QUEST DIAGNOSTICS INC (DGX) Earnings History
QUEST DIAGNOSTICS INC - Q1 2026 EarningsBeat
EXECUTIVE SUMMARY
Quest Diagnostics reported strong first-quarter results with significant revenue and adjusted EPS growth, driven by organic expansion and disciplined execution. The company raised its full-year guidance, reflecting confidence in continued performance and strategic focus.
POSITIVE HIGHLIGHTS
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First quarter revenues of $2.90 billion, up 9.2% from 2025, with 9.0% organic revenue growth.
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First quarter reported diluted earnings per share ("EPS") of $2.24, up 15.5% from 2025; and adjusted diluted EPS of $2.50, up 13.1% from 2025.
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Raised full year 2026 guidance for reported diluted EPS to $9.58-$9.78 and adjusted diluted EPS to $10.63-$10.83.
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Operating income increased 15.5% to $399 million on a reported basis and 10.0% to $447 million on an adjusted basis.
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Operating margin improved by 80 bps to 13.8% on a reported basis and by 10 bps to 15.4% on an adjusted basis.
positive
CONCERNS & RISKS
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Net cash provided by operating activities decreased 11.6% to $278 million in Q1 2026 compared to $314 million in Q1 2025.
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Inventories increased to $225 million from $189 million in the prior quarter, a 19% increase.
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Accounts receivable increased by $179 million sequentially to $1,587 million, outpacing revenue growth.
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Amortization expense was $37 million for the quarter, impacting reported results.
attention
FINANCIAL METRICS
MARGIN ANALYSIS
Margin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.
MANAGEMENT GUIDANCE
FY2026
Forward-looking guidance is subject to change and does not constitute a guarantee. Actual results may differ materially from these estimates.
EARNINGS CALL —
CALL GUIDANCE — Q1 2026 2026
| Metric | Value | Period | Specificity | vs Prior |
|---|---|---|---|---|
| revenue | $11.78 billion and $11.90 billion | FY2026 | tight_range | New |
| reported_eps | $9.58 to $9.78 | FY2026 | tight_range | Lowered |
| adjusted_eps | $10.63 to $10.83 | FY2026 | tight_range | Raised |
| cash_from_operations | $1.75 billion | FY2026 | point | Maintained |
| capital_expenditures | $550 million | FY2026 | point | Maintained |
| cost_savings | 3% | annual | point | New |
| project_nova_implementation | fall of 2027 | multi-year | point | New |
CAPITAL ALLOCATION — Q1 2026 2026
- capex_policycontinue
approximately $550 million · 2026
MACRO STANCE — Q1 2026 2026
- inflationheadwindnew
SPECIAL ITEMS & ADJUSTMENTS
Special items are non-recurring events that may distort period-over-period comparisons. Analysts typically adjust for these when calculating normalized earnings.
MANAGEMENT COMMENTARY
Our more than 9% revenue growth, almost entirely organic, and approximately 13% adjusted diluted earnings per share growth reflect our team’s disciplined execution of our strategy to deliver innovative diagnostic solutions for our customers’ evolving needs.
We are raising our revenue and EPS guidance for the year, given our robust first quarter performance and continued strategic focus.
Serving Clinicians and Health Systems: Continued to advance our Co-Lab Solutions implementation and joint venture laboratory with Corewell Health.
Commentary excerpts from earnings call transcripts provide management's perspective on performance, strategy, and outlook. Always review full transcripts for complete context.
OPERATIONAL METRICS
Operational metrics provide insight into business drivers and customer engagement beyond traditional financial measures.