Financial Data and Key Metrics Changes - In Q4 2025, consolidated revenues reached $2.81 billion, reflecting a 7.1% increase year-over-year. Consolidated organic revenues grew by 6.4% [14] - Reported operating income was $386 million, maintaining a margin of 13.8%, while adjusted operating income was $429 million, or 15.3% of revenues, compared to 15.6% the previous year [15] - Reported EPS was $2.18, and adjusted EPS was $2.42, compared to $1.95 and $2.23 in the prior year, respectively [15] Business Line Data and Key Metrics Changes - In the physician channel, organic revenue growth was high single digits in Q4, driven by demand for advanced diagnostics and geographic expansion [7] - Hospital channel revenues grew low single digits, with collaborative lab solutions contributing to growth [8] - The consumer channel generated nearly $250 million in revenues for the full year, with consumer-initiated testing exceeding 20% growth [10] Market Data and Key Metrics Changes - Total volume measured by requisitions increased by 8.5% year-over-year, with organic volume up 7.9% [14] - Excluding significant volume growth from Corewell Health and Fresenius Medical Care, organic volume growth was 4.1% in Q4 [14][51] Company Strategy and Development Direction - The company aims to enhance its position as a premier lab engine in the wellness industry, focusing on clinical innovations and strategic collaborations [4] - The delay in PAMA implementation until the end of 2026 is seen as a short-term relief, but the company advocates for structural reforms to prevent excessive rate cuts [5][6] - The company is pursuing acquisitions and partnerships to expand its co-lab solutions and consumer testing capabilities [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in business strengths and market fundamentals, including favorable demographic trends and increasing interest in preventative health [4] - The company anticipates a revenue growth rate of 6%-7.1% for 2026, with adjusted EPS expected to be in the range of $10.50-$10.70 [16][17] - Management acknowledged challenges from severe weather impacting early 2026 but remains optimistic about recovery [25][28] Other Important Information - The company achieved its target of 3% annual cost savings and productivity improvements in 2025 through operational excellence initiatives [13] - The consumer testing segment is expected to continue growing, supported by partnerships with wellness companies and a strong focus on preventative health [60][66] Q&A Session Summary Question: What are the underlying growth drivers for 2026? - Management highlighted strong organic growth in Alzheimer's testing, autoimmune testing, and partnerships with wellness companies as key drivers [23][24] Question: How is the company addressing the impact of severe weather on growth? - Management noted that while January faced challenges, they expect recovery in the remaining quarters and have systems in place to track and reschedule missed appointments [25][28] Question: Can you discuss the moving pieces on margins for 2026? - Management indicated that operating margins are expected to increase, despite the impact of low-margin co-lab business from Corewell and Project Nova expenses [35][39] Question: What is the competitive environment like for the company? - Management emphasized that the company is gaining market share, particularly in key states, and highlighted its national coverage as a competitive strength [44][46] Question: How is the company planning to monetize its data? - Management discussed the growth of its data business, which serves pharmaceutical companies, payers, and public health agencies, and mentioned partnerships with AI companies to enhance data utilization [84][86]

Core Viewpoint - Quest Diagnostics reported quarterly earnings of $2.42 per share, exceeding the Zacks Consensus Estimate of $2.35 per share, and showing an increase from $2.23 per share a year ago, representing an earnings surprise of +2.85% [1] Financial Performance - The company achieved revenues of $2.81 billion for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 2.08%, compared to $2.62 billion in the same quarter last year [2] - Over the last four quarters, Quest Diagnostics has consistently surpassed consensus EPS estimates and revenue estimates [2] Stock Performance - Quest Diagnostics shares have increased approximately 10.2% since the beginning of the year, outperforming the S&P 500's gain of 1.7% [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating expectations of outperforming the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $2.37 on revenues of $2.75 billion, and for the current fiscal year, it is $10.45 on revenues of $11.35 billion [7] - The trend of estimate revisions for Quest Diagnostics was favorable ahead of the earnings release, which may influence future stock movements [5][6] Industry Context - The Medical - Outpatient and Home Healthcare industry, to which Quest Diagnostics belongs, is currently ranked in the bottom 39% of over 250 Zacks industries, indicating potential challenges in overall industry performance [8]

Q4 2025 Performance A strong fourth quarter to finish 2025 Read our Q4 earnings press release on our Investor Relations site. " 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. Our 2026 guidance reflects our continued con ...

