Quest Diagnostics (DGX) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenues reached $2.90 billion, up 9.2% year-over-year, driven by strong organic growth, new partnerships, and broad-based demand for clinical innovations and collaborations.

• Adjusted diluted EPS grew 13.1% to $2.50, while reported diluted EPS increased 15.5% to $2.24, supported by productivity gains from automation and AI.

• Full-year 2026 revenue and EPS guidance was raised due to strong Q1 momentum and continued strategic focus.

• Innovations included the launch of AI Companion in the myQuest app, new high-sensitivity myeloma and advanced diagnostics tests, and expanded digital health initiatives.

• Completed a significant joint venture with Corewell Health, consolidating the entity and driving volume growth.

Financial highlights

• Net revenues for Q1 2026 were $2.895 billion, up 9.2% from $2.652 billion in Q1 2025; organic revenues grew by 9%.

• Diagnostic Information Services revenues rose 9.4% year-over-year, with requisition volume up 10.9% and organic volume up 10.8%.

• Reported operating income was $399 million (13.8% margin); adjusted operating income was $447 million (15.4% margin).

• Net income attributable to shareholders was $252 million, up 14.4% year-over-year.

• Cash from operations was $278 million, down from $314 million prior year due to timing and higher bonus payments; capital expenditures were $114 million for the quarter, with $550 million planned for the year.

Outlook and guidance

• Full-year 2026 revenue guidance raised to $11.78–$11.90 billion (6.8%–7.8% growth).

• Reported EPS expected at $9.58–$9.78; adjusted EPS at $10.63–$10.83.

• Cash from operations projected at ~$1.75 billion; capital expenditures at ~$550 million.

• Guidance excludes prospective M&A contributions and expects operating margin expansion.

• Sufficient liquidity is anticipated to fund operations, capital needs, dividends, and share repurchases.