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Sep 30
Quest Diagnostics Q3 2025 Earnings Report
Quest Diagnostics reported robust third quarter 2025 financial results, with significant increases in revenues, EPS, and cash provided by operations, leading to raised full-year guidance.
Key Takeaways
Quest Diagnostics delivered strong third-quarter performance, with revenues up 13.1% to $2.82 billion and adjusted diluted EPS increasing by 13.0% to $2.60. The company's organic growth was 6.8%, driven by clinical innovations and consumer channel expansion. Strategic initiatives, including a new lab services joint venture with Corewell Health and acquisitions, contributed to the positive results, leading to an upward revision of full-year 2025 guidance.
Third quarter revenues reached $2.82 billion, marking a 13.1% increase from the previous year.
Reported diluted EPS grew by 8.5% to $2.16, while adjusted diluted EPS rose by 13.0% to $2.60.
Cash provided by operations for the quarter was $563 million, a substantial 57.4% increase year-over-year.
The company raised its full-year 2025 guidance for net revenues, reported diluted EPS, and adjusted diluted EPS, reflecting strong year-to-date performance.
Quest Diagnostics
Quest Diagnostics
Quest Diagnostics Revenue by Segment
Revenue by Segment
Diagnostic Information Services Revenue
CapyFin.com Forward Guidance
Quest Diagnostics has raised its full-year 2025 guidance, anticipating higher net revenues and improved diluted EPS, both reported and adjusted, while maintaining capital expenditure estimates.
Positive Outlook
- Net revenues are now expected to be between $10.96 billion and $11.00 billion, an increase from prior guidance.
- Reported diluted EPS guidance has been raised to $8.58 to $8.66.
- Adjusted diluted EPS guidance is now expected to be between $9.76 and $9.84, also an increase.
- Cash provided by operations is projected to be approximately $1.8 billion, significantly higher than the previous estimate of $1.55 billion.
- The company's strong performance year-to-date underpins the raised outlook.
Challenges Ahead
- The guidance for reported diluted EPS at the low end ($8.58) is slightly below the prior low end ($8.60).
- Future impacts to earnings related to special items may occur throughout 2025, which are not fully predictable.
- The amount of Excess Tax Benefits (ETB) is dependent on employee stock option exercises and stock price, making it difficult to predict accurately.
- The forward-looking statements involve risks and uncertainties that could cause actual results to be materially different.
- No specific negative revisions to guidance were explicitly stated, but inherent market and operational risks remain.