Quest Diagnostics shares rise as strong clinical demand drives earnings beat

NEW YORK - On Tuesday, Quest Diagnostics Incorporated (NYSE:DGX) reported third-quarter results that exceeded analyst expectations, driven by robust demand for its clinical solutions and strategic acquisitions.

The diagnostic information services provider’s shares rose 4.51% in pre-market trading after the announcement.

The company reported adjusted earnings per share of $2.60 for the third quarter, beating the analyst estimate of $2.50. Revenue climbed 13.1% YoY to $2.82 billion, surpassing the consensus estimate of $2.73 billion. The strong performance was fueled by 6.8% organic growth, with broad-based adoption of clinical innovations and contributions from acquisitions.

"We delivered another quarter of robust top- and bottom-line growth, underscoring strong demand for our clinical solutions and diligent execution of our strategy," said Jim Davis, Chairman, CEO and President. "Revenues grew 13.1%, including 6.8% organic growth, driven by broad-based adoption of our clinical innovations, contributions from acquisitions, and growth in our consumer channel."

Following the strong quarterly results, Quest Diagnostics raised its full-year 2025 guidance. The company now expects adjusted earnings per share between $9.76 and $9.84, up from its previous forecast of $9.63 to $9.83 and above the analyst consensus of $9.75. Revenue is projected to be between $10.96 billion and $11 billion, compared to the previous guidance of $10.80 billion to $10.92 billion.

The company’s diagnostic information services revenues increased 13.5% to $2.76 billion, with requisition volume growing 12.5% and revenue per requisition up 0.8%. Cash provided by operations surged 57.4% to $563 million for the quarter.

Quest also announced several strategic initiatives, including an agreement with Corewell Health to establish a lab services joint venture in Michigan and the acquisition of select dialysis testing assets from Fresenius Medical Care.

"Given our strong performance year-to-date, we are again raising our full year 2025 guidance," Davis added.

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