Core Viewpoint - Quest Diagnostics has forecasted 2026 profit and revenue to exceed Wall Street estimates following a strong performance in the fourth quarter driven by high demand for its diagnostic tests [1] Financial Performance - The company reported fourth-quarter results that surpassed expectations, indicating robust demand for its diagnostic services [1] Future Outlook - The forecast for 2026 includes profit and revenue projections that are above current Wall Street estimates, suggesting confidence in continued growth [1]

Core Insights - Quest Diagnostics reported strong financial results for Q4 and full year 2025, with double-digit growth in revenues and earnings per share, reflecting effective execution of its strategic initiatives [1] - The company provided guidance for full year 2026, projecting reported diluted EPS between $9.45 and $9.65, and adjusted diluted EPS between $10.50 and $10.70, alongside expected revenues of $11.70 billion to $11.82 billion [1][2] Financial Performance - Full year 2025 reported diluted EPS was $8.75, up 13.8% from 2024, with adjusted diluted EPS at $9.85, up 10.3% from 2024 [1] - Full year revenues reached $11.04 billion, an increase of 11.8% from 2024, while Q4 revenues were $2.81 billion, up 7.1% from the previous year [1] - Operating income for 2025 was $1.56 billion, a 15.6% increase from 2024, with net income attributable to Quest Diagnostics at $992 million, up 13.9% from 2024 [1][2] Strategic Initiatives - The company formed a collaboration with Epic for Project Nova, aimed at improving customer experiences and streamlining systems [1] - Quest Diagnostics expanded its service offerings, integrating eight acquisitions from 2024 and scaling lab testing for over 200,000 patients at Fresenius Medical Care's dialysis centers [1] - New clinical innovations were introduced, including the Haystack MRD® test for cancer monitoring and the Quest AD-Detect® blood test for Alzheimer's diagnosis [1] Operational Excellence - The company engaged Google Cloud to enhance data management and analytics through generative AI, and deployed AI and automation across various systems to improve productivity [1] - Quest Diagnostics achieved 3% annual cost savings and productivity improvements through its Invigorate program [1] Shareholder Returns - The company announced a 7.5% increase in its quarterly dividend to $0.86 per share, marking 15 consecutive years of dividend increases [5] - A $1 billion increase in share repurchase authorization was also announced, reflecting the company's commitment to returning value to shareholders [5]

Core Viewpoint - Quest Diagnostics has announced a 7.5% increase in its quarterly cash dividend to $0.86 per share, effective April 20, 2026, with an annual cash dividend totaling $3.44 per share [1] Group 1: Dividend Increase - The Board of Directors has authorized a 7.5% increase in the quarterly cash dividend from $0.80 to $0.86 per share [1] - The increase will be effective for the dividend payable on April 20, 2026, to shareholders of record on April 6, 2026 [1] - The annual cash dividend will now amount to $3.44 per share [1] Group 2: Share Repurchase Authorization - The Board of Directors has increased the Company's share repurchase authorization by $1 billion [2] - This increase is in addition to the approximately $0.4 billion that was available as of December 31, 2025, under the share repurchase program [2] Group 3: Company Overview - Quest Diagnostics is a leading provider of diagnostic information services, connecting clinicians and consumers with laboratory insights [3] - The company serves half of the physicians and hospitals in the United States and one in three American adults each year [3] - Quest Diagnostics employs nearly 57,000 individuals to deliver diagnostic insights that inspire actions to improve health [3]

Core Insights - Quest Diagnostics (DGX) is scheduled to release its fourth-quarter 2025 results on February 10, with adjusted earnings per share (EPS) of $2.60 in the last reported quarter, exceeding the Zacks Consensus Estimate by 3.59% [2] - The Zacks Consensus Estimate for Q4 revenues is $2.75 billion, reflecting a 4.8% increase year-over-year, while EPS is expected to rise by 5.4% to $2.35 [3] Q4 Estimates - The revenue estimate for Quest Diagnostics indicates a growth of 4.8% compared to the previous year [3] - The EPS estimate suggests a 5.4% increase from the prior year [3] Estimate Revision Trend - Estimates for Quest Diagnostics' Q4 earnings have remained stable over the past 30 days, indicating consistent expectations leading up to the announcement [4] Factors Influencing Q4 Results - The core Diagnostics Information Services (DIS) business is anticipated to show strong revenue growth due to organic growth in physician, hospital, and consumer channels [5] - The acquisition of clinical testing assets from Fresenius Medical Care is expected to positively impact physician channel revenues, contributing an estimated 2.8% to DIS revenues in Q4 [6] Advanced Diagnostics Performance - Robust revenue generation is expected in Advanced Diagnostics across various clinical areas, including cardiometabolic, endocrine, and autoimmune disease testing [7] - Growth in Brain Health is likely driven by AD-detect blood tests for assessing Alzheimer's disease risk [7] Collaborative Lab Solutions - Collaborative Lab Solutions may have contributed to growth in the hospital channel, with strategic partnerships enhancing access to diagnostic innovations [8] Revenue Growth Drivers - An enhanced questhealth.com platform is likely to have supported strong fourth-quarter revenues through partnerships with consumer health brands [10] - The DIS revenues are projected to increase by 4.7% year-over-year in Q4 [11] Operational Excellence - The company is expected to have continued expanding automation, robotics, and AI to improve quality and productivity, contributing to top-line growth [12] Earnings ESP and Zacks Rank - Quest Diagnostics has an Earnings ESP of 0.00%, indicating no expected surprise in earnings [13] - The company currently holds a Zacks Rank of 2 (Buy) [14]

