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Quest Diagnostics Q3 EPS rises 28.7% to $2.78

Quest raised its 2026 revenue and EPS ranges after third-quarter revenue and both reported and adjusted diluted EPS increased year over year.

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Form Type
8-K

Rhea-AI Filing Summary

Quest Diagnostics (DGX) reported third-quarter 2026 net revenues of $3.097 billion, up 10.0% year over year. Reported diluted EPS was $2.78, up 28.7%, while adjusted diluted EPS was $3.00, up 15.4%; adjusted measures exclude special items and are not substitutes for GAAP results. Operating income was $479 million, up 24.2%, and cash provided by operations was $611 million, up 8.8%. Requisition volume increased 14.5%, while revenue per requisition declined 4.2%.

Quest raised full-year 2026 guidance: net revenues are expected between $12.065 billion and $12.105 billion, reported diluted EPS between $10.21 and $10.31, and adjusted diluted EPS between $11.25 and $11.35. Cash provided by operations is expected to be approximately $1.90 billion; capital expenditures are expected to be approximately $550 million. The company finalized a definitive agreement to acquire select outreach lab assets from a leading health system and long-time Co-Lab Solutions customer in the Northeastern U.S. It continues to expect Epic solutions to be deployed in its first lab in fall 2027.

5 points · 1 major

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0 major · 0 points

Hollow bars mark forward-looking points. How the balance works

Positive

  • Major point. Forward-looking: it has not happened yet and may not happen.Full-year 2026 adjusted diluted EPS guidance rose to $11.25-$11.35.
  • Moderate pointThird-quarter revenue rose 10.0% to $3.097 billion year over year.
  • Moderate pointReported diluted EPS rose 28.7% to $2.78 year over year.
  • Moderate pointCash provided by operations increased 8.8% to $611 million.
  • Minor pointAdjusted diluted EPS rose 15.4% to $3.00 year over year.

Negative

  • None.

Filing Explained

At September 30, 2026, Quest's reported cash balance exceeded its current debt, while long-term debt remained outstanding.

The earnings release attached to this Form 8-K reports third-quarter results; requisitions rose 14.5% while revenue per requisition fell 4.2%, so higher order volume coincided with less revenue per order.

Item 2.02 Results of Operations and Financial Condition Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01 Financial Statements and Exhibits Exhibits
Financial statements, pro forma financial information, or exhibit attachments filed with this report.
Net revenues $3.097 billion Third quarter 2026; up 10.0% from 2025
Reported diluted EPS $2.78 per share Third quarter 2026; up 28.7% from 2025
Adjusted diluted EPS $3.00 per share Third quarter 2026; up 15.4% from 2025
Cash provided by operations $611 million Third quarter 2026; up 8.8% from 2025
2026 net revenues guidance Between $12.065 billion and $12.105 billion Updated full-year 2026 guidance
2026 reported diluted EPS guidance Between $10.21 and $10.31 per share Updated full-year 2026 guidance
2026 adjusted diluted EPS guidance Between $11.25 and $11.35 per share Updated full-year 2026 guidance
adjusted diluted EPS financial
"adjusted diluted EPS of $3.00"
Adjusted diluted EPS is a company’s profit per share after adding back or removing one-time items (like restructuring costs or gains) and dividing by the number of shares including potential shares from options and convertible securities. Investors use it as a cleaner view of ongoing earnings—like looking at a car’s regular fuel efficiency rather than a trip boosted by downhill coasting—to judge underlying performance and compare companies without temporary distortions.
requisition volume financial
"Requisition volume 14.5%"
The total number or quantity of purchase requests or orders submitted to a supplier, vendor, laboratory, or internal procurement system over a given period. It measures how many units, tests, services, or items have been formally requested, and acts like a shopping list that signals upcoming demand, production needs, inventory changes and the near-term sales pipeline that investors watch as an indicator of future revenue and operational pressure.
non-GAAP financial
"non-GAAP adjusted measures are presented"
Non-GAAP refers to financial measures that companies use to show their earnings or performance without including certain expenses or income that are often added back to give a different picture. It matters because it can make a company's results look better or more favorable, but it may also hide important costs, so investors need to look at both GAAP (official rules) and non-GAAP numbers to get a full understanding.
contingent consideration accrual financial
"fair value of the contingent consideration accrual"
Net revenues $3.097 billion Up 10.0% year over year
Reported diluted EPS $2.78 per share Up 28.7% year over year
Adjusted diluted EPS $3.00 per share Up 15.4% year over year
Cash provided by operations $611 million Up 8.8% year over year
Guidance

