$DGX

QUEST DIAGNOSTICS INC

CIK:0001022079|SEC Filings

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Income Statement [Abstract]
Net revenues	$ 3,043	$ 2,761	$ 5,938	$ 5,413
Operating costs and expenses and other operating income:
Cost of services	2,016	1,818	3,969	3,607
Selling, general and administrative	529	486	1,033	962
Amortization of intangible assets	38	39	75	78
Other operating expense (income), net	1	(20)	3	(18)
Total operating costs and expenses, net	2,584	2,323	5,080	4,629
Operating income	459	438	858	784
Other income (expense):
Interest expense, net	(63)	(67)	(126)	(134)
Other income, net	16	13	14	10
Total non-operating expense, net	(47)	(54)	(112)	(124)
Income before income taxes and equity in earnings of equity method investees	412	384	746	660
Income tax expense	(88)	(97)	(162)	(156)
Equity in earnings of equity method investees, net of taxes	10	9	14	27
Net income	334	296	598	531
Less: Net income attributable to noncontrolling interests	14	14	26	29
Net income attributable to Quest Diagnostics	$ 320	$ 282	$ 572	$ 502
Earnings per share attributable to Quest Diagnostics’ common stockholders:
Basic (in dollars per share)	$ 2.88	$ 2.51	$ 5.15	$ 4.48
Diluted (in dollars per share)	$ 2.84	$ 2.47	$ 5.08	$ 4.41
Weighted average common shares outstanding:
Basic (in shares)	111	112	110	112
Diluted (in shares)	112	113	112	113

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
Cash flows from operating activities:
Net income	$ 598	$ 531
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	293	283
Provision for credit losses	3	2
Deferred income tax expense	46	8
Stock-based compensation expense	43	43
Other, net	14	26
Changes in operating assets and liabilities:
Accounts receivable	(259)	(115)
Accounts payable and accrued expenses	130	(11)
Income taxes payable	4	9
Other assets and liabilities, net	3	82
Net cash provided by operating activities	875	858
Cash flows from investing activities:
Business acquisitions, net of cash acquired	(38)	(17)
Capital expenditures	(252)	(225)
Other investing activities, net	4	3
Net cash used in investing activities	(286)	(239)
Cash flows from financing activities:
Proceeds from borrowings	494	400
Repayments of debt	(501)	(1,001)
Purchases of treasury stock	(102)	0
Exercise of stock options	81	42
Employee payroll tax withholdings on stock issued under stock-based compensation plans	(38)	(42)
Dividends paid	(184)	(174)
Distributions to noncontrolling interest partners	(22)	(29)
Other financing activities, net	(109)	(50)
Net cash used in financing activities	(381)	(854)
Effect of exchange rate changes on cash and cash equivalents and restricted cash	(2)	5
Net change in cash and cash equivalents and restricted cash	206	(230)
Cash and cash equivalents and restricted cash, beginning of period	420	549
Cash and cash equivalents and restricted cash, end of period	$ 626	$ 319

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions	Jun. 30, 2026	Dec. 31, 2025
Assets
Cash and cash equivalents	$ 626	$ 420
Accounts receivable, net of allowance for credit losses of $28 and $25 as of June 30, 2026 and December 31, 2025, respectively	1,666	1,408
Inventories	233	189
Prepaid expenses and other current assets	319	361
Total current assets	2,844	2,378
Property, plant and equipment, net	2,219	2,203
Operating lease right-of-use assets	678	657
Goodwill	9,112	8,945
Intangible assets, net	1,672	1,636
Investments in equity method investees	137	136
Other assets	277	270
Total assets	16,939	16,225
Current liabilities:
Accounts payable and accrued expenses	1,598	1,600
Less: Current portion of long-term debt	10	504
Current portion of long-term operating lease liabilities	180	174
Total current liabilities	1,788	2,278
Long-term debt	5,632	5,167
Long-term operating lease liabilities	561	537
Other liabilities	1,059	957
Commitments and contingencies
Redeemable noncontrolling interest	80	80
Quest Diagnostics stockholders’ equity:
Common stock, par value $0.01 per share; 600 shares authorized as of both June 30, 2026 and December 31, 2025; 162 shares issued as of both June 30, 2026 and December 31, 2025	2	2
Additional paid-in capital	2,374	2,381
Retained earnings	10,374	9,994
Accumulated other comprehensive loss	(62)	(27)
Treasury stock, at cost; 52 shares as of both June 30, 2026 and December 31, 2025	(5,172)	(5,180)
Total Quest Diagnostics stockholders’ equity	7,516	7,170
Noncontrolling interests	303	36
Total stockholders’ equity	7,819	7,206
Total liabilities and stockholders’ equity	$ 16,939	$ 16,225