Quest Diagnostics reports $3.1B revenue for Q3 2026
- Form
- 10-Q
- Filed
- Importance
- Notable
- Accession
- 0001022079-26-000108
- Revenue: $3.1 billion for the three months ended Sep 30, 2026
- Net income: $312 million for the three months ended Sep 30, 2026
- Diluted EPS: $2.78 for the three months ended Sep 30, 2026
- Cash and equivalents: $797 million at Sep 30, 2026
Written from the 10-Q on EDGAR. AI can make mistakes. Check the filing.
What changed since last quarter
1 new legal mention
Compared with the 10-Q for the period ended Jun 30, 2026.
| This filing | Previous | Change vs prior 10-Q | |
|---|---|---|---|
| Revenue | $3.1B | $3.04B | +1.8% |
| Operating income and margin | $479M · 15.5% | $459M · 15.1% | +4.4%, margin +0.4 pts |
| Net income | $312M | $320M | −2.5% |
| Operating cash flow | $611M | $597M | +2.3% |
| Cash | $797M | $626M | +27% |
New legal mentions (1)
- The parties have reached an agreement in principle to settle the matters and are in the process of drafting a definitive settlement agreement.
The reading, claim by claim
- For the three months ended September 30, 2026, the filing reports net revenues of $3,097 million, compared with $2,816 million a year earlier.
- Operating income was $479 million, compared with $386 million.
- Diluted earnings per share were $2.78, compared with $2.16.
- Net income attributable to Quest Diagnostics was $884 million, compared with $747 million.
- The balance sheet shows cash and cash equivalents of $797 million at September 30, 2026, compared with $420 million at December 31, 2025.
- Long-term debt was $5,540 million, compared with $5,167 million.
- Current portion of long-term debt was $10 million, compared with $504 million.
- Over the nine months, net cash provided by operating activities was $1,486 million, compared with $1,421 million a year earlier.
- The filing lists capital expenditures of $418 million, purchases of treasury stock of $252 million and dividends paid of $279 million.
9 of 13 claims matched the filing text.
Not found in the filing text
- For the nine months ended September 30, 2026, net revenues were $9,035 million, compared with $8,229 million in the same period of 2025.
- Diluted earnings per share were $7.86, compared with $6.57.
- The financial statements data for the quarter shows revenue of $3.1 billion, up 10.0% from a year earlier.
- It also shows net income of $312.0 million, gross margin of 33.6%, operating margin of 15.5% and net margin of 10.1%.
From the filing
Item 4. Controls and Procedures
Controls and Procedures
QUEST DIAGNOSTICS INCORPORATED AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2026 AND 2025
| Three Months Ended September 30, | Nine Months Ended September 30, | |||
|---|---|---|---|---|
| 2026 | 2025 | 2026 | 2025 | |
| Net revenues1 | $3,0971 | $2,8161 | $9,0351 | $8,2291 |
| Operating costs and expenses and other operating income: | ||||
| Cost of services | 2,055 | 1,867 | 6,024 | 5,474 |
| Selling, general and administrative | 523 | 501 | 1,556 | 1,463 |
| Amortization of intangible assets | 37 | 39 | 112 | 117 |
| Other operating expense, net | 3 | 23 | 6 | 5 |
| Total operating costs and expenses, net | 2,618 | 2,430 | 7,698 | 7,059 |
| Operating income2 | 4792 | 3862 | 1,3372 | 1,1702 |
| Other income (expense): | ||||
| Interest expense, net | (61) | (66) | (187) | (200) |
| Other (expense) income, net | (2) | 8 | 12 | 18 |
| Total non-operating expense, net | (63) | (58) | (175) | (182) |
| Income before income taxes and equity in earnings of equity method investees | 416 | 328 | 1,162 | 988 |
| Income tax expense | (99) | (77) | (261) | (233) |
| Equity in earnings of equity method investees, net of taxes | 9 | 8 | 23 | 35 |
| Net income | 326 | 259 | 924 | 790 |
| Less: Net income attributable to noncontrolling interests | 14 | 14 | 40 | 43 |
| Net income attributable to Quest Diagnostics4 | $3124 | $2454 | $8844 | $7474 |
| Earnings per share attributable to Quest Diagnostics' common stockholders: | ||||
| Basic | $2.82 | $2.18 | $7.97 | $6.66 |
| Diluted3 | $2.783 | $2.163 | $7.863 | $6.573 |
| Weighted average common shares outstanding: | ||||
| Basic | 110 | 112 | 110 | 112 |
| Diluted | 112 | 113 | 112 | 113 |
The accompanying notes are an integral part of these statements.
