Quest Diagnostics Incorporated (NYSE:DGX) announced its financial results for the fourth quarter of fiscal 2025 on Tuesday, revealing a solid performance that exceeded market analysts’ expectations. The diagnostic information services provider reported adjusted earnings per share of $2.42, topping the consensus estimate of $2.36. Revenues also demonstrated robust growth, reaching $2.81 billion, representing a 7.1% increase year over year and outpacing the anticipated $2.75 billion.
Organic revenue growth, which excludes effects from acquisitions and divestitures, stood at 6.4% on a consolidated basis. This reflected the company’s successful execution of its strategic initiatives to expand its market presence and enhance client offerings. Jim Davis, Chairman, CEO, and President of Quest Diagnostics, highlighted the company’s achievements, stating, “We closed 2025 with a strong fourth quarter, and delivered double-digit growth in revenues and earnings per share for the full year. Our robust performance demonstrates continued execution of our strategy to deliver category-defining clinical innovations that fulfill customers’ needs and to form strategic collaborations supporting growth.”
Operating income grew 7%, amounting to $386 million, while adjusted operating income — a non-GAAP metric — reached $429 million, corresponding to an operating margin of 15.3%. This is slightly below the prior year’s adjusted margin of 15.6% on revenues of $409 million.
The company also reported an 8.5% increase in total volume, measured by the number of test requisitions compared to the same quarter in the previous year. Organic volume, which excludes contributions from recently acquired entities, was up 7.9%. Despite this rise in volume, total revenue per requisition declined marginally by 0.1% year over year.
Commenting on volume trends, CFO Sam Samad noted that two significant clients, Corewell Health and Fresenius Medical Care, delivered considerable volume growth but at prices lower than Quest’s average revenue per requisition. Excluding these partnerships, the company’s organic volume growth accelerated to 4.1% for the fourth quarter while revenue per requisition growth remained solid at approximately 3.0%, consistent with management’s expectations regarding unit pricing.
Beyond operational figures, Quest Diagnostics announced a cash dividend increase of 7.5%, raising its quarterly payout to 86 cents per share from 80 cents. This adjustment results in an annual dividend of $3.44 per share. Furthermore, the company’s Board of Directors authorized an additional $1 billion for its share repurchase program, supplementing the approximately $400 million that remained available at the end of 2025.
Looking ahead to fiscal year 2026, Quest Diagnostics projects adjusted earnings per share in the range of $10.50 to $10.70, exceeding the consensus estimate of $10.43 per share. The company’s full-year sales guidance is between $11.7 billion and $11.82 billion, also above the consensus forecast of $11.39 billion.
Davis attributed this positive outlook to underlying business strengths and favorable market dynamics including demographic trends, increased utilization of blood-based laboratory diagnostics, and growing emphasis on preventive health and wellness initiatives.
Following the earnings release and accompanying announcements, Quest Diagnostics’ shares rose 6.35% to $203.40 during Tuesday’s trading session, reaching a new 52-week high according to market data. The price action reflects investor enthusiasm about the company's solid financial performance, shareholder-friendly actions, and optimistic outlook for 2026.