Quest Diagnostics Reports Third Quarter 2026 Financial Results
QUEST DIAGNOSTICS INC (DGX) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 Quest Diagnostics Reports Third Quarter 2026 Financial Results; Raises Revenue and EPS Guidance for Full Year 2026 • Third quarter revenues of $3.10 billion, up 10.0% from 2025, on strong organic revenue growth • Third quarter reported diluted earnings per share ("EP
How this was made
The 30-second read
Why it matters
The earnings beat and raised guidance reinforce the company's growth narrative, likely prompting investors to add to positions.
Market read
The earnings release and guidance raise are material for DGX and may influence the broader healthcare services sector.
What to watch
Potential headwinds from reimbursement pressure or competitive pricing could temper upside.
Quest Diagnostics Reports Third Quarter 2026 Financial Results; Raises Revenue and EPS Guidance for Full Year 2026
Third-quarter net revenues increased 10.0%, reported diluted EPS increased 28.7%, and adjusted diluted EPS increased 15.4%. The company raised its full-year net revenue, reported diluted EPS, and adjusted diluted EPS guidance.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Three months ended September 30, 2026 net revenuesGAAP | $3.10B | – | 10.0 % |
| Three months ended September 30, 2026 Diagnostic Information Services revenuesGAAP | $3.04B | – | 10.2 % |
| Three months ended September 30, 2026 revenue per requisition changeother | (4.2) % | – | (4.2) % |
| Three months ended September 30, 2026 requisition volume changeother | 14.5 % | – | 14.5 % |
| Three months ended September 30, 2026 organic requisition volume changeother | 14.4 % | – | 14.4 % |
| Three months ended September 30, 2026 cost of servicesGAAP | $2.06B | – | – |
| Three months ended September 30, 2026 selling, general and administrativeGAAP | $523M | – | – |
| Three months ended September 30, 2026 amortization of intangible assetsGAAP | $37M | – | – |
| Three months ended September 30, 2026 other operating expense, netGAAP | $3M | – | – |
| Three months ended September 30, 2026 total operating costs and expenses, netGAAP | $2.62B | – | – |
| Three months ended September 30, 2026 operating incomeGAAP | $479M | – | 24.2 % |
| Three months ended September 30, 2026 operating income as a percentage of net revenuesGAAP | 15.5 % | – | 1.8 % |
| Three months ended September 30, 2026 interest expense, netGAAP | −$61M | – | – |
| Three months ended September 30, 2026 other (expense) income, netGAAP | −$2M | – | – |
| Three months ended September 30, 2026 income before income taxes and equity in earnings of equity method investeesGAAP | $416M | – | – |
| Three months ended September 30, 2026 income tax expenseGAAP | −$99M | – | – |
| Three months ended September 30, 2026 equity in earnings of equity method investees, net of taxesGAAP | $9M | – | – |
| Three months ended September 30, 2026 net incomeGAAP | $326M | – | – |
| Three months ended September 30, 2026 net income attributable to Quest DiagnosticsGAAP | $312M | – | 27.6 % |
| Three months ended September 30, 2026 basic EPSGAAP | $ 2.82 | – | – |
| Three months ended September 30, 2026 diluted EPSGAAP | $ 2.78 | – | 28.7 % |
| Three months ended September 30, 2026 cash provided by operationsGAAP | $611M | – | 8.8 % |
| Three months ended September 30, 2026 capital expendituresGAAP | $166M | – | 15.0 % |
| Three months ended September 30, 2026 adjusted operating incomenon-GAAP | $517M | – | 13.0 % |
| Three months ended September 30, 2026 adjusted operating income as a percentage of net revenuesnon-GAAP | 16.7 % | – | 0.4 % |
| Three months ended September 30, 2026 adjusted net income attributable to Quest Diagnosticsnon-GAAP | $338M | – | 14.2 % |
| Three months ended September 30, 2026 adjusted diluted EPSnon-GAAP | $ 3.00 | – | 15.4 % |
| Nine months ended September 30, 2026 net revenuesGAAP | $9.04B | – | 9.8 % |
| Nine months ended September 30, 2026 Diagnostic Information Services revenuesGAAP | $8.85B | – | 10.0 % |
| Nine months ended September 30, 2026 revenue per requisition changeother | (2.8) % | – | (2.8) % |
| Nine months ended September 30, 2026 requisition volume changeother | 12.9 % | – | 12.9 % |
| Nine months ended September 30, 2026 organic requisition volume changeother | 12.8 % | – | 12.8 % |
| Nine months ended September 30, 2026 operating incomeGAAP | $1.34B | – | 14.3 % |
| Nine months ended September 30, 2026 operating income as a percentage of net revenuesGAAP | 14.8 % | – | 0.6 % |
| Nine months ended September 30, 2026 net income attributable to Quest DiagnosticsGAAP | $884M | – | 18.4 % |
