Quest Diagnostics (DGX) investor relations material

Executive summary

• Q3 revenue rose 10.0% to $3.097B and adjusted diluted EPS increased 15.4% to $3.00, supported by organic growth across channels and productivity gains.

• Strong momentum prompted higher FY2026 revenue and EPS guidance; demand reflects aging-population care needs and rising focus on prevention and wellness.

Financial highlights

• Q3 reported operating income increased 24.2% to $479M; adjusted operating income rose 13.0% to $517M.

• Q3 reported net income was $312M vs. $245M, and diluted EPS was $2.78 vs. $2.16; adjusted EPS was $3.00 vs. $2.60.

• 9M revenue rose 9.8% to $9.035B; adjusted net income increased 14.7% to $969M and adjusted diluted EPS rose 16.0% to $8.62.

• 9M cash from operations was $1.486B vs. $1.421B; the prior-year comparison benefited from a one-time CARES Act tax credit, partly offset by working-capital timing.

Outlook and guidance

• FY2026 revenue guidance increased to $12.065B–$12.105B, or 9.3%–9.7% growth; reported diluted EPS guidance is $10.21–$10.31 and adjusted diluted EPS $11.25–$11.35.

• Cash from operations guidance increased to ~$1.9B from ~$1.8B; capital expenditures remain ~$550M, and operating margin is expected to expand YoY.

• Guidance assumes a tax rate consistent with 2025, lower interest expense and a slightly lower share count; revenue guidance excludes prospective M&A.

• Project Nova is expected to reduce FY2026 EPS by $0.25, with ~70% of expenses incurred in H2.

• PAMA is estimated to reduce 2027 revenue by ~1%; cumulative 2027–2029 impact is expected below 1.3%, with some offset. FY2027 guidance is planned with Q4 results.