Quest Diagnostics Incorporated

“During 2025, we generated net revenues of $11.0 billion.”

“Our diagnostic information services ("DIS") business provides diagnostic insights from the results of our laboratory testing to empower people, physicians, and organizations to take action to improve health outcomes.”

“Our Diagnostic Solutions ("DS") group, which represents the balance of our consolidated net revenues, includes our risk assessment services business, which offers solutions for insurers, and our healthcare information technology businesses, which offer solutions for healthcare providers and payers.”

“We serve approximately half the physicians in the United States each year.”

“In 2025, we generated approximately $1.2 billion in revenue from "reference testing," where we perform testing that hospitals do not perform in their own in-hospital labs.”

“During 2025, we processed approximately 244 million test requisitions through our extensive laboratory network.”

“In 2025, our Collaborative Lab Solutions (formerly known as Professional Laboratory Services) offering generated approximately $800 million in revenues and management fees supporting hospitals in the operation of their own labs.”

“Many of our 2,400 patient service centers are located inside large retail stores or in convenient retail settings.”

“Our QuestHealth.com platform empowers health- and wellness-minded consumers to purchase tests and panels without the need to schedule an appointment and visit a doctor’s office.”

“Net revenues$11,035$9,872$9,252 DIS revenues$10,785$9,614$8,976”

“As of December 31, 2025, we have nearly 57,000 employees globally (including LifeLabs’ approximately 6,800), of whom approximately 46,000 are full-time and the remainder are part-time or on-call.”

“We paid $84 million of aggregate cash consideration for the businesses. The acquired businesses are included in our DIS business.”

“We believe that as a large diagnostic information services provider we can serve our customers more effectively due to our larger network and lower cost structure.”

“We primarily compete with three types of clinical testing providers: other commercial clinical laboratories, including smaller regional and local commercial clinical laboratories and specialized advanced laboratories; hospital-affiliated laboratories; and physician-office laboratories.”

“Our largest commercial clinical laboratory competitor is Laboratory Corporation of America Holdings, Inc.”

“We believe that the market challenges faced by hospitals, including continued consolidation, price transparency, cost and utilization pressure, evolving healthcare payment models, capital needs, changing technology and limited resources, provide us with an opportunity to partner with them”

“leveraging the Quest Management System and by embracing innovative technologies, such as automation and artificial intelligence ("AI").”

“The Invigorate program aims to deliver 3% annual cost savings and productivity improvements to partially offset pressures from an inflationary environment, including labor and benefit cost increases and reimbursement pressures.”

“The increase was primarily driven by the impact of recent acquisitions, wage increases, and, to a lesser extent, higher supplies expense, partially offset by cost savings and productivity improvements from our Invigorate program.”

“primarily due to the issuance in August 2024 of $1.85 billion of senior notes.”

“Net revenues for the year ended December 31, 2025 increased by 11.8% compared to the prior year. For the year ended December 31, 2025, organic growth was 5.3% compared to the prior year.”

“Typically, testing volume declines during vacation and major holiday periods, reducing net revenues and operating cash flows below annual averages.”

“We expect efforts to reduce reimbursements, to impose more stringent cost controls and to reduce utilization of clinical test services will continue.”

“The supply of qualified technical, professional, managerial and other personnel, including cytotechs, phlebotomists and specimen processors, is currently constrained.”

“Starting in 2020, Congress has repeatedly acted to delay PAMA implementation by delaying the next round of data reporting (2020-2026) and Medicare cuts (2021-2026).”

“Business development activities are inherently risky and integrating our operations with businesses we acquire may be difficult.”

“Our IT systems have been and are subject to potential cyberattacks, tampering or other security breaches.”