Updated full-year 2026 guidance: net revenues between $12.065 billion and $12.105 billion; reported diluted EPS between $10.21 and $10.31; adjusted diluted EPS between $11.25 and $11.35; cash provided by operations approximately $1.90 billion; capital expenditures approximately $550 million.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were DGX's third-quarter 2026 revenue and EPS?
Quest Diagnostics reported net revenues of $3.097 billion, up 10.0% year over year, with reported diluted EPS of $2.78 and adjusted diluted EPS of $3.00. Reported EPS rose 28.7% and adjusted EPS rose 15.4% from 2025.

What is DGX's updated full-year 2026 guidance?
Quest expects net revenues between $12.065 billion and $12.105 billion, reported diluted EPS between $10.21 and $10.31, and adjusted diluted EPS between $11.25 and $11.35. It also expects approximately $1.90 billion in cash provided by operations and approximately $550 million in capital expenditures.

When will Quest's Apple Health test panel be available?
Quest announced a tailored test panel with over 50 biomarkers for U.S. iPhone and iPad users to purchase through Apple Health; the panel is to be available to the public later this year.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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0001022079false00010220792026-10-222026-10-22

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 8-K
CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of Earliest Event Reported): October 22, 2026
Quest Diagnostics Incorporated
(Exact Name of Registrant as Specified in Its Charter)
Delaware
(State or other jurisdiction of incorporation)
001-1221516-1387862
(Commission File Number)(I.R.S. Employer Identification No.)
500 Plaza Drive
Secaucus, NJ07094
(Address of principal executive offices)(Zip Code)
(973)520-2700
(Registrant's telephone number, including area code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, $0.01 Par ValueDGXNew York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
    Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐



Item 2.02. Results of Operations and Financial Condition

On October 22, 2026, Quest Diagnostics Incorporated (the "Company") issued a press release announcing, among other things, its results for the quarter ended September 30, 2026. A copy of the press release is attached hereto as Exhibit 99.1 and is incorporated by reference herein.
    
Item 9.01. Financial Statements and Exhibits
d. Exhibit
99.1
Press release of Quest Diagnostics Incorporated dated October 22, 2026, announcing, among other things, its results for the quarter ended September 30, 2026.
104The cover page from this current report on Form 8-K, formatted in Inline XBRL.


Signature
    
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

October 22, 2026

QUEST DIAGNOSTICS INCORPORATED
By:/s/ Sean D. Mersten
Sean D. Mersten
Vice President and Corporate Secretary






Exhibit 99.1


Quest Diagnostics Reports Third Quarter 2026 Financial Results;
Raises Revenue and EPS Guidance for Full Year 2026
    
•Third quarter revenues of $3.10 billion, up 10.0% from 2025, on strong organic revenue growth
•Third quarter reported diluted earnings per share ("EPS") of $2.78, up 28.7% from 2025; and adjusted diluted EPS of $3.00, up 15.4% from 2025
•Full year 2026 revenues now expected to be between $12.065 billion and $12.105 billion
•Full year 2026 reported diluted EPS now expected to be between $10.21 and $10.31; and adjusted diluted EPS expected to be between $11.25 and $11.35

SECAUCUS, N.J., October 22, 2026 - Quest Diagnostics Incorporated (NYSE: DGX), a leading provider of diagnostic information services, today announced financial results for the third quarter ended September 30, 2026.

