Quest Diagnostics raises guidance following earnings beat

Quest Diagnostics has revised its 2026 outlook upwards following robust quarterly performance driven by demand for routine testing. The group now forecasts revenue between $11.78bn and $11.9bn, up from its previous estimate of $11.70bn to $11.82bn. Adjusted EPS is expected between $10.63 and $10.83, also exceeding prior guidance and market expectations. The stock rose nearly 4% during trading.

The company reported revenue of $2.90bn, surpassing the anticipated $2.83bn, with adjusted EPS of $2.50, against the $2.35 expected. Its core business generated $2.83bn, a 9.4% y-o-y increase, bolstered by a 10.8% rise in prescription volumes. Despite this momentum, the average revenue per test declined by 1.3% amid pricing and reimbursement pressures.

Growth was also driven by several advanced diagnostic segments, notably Alzheimer's disease testing, as well as cardiometabolic and endocrine pathology diagnostics. The company is counting on hospital partnerships to support its development, although their ramp-up could temporarily weigh on margins.