Quest Diagnostics (DGX) Q4 2025 earnings summary

Executive summary

• Achieved double-digit growth in revenues and earnings per share for 2025, driven by clinical innovation, strategic collaborations, and operational enhancements.

• Q4 2025 revenues reached $2.81 billion, up 7.1% year-over-year; full-year revenues were $11.04 billion, up 11.8%.

• Strategic collaborations and acquisitions expanded geographic reach and service offerings, including a major joint venture with Corewell Health and new consumer wellness partnerships.

• Operational improvements included 3% annual cost savings and productivity gains through automation and AI.

• Continued execution of strategic initiatives, including clinical innovation and new collaborations, supported robust performance.

Financial highlights

• Q4 consolidated revenues: $2.81 billion, up 7.1% year-over-year; full-year 2025 net revenues: $11.04 billion, up 11.8%.

• Diagnostic information services revenues up 12.2% year-over-year to $10.79 billion.

• Q4 adjusted operating income: $429 million (15.3% margin); reported: $386 million (13.8% margin).

• Q4 adjusted EPS: $2.42 (up 8.5%); reported EPS: $2.18 (up 11.8%). Full-year adjusted EPS: $9.85 (up 10.3%); reported EPS: $8.75 (up 13.8%).

• Cash from operations for 2025: $1.89 billion, up 41.4% year-over-year; capital expenditures: $527 million, up 23.8%.

Outlook and guidance

• 2026 revenue guidance: $11.7–$11.82 billion (6–7.1% growth); reported EPS: $9.45–$9.65; adjusted EPS: $10.50–$10.70.

• 2026 cash from operations expected at ~$1.75 billion; capital expenditures ~$550 million.

• Guidance reflects no PAMA impact, includes weather-related headwinds, higher tax rate, and one additional payroll cycle.

• Project Nova to dilute EPS by ~$0.25 in 2026 due to increased investment.

• Co-lab with Corewell Health to add ~$250 million in organic revenue at low single-digit margins in 2026.