Quest Diagnostics (DGX) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenues reached $3.04 billion, up 10.2% year-over-year, driven by strong clinical demand, expanded collaborations with Corewell Health and Fresenius Medical Care, and double-digit growth in Advanced Diagnostics.

• Adjusted diluted EPS rose 19.1% to $3.12, while reported diluted EPS increased 15% to $2.84; net income attributable to shareholders grew 13.4% to $320 million.

• Automation and AI investments enhanced productivity and customer engagement, supporting ongoing improvements and cost-saving initiatives.

• Full-year 2026 guidance for revenue and EPS was raised due to robust first-half performance and sustained demand.

• Innovations included new kidney care capabilities, expanded automation, digital health partnerships, and New York State approval for the Haystack MRD test.

Financial highlights

• Consolidated Q2 revenues were $3.04 billion, up 10.2% year-over-year; organic revenues grew 10%.

• Diagnostic Information Services revenues rose 10.3% year-over-year, with 13.1% volume growth; revenue per requisition declined 2.8% due to business mix.

• Adjusted operating income was $502 million (16.5% margin), up from $466 million; reported operating income was $459 million (15.1% margin).

• Adjusted net income was $350 million (up 17.3%); cash from operations for the first half was $875 million, up from $858 million.

• Capital expenditures for the first half were $252 million; full-year capex expected at ~$550 million.

Outlook and guidance

• Full-year 2026 revenue guidance raised to $11.95–$12.05 billion (8.3%–9.2% growth); adjusted diluted EPS expected at $11.05–$11.25, reported EPS at $9.97–$10.17.

• Cash from operations projected at ~$1.8 billion; capital expenditures at ~$550 million.

• Operating margin expected to expand year-over-year; share count to be slightly below 2025.

• Guidance assumes a 30 basis point revenue impact from ACA exchange subsidy expiration and higher fuel costs.

• Adjusted effective tax rate for 2026 expected to be consistent with 2025.