129

$              145

Income taxes

$              104

$              110

Notes to Financial Tables

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

Three Months Ended
June 30,

Six Months Ended
June 30,

2026

2025

2026

2025

(in millions, except per share data)

Amounts attributable to Quest Diagnostics' common stockholders:

Net income attributable to Quest Diagnostics

$           320

$           282

$           572

$           502

Less: earnings allocated to participating securities

1

1

2

2

Earnings available to Quest Diagnostics' common stockholders - basic and
   diluted

$           319

$           281

$           570

$           500

Weighted average common shares outstanding - basic

111

112

110

112

Effect of dilutive securities:

Stock options and performance share units

1

1

2

1

Weighted average common shares outstanding - diluted

112

113

112

113

Earnings per share attributable to Quest Diagnostics' common
   stockholders:

Basic

$          2.88

$          2.51

$          5.15

$          4.48

Diluted

$          2.84

$          2.47

$          5.08

$          4.41

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

Three Months Ended June 30, 2026

(dollars in millions, except per share data)

Operating
income

Operating
income as a
percentage of
net revenues

Income tax
expense (e)

Equity in
earnings of
equity method
investees, net
of taxes

Net income
attributable to
Quest
Diagnostics

Diluted EPS

As reported

$                 459

15.1 %

$                  (88)

$                   10

$                 320

$                2.84

Restructuring and
integration charges (a)

4

0.2

(1)

—

3

0.04

Other charges (b)

1

—

1

—

2

0.02

Gains and losses on
investments (c)

—

—

—

(1)

(1)

(0.01)

Amortization expense

38

1.2

(10)

—

28

0.25

ETB

—

—

(2)

—

(2)

(0.02)

As adjusted

$                 502

16.5 %

$                (100)

$                     9

$                 350

$                3.12

Six Months Ended June 30, 2026

(dollars in millions, except per share data)

Operating
income

Operating
income as a
percentage of
net revenues

Income tax
expense (e)

Equity in
earnings of
equity method
investees, net
of taxes

Net income
attributable to
Quest
Diagnostics

Diluted EPS

As reported

$                 858

14.4 %

$                (162)

$                   14

$                 572

$                5.08

Restructuring and
integration charges (a)

11

0.2

(3)

—

8

0.08

Other charges (b)

5

0.1

—

—

5

0.05

Gains and losses on
investments (c)

—

—

(2)

6

4

0.04

Amortization expense

75

1.3

(19)

—

56

0.50

ETB

—

—

(14)

—

(14)

(0.13)

As adjusted

$                 949

16.0 %

$                (200)

$                   20

$                 631

$                5.62

Three Months Ended June 30, 2025

(dollars in millions, except per share data)

Operating
income

Operating
income as a
percentage of
net revenues

Income tax
expense (e)

Equity in
earnings of
equity method
investees, net
of taxes

Net income
attributable to
Quest
Diagnostics

Diluted EPS

As reported

$                 438

15.9 %

$                  (97)

$                     9

$                 282

$                2.47

Restructuring and
integration charges (a)

7

0.3

(2)

—

5

0.04

Other charges (b)

28

1.0

(6)

—

22

0.19

Gains 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

0.25

ETB

—

—

(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
income

Operating
income as a
percentage of
net revenues

Income tax
expense (e)

Equity in
earnings of
equity method
investees, net
of taxes

Net income
attributable to
Quest
Diagnostics

Diluted EPS

As reported

$                 784

14.5 %

$                (156)

$                   27

$                 502

$                4.41

Restructuring and
integration charges (a)

26

0.5

(7)

—

19

0.17

Other charges (b)

30

0.6

(6)

—

24

0.21

Gains 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

0.51

ETB

—

—

(12)

—

(12)

(0.10)

As adjusted

$                 872

16.1 %

$                (186)

$                   18

$                 549

$                4.83

(a) 

For each of the three and six months ended June 30, 2026 and 2025, 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
June 30,

Six Months Ended
June 30,

2026

2025

2026

2025

(dollars in millions)

Cost of services

$               1

$               1

$               2

$               7

Selling, general and administrative

3

6

9

19

Operating income

$               4

$               7

$             11

$             26

(b) 

The three and six months ended June 30, 2026 and 2025 include losses associated with the change in the fair value of the contingent consideration accrual associated with previous acquisitions, recorded in other operating expense (income), net.  Additionally, 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 exit of a business, recorded in other operating expense (income), net.

