Quest Diagnostics Earnings Rise After Strong Q2
Quest Diagnostics earnings showed quarter strength, prompting a full-year guidance raise and likely sparking DGX positioning on diagnostic testing demand.
KEY TAKEAWAYS
- Q2 revenue was $3.04 billion, up 10.2% with 10.0% organic growth.
- Adjusted diluted EPS rose to $3.12 and operating cash flow reached $597 million.
- Raised full-year 2026 revenue guidance to $11.95 billion to $12.05 billion.
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Quest Diagnostics earnings rose after the company said in a press release on July 23, 2026, that broad physician, hospital, and consumer demand, along with partner volume, drove a stronger second quarter and prompted it to raise full-year 2026 revenue and EPS guidance.
Q2 Results and Cash Flow
Quest Diagnostics reported second-quarter 2026 revenue of $3.04 billion, up 10.2% year over year, including 10.0% organic growth. Reported diluted earnings per share (EPS) rose 15.0% to $2.84, while adjusted diluted EPS increased 19.1% to $3.12. Operating cash flow for the quarter reached $597 million, a 9.7% gain.
The company attributed the results to strong demand across physician, hospital, and consumer channels, supported by increased volume from collaborations with Corewell Health and Fresenius Medical Care.
Raised Full-Year Guidance
Quest raised its full-year 2026 revenue guidance to a range of $11.95 billion to $12.05 billion. It now expects reported diluted EPS between $9.97 and $10.17 and adjusted diluted EPS of $11.05 to $11.25. This compares with the prior outlook of $11.78 billion to $11.90 billion in revenue and adjusted EPS of $10.63 to $10.83.
The company attributed the upward revision to continued demand and operating performance. The release did not announce any acquisitions, restructuring, or government actions. The stronger revenue, higher adjusted earnings, and improved cash flow supported the revised near-term outlook.