“We delivered revenue growth of 10% and adjusted EPS growth of over 15% on continued strength across our physician, hospital and consumer channels, complemented by productivity gains from automation and AI,” said Jim Davis, Chairman, CEO and President. “Our robust organic revenue growth demonstrates that our solutions are fulfilling the expanding clinical care needs of an aging population as well as the increasing number of people focused on prevention and wellness. With these growth trends and our strong performance, we are raising our revenue and EPS guidance for the full year.”

Recent Highlights:

•Announced the ability for iPhone and iPad users in the United States to conveniently purchase a tailored Quest laboratory test panel with over 50 biomarkers directly through the Apple Health app, available to the public later this year.
•Finalized a definitive agreement to acquire select outreach lab assets from a leading health system and long-time Co-Lab Solutions customer in the Northeastern U.S. Continued to advance our Co-Lab Solutions implementation and joint venture lab with Corewell Health in Michigan.
•Extended our AD-Detect® menu to include the FDA-cleared Roche Elecsys® Phospho-Tau (217P) Plasma (pTau217) blood test and launched a new AD-Detect test panel with pTau217, amyloid beta and APOE to help guide diagnosis and treatment decisions for Alzheimer’s disease.
•Advanced Project Nova from the design phase to the solutions-build phase and continue to expect to deploy Epic solutions in our first lab in the fall of 2027.

The company will hold its 2027 Investor Day on March 25, 2027, at the New York Stock Exchange. Additional information will be provided closer to the event.

1



Three Months Ended September 30,Nine Months Ended September 30,
20262025Change20262025Change
(dollars in millions, except per share data)
Reported:
Net revenues$3,097 $2,816 10.0 %$9,035 $8,229 9.8 %
Diagnostic Information Services revenues$3,035 $2,755 10.2 %$8,845 $8,043 10.0 %
Revenue per requisition(4.2)%(2.8)%
Requisition volume14.5 %12.9 %
  Organic requisition volume14.4 %12.8 %
Operating income (a)$479 $386 24.2 %$1,337 $1,170 14.3 %
Operating income as a percentage of net revenues (a)15.5 %13.7 %1.8 %14.8 %14.2 %0.6 %
Net income attributable to Quest Diagnostics (a)$312 $245 27.6 %$884 $747 18.4 %
Diluted EPS (a)$2.78 $2.16 28.7 %$7.86 $6.57 19.6 %
Cash provided by operations $611 $563 8.8 %$1,486 $1,421 4.6 %
Capital expenditures$166 $144 15.0 %$418 $369 13.2 %
Adjusted (a):
Operating income$517 $458 13.0 %$1,466 $1,330 10.3 %
Operating income as a percentage of net revenues16.7 %16.3 %0.4 %16.2 %16.2 %— %
Net income attributable to Quest Diagnostics$338 $296 14.2 %$969 $845 14.7 %
Diluted EPS$3.00 $2.60 15.4 %$8.62 $7.43 16.0 %
(a)For further details impacting the year-over-year comparisons related to operating income, operating income as a percentage of net revenues, net income attributable to Quest Diagnostics, and diluted EPS, see note 2 of the financial tables attached below.

Updated Guidance for Full Year 2026

The company updates its full year 2026 guidance as follows:

Updated GuidancePrior Guidance
LowHighLowHigh
Net revenues$12.065 billion$12.105 billion$11.95 billion$12.05 billion
Net revenues increase9.3%9.7%8.3%9.2%
Reported diluted EPS$10.21$10.31$9.97$10.17
Adjusted diluted EPS$11.25$11.35$11.05$11.25
Cash provided by operationsApproximately $1.90 billionApproximately $1.80 billion
Capital expenditures  Approximately $550 millionApproximately $550 million

Note on Non-GAAP Financial Measures

As used in this press release the term “reported” refers to measures under accounting principles generally accepted in the United States (“GAAP”). The term “adjusted” refers to non-GAAP operating performance measures that exclude special items such as restructuring and integration charges, amortization expense, excess tax benefits ("ETB") associated with stock-based compensation, gains and losses associated with changes in the carrying value of our strategic investments and other items.

