A healthcare company that runs one of the world's largest clinical laboratory networks, performing blood tests and diagnostics for hospitals, doctors, and patients nationwide. Founded in 1967 as Metropolitan Pathology Laboratory by a resident doctor working in a two-bedroom Manhattan apartment — his lab famously started over a bathtub — it was renamed Quest Diagnostics in 1996 after glassmaker Corning spun it off. Its brands include the MyQuest patient app and ExamOne life-insurance exams.
Q2 2026 revenue rose 9.2% to $2,895M with EPS up 15.5% to $2.24 on organic volume growth
Organic diagnostic volume kept climbing after the Corewell and Fresenius launches. rose 9.2% to $2,895M and rose 15.5% to $2.24 as DIS volume grew, while held at 32.5% and fell 11.5% to $278M. The base business is growing, but cash generation compressed as debt service and partnership mix weigh on the quarter.
Key takeaways
rose 9.2% to $2,895M and 3.2% from Q1, with DIS revenues up 10.3% to $2,978M on 13.0% organic volume growth that included the Corewell Health and Fresenius Medical Care partnerships.
Excluding Corewell and Fresenius, organic DIS volume rose about 4% and per requisition increased about 3%, while blended revenue per requisition declined 2.8% from the routine-test mix of the new relationships.
rose 15.3% to $399M and rose 15.5% to $2.24, with at 13.8% versus 13.0% a year earlier as lower and SG&A as a percentage of aided results.
Section summaries
Management's Discussion and Analysis
Q2 2026 net revenues rose 10.2% to $3,043M, driven by 13.1% DIS volume growth from Corewell Health and Fresenius Medical Care partnerships.
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DIS revenues grew 10.3% to $2,978M, with organic volume up 13.0%; excluding Corewell and Fresenius, organic volume rose ~4% and increased ~3%.
declined 2.8% due to business mix from new partnerships, which carry a higher proportion of routine tests.
fell 11.5% to $278M due to timing of receipts and disbursements and higher bonus payments, and fell 16.8% to $164M.
The company issued $500M of 5.00% due 2036 and repaid $500M of 3.45% notes at maturity; $1.3B remains available under and fell 12.0% to $5,155M.
are estimated at about $550M for 2026, including the Project Nova order-to-cash modernization, with $114M spent in Q1.
What changed
The Q1 2026 watch item on organic DIS volume excluding Corewell and Fresenius was settled: underlying organic volume rose about 4% in Q2, holding the 3.8% Q1 pace rather than fading.
The Q1 watch on after the 11.5% decline to $278M and the $500M June notes maturity: the company repaid the notes using a new $500M issuance, and H1 operating cash flow was $875M, up $17M from a year earlier as higher offset the prior-year CARES Act credit.
PAMA Medicare rate cuts took effect in 2026 as flagged in the FY2025 watch list; the company did not report a measured impact on DIS per requisition this quarter.
The OBBBA and expiring enhanced PTCs drag of 50-60 by 2028 carried from prior filings with no material 2026 impact expected; per requisition excluding new relationships rose about 3% in Q2.
on the $5,167M year-end balance persisted with the Q2 refinancing at 5.00%, and the company uses $1.8B notional fixed-to-variable swaps against rate exposure.
What to watch
Organic DIS volume excluding Corewell and Fresenius next quarter after the about 4% Q2 pace to confirm underlying demand holds without new-partnership lifts.
trajectory in Q3 after the 11.5% Q1 decline and H1's $17M increase, against the about $550M full-year plan.
Measured impact of 2026 PAMA Medicare cuts on DIS per requisition as the year progresses.
per requisition trend excluding new-relationship mix as the about 3% organic gain faces the building OBBBA drag toward 2028.
increased 4.6% to $459M, as higher compensation and supplies costs were partially offset by Invigorate program savings.
Net was $875M for H1 2026, up $17M, with increased largely offset by a prior-year CARES Act payroll tax credit.
The company issued $500M of 5.00% senior notes due 2036 and repaid $500M of 3.45% notes at maturity; $1.3B remains available under credit facilities.
are estimated at ~$550M for 2026, supporting lab equipment, automation, and IT, including the Project Nova order-to-cash modernization.
Quantitative and Qualitative Disclosures About Market Risk
Interest rate risk is the primary market risk, managed via a balanced debt mix and interest rate swaps; foreign exchange and commodity risks are deemed immaterial.
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A hypothetical 10% increase in interest rates would reduce the of debt by $152 million as of June 30, 2026.
The company uses fixed-to-variable with a of $1.8 billion to manage interest rate exposure.
A hypothetical 10% change in the curve would change the of by $43 million.
Foreign exchange and commodity price risks are not material to consolidated results, financial position, or cash flows.
Equity investments, primarily in life sciences and healthcare, are not hedged; carrying value of non-marketable equity investments was $47 million with no .
See Note 11 to the interim unaudited consolidated financial statements for information regarding the status of legal proceedings involving the Company. Item 1A. Risk Factors
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See Note 11 to the interim unaudited consolidated financial statements for information regarding the status of legal proceedings involving the Company.
Item 1A. Risk Factors