Quest Diagnostics Lifts 2025 Outlook on Double-Digit Revenue and EPS Growth
Guidance Raised as Double-Digit Revenue and EPS Growth Continue
Quest Diagnostics (NYSE: DGX) is signaling stronger days ahead after posting third quarter revenues of $2.82 billion—up 13.1% over last year—while also increasing its full-year guidance for 2025. Adjusted diluted earnings per share (EPS) rose by 13% to $2.60, underlining both top-line and margin expansion for the quarter ended September 30, 2025. CEO Jim Davis attributes these results to robust organic growth, a wave of strategic acquisitions, and deepening relationships across the healthcare ecosystem, from hospital systems to wellness tech companies.
Strategic Partnerships and Acquisitions Drive Revenue Growth
This quarter, Quest signed a landmark joint venture with Corewell Health to deliver lab services to 21 hospitals in Michigan. It also completed an acquisition of select dialysis testing assets from Fresenius Medical Care, expanding access to nearly 200,000 dialysis patients annually. Quest is further embedding itself into the digital wellness space via partnerships with mobile health companies WHOOP and OURA Health. These collaborations are expected to bring additional volume and relevance to Quest’s suite of consumer health offerings, fueling continued momentum.
Cash Flow Strengthens Amid Rising Investment in Growth
Operational efficiency remains a hallmark, with year-to-date cash from operations climbing 63.1% to $1.42 billion compared to 2024. The company expects this to hit roughly $1.8 billion for the full year—comfortably higher than prior forecasts. Investments in growth also rose, with capital expenditures up 22.3% so far this year as Quest fortifies its clinical infrastructure and digital capabilities.
| Key Metric | Q3 2025 | Q3 2024 | % Change |
|---|---|---|---|
| Net Revenues | $2,816M | $2,488M | 13.1% |
| Adjusted Diluted EPS | $2.60 | $2.30 | 13.0% |
| Operating Cash Flow (YTD) | $1,421M | $870M | 63.1% |
| Adjusted Operating Margin | 16.3% | 15.5% | +0.8 pts |
| Diagnostic Info Services Revenues | $2,755M | $2,427M | 13.5% |
Outlook Raised: 2025 Guidance Reflects Growing Momentum
Reflecting continued strength, Quest now projects full-year 2025 revenues between $10.96 billion and $11.00 billion (an 11.0% to 11.4% increase), up from previous guidance. Adjusted diluted EPS is expected between $9.76 and $9.84, with cash from operations seen around $1.8 billion—an upgrade from $1.55 billion prior guidance.
| 2025 Guidance | Prior Guidance | % Increase |
|---|---|---|
| Net Revenues: $10.96B – $11.00B | $10.80B – $10.92B | ~1.5% – 1.7% |
| Adjusted Diluted EPS: $9.76 – $9.84 | $9.63 – $9.83 | Up to +1.3% |
| Operating Cash Flow: ~$1.8B | ~$1.55B | +16% |
Investments in Innovation and Expansion Underpin Growth Story
Quest’s innovation pipeline is robust, including confirmatory Alzheimer’s testing, FDA breakthrough designations for new oncology diagnostics, and integration as the technology backbone for health system IT initiatives. The company’s wide-ranging clinical partnerships—from hospital lab joint ventures to integration into popular consumer health devices—reflect its growing presence as the 'lab engine' across traditional and emerging health sectors.
What to Watch Going Forward
As the company heads toward its Q4 earnings, investors will be watching execution on new partnerships, scaling of the Co-Lab Solutions platform, and potential impacts of macroeconomic or regulatory shifts. For now, Quest’s ability to combine operational discipline with forward-looking expansion positions it as a standout performer among healthcare service peers.
For more information, see the complete results and call details at Quest Diagnostics’ investor relations page.
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