Non-GAAP adjusted measures are presented because management believes those measures are useful adjuncts to GAAP results. Non-GAAP adjusted measures should not be considered as an alternative to the corresponding measures determined under GAAP. Management may use these non-GAAP measures to evaluate our performance period over period and relative to competitors, to analyze the underlying trends in our business, to establish operational budgets and forecasts and for incentive compensation purposes.
2



We believe that these non-GAAP measures are useful to investors and analysts to evaluate our performance period over period and relative to competitors, as well as to analyze the underlying trends in our business and to assess our performance. The additional tables attached below include reconciliations of non-GAAP adjusted measures to GAAP measures.

Conference Call Information

Quest Diagnostics will hold its quarterly conference call to discuss financial results beginning at 8:30 a.m. Eastern Time today. The conference call can be accessed by dialing 888-455-0391 within the U.S. and Canada, or 773-756-0467 internationally, passcode: 7895081; or via live webcast on our website at www.QuestDiagnostics.com/investor. We suggest participants dial in approximately 10 minutes before the call.

A replay of the call may be accessed online at www.QuestDiagnostics.com/investor or, from approximately 10:30 a.m. Eastern Time on October 22, 2026 until midnight Eastern Time on November 5, 2026, by phone at 866-388-5361 for domestic callers or 203-369-0416 for international callers. Anyone listening to the call is encouraged to read our periodic reports, on file with the Securities and Exchange Commission, including the discussion of risk factors and historical results of operations and financial condition in those reports.

About Quest Diagnostics

Quest Diagnostics works across healthcare to create a healthier world, one life at a time. We help connect people, from clinicians to consumers, with laboratory insights that illuminate a path to better health. With a focus on delivering smarter, simpler testing, our insights reveal new avenues to identify and treat disease, inspire healthy behaviors and improve healthcare management. Quest Diagnostics serves half the physicians and hospitals in the United States and one in three adult Americans each year, and our nearly 60,000 employees work together to deliver diagnostic insights that inspire actions to transform lives. www.QuestDiagnostics.com.

Forward Looking Statements

The statements in this press release which are not historical facts may be forward-looking statements. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date that they are made and which reflect management’s current estimates, projections, expectations or beliefs and which involve risks and uncertainties that could cause actual results and outcomes to be materially different. Risks and uncertainties that may affect the future results of the company include, but are not limited to, the impact of the incident described in the Current Report on Form 8-K filed on October 22, 2026, uncertain and volatile economic conditions, adverse results from pending or future government investigations, lawsuits or private actions, the competitive environment, the complexity of billing, reimbursement and revenue recognition for clinical laboratory testing, changes in government policies, including related to trade, and regulations, changing relationships with customers, payers, suppliers or strategic partners, acquisitions and other factors discussed in the company's most recently filed Annual Report on Form 10-K and in any of the company's subsequently filed Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, including those discussed in the “Business,” “Risk Factors,” “Cautionary Factors that May Affect Future Results” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of those reports.

For further information: Wendy Bost, Quest Diagnostics (Media): 973-520-2800, Damini Chokshi, Quest Diagnostics (Investors): 973-520-2900

This earnings release, including the attached financial tables, is available online in the Newsroom section at www.QuestDiagnostics.com.


ADDITIONAL TABLES FOLLOW
3


Quest Diagnostics Incorporated and Subsidiaries
Consolidated Statements of Operations
For the Three and Nine Months Ended September 30, 2026 and 2025
(in millions, except per share data)
(unaudited)
Three Months Ended September 30,Nine Months Ended September 30,
2026202520262025
Net revenues $3,097 $2,816 $9,035 $8,229 
Operating costs and expenses and other operating income:
Cost of services2,055 1,867 6,024 5,474 
Selling, general and administrative 523 501 1,556 1,463 
Amortization of intangible assets37 39 112 117 
Other operating expense, net3 23 6 5 
Total operating costs and expenses, net 2,618 2,430 7,698 7,059 
Operating income479 386 1,337 1,170 
Other income (expense):
Interest expense, net(61)(66)(187)(200)
Other (expense) income, net(2)8 12 18 
Total non-operating expense, net(63)(58)(175)(182)
Income before income taxes and equity in earnings of equity method investees416 328 1,162 988 
Income tax expense(99)(77)(261)(233)
Equity in earnings of equity method investees, net of taxes9 8 23 35 
Net income326 259 924 790 
Less: Net income attributable to noncontrolling interests14 14 40 43 
Net income attributable to Quest Diagnostics$312 $245 $884 $747 
Earnings per share attributable to Quest Diagnostics’ common stockholders:
Basic$2.82 $2.18 $7.97 $6.66 
Diluted$2.78 $2.16 $7.86 $6.57 
Weighted average common shares outstanding:
Basic110 112 110 112 
Diluted112 113 112 113 