QUEST DIAGNOSTICS INCORPORATED AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2026 AND 2025
| Three Months Ended September 30, | Nine Months Ended September 30, | |||
|---|---|---|---|---|
| 2026 | 2025 | 2026 | 2025 | |
| Net income | $326 | $259 | $924 | $790 |
| Other comprehensive income (loss): | ||||
| Foreign currency translation adjustment | (4) | (24) | (39) | 48 |
| Other comprehensive (loss) income | (4) | (24) | (39) | 48 |
| Comprehensive income | 322 | 235 | 885 | 838 |
| Less: Comprehensive income attributable to noncontrolling interests | 14 | 14 | 40 | 43 |
| Comprehensive income attributable to Quest Diagnostics | $308 | $221 | $845 | $795 |
The accompanying notes are an integral part of these statements.
QUEST DIAGNOSTICS INCORPORATED AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS SEPTEMBER 30, 2026 AND DECEMBER 31, 2025
| September 30, 2026 | December 31, 2025 | |
|---|---|---|
| Assets | ||
| Current assets: | ||
| Cash and cash equivalents5 | $7975 | $4205 |
| Accounts receivable, net of allowance for credit losses of $27 and $25 as of September 30, 2026 and December 31, 2025, respectively | 1,712 | 1,408 |
| Inventories | 218 | 189 |
| Prepaid expenses and other current assets | 390 | 361 |
| Total current assets | 3,117 | 2,378 |
| Property, plant and equipment, net | 2,275 | 2,203 |
| Operating lease right-of-use assets | 670 | 657 |
| Goodwill | 9,112 | 8,945 |
| Intangible assets, net | 1,634 | 1,636 |
| Investments in equity method investees | 139 | 136 |
| Other assets | 274 | 270 |
| Total assets | $17,221 | $16,225 |
| Liabilities and Stockholders' Equity | ||
| Current liabilities: | ||
| Accounts payable and accrued expenses | $1,643 | $1,600 |
| Current portion of long-term debt7 | 107 | 5047 |
| Current portion of long-term operating lease liabilities | 181 | 174 |
| Total current liabilities | 1,834 | 2,278 |
| Long-term debt6 | 5,5406 | 5,1676 |
| Long-term operating lease liabilities | 554 | 537 |
| Other liabilities | 1,262 | 957 |
| Commitments and contingencies | ||
| Redeemable noncontrolling interest | 81 | 80 |
| Stockholders' equity: | ||
| Quest Diagnostics stockholders' equity: | ||
| Common stock, par value $0.01 per share; 600 shares authorized as of both September 30, 2026 and December 31, 2025; 162 shares issued as of both September 30, 2026 and December 31, 2025 | 2 | 2 |
| Additional paid-in capital | 2,397 | 2,381 |
| Retained earnings | 10,593 | 9,994 |
| Accumulated other comprehensive loss | (66) | (27) |
| Treasury stock, at cost; 52 shares as of both September 30, 2026 and December 31, 2025 | ||
|---|---|---|
| (5,294) | (5,180) | |
| Total Quest Diagnostics stockholders' equity | 7,632 | 7,170 |
| Noncontrolling interests | 318 | 36 |
| Total stockholders' equity | 7,950 | 7,206 |
| Total liabilities and stockholders' equity | $17,221 | $16,225 |
The accompanying notes are an integral part of these statements.
QUEST DIAGNOSTICS INCORPORATED AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2026 AND 2025
| Nine Months Ended September 30, | ||
|---|---|---|
| 2026 | 2025 | |
| Cash flows from operating activities: | ||
| Net income | $924 | $790 |
| Adjustments to reconcile net income to net cash provided by operating activities: | ||
| Depreciation and amortization | 440 | 425 |
| Provision for credit losses | 5 | 2 |
| Deferred income tax expense | 155 | 118 |
| Stock-based compensation expense | 63 | 63 |
| Other, net | 22 | 37 |
| Changes in operating assets and liabilities: | ||
| Accounts receivable | (308) | (153) |
| Accounts payable and accrued expenses | 244 | 113 |
| Income taxes payable | (24) | (1) |
| Other assets and liabilities, net | (35) | 27 |
| Net cash provided by operating activities8 | 1,4868 | 1,4218 |
| Cash flows from investing activities: | ||
| Business acquisitions, net of cash acquired | (39) | (51) |
| Capital expenditures9 | (418)9 | (369)9 |
| Other investing activities, net | 2 | (20) |
| Net cash used in investing activities | (455) | (440) |
| Cash flows from financing activities: | ||
| Proceeds from borrowings | 494 | 410 |
| Repayments of debt | (504) | (1,011) |
| Purchases of treasury stock9 | (252)9 | (150)9 |
| Exercise of stock options | 108 | 61 |
| Employee payroll tax withholdings on stock issued under stock-based compensation plans | (40) | (44) |
| Dividends paid9 | (279)9 | (263)9 |
| Distributions to noncontrolling interest partners | (35) | (43) |
| Contributions from noncontrolling interest partners | 25 | — |
| Other financing activities, net | (169) | (61) |
| Net cash used in financing activities | (652) | (1,101) |
| Effect of exchange rate changes on cash and cash equivalents and restricted cash | (2) | 3 |
Net change in cash and cash equivalents and restricted c
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