(c) 

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 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 expense (income), net, from a payroll tax credit under the Coronavirus Aid, Relief, and Economic Security 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 2026 and 2025.  No income tax impact was recorded on losses associated with the change in the fair value of the contingent consideration accrual associated with previous acquisitions.

3)

For both the three and six months ended June 30, 2026, we repurchased 0.5 million shares of our common stock for $100 million.  As of June 30, 2026, $1.3 billion remained available under our share repurchase authorization.

4)

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

$                                   9.97

$                                 10.17

Restructuring and integration charges (a)

0.14

0.14

Amortization expense (b)

0.99

0.99

Other charges (c)

0.10

0.10

Gains and losses on investments (d)

0.04

0.04

ETB

(0.19)

(0.19)

Adjusted diluted EPS

$                                 11.05

$                                 11.25

(a) 

Represents estimated pre-tax charges of $21 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 $149 million. Income tax benefits were primarily calculated using a combined statutory income tax rate of 25.5%.

(c) 

Principally represents estimated pre-tax net losses of $9 million associated with the increase 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 benefits are recorded on the changes associated with the contingent consideration accrual.

(d) 

Income tax impacts were calculated using a combined statutory income tax rate of 25.5%.

SOURCE Quest Diagnostics

American Oncology Network (AON) and other community oncology providers launching now as part of a pilot program that provides access to Haystack MRD

, /PRNewswire/ -- Quest Diagnostics (NYSE: DGX), a leading provider of diagnostic information services, today announced it is integrating its Haystack MRD® ctDNA test and Comprehensive Genomic Profiling services for solid tumor cancers within OncoEMR®, an electronic health record (EHR) from Flatiron Health, via a pilot program with American Oncology Network (AON) and other community oncology providers. Flatiron Health is a leading healthtech company dedicated to expanding the possibilities of point-of-care solutions in oncology. 

Quest is the largest clinical reference lab to integrate oncology tests in OncoEMR using the opt-in OncoEMR Molecular Profiling Integration (MPI) ordering feature, which is designed to support the specialized test ordering requirements of comprehensive molecular tests. Once completed, the integration will enable 4,700 clinicians across the Flatiron network of 1,600 community-based cancer care locations in the United States to quickly access the Quest services. 

"At Flatiron, we're focused on helping oncology teams get the answers they need to deliver the best possible care," said Quincy Weatherspoon, Chief Network Officer, US Point of Care, Flatiron Health. "By integrating Quest's advanced oncology services directly into existing workflows, we're making it easier for physicians to access critical testing insights without adding complexity to their day. This collaboration helps reduce administrative burden so clinicians can spend less time navigating processes and more time focused on caring for patients with cancer." 

Molecular oncology testing often involves dozens or even hundreds of individual genetic biomarkers, which can complicate ordering workflows and producing long, complex results reports. The use of OncoEMR MPI will enable providers to set up accounts for Quest services faster, order tests with fewer steps, and receive easy-to-understand reports within their daily EHR workflows.

Select providers can now order and receive results from Quest using the OncoEMR MPI capability as part of a pilot program. Among the pilot customers is American Oncology Network (AON), a leader in community oncology with more than 350 providers practicing across 21 states. Nearly 200 AON sites now have access to OncoEMR MPI and can use it to order the Quest tests. Quest plans to launch the full OncoEMR MPI integration to providers nationwide in the second half of the year. 

"At AON, our aim is to provide comprehensive support, ancillary services and practice management benefits to help community physicians to make cancer care better. Empowering them to use OncoEMR MPI via Quest Diagnostics is an important step in that mission," said Dr. Brian Mulherin, Medical Director at AON. "Under this arrangement, our rapidly growing network of physicians can quickly and easily order Quest's innovative cancer tests, such as Haystack MRD, to help guide patient care." 

Providers in the pilot now have access to some of Quest's most innovative cancer tests, including Haystack MRD, a highly accurate circulating-tumor DNA (ctDNA) minimal residual disease (MRD) test for solid tumor cancers. In addition, the company's Comprehensive Genomic Profiling portfolio includes several panels that use advanced sequencing to identify up to 530 genes associated with therapy response, providing physicians with necessary insights to determine appropriate treatment for their patients. 

