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.
First quarter revenues of $2.90 billion, up 9.2% from 2025, with 9.0% organic revenue growth.
positiveFirst 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.
positiveRaised full year 2026 guidance for reported diluted EPS to $9.58-$9.78 and adjusted diluted EPS to $10.63-$10.83.
positiveOperating income increased 15.5% to $399 million on a reported basis and 10.0% to $447 million on an adjusted basis.
positiveOperating margin improved by 80 bps to 13.8% on a reported basis and by 10 bps to 15.4% on an adjusted basis.
positiveNet cash provided by operating activities decreased 11.6% to $278 million in Q1 2026 compared to $314 million in Q1 2025.
negativeInventories increased to $225 million from $189 million in the prior quarter, a 19% increase.
attentionAccounts receivable increased by $179 million sequentially to $1,587 million, outpacing revenue growth.
attentionAmortization expense was $37 million for the quarter, impacting reported results.
attentionMargin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.
Forward-looking guidance is subject to change and does not constitute a guarantee. Actual results may differ materially from these estimates.
| 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 |
approximately $550 million · 2026
Special items are non-recurring events that may distort period-over-period comparisons. Analysts typically adjust for these when calculating normalized earnings.
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.
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Operational metrics provide insight into business drivers and customer engagement beyond traditional financial measures.