| Nine months ended September 30, 2026 diluted EPSGAAP | $ 7.86 | – | 19.6 % |
| Nine months ended September 30, 2026 cash provided by operationsGAAP | $1.49B | – | 4.6 % |
| Nine months ended September 30, 2026 capital expendituresGAAP | $418M | – | 13.2 % |
| Nine months ended September 30, 2026 adjusted operating incomenon-GAAP | $1.47B | – | 10.3 % |
| Nine months ended September 30, 2026 adjusted operating income as a percentage of net revenuesnon-GAAP | 16.2 % | – | — % |
| Nine months ended September 30, 2026 adjusted net income attributable to Quest Diagnosticsnon-GAAP | $969M | – | 14.7 % |
| Nine months ended September 30, 2026 adjusted diluted EPSnon-GAAP | $ 8.62 | – | 16.0 % |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Diagnostic Information ServicesRequisition volume increased 14.5 % and organic requisition volume increased 14.4 %, while revenue per requisition changed (4.2) %. | $3.04B | – | 10.2 % |
Full year 2026 outlook
- Revenue$12.065 billion to $12.105 billion
- NoteNet revenues increase of 9.3% to 9.7%
- NoteReported diluted EPS of $10.21 to $10.31
- NoteAdjusted diluted EPS of $11.25 to $11.35
- NoteCash provided by operations of Approximately $1.90 billion
- NoteCapital expenditures of Approximately $550 million
- NoteEstimated pre-tax charges of $20 million for restructuring and integration charges
- NoteEstimated pre-tax amortization expenses of $149 million
- NoteEstimated pre-tax net losses of $9 million associated with the increase in the fair value of the contingent consideration accrual associated with previous acquisitions
Capital returns
- Nine months ended September 30, 2026 purchases of treasury stock: $ 252 million; 2025: $ 150 million.
- Nine months ended September 30, 2026 dividends paid: $ 279 million; 2025: $ 263 million.
What drove it
- Third-quarter net revenue growth was supported by requisition volume growth of 14.5 % and organic requisition volume growth of 14.4 %.
- The company cited continued strength across physician, hospital and consumer channels.
- Management cited productivity gains from automation and AI.
- Adjusted operating income as a percentage of net revenues was 16.7 % compared with 16.3 %.
- The company announced an Apple Health app laboratory test panel initiative, a definitive agreement to acquire select outreach lab assets, progress with Co-Lab Solutions and Corewell Health, and additions to the AD-Detect menu.
Concerns
- Revenue per requisition changed (4.2) % in the third quarter and (2.8) % for the nine months ended September 30, 2026.
- The forward-looking statements identify the impact of the incident described in the Current Report on Form 8-K filed on October 22, 2026 as a risk, but this earnings release does not provide details of that incident.
- Full-year adjusted diluted EPS excludes special items, and the company stated that further impacts to earnings related to special items may occur throughout 2026.
- The company identified uncertainty around stock-option exercises and its stock price as factors affecting the amount of excess tax benefits.
What to watch
- Delivery against full-year net revenue guidance of $12.065 billion to $12.105 billion and net revenue growth guidance of 9.3% to 9.7%.
- Delivery against reported diluted EPS guidance of $10.21 to $10.31 and adjusted diluted EPS guidance of $11.25 to $11.35.
- Cash provided by operations guidance of Approximately $1.90 billion and capital expenditures guidance of Approximately $550 million.
- Progress on Project Nova, for which the company continues to expect to deploy Epic solutions in its first lab in the fall of 2027.
- The 2027 Investor Day scheduled for March 25, 2027.
Balance sheet and cash flow
- Cash and cash equivalents as of September 30, 2026: $ 797 million; December 31, 2025: $ 420 million.
- Accounts receivable, net as of September 30, 2026: $ 1,712 million; December 31, 2025: $ 1,408 million.
- Total assets as of September 30, 2026: $ 17,221 million; December 31, 2025: $ 16,225 million.
- Current portion of long-term debt as of September 30, 2026: $ 10 million; December 31, 2025: $ 504 million.
- Long-term debt as of September 30, 2026: $ 5,540 million; December 31, 2025: $ 5,167 million.
- Nine months ended September 30, 2026 net cash provided by operating activities: $ 1,486 million; 2025: $ 1,421 million.
- Nine months ended September 30, 2026 capital expenditures: $ (418) million; 2025: $ (369) million.
- Nine months ended September 30, 2026 business acquisitions, net of cash acquired: $ (39) million; 2025: $ (51) million.
