Quest Diagnostics, Inc.

Strong Q3 performance → raised full-year 2026 guidance - Revenues $3.1B (+10% YoY); diagnostic information services +10.2% YoY, +10.1% organic. - Adjusted EPS $3.00 (+15.4% YoY) (reported EPS $2.78). - Operating income margin improved: reported 15.5% vs 13.7%; adjusted 16.7% vs 16.3%. - Full-year 2026 guidance raised and narrowed: - Revenues $12.065B–$12.105B (growth ~9.3%–9.7%). - Reported EPS $10.21–$10.31; adjusted EPS $11.25–$11.35. - Cash from ops ~ $1.9B, capex ~ $550M. - Share count expected slightly below 2025; interest expense lower than 2025; operating margin expected to expand.

Demand and volume solid across channels (but mix impacts “price per requisition”) - Total requisitions (volume) +14.5% YoY; organic volume +14.4%. - Corewell Health + Fresenius contributed 9.5% of volume; ex those relationships, volumes grew ~5%. - Revenue per requisition down 4.2% YoY due to mix, but up 1.7% ex-mix, driven by more tests per requisition; unit price reimbursement broadly flat. - Channel signals: - Physician: “high single-digit” revenue growth; strong demand across the test portfolio. - Hospital: double-digit revenue growth; reference testing up mid-single digits; Co-Lab Solutions strength (Corewell in Michigan). - Consumer: growth >30% expected for full year.

Opportunities: consumer platform expansion + diagnostics pipeline + automation/AI productivity - Apple Health integration: iPhone/iPad users can order labs inside the Apple Health app; includes 50+ biomarkers (e.g., ApoB, Lp(a)) plus biometric capture (BP/weight) at PSC. Launch later this year; iPhone/iPad “beta testing mode” now. Management highlighted accresive margins driven by dense requisitions and no denials/patient concessions. - Advanced diagnostics growth: double-digit growth in key areas (e.g., cardiometabolic/hormone/Alzheimer’s). - Alzheimer’s strategy: - Adding Roche p-tau217 soon; launching AD-Detect multi-biomarker panel (APOE, amyloid beta, p-tau217). - Emphasis on future earlier diagnosis/treatment using blood-based multi-biomarker approaches. - Automation/AI: - Automated aliquoting now used in 10 labs; expanded to additional drug monitoring labs. - AI used at Clifton, NJ for dialysis water microbe screening. - Invigorate cost program: on track for ~3% annual cost savings/productivity.