4


Quest Diagnostics Incorporated and Subsidiaries
Consolidated Balance Sheets
September 30, 2026 and December 31, 2025
(in millions, except per share data)
(unaudited)
September 30,
2026		December 31,
2025
Assets
Current assets:
Cash and cash equivalents$797 $420 
Accounts receivable, net1,712 1,408 
Inventories218 189 
Prepaid expenses and other current assets390 361 
Total current assets3,117 2,378 
Property, plant and equipment, net2,275 2,203 
Operating lease right-of-use assets670 657 
Goodwill9,112 8,945 
Intangible assets, net1,634 1,636 
Investments in equity method investees139 136 
Other assets274 270 
Total assets$17,221 $16,225 
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable and accrued expenses$1,643 $1,600 
Current portion of long-term debt10 504 
Current portion of long-term operating lease liabilities181 174 
Total current liabilities1,834 2,278 
Long-term debt5,540 5,167 
Long-term operating lease liabilities554 537 
Other liabilities1,262 957 
Redeemable noncontrolling interest81 80 
Stockholders’ equity:
Quest Diagnostics stockholders’ equity:
Common stock, par value $0.01 per share; 600 shares authorized as of both September 30, 2026 and December 31, 2025; 162 shares issued as of both September 30, 2026 and December 31, 2025
2 2 
Additional paid-in capital2,397 2,381 
Retained earnings10,593 9,994 
Accumulated other comprehensive loss(66)(27)
Treasury stock, at cost; 52 shares as of both September 30, 2026 and December 31, 2025
(5,294)(5,180)
Total Quest Diagnostics stockholders’ equity7,632 7,170 
Noncontrolling interests318 36 
Total stockholders’ equity7,950 7,206 
Total liabilities and stockholders’ equity$17,221 $16,225 

5


1486Quest Diagnostics Incorporated and Subsidiaries
Consolidated Statements of Cash Flows
For the Nine Months Ended September 30, 2026 and 2025
(in millions)
(unaudited)
Nine Months Ended September 30,
20262025
Cash flows from operating activities:
Net income$924 $790 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization440 425 
Provision for credit losses5 2 
Deferred income tax expense155 118 
Stock-based compensation expense63 63 
Other, net22 37 
Changes in operating assets and liabilities:
Accounts receivable(308)(153)
Accounts payable and accrued expenses244 113 
Income taxes payable(24)(1)
Other assets and liabilities, net(35)27 
Net cash provided by operating activities1,486 1,421 
Cash flows from investing activities:
Business acquisitions, net of cash acquired(39)(51)
Capital expenditures(418)(369)
Other investing activities, net2 (20)
Net cash used in investing activities(455)(440)
Cash flows from financing activities:
Proceeds from borrowings494 410 
Repayments of debt(504)(1,011)
Purchases of treasury stock(252)(150)
Exercise of stock options108 61 
Employee payroll tax withholdings on stock issued under stock-based compensation plans(40)(44)
Dividends paid(279)(263)
Distributions to noncontrolling interest partners(35)(43)
Contributions from noncontrolling interest partners25 — 
Other financing activities, net(169)(61)
Net cash used in financing activities(652)(1,101)
Effect of exchange rate changes on cash and cash equivalents and restricted cash(2)3 
Net change in cash and cash equivalents and restricted cash377 (117)
Cash and cash equivalents and restricted cash, beginning of period420 549 
Cash and cash equivalents and restricted cash, end of period$797 $432 
Cash paid during the period for:
Interest$151 $167 
Income taxes$142 $112 