"At Quest Diagnostics, we strive to provide comprehensive cancer services that empower providers to work with patients to make optimal care decisions," said Asia Chang, Vice President and General Manager, Oncology at Quest Diagnostics. "We know that positive outcomes in oncology start with excellent diagnostics, but they don't stop there. We're looking forward to providing oncologists at AON and other organizations a single-source ordering and results solution via OncoEMR MPI, as well as the world-class expertise they've come to expect from Quest." 

Quest's integration of OncoEMR MPI reflects the company's strategy to make testing simpler and smarter, including through the use of specialized IT and EHR technologies. Last summer, the company began to offer its Haystack MRD test through the Epic Aura platform and now provides a range of specialized tests, from prenatal screening to Alzheimer's disease, through the platform. 

About Quest Diagnostics 

Quest Diagnostics works across healthcare to create a healthier world, one life at a time. We connect people, from clinicians to consumers, with laboratory insights that illuminate a path to better health. With a focus on delivering smarter, simpler testing, we help reveal new avenues to identify and treat disease, empower healthy behaviors and improve healthcare management. Quest Diagnostics serves half the physicians and hospitals in the United States and one in three American adults each year, and our nearly 57,000 employees work together to deliver diagnostic insights that inspire actions to transform lives. www.QuestDiagnostics.com 

About Flatiron Health 

Flatiron Health transforms cancer care and research through a unified, global oncology engine powered by expert-validated AI and deep clinical and scientific expertise. Built from the experiences of millions of patients across the US, UK, Germany, and Japan, our real-world evidence informs the research, regulatory, commercial, and treatment decisions shaping oncology today. In the US, our point-of-care technology empowers clinicians to deliver smarter, more connected care while generating deeper insights that help advance cancer research. Flatiron Health is an independent affiliate of the Roche Group. Flatiron.com @FlatironHealth

About American Oncology Network

American Oncology Network (AON) is an alliance of physicians and seasoned healthcare leaders partnering to ensure the long-term success and viability of community oncology and other specialties. Founded in 2018, AON's rapidly expanding network represents more than 350 providers practicing across 21 states. AON pioneers innovative healthcare solutions through its physician-led model, fostering value-based care that improves patient outcomes while reducing costs and expanding access to quality care. AON equips its network physicians with the tools they need to thrive independently while providing comprehensive support, integrated revenue-diversifying ancillary services, and practice management expertise, enabling physicians to focus on what matters most – providing the highest standard of care for every patient. AON is committed to promoting health equity by addressing disparities in cancer care and ensuring that all patients have access to the care they need to achieve optimal health outcomes. With a focus on innovation and collaboration, AON is shaping the future of community oncology. For more information, please visit AONcology.com more information, or follow us on LinkedIn, Facebook, X (formerly Twitter) and YouTube.

SOURCE Quest Diagnostics

Key Takeaways DGX posted strong physician channel growth and expanded hospital and consumer testing initiatives.DGX saw double-digit AD-Detect blood test revenue growth and expanded oncology MRD offerings.DGX is advancing AI, automation and Project Nova while managing a sizable debt load. Quest Diagnostics (DGX - Free Report) is well-poised for growth in the coming quarters, supported by its continued focus on meeting the evolving needs of its core customers — physicians, hospitals and consumers. The company is seeing continued momentum in Advanced Diagnostics, including the strong uptake of the AD-Detect blood test. Efforts to drive operational improvements through the adoption of AI, automation and other technologies also sound very encouraging. Yet, Quest Diagnostics’ solvency level remains a concern. Macroeconomic pressures can weigh on its operations, too.

Over the past year, this Zacks Rank #3 (Hold) stock has rallied 7.7% compared with the industry’s 8.2% growth and the S&P 500 composite’s 23.2% rise. 

The renowned provider of diagnostic information services has a market capitalization of $21.59 billion. Quest Diagnostics has an earnings yield of 5.50%. The company’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 3.50%.

Tailwinds Supporting DGXGrowth Momentum in Base Business: Quest Diagnostics delivered high single-digit growth in physician channel revenues in first-quarter 2026, driven by strong demand for innovative testing solutions, expanded health plan access and enterprise account growth. The company also recorded growth in end-stage renal disease, a newer clinical area focused on lab testing for dialysis patients. Volume growth was driven by Fresenius Medical Care’s dialysis network and contributions from newly added independent dialysis clinics and other providers.