Core Insights - Quest Diagnostics has launched a novel blood test called Quest Flow Cytometry MRD for Myeloma, which offers sensitivity comparable to next-generation sequencing (NGS) methods for detecting measurable residual disease (MRD) in myeloma patients at a lower cost [1][4]. Company Overview - Quest Diagnostics is a leading provider of diagnostic information services, with a focus on oncology testing, including the new MRD test for myeloma and the Haystack MRD® test for solid tumors [6][8]. - The company operates approximately 7,000 phlebotomy sites across the United States, enhancing patient access to diagnostic testing [2]. Industry Context - Myeloma is a prevalent blood cancer with about 36,000 new cases diagnosed annually in the U.S., leading to nearly 11,000 deaths each year [3]. - The new test utilizes advanced flow cytometry techniques, providing a noninvasive alternative to traditional bone marrow aspirates, which is significant for patient care [4]. Test Features and Benefits - The Quest Flow Cytometry MRD for Myeloma test features five-day specimen stability, allowing for better logistics in specimen transport compared to conventional methods [4]. - The test is designed to be used even when a baseline aspirate sample is unavailable, unlike NGS methods that require such a reference [4]. Clinical Implications - The test is expected to improve treatment paradigms for myeloma patients and may serve as a response monitoring tool in clinical trials, aligning with recent FDA guidance on using MRD as a primary endpoint [5].

Upgrades - BMO Capital upgraded Southwest (LUV) to Outperform from Market Perform with a price target of $57.50, up from $43, citing significant momentum and earnings upside to at least $4.00 per share in 2026 from 93 cents in 2025 [2] - Barclays upgraded Quest Diagnostics (DGX) to Overweight from Equal Weight with a price target of $210, up from $195, noting sustainable organic growth of 4% from fiscal 2024 to 2025 [3] - Guggenheim upgraded GE Vernova (GEV) to Buy from Neutral with a price target of $910, believing the market may underestimate cash generation potential and margin improvement in the electrification segment [4] - Wolfe Research upgraded Broadcom (AVGO) to Outperform from Peer Perform with a price target of $400, based on channel checks indicating the company will ship 7 million tensor processing units by 2028 [5] - Citi upgraded Spotify (SPOT) to Buy from Neutral with an unchanged price target of $650, stating the stock's valuation is now attractive and consensus estimates are beatable [5] Downgrades - HSBC downgraded Pinterest (PINS) to Hold from Buy with a price target of $24.90, down from $34.50, due to an abrupt jobs cut announcement indicating a softer near-term outlook [6] - Jefferies downgraded Kenvue (KVUE) to Hold from Buy with a price target of $18, down from $23, following shareholder approval for a merger with Kimberly-Clark [6] - Citizens downgraded SAP (SAP) to Market Perform from Outperform without a price target, citing disappointing Q4 sales results and a current cloud backlog growth of 25% versus the expected 26% [6] - D. Boral Capital downgraded Quince Therapeutics (QNCX) to Hold from Buy without a price target after negative results from a pivotal Phase 3 clinical trial [6] - Stifel downgraded Codere Online (CDRO) to Hold from Buy with a price target of $8.50, down from $9, believing the company's estimates need to reset due to a recently announced tax hike in Mexico [6]

Core Insights - Albert Anthony is a Croatian-American business author and analyst contributing to Seeking Alpha with over 1,000 followers [1] - He has authored a book titled "Real Estate Investment Trusts (REITs): A Fundamental Analysis (2026 Edition)" available on Amazon [1] - Anthony has a background in business and information systems, having worked at Charles Schwab in the IT department [1] - He operates his own equities research firm, Albert Anthony & Company, remotely from Texas [1] - The author has participated in numerous business and innovation conferences and has hosted a program for Online Live TV Croatia [1] - He holds a B.A. in Political Science and various certifications including Microsoft Fundamentals and Risk Management specialization from CFI [1] - Anthony is also active on YouTube discussing REITs, reflecting his personal investment interests [1] Company and Industry Summary - Albert Anthony & Company is a Texas-registered boutique equities research firm managed entirely by Anthony [1] - The firm focuses on providing general market commentary and research based on publicly available data [1] - The author does not engage with non-publicly traded companies, small cap stocks, or startup CEOs, indicating a focus on established market entities [1] - The firm does not provide personalized financial advisory services or manage client funds, emphasizing a research-oriented approach [1]