6









Notes to Financial Tables

1)The computation of basic and diluted earnings per common share is as follows:
Three Months Ended September 30,Nine Months Ended September 30,
2026202520262025
(in millions, except per share data)
Amounts attributable to Quest Diagnostics' common stockholders:
Net income attributable to Quest Diagnostics$312 $245 $884 $747 
Less: earnings allocated to participating securities2 2 4 4 
Earnings available to Quest Diagnostics' common stockholders - basic and diluted
$310 $243 $880 $743 
Weighted average common shares outstanding - basic110 112 110 112 
Effect of dilutive securities:
Stock options and performance share units2 1 2 1 
Weighted average common shares outstanding - diluted112 113 112 113 
Earnings per share attributable to Quest Diagnostics' common stockholders:
Basic$2.82 $2.18 $7.97 $6.66 
Diluted$2.78 $2.16 $7.86 $6.57 

2)The following tables reconcile reported GAAP results to non-GAAP adjusted results:
Three Months Ended September 30, 2026
(dollars in millions, except per share data)
Operating incomeOperating income as a percentage of net revenuesIncome tax expense (e)Equity in earnings of equity method investees, net of taxesNet income attributable to Quest DiagnosticsDiluted EPS
As reported$479 15.5 %$(99)$9 $312 $2.78 
Restructuring and integration charges (a)3 0.1 — — 3 0.02 
Other charges (b)4 0.1 — — 4 0.03 
Gains and losses on investments (c)— — (1)1 3 0.02 
Other gains (d)(6)(0.2)1 — (5)(0.04)
Amortization expense37 1.2 (10)— 27 0.24 
ETB— — (6)— (6)(0.05)
As adjusted$517 16.7 %$(115)$10 $338 $3.00 

7


Nine Months Ended September 30, 2026
(dollars in millions, except per share data)
Operating incomeOperating income as a percentage of net revenuesIncome tax expense (e)Equity in earnings of equity method investees, net of taxesNet income attributable to Quest DiagnosticsDiluted EPS
As reported$1,337 14.8 %$(261)$23 $884 $7.86 
Restructuring and integration charges (a)14 0.2 (3)— 11 0.10 
Other charges (b)9 0.1 — — 9 0.08 
Gains and losses on investments (c)— — (3)7 7 0.06 
Other gains (d)(6)(0.1)1 — (5)(0.04)
Amortization expense112 1.2 (29)— 83 0.74 
ETB— — (20)— (20)(0.18)
As adjusted$1,466 16.2 %$(315)$30 $969 $8.62 
Three Months Ended September 30, 2025
(dollars in millions, except per share data)
Operating incomeOperating income as a percentage of net revenuesIncome tax expense (e)Equity in earnings of equity method investees, net of taxesNet income attributable to Quest DiagnosticsDiluted EPS
As reported$386 13.7 %$(77)$8 $245 $2.16 
Restructuring and integration charges (a)11 0.4 (2)— 9 0.07 
Other charges (b)22 0.8 (6)— 16 0.15 
Amortization expense39 1.4 (10)— 29 0.25 
ETB— — (3)— (3)(0.03)
As adjusted$458 16.3 %$(98)$8 $296 $2.60 
Nine Months Ended September 30, 2025
(dollars in millions, except per share data)
Operating incomeOperating income as a percentage of net revenuesIncome tax expense (e)Equity in earnings of equity method investees, net of taxesNet income attributable to Quest DiagnosticsDiluted EPS
As reported$1,170 14.2 %$(233)$35 $747 $6.57 
Restructuring and integration charges (a)37 0.5 (9)— 28 0.24 
Other charges (b)52 0.6 (12)— 40 0.36 
Gains and losses on investments (c)— — 1 (1)(2)(0.01)
Other gains (d)(46)(0.5)14 (8)(40)(0.36)
Amortization expense117 1.4 (30)— 87 0.76 
ETB— — (15)— (15)(0.13)
As adjusted$1,330 16.2 %$(284)$26 $845 $7.43 
8


