Quest Diagnostics, Inc.

Q2 performance: strong top + bottom line (and broad demand) - Revenues: $3.04B, +10.2% YoY (reported), with organic revenue up 10%. - EPS: Reported diluted EPS $2.84 (+14.9% YoY); Adjusted diluted EPS $3.12 (+19.1% YoY). - Volume: Requisitions +13.1% YoY (organic volume +13%); Corewell + Fresenius contributed ~9% of volume. - Revenue per requisition: -2.8% YoY due to Corewell/Fresenius mix, but +2.9% YoY excluding mix, driven mainly by more tests per requisition; unit price reimbursement ~flat.

Guidance raised for full-year 2026 (key forecast numbers) - Revenue: now $11.95B–$12.05B (implies 8.3% to 9.2% growth, excluding any prospective M&A contribution). - EPS: Reported EPS $9.97–$10.17; Adjusted EPS $11.05–$11.25. - Cash flow & capex: Cash from operations ~ $1.8B; Capex ~ $550M. - Why the raise: continued momentum across physician, hospital, and consumer channels plus ongoing gains from automation/AI and “Invigorate” cost program.

Second-half outlook: margin headwinds but expected full-year expansion - Q2 operating margin (adjusted): 16.5%, down ~40 bps YoY due to: - Nova/project investment (~20 bps), - Corewell + Fresenius ramp/mix (~30 bps), - SDCP supplemental deferred comp mark-to-market (~20 bps). - Second-half margin drivers: - Fuel costs expected to be toward the high end previously guided (roughly ~$10M impact). - Nova spend timing: now expected ~70% of full-year in 2H (previously ~60%). - Offset: volume strength + lapse/less dilution from Corewell/Fresenius starting in Q4 → still expect operating margin expansion vs prior year for full year.