Three Months Ended June 30,

Six Months Ended June 30,

2026

2025

Change

2026

2025

Change

(dollars in millions, except per share data)

Reported:

Net revenues

$       3,043

$       2,761

10.2 %

$     5,938

$     5,413

9.7 %

Diagnostic Information Services
revenues

$       2,978

$       2,699

10.3 %

$     5,810

$     5,288

9.9 %

Revenue per requisition

(2.8) %

(2.1) %

Requisition volume

13.1 %

12.0 %

  Organic requisition volume

13.0 %

11.9 %

Operating income (a)

$          459

$          438

4.6 %

$         858

$         784

9.4 %

Operating income as a percentage of net
   revenues (a)

15.1 %

15.9 %

(0.8) %

14.4 %

14.5 %

(0.1) %

Net income attributable to Quest
Diagnostics (a)

$          320

$          282

13.4 %

$         572

$         502

13.9 %

Diluted EPS (a)

$         2.84

$         2.47

15.0 %

$        5.08

$        4.41

15.2 %

Cash provided by operations

$          597

$          544

9.7 %

$         875

$         858

1.9 %

Capital expenditures

$          138

$          108

27.0 %

$         252

$         225

12.1 %

Adjusted (a):

Operating income

$          502

$          466

7.8 %

$         949

$         872

8.8 %

Operating income as a percentage of net
revenues

16.5 %

16.9 %

(0.4) %

16.0 %

16.1 %

(0.1) %

Net income attributable to Quest
Diagnostics

$          350

$          298

17.3 %

$         631

$         549

14.9 %

Diluted EPS

$         3.12

$         2.62

19.1 %

$        5.62

$        4.83

16.4 %

(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

Prior Guidance

Low

High

Low

High

Net revenues

$11.95 billion

$12.05 billion

$11.78 billion

$11.90 billion

Net revenues increase

8.3 %

9.2 %

6.8 %

7.8 %

Reported diluted EPS

$9.97

$10.17

$9.58

$9.78

Adjusted diluted EPS

$11.05

$11.25

$10.63

$10.83

Cash provided by operations

Approximately $1.80 billion

Approximately $1.75 billion

Capital expenditures

  Approximately $550 million

Approximately $550 million

Quest Diagnostics Incorporated and Subsidiaries
Consolidated Statements of Operations
For the Three and Six Months Ended June 30, 2026 and 2025
(in millions, except per share data)
(unaudited)

Three Months Ended
June 30,

Six Months Ended
June 30,

2026

2025

2026

2025

Net revenues

$    3,043

$    2,761

$  5,938

$    5,413

Operating costs and expenses and other operating income:

Cost of services

2,016

1,818

3,969

3,607

Selling, general and administrative

529

486

1,033

962

Amortization of intangible assets

38

39

75

78

Other operating expense (income), net

1

(20)

3

(18)

Total operating costs and expenses, net

2,584

2,323

5,080

4,629

Operating income

459

438

858

784

Other income (expense):

Interest expense, net

(63)

(67)

(126)

(134)

Other income, net

16

13

14

10

Total non-operating expense, net

(47)

(54)

(112)

(124)

Income before income taxes and equity in earnings of equity method
   investees

412

384

746

660

Income tax expense

(88)

(97)

(162)

(156)

Equity in earnings of equity method investees, net of taxes

10

9

14

27

Net income

334

296

598

531

Less: Net income attributable to noncontrolling interests

14

14

26

29

Net income attributable to Quest Diagnostics

$       320

$       282

$     572

$       502

Earnings per share attributable to Quest Diagnostics' common
   stockholders:

Basic

$      2.88

$      2.51

$    5.15

$      4.48

Diluted

$      2.84

$      2.47

$    5.08

$      4.41

Weighted average common shares outstanding:

Basic

111

112

110

112

Diluted

112

113

112

113

Quest Diagnostics Incorporated and Subsidiaries
Consolidated Balance Sheets
June 30, 2026 and December 31, 2025
(in millions, except per share data)
(unaudited)

June 30,
2026

December 31,
2025

Assets

Current assets:

Cash and cash equivalents

$                 626

$                420

Accounts receivable, net

1,666

1,408

Inventories

233

189

Prepaid expenses and other current assets

319

361

Total current assets

2,844

2,378

Property, plant and equipment, net

2,219

2,203

Operating lease right-of-use assets

678

657

Goodwill

9,112

8,945

Intangible assets, net

1,672

1,636

Investments in equity method investees

137

136

Other assets

277

270

Total assets

$            16,939

$           16,225

Liabilities and Stockholders' Equity

Current liabilities:

Accounts payable and accrued expenses

$              1,598

$             1,600

Current portion of long-term debt

10

504

Current portion of long-term operating lease liabilities

180

174

Total current liabilities

1,788

2,278

Long-term debt

5,632

5,167

Long-term operating lease liabilities

561

537

Other liabilities

1,059

957

Redeemable noncontrolling interest

80

80

Stockholders' equity:

Quest Diagnostics stockholders' equity:

Common stock, par value $0.01 per share; 600 shares authorized as of both June 30, 2026 and
December 31, 2025; 162 shares issued as of both June 30, 2026 and December 31, 2025

2

2

Additional paid-in capital

2,374

2,381

Retained earnings

10,374

9,994

Accumulated other comprehensive loss

(62)

(27)

Treasury stock, at cost; 52 shares as of both June 30, 2026 and December 31, 2025

(5,172)

(5,180)

Total Quest Diagnostics stockholders' equity

7,516

7,170

Noncontrolling interests

303

36

Total stockholders' equity

7,819

7,206

Total liabilities and stockholders' equity

$            16,939

$           16,225

Quest Diagnostics Incorporated and Subsidiaries
Consolidated Statements of Cash Flows
For the Six Months Ended June 30, 2026 and 2025
(in millions)
(unaudited)

Six Months Ended June 30,

2026

2025

Cash flows from operating activities:

Net income

$              598

$              531

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization

293

283

Provision for credit losses

3

2

Deferred income tax expense

46

8

Stock-based compensation expense

43

43

Other, net

14

26

Changes in operating assets and liabilities:

Accounts receivable

(259)

(115)

Accounts payable and accrued expenses

130

(11)

Income taxes payable

4

9

Other assets and liabilities, net

3

82

Net cash provided by operating activities

875

858

Cash flows from investing activities:

Business acquisitions, net of cash acquired

(38)

(17)

Capital expenditures

(252)

(225)

Other investing activities, net

4

3

Net cash used in investing activities

(286)

(239)

Cash flows from financing activities:

Proceeds from borrowings

494

400

Repayments of debt

(501)

(1,001)

Purchases of treasury stock

(102)

—

Exercise of stock options

81

42

Employee payroll tax withholdings on stock issued under stock-based compensation plans

(38)

(42)

Dividends paid

(184)

(174)

Distributions to noncontrolling interest partners

(22)

(29)

Other financing activities, net

(109)

(50)

Net cash used in financing activities

(381)

(854)

Effect of exchange rate changes on cash and cash equivalents and restricted cash

(2)

5

Net change in cash and cash equivalents and restricted cash

206

(230)

Cash and cash equivalents and restricted cash, beginning of period

420

549

Cash and cash equivalents and restricted cash, end of period

$              626

$              319

Cash paid during the period for:

Interest

$              129

$              145

Income taxes

$              104

$              110

1)  The computation of basic and diluted earnings per common share is as follows:

Three Months Ended
June 30,

Six Months Ended
June 30,

2026

2025

2026

2025

(in millions, except per share data)

Amounts attributable to Quest Diagnostics' common stockholders:

Net income attributable to Quest Diagnostics

$           320

$           282

$           572

$           502

Less: earnings allocated to participating securities

1

1

2

2

Earnings available to Quest Diagnostics' common stockholders - basic and
   diluted

$           319

$           281

$           570

$           500

Weighted average common shares outstanding - basic

111

112

110

112

Effect of dilutive securities:

Stock options and performance share units

1

1

2

1

Weighted average common shares outstanding - diluted

112

113

112

113

Earnings per share attributable to Quest Diagnostics' common
   stockholders:

Basic

$          2.88

$          2.51

$          5.15

$          4.48

Diluted

$          2.84

$          2.47

$          5.08

$          4.41

2)  The following tables reconcile reported GAAP results to non-GAAP adjusted results:

Three Months Ended June 30, 2026

(dollars in millions, except per share data)

Operating
income

Operating
income as a
percentage of
net revenues

Income tax
expense (e)

Equity in
earnings of
equity method
investees, net
of taxes

Net income
attributable to
Quest
Diagnostics

Diluted EPS

As reported

$                 459

15.1 %

$                  (88)

$                   10

$                 320

$                2.84

Restructuring and
integration charges (a)

4

0.2

(1)

—

3

0.04

Other charges (b)

1

—

1

—

2

0.02

Gains and losses on
investments (c)

—

—

—

(1)

(1)

(0.01)

Amortization expense

38

1.2

(10)

—

28

0.25

ETB

—

—

(2)

