Quest Diagnostics raises 2026 revenue and EPS guidance as third-quarter revenue rises 10%

Quest Diagnostics Incorporated (DGX) raised its full-year 2026 revenue and earnings guidance on Thursday, when it reported results for the quarter ended September 30. The results were disclosed in a press release attached to a regulatory filing.

Revenue for the quarter rose 10.0% to $3.10 billion, and diluted earnings per share were $2.78, up 28.7% from a year earlier. Adjusted diluted EPS, a non-GAAP measure that excludes special items such as restructuring charges and amortization, was $3.00, up 15.4%.

Here's how the company did:

• Diluted EPS: $2.78 vs. $2.16 a year earlier
• Adjusted diluted EPS: $3.00 vs. $2.60 a year earlier
• Revenue: $3.097 billion vs. $2.816 billion a year earlier
• Net income attributable to Quest Diagnostics: $312 million vs. $245 million a year earlier
• Operating income: $479 million vs. $386 million a year earlier

Requisition volume, or the number of test orders, rose 14.5% from a year earlier, while revenue per requisition fell 4.2%. Organic requisition volume rose 14.4%.

Diagnostic Information Services revenues were $3.035 billion, up 10.2% from $2.755 billion a year earlier.

For the first nine months, net revenues were $9.035 billion, up 9.8% from $8.229 billion a year earlier. Diluted EPS for the period was $7.86, up 19.6% from $6.57.

Guidance raised

The company raised its full-year 2026 revenue guidance to between $12.065 billion and $12.105 billion, from $11.95 billion to $12.05 billion previously. Net revenue growth is now expected at 9.3% to 9.7%, up from 8.3% to 9.2%.

Reported diluted EPS is now expected at $10.21 to $10.31, up from $9.97 to $10.17. Adjusted diluted EPS is now expected at $11.25 to $11.35, up from $11.05 to $11.25.

Cash provided by operations is now expected at approximately $1.90 billion, up from approximately $1.80 billion. Capital expenditures guidance is unchanged at approximately $550 million.

“We delivered revenue growth of 10% and adjusted EPS growth of over 15% on continued strength across our physician, hospital and consumer channels, complemented by productivity gains from automation and AI,” said Chairman, CEO and President Jim Davis. “With these growth trends and our strong performance, we are raising our revenue and EPS guidance for the full year.”

Costs and cash flow

Operating income rose 24.2% to $479 million, and the operating margin was 15.5%, up from 13.7%. On an adjusted basis, the operating margin was 16.7%, up from 16.3%.

Restructuring and integration charges were $3 million in the quarter, down from $11 million a year earlier. The company said the charges were primarily associated with workforce reductions and integration costs.

Cash provided by operations was $611 million, up 8.8%, while capital expenditures were $166 million, up 15.0%. For the nine months, operating cash flow was $1.486 billion, up 4.6% from $1.421 billion.

The outlook reconciliation estimates restructuring and integration charges of $20 million pre-tax for 2026.

Business highlights

The company said iPhone and iPad users in the United States can buy a tailored Quest laboratory test panel with over 50 biomarkers directly through the Apple Health app. The panel will be available to the public later this year.

The company finalized a definitive agreement to acquire select outreach lab assets from a leading health system and long-time Co-Lab Solutions customer in the Northeastern U.S. The filing gives no purchase price or closing date.

The company also continued work on its Co-Lab Solutions implementation and a joint venture lab with Corewell Health in Michigan.

The company extended its AD-Detect menu to include the FDA-cleared Roche Elecsys Phospho-Tau (217P) Plasma test, known as pTau217, and launched a test panel with pTau217, amyloid beta and APOE. The release says the panel is meant to help guide diagnosis and treatment decisions for Alzheimer's disease.

Project Nova has moved from the design phase to the solutions-build phase. The company continues to expect to deploy Epic solutions in its first lab in the fall of 2027.

The company will hold its 2027 Investor Day on March 25, 2027, at the New York Stock Exchange, with more information to come.

The release's cautionary statement refers to an incident described in a Form 8-K filed on October 22, 2026. This filing does not describe that incident.