(a)For each of the three and nine months ended September 30, 2026 and 2025, the pre-tax impact represents costs primarily associated with workforce reductions and integration costs incurred in connection with further restructuring and integrating our business. The following table summarizes the pre-tax impact of restructuring and integration charges on our consolidated statements of operations:
Three Months Ended September 30,Nine Months Ended September 30,
2026202520262025
(dollars in millions)
Cost of services$1 $1 $3 $8 
Selling, general and administrative2 10 11 29 
Operating income$3 $11 $14 $37 

(b)The three and nine months ended September 30, 2026 and 2025 include pre-tax losses associated with the change in the fair value of the contingent consideration accrual associated with previous acquisitions, recorded in other operating expense, net. Additionally, both the three and nine months ended September 30, 2025 include a $15 million pre-tax charge to earnings related to legal matters, recorded in other operating expense, net. Also, the three and nine months ended September 30, 2025 include pre-tax impairment charges of $5 million and $29 million, respectively, on certain long-lived assets related to the exit of a business, also recorded in other operating expense, net.

(c)For all periods presented, the pre-tax impact represents gains and losses associated with changes in the carrying value of our strategic investments, principally recorded in equity in earnings of equity method investees, net of taxes, and other (expense) income, net.

(d)Both the three and nine months ended September 30, 2026 primarily include $4 million of pre-tax gains, recorded in selling, general and administrative expenses, related to insurance recoveries for certain legal matters. The nine months ended September 30, 2025 includes a $46 million pre-tax gain, recorded in other operating expense, net, from a payroll tax credit under the Coronavirus Aid, Relief, and Economic Security Act associated with the retention of employees. Additionally, the nine months ended September 30, 2025 includes an $8 million pre-tax gain, recorded in equity in earnings of equity method investees, net of taxes, representing a non-recurring gain related to a lease.

(e)For restructuring and integration charges, other gains/charges, gains and losses on investments, and amortization expense, income tax impacts, where recorded, were primarily calculated using combined statutory income tax rates of 25.5% for both 2026 and 2025. No income tax impact was recorded on losses associated with the change in the fair value of the contingent consideration accrual associated with previous acquisitions.

3)The outlook for adjusted diluted EPS represents management’s estimates for the full year 2026 before the impact of special items. Further impacts to earnings related to special items may occur throughout 2026. Additionally, the amount of ETB is dependent upon employee stock option exercises and our stock price, which are difficult to predict. The following table reconciles our 2026 outlook for diluted EPS under GAAP to our outlook for adjusted diluted EPS:

LowHigh
Diluted EPS$10.21 $10.31 
Restructuring and integration charges (a)0.13 0.13 
Amortization expense (b)0.99 0.99 
Other charges (c)0.11 0.11 
Gains and losses on investments (d)0.06 0.06 
Other gains (e)(0.04)(0.04)
ETB(0.21)(0.21)
Adjusted diluted EPS$11.25 $11.35 

(a)Represents estimated pre-tax charges of $20 million primarily associated with workforce reductions and integration costs incurred in connection with further restructuring and integrating our business. Income tax benefits were primarily calculated using a combined statutory income tax rate of 25.5%.

(b)Represents estimated pre-tax amortization expenses of $149 million. Income tax benefits were primarily calculated using a combined statutory income tax rate of 25.5%.

9


(c)Principally represents estimated pre-tax net losses of $9 million associated with the increase in the fair value of the contingent consideration accrual associated with previous acquisitions. Such estimate is subject to the risks and uncertainties discussed in the "Forward Looking Statements" section above. No income tax benefits are recorded on the changes associated with the contingent consideration accrual.

(d)Represents gains and losses associated with changes in the carrying value of our strategic investments. Income tax impacts were calculated using a combined statutory income tax rate of 25.5%.

(e)Principally represents a pre-tax gain related to insurance recoveries for certain legal matters. Income tax impacts were primarily calculated using a combined statutory income tax rate of 25.5%.
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Source: View Original Filing on SEC EDGAR

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