—

(2)

(0.02)

As adjusted

$                 502

16.5 %

$                (100)

$                     9

$                 350

$                3.12

Six Months Ended June 30, 2026

(dollars in millions, except per share data)

Operating
income

Operating
income as a
percentage of
net revenues

Income tax
expense (e)

Equity in
earnings of
equity method
investees, net
of taxes

Net income
attributable to
Quest
Diagnostics

Diluted EPS

As reported

$                 858

14.4 %

$                (162)

$                   14

$                 572

$                5.08

Restructuring and
integration charges (a)

11

0.2

(3)

—

8

0.08

Other charges (b)

5

0.1

—

—

5

0.05

Gains and losses on
investments (c)

—

—

(2)

6

4

0.04

Amortization expense

75

1.3

(19)

—

56

0.50

ETB

—

—

(14)

—

(14)

(0.13)

As adjusted

$                 949

16.0 %

$                (200)

$                   20

$                 631

$                5.62

Three Months Ended June 30, 2025

(dollars in millions, except per share data)

Operating
income

Operating
income as a
percentage of
net revenues

Income tax
expense (e)

Equity in
earnings of
equity method
investees, net
of taxes

Net income
attributable to
Quest
Diagnostics

Diluted EPS

As reported

$                 438

15.9 %

$                  (97)

$                     9

$                 282

$                2.47

Restructuring and
integration charges (a)

7

0.3

(2)

—

5

0.04

Other charges (b)

28

1.0

(6)

—

22

0.19

Gains and losses on
investments (c)

—

—

1

(1)

(2)

(0.01)

Other gains (d)

(46)

(1.7)

12

—

(34)

(0.30)

Amortization expense

39

1.4

(11)

—

28

0.25

ETB

—

—

(3)

—

(3)

(0.02)

As adjusted

$                 466

16.9 %

$                (106)

$                     8

$                 298

$                2.62

Six Months Ended June 30, 2025

(dollars in millions, except per share data)

Operating
income

Operating
income as a
percentage of
net revenues

Income tax
expense (e)

Equity in
earnings of
equity method
investees, net
of taxes

Net income
attributable to
Quest
Diagnostics

Diluted EPS

As reported

$                 784

14.5 %

$                (156)

$                   27

$                 502

$                4.41

Restructuring and
integration charges (a)

26

0.5

(7)

—

19

0.17

Other charges (b)

30

0.6

(6)

—

24

0.21

Gains and losses on
investments (c)

—

—

1

(1)

(2)

(0.01)

Other gains (d)

(46)

(0.9)

14

(8)

(40)

(0.36)

Amortization expense

78

1.4

(20)

—

58

0.51

ETB

—

—

(12)

—

(12)

(0.10)

As adjusted

$                 872

16.1 %

$                (186)

$                   18

$                 549

$                4.83

(a) 

For each of the three and six months ended June 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
June 30,

Six Months Ended
June 30,

2026

2025

2026

2025

(dollars in millions)

Cost of services

$               1

$               1

$               2

$               7

Selling, general and administrative

3

6

9

19

Operating income

$               4

$               7

$             11

$             26

(b) 

The three and six months ended June 30, 2026 and 2025 include losses associated with the change in the fair value of the contingent consideration accrual associated with previous acquisitions, recorded in other operating expense (income), net.  Additionally, for both the three and six months ended June 30, 2025, the pre-tax impact primarily represents a $24 million impairment charge on certain long-lived assets related to the exit of a business, recorded in other operating expense (income), 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 income, net.

(d) 

The three and six months ended June 30, 2025 include a $46 million pre-tax gain, recorded in other operating expense (income), net, from a payroll tax credit under the Coronavirus Aid, Relief, and Economic Security Act associated with the retention of employees.  Additionally, the six months ended June 30, 2025 includes an $8 million 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)

For both the three and six months ended June 30, 2026, we repurchased 0.5 million shares of our common stock for $100 million.  As of June 30, 2026, $1.3 billion remained available under our share repurchase authorization.

4)

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:

Low

High

Diluted EPS

$                                   9.97

$                                 10.17

Restructuring and integration charges (a)

0.14

0.14

Amortization expense (b)

0.99

0.99

Other charges (c)

0.10

0.10

Gains and losses on investments (d)

0.04

0.04

ETB

(0.19)

(0.19)

Adjusted diluted EPS

$                                 11.05

$                                 11.25

(a) 

Represents estimated pre-tax charges of $21 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%.

(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) 

Income tax impacts were calculated using a combined statutory income tax rate of 25.5%.