Quest Diagnostics (DGX) Q4 2025 earnings summary

Executive summary

• Achieved double-digit growth in revenues and earnings per share for the full year 2025, driven by strong execution, clinical innovation, and strategic collaborations, including major joint ventures and consumer wellness partnerships.

• Fourth quarter revenues reached $2.81 billion, a 7.1% increase year-over-year, with full year revenues at $11.04 billion, up 11.8% from 2024.

• Reported diluted EPS for Q4 was $2.18 (up 11.8%), and adjusted diluted EPS was $2.42 (up 8.5%). Full year adjusted diluted EPS was $9.85 (up 10.3%).

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

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

Financial highlights

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

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

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

• Q4 adjusted diluted EPS was $2.42, up 8.5% year-over-year; reported diluted EPS was $2.18, up 11.8%.

• Cash from operations for 2025 was $1.89 billion, up 41.4% year-over-year; capital expenditures were $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.

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

• Guidance reflects no PAMA impact in 2026, weather-related headwinds in Q1, and $0.25 EPS dilution from Project Nova.

• Operating margin expected to expand versus 2025, despite low-margin ramp from Corewell and Fresenius partnerships.

• Quarterly dividend increased 7.5% to $0.86 per share.