Quest Diagnostics boosts 2026 outlook after quarterly beat
Quest Diagnostics raised its 2026 forecast after beating quarterly estimates. Strong demand for routine and advanced testing drove organic revenue growth of nine percent.
QUEST DIAGNOSTICS INC has raised its full-year 2026 financial outlook following first-quarter results that surpassed Wall Street expectations. The United States-based healthcare provider cited resilient demand for routine diagnostic testing as a primary driver for the upward revision, which sent shares climbing approximately 4% in early trading.
The company reported organic revenue growth of roughly 9% during the first quarter. This performance was characterized by broad-based demand across hospital laboratory management contracts, physician offices, and direct-to-consumer testing channels. CEO Jim Davis noted that partnerships with consumer health and wearable technology firms also contributed to the quarter's success.
The company posted organic revenue growth of about 9% in the first quarter, with demand broad-based across hospital laboratory management contracts, physician offices and its direct-to-consumer testing business.
Within the Diagnostic Information Services unit, the company's largest division, revenue rose 9.4% year-over-year to $2.83 billion. Organic testing volumes increased by 10.8%, bolstered by significant contributions from partnerships with Corewell Health and FRESENIUS MEDICAL CARE AG, which together accounted for about 7% of volume growth. While per-test pricing remained flat, Chief Financial Officer Sam Samad highlighted that revenue per test rose 2.5% when excluding specific newer contracts, driven by more tests per patient visit and higher demand for advanced diagnostics.
Double-digit growth was observed in advanced diagnostics, particularly in blood tests for Alzheimer's disease and cardiometabolic screenings. To manage rising labor costs, the company is leveraging productivity gains from automation and artificial intelligence. These efficiencies are expected to support improved operating margins in the second half of the year.
For the full year, the company now anticipates revenue between $11.78 billion and $11.90 billion, an increase from the previous range of $11.70 billion to $11.82 billion. Adjusted profit per share is now projected to fall between $10.63 and $10.83, exceeding the prior forecast of $10.50 to $10.70. These updated figures sit comfortably above analyst estimates of $11.75 billion in revenue and $10.55 in adjusted earnings per share.