- Nine months ended September 30, 2026 net cash used in investing activities: $ (455) million; 2025: $ (440) million.
- Nine months ended September 30, 2026 proceeds from borrowings: $ 494 million; 2025: $ 410 million.
- Nine months ended September 30, 2026 repayments of debt: $ (504) million; 2025: $ (1,011) million.
- Nine months ended September 30, 2026 net cash used in financing activities: $ (652) million; 2025: $ (1,101) million.
- Nine months ended September 30, 2026 net change in cash and cash equivalents and restricted cash: $ 377 million; 2025: $ (117) million.
Analysis
Quest Diagnostics reported a strong third quarter ended September 30, 2026. Net revenues were $ 3,097 million, up 10.0 %, while Diagnostic Information Services revenues were $ 3,035 million, up 10.2 %. Requisition volume increased 14.5 % and organic requisition volume increased 14.4 %, whereas revenue per requisition changed (4.2) %. Management attributed the performance to continued strength across physician, hospital and consumer channels.
Profit growth exceeded revenue growth on a reported basis. GAAP operating income was $ 479 million, up 24.2 %, and operating income as a percentage of net revenues was 15.5 % compared with 13.7 %. GAAP net income attributable to Quest Diagnostics was $ 312 million, up 27.6 %, and diluted EPS was $ 2.78, up 28.7 %. Adjusted operating income was $ 517 million, up 13.0 %, with adjusted operating income as a percentage of net revenues of 16.7 % compared with 16.3 %. Adjusted diluted EPS rose 15.4 % to $ 3.00.
Year-to-date performance remained positive. For the nine months ended September 30, 2026, net revenues were $ 9,035 million, up 9.8 %, GAAP diluted EPS was $ 7.86, up 19.6 %, and adjusted diluted EPS was $ 8.62, up 16.0 %. Cash provided by operations was $ 1,486 million compared with $ 1,421 million, while capital expenditures were $ 418 million compared with $ 369 million. The company used $ 252 million for purchases of treasury stock and paid $ 279 million in dividends during the nine-month period.
The balance sheet showed cash and cash equivalents of $ 797 million as of September 30, 2026, compared with $ 420 million at December 31, 2025. Long-term debt was $ 5,540 million and the current portion of long-term debt was $ 10 million. The company raised full-year 2026 guidance to net revenues of $12.065 billion to $12.105 billion, reported diluted EPS of $10.21 to $10.31, and adjusted diluted EPS of $11.25 to $11.35. It also guided to cash provided by operations of Approximately $1.90 billion and capital expenditures of Approximately $550 million.
The release highlights commercial and operational initiatives alongside the financial results, including a planned Apple Health app offering, an agreement to acquire select outreach lab assets, Co-Lab Solutions activity, additional AD-Detect testing, and Project Nova advancing to the solutions-build phase. The principal reported operating metric to monitor is revenue per requisition, which declined even as volume growth remained strong. The release also flags risks related to an incident described in a separate October 22, 2026 Form 8-K, without providing details in this earnings release.
Management, verbatim
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.
Jim Davis, Chairman, CEO and President
Our robust organic revenue growth demonstrates that our solutions are fulfilling the expanding clinical care needs of an aging population as well as the increasing number of people focused on prevention and wellness. With these growth trends and our strong performance, we are raising our revenue and EPS guidance for the full year.
Jim Davis, Chairman, CEO and President
Not in the filing
stated, not guessed- Gross margin was not reported.
- Free cash flow was not reported.
- A GAAP or adjusted income tax rate was not reported.
- Prior-quarter comparisons were not reported for the listed operating metrics.
- Quarterly cash flow statement line items beyond cash provided by operations and capital expenditures were not reported.
- Segment-level profitability was not reported.
- No previous-release outlook section was provided for comparison with actual results.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Quest Diagnostics released its Q3 2026 earnings via an SEC Form 8‑K, highlighting organic growth, new test panels, and an acquisition of lab assets.
Ticker impact
Quest Diagnostics issued updated guidance, raising full‑year 2026 revenue to $12.065‑$12.105 B and EPS to $10.21‑$10.31 after reporting Q3 results.
upward pressure as the market prices in the raised guidance
The company reported 10% revenue growth YoY and increased EPS, then lifted its full‑year outlook, which typically leads to buying interest.
Market effects
Higher demand for diagnostic services may benefit peers in the healthcare testing sector.
U.S. healthcare services segment could see modest uplift.
Limited to U.S. markets; no direct global macro effect.
Counterpoint
If the guidance raise is already priced in, the stock may face a short‑term pull‑back.
Key entities
- companyQuest Diagnostics Inc.
Provider of diagnostic information services, ticker DGX.
