Overview

• US diagnostic testing firm's Q2 revenue rose 10%, beating analyst expectations

• Adjusted EPS for Q2 increased 19%, beating analyst expectations

• Company raised full-year 2026 revenue and adjusted EPS guidance

Outlook

• Quest Diagnostics raises 2026 revenue outlook to $11.95 bln-$12.05 bln from $11.78 bln-$11.90 bln

• Company lifts 2026 reported diluted EPS forecast to $9.97-$10.17 from $9.58-$9.78

• Quest Diagnostics expects 2026 adjusted diluted EPS of $11.05-$11.25, up from $10.63-$10.83

Result Drivers

• ORGANIC GROWTH - Nearly all revenue growth came from organic gains across physician, hospital, and consumer channels

• ADVANCED DIAGNOSTICS - Double-digit revenue growth in Advanced Diagnostics, including Alzheimer's and cardiometabolic tests, contributed to results

• CONSUMER CHANNELS - Robust revenue growth from questhealth.com and consumer, wearable, and wellness partners supported results

Company press release: ID:nPn70YzCXa

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q2 Revenue	Beat	$3.04 bln	$2.97 bln (14 Analysts)
Q2 Adjusted EPS	Beat	$3.12	$2.83 (15 Analysts)
Q2 EPS		$2.84
Q2 Net Income		$320 mln

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 10 "strong buy" or "buy", 9 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the healthcare facilities & services peer group is "buy"

• Wall Street's median 12-month price target for Quest Diagnostics Inc is $225.00, about 7.2% above its July 22 closing price of $209.83

• The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 18 three months ago

Reuters Recommended Reads

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