Quest Diagnostics (DGX) FY2025 results: revenue $11.0 billion, up 11.8% on the year

Quest Diagnostics runs clinical laboratories, testing patient samples and selling the information that comes out of them. The company reports that the patients it serves in a year are approximately one-third of the adult population of the United States, that over three years it reaches about half of them, and that it serves approximately half of the country's physicians and half of its hospitals each year. Customers run across physicians, hospitals, patients and consumers, health plans, government agencies, employers, retailers, pharmaceutical companies and insurers. The business is made up of two parts: Diagnostic Information Services, the laboratory testing itself, and Diagnostic Solutions, which holds a risk assessment business serving insurers and healthcare IT businesses serving providers and payers. Most services carry the Quest Diagnostics name, with others under AmeriPath, Dermpath Diagnostics, ExamOne and Quanum.

The laboratory network

Testing runs through a network of laboratories, including advanced laboratories and rapid response laboratories, the smaller sites that can run a shorter menu of routine tests quickly for customers who need fast turnaround. The network operates 24 hours a day, 365 days a year. Around it sit patient service centres, phlebotomists in physician offices, call centres and mobile phlebotomists, nurses and other health and wellness staff. There are approximately 8,000 patient access points in total, including a patient service centre network of approximately 2,400 locations. A large in-house staff of medical directors, scientific directors, genetic counsellors and board-certified geneticists advises healthcare providers and patients on tests and results. The company also provides testing, including anatomic pathology, and medical director services inside hospital laboratories.

How the tests are organised

The commercial side is organised by clinical franchise: cardiometabolic, endocrine and wellness; drug monitoring and toxicology; infectious diseases and immunology; molecular genomics and oncology; neurology; and women's and reproductive health. The filing states this lets the company operate like a boutique laboratory while keeping the advantages of its scale. The delivery side holds sales, laboratory operations, field operations, logistics and client services. New tests come from the company's own research and development, covering discovery, technology development and clinical validation, and from partnerships that bring other people's technologies to market, with partners ranging from large manufacturers and academia to pharmaceutical, biotechnology and emerging medical technology firms. Certain diagnostic programmes received Breakthrough Device Designation from the Food and Drug Administration in 2023 and 2025.

Reaching patients directly

QuestHealth.com is the consumer-initiated route, a self-directed option with physician oversight. Patients with symptoms of several common genital tract infections, including sexually transmitted infections, can self-collect a swab, and in 2025 self-collection was introduced in clinical settings for human papillomavirus screening. The company also lets telehealth and retail companies rebrand its testing and use its patient service centres for access.

Cost and technology programmes

Invigorate is the cost programme, covering patient services, logistics, laboratory operations, revenue services, information technology and procurement, and the filing states it has consistently delivered 3 percent of annual cost savings and productivity improvement, partly offsetting inflation in labour and benefits and pressure on reimbursement. The company has extended automation and AI into front-end specimen processing and labelling at six laboratories, with a pilot completed at the Clifton, New Jersey laboratory, and into digital cytology, microbiology, parasitology and digital pathology. Other work is aimed at reducing claim denials and patient concessions, optimising logistics routes and improving the digital experience. In February 2025 the company committed to Project Nova, a multi-year rebuild of its order-to-cash processes and the technology under them, with Epic as the third-party licensor assisting; it says it expects completion in 2031 to 2032. Quality is managed through the Quest Management System and a quality programme with documented policies and measures, alongside a supplier quality programme.

What the payers do

Reimbursement is under pressure. Under The Protecting Access to Medicare Act of 2014, Medicare rates for many clinical laboratory tests were cut between 2018 and 2020, and the filing argues the first round of cuts was excessive because the 2017 data the Centers for Medicare and Medicaid Services relied on over-represented independent laboratories and under-represented hospital and physician office laboratories. Hospitals have historically negotiated higher rates from health plans than commercial laboratories for comparable work, and plans generally pay non-participating laboratories more. The company reports growing interest among health plans in moving volume to lower-cost providers, through preferred provider partners, plan designs such as zero out-of-pocket costs for members using preferred providers, and closer alignment of hospital and independent laboratory rates; it names the UnitedHealthcare Preferred Lab Network, which selected it, as an example.

From Quest Diagnostics' annual report on Form 10-K for the year ended 31 December 2025. The filing

Written from the 10-K filed 26 February 2026: read the full 10-K.