Quest beats, raises 2026 revenue and EPS guidance on strong organic volume and high-value mix

 

Quest Diagnostics beats Q1 2026 estimates with EPS $2.50, revenue $2.9B and raises 2026 revenue and EPS guidance on strong organic volume and high-value mix

• Company now forecasts full-year 2026 EPS of $10.63–$10.83 and revenue of $11.78–$11.9 billion.
• Q1 revenue grew 9.2% YoY to $2.9B, driven by 10.8% organic volume growth.
• Adjusted EPS rose 13% YoY to $2.50, aided by productivity and lower interest expense.
• Q1 2026 adjusted EPS and revenue results exceeded the Zacks Consensus Estimate on both metrics.
• 2026 revenue and EPS guidance were raised, and operating margin expected to expand versus 2025.
• Consumer and advanced diagnostics (notably Alzheimer’s) delivered double‑digit growth and richer mix.
• Fresenius and Corewell added ~7 pts to Q1 volume but pressured revenue per requisition.
• Underlying organic volume excluding Fresenius/Corewell was 3.8%, with revenue per req up ~2.5%.
• Project Nova still a ~$0.25 EPS headwind in 2026, now more weighted to 2H.
• AI and automation drove a 40% productivity gain in certain customer service workflows.
• Regulatory overhang persists from PAMA/RESULTS Act and broader Medicare pricing, though management is constructive.
• Fuel and weather headwinds are embedded in guidance but sized as modest EPS impacts.
• Main concern: reimbursement and regulatory risk (PAMA, Medicare pricing, fraud initiatives) and mix pressure from large contracts.

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