Quest ups 2026 outlook

 

Quest Diagnostics reports Q4 and full-year 2025 results with strong organic growth and margin expansion despite investments, raises its 2026 outlook, hikes the quarterly dividend 7.5% to $0.86, and expands its share repurchase authorization by $1B.

• Double‑digit full‑year EPS and revenue growth driven by strong organic volumes and advanced diagnostics.
• Q4 revenue $2.81B, +7.1% YoY; organic revenue +6.4%, volume +7.9% organically.
• Consumer business reached ~$250M in 2025, growing >20%, with questhealth.com at ~$100M run rate.
• Advanced diagnostics in Alzheimer’s, autoimmune, cardiometabolic and oncology delivered double‑digit growth.
• 2026 revenue guidance $11.7–$11.82B (+6–7.1%),
• adjusted EPS $10.50–$10.70, implying margin expansion.
• Corewell Co‑Lab to add ~$250M revenue in 2026 at low single‑digit margins, ramping to low‑teens in 2027.
• Project Nova to dilute 2026 EPS by ~$0.25, partly offset by Invigorate 3% cost‑savings program.
• PAMA cuts delayed again to end of 2026; company pushing RESULTS Act for structural reform.
• Cash from operations fell in 2026 guidance due to loss of ~$270M prior‑year and payroll one‑time benefits.
• Management tone confident; emphasizes share gains, stable pricing, and sustained high‑single‑digit organic growth.
• Strong quarter, driven by broad‑based organic growth, high‑margin consumer testing, and advanced diagnostics. Main concern: near‑term margin drag from low‑margin Corewell ramp, Project Nova spend, and dialysis mix even as cash flow normalizes lower from 2025 one‑time benefits.

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