10-QPeriod: Q2 FY2026

QUEST DIAGNOSTICS INC Quarterly Report for Q2 Ended Jun 30, 2026

Filed July 23, 2026For Securities:DGX

Summary

Quest Diagnostics Inc. (DGX) reported a solid financial performance for the second quarter and the first half of 2026, demonstrating robust top-line growth and improved profitability. Total net revenues increased by 10.2% for the quarter and 9.7% for the six-month period, primarily driven by a significant increase in volume within the Diagnostic Information Services (DIS) segment. This growth was bolstered by new relationships, including the collaborative lab solutions with Corewell Health and increased testing for Fresenius Medical Care. Despite some headwinds such as a slight decrease in revenue per requisition due to business mix, the company managed operating costs effectively, leading to an increase in operating income of 4.6% for the quarter and 9.4% for the year-to-date period. Net income attributable to Quest Diagnostics also saw substantial growth, rising by 13.4% for the quarter and 13.9% for the six months. The company also continued its focus on capital allocation, with increased share repurchases and dividend payments, reflecting confidence in its financial position and future prospects.

Key Highlights

  • 1Total net revenues increased by 10.2% year-over-year for the three months ended June 30, 2026, reaching $3.04 billion.
  • 2Operating income grew by 4.6% to $459 million for the second quarter of 2026, compared to the prior year.
  • 3Net income attributable to Quest Diagnostics increased by 13.4% to $320 million for the second quarter.
  • 4Diluted earnings per share rose by 15.0% to $2.84 for the three months ended June 30, 2026.
  • 5The DIS segment experienced a 13.1% increase in volume for the quarter, driven by new relationships and increased testing at dialysis clinics.
  • 6The company repurchased $100 million of its common stock during the six months ended June 30, 2026, and has $1.3 billion remaining under its share repurchase authorization.
  • 7Net cash provided by operating activities increased by $17 million to $875 million for the six months ended June 30, 2026.

Frequently Asked Questions

Revenue growth was primarily driven by a significant increase in volume within the Diagnostic Information Services (DIS) segment, up 13.1% year-over-year for the quarter. This was supported by new collaborations, such as the one with Corewell Health, and expanded testing services for Fresenius Medical Care. While revenue per requisition saw a slight decrease due to the business mix of these new relationships, overall volume growth compensated for this.

The company demonstrated effective cost management, with total operating costs and expenses growing at a slightly lower rate than revenue for the six-month period (9.7% vs. 9.7% total revenue growth). The Invigorate program, focused on driving cost savings and productivity improvements across the value chain, plays a key role in offsetting inflationary pressures and maintaining healthy operating margins. For the second quarter, operating income increased by 4.6%.

Quest Diagnostics continues to return value to shareholders through dividends and share repurchases. The company declared a quarterly cash dividend of $0.86 per common share for both quarters of 2026. Additionally, a new $1 billion share repurchase authorization was approved in February 2026, and the company repurchased $100 million of stock in the first half of 2026, with $1.3 billion remaining available.

The primary business combination activity noted is the completion of the transaction with Corewell Health in January 2026, forming a new entity for laboratory testing in Michigan. This entity is consolidated by Quest Diagnostics and contributes to the DIS segment. No significant divestitures were mentioned.