In the hospital channel, the company’s flexible solutions allow customers to free up capital while accessing diagnostic innovation and expertise. In early 2026, Quest Diagnostics began scaling its Co-Lab Solutions, including reference laboratory testing, professional laboratory management services, laboratory workforce and supply-chain management, and analytics across all 21 hospitals of Corewell Health.

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The consumer-testing platform, QuestHealth.com, continues to gain strong momentum. Quest Diagnostics is deepening partnerships with leading consumer health and wellness brands like WHOOP and OURA Health, integrating its extensive laboratory testing and technology directly into their mobile platforms.

Strong Potential of Advanced Diagnostics: Quest Diagnostics drives growth across its customer channels through fast-growing, advanced diagnostics spanning five clinical areas — advanced cardiometabolic, autoimmune, brain health, oncology, and women's and reproductive health. In brain health, revenues from the AD-Detect blood test for Alzheimer's disease continued to grow at a double-digit rate in the first quarter of 2026.
The cardiometabolic and endocrine portfolio growth was driven by robust demand for tests of Lp(a) and ApoB, as well as for kidney, liver and reproductive hormones.

In oncology, the company continues to build its presence in blood-based minimal residual disease (MRD) testing. In January 2026, new research presented at the ASCO Gastrointestinal Cancers Symposium highlighted the strong clinical value of Quest Haystack MRD in monitoring colorectal cancer. The company also launched the Flow Cytometry MRD blood test for myeloma.

Operational Excellence, a Strategic Priority: Quest Diagnostics’ Invigorate program consistently targets 2% annual savings through structured plans to drive savings and improve productivity across the value chain.  The company is deploying automation and AI technologies to improve quality, service, efficiency and the workforce experience. The new Quest AI Companion tool transforms complex biomarker data and reference ranges on test reports into clear, plain language. Quest Diagnostics is scaling the planning and design work for Project Nova, a multi-year initiative to transform its order-to-cash processes and systems and is on track to implement the first wave of solutions in the fall of 2027.

What Ails DGX?Escalating Debt Level: At the end of the first quarter of 2026, long-term debt totaled $5.16 billion, while the cash and cash equivalent balance was only $393 million. The current portion of the debt was $503 million. Debt-to-capital ratio was 42.5%, down sequentially 1.6%.  A higher debt level induces higher interest payments, which come along with the risk of failure to pay the same. The times interest ratio, which indicates the company’s capacity to pay interest, was 6.3% in the quarter. 

Unstable Macroeconomic Backdrop: As the U.S. healthcare system continues to evolve, Quest Diagnostics faces several inherent risks. Government payers, such as Medicare and Medicaid, have taken steps to reduce the utilization and reimbursement of healthcare services, including clinical testing services. The industry-wide trend of consolidation has resulted in larger insurance plans with significant bargaining power, making it difficult for Quest Diagnostics to negotiate fee arrangements and possibly limiting access to its newer innovative solutions. With the new U.S. administration in place, any changes in U.S. healthcare regulation could have a material adverse effect on the company’s business.

DGX Stock Estimate TrendThe Zacks Consensus Estimate for Quest Diagnostics’ 2026 earnings per share (EPS) has remained constant at $10.72 in the past 30 days. 

The consensus estimate for the company’s 2026 revenues is pegged at $11.83 billion. This suggests 7.2% growth from the year-ago reported number.

Key PicksSome better-ranked stocks in the broader medical space are Globus Medical (GMED - Free Report) , Align Technology (ALGN - Free Report) and Integra LifeSciences (IART - Free Report) .

Globus Medical has an earnings yield of 5.9% compared to the industry’s negative 3.5% yield. Its earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 26.3%. GMED shares have rallied 35% against the industry’s 6.3% fall over the past year.

GMED sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Align Technology, sporting a Zacks Rank #1, has an estimated long-term earnings growth rate of 10.3% compared with the industry’s 5.5% growth. Shares of the company have dropped 6.8% against the industry’s 7.8% growth. ALGN’s earnings outpaced estimates in three of the trailing four quarters and missed on one occasion, the average surprise being 7.8%.

Integra LifeSciences, carrying a Zacks Rank #2 (Buy), has an earnings yield of 13.6% against the industry’s negative 3.5% yield. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 16.7%. IART shares have rallied 48.3% against the industry’s 6.4% decline over the past year.