Quest Diagnostics Boosts Its 2025 Outlook
Quest Diagnostics (NYSE:DGX) reported its second-quarter 2025 results on July 22, achieving consolidated revenue of $2.76 billion (up 15.2% year over year), organic revenue growth of 5.2%, while adjusted EPS rose 11.5% year over year to $2.62. Management raised full-year revenue guidance to $10.8 billion to $10.92 billion and adjusted EPS to $9.63 to $9.83, citing sustained demand for advanced diagnostics, the integration of last year's LifeLabs acquisition, and scale-driven productivity gains. Investors should note updated mid-term expectations for growth drivers, operational efficiencies, and regulatory risk exposure discussed below.
Reported operating income increased to $438 million and adjusted operating income was $466 million, expanding margins by 110 basis points and 30 basis points year over year, respectively, reflecting strategic automation deployments. Cash from operations surged 67.1% year to date to $858 million, aided by a one-time CARES Act tax credit and the timing of receipts and disbursements.
Systematic automation rollouts underpin the company’s targeted 3% annual cost and productivity improvement forecast.
Source Fool.com
