Executive Summary
Quest Diagnostics delivered a solid Q2 2025 performance with a robust revenue ramp and resilient margins, underscoring its position as a premier US diagnostic information services provider. Revenue reached USD 2.761 billion, up 15.2% year over year and 4.1% quarter over quarter, supported by higher testing volumes and favorable mix across routine, nonroutine, and advanced clinical testing. Gross profit of USD 944 million yielded a gross margin of 34.2%, while operating income of USD 425 million produced an operating margin around 15.4% and EBITDA of USD 451 million (EBITDA margin ~16.3%). Net income was USD 281 million, translating to a net margin of approximately 10.2% and an EPS of USD 2.51 (USD 2.47 diluted).
Key Performance Indicators
Key Insights
Revenue: USD 2.761B; YoY +15.19%; QoQ +4.11%. Gross Profit: USD 944M; Gross Margin 34.19%; YoY +17.41%; QoQ +9.39%. Operating Income: USD 425M; Operating Margin 15.39%; YoY +19.72%; QoQ +22.83%. Net Income: USD 281M; Net Margin 10.18%; YoY +22.71%; QoQ +27.73%. EPS: USD 2.51 (Diluted 2.47); YoY +22.44%; QoQ +27.41%. EBITDA: USD 451M; EBITDA Margin 16.33%....
Financial Highlights
Revenue: USD 2.761B; YoY +15.19%; QoQ +4.11%. Gross Profit: USD 944M; Gross Margin 34.19%; YoY +17.41%; QoQ +9.39%. Operating Income: USD 425M; Operating Margin 15.39%; YoY +19.72%; QoQ +22.83%. Net Income: USD 281M; Net Margin 10.18%; YoY +22.71%; QoQ +27.73%. EPS: USD 2.51 (Diluted 2.47); YoY +22.44%; QoQ +27.41%. EBITDA: USD 451M; EBITDA Margin 16.33%.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
2.76B |
15.19% |
4.11% |
| Gross Profit |
944.00M |
17.41% |
9.39% |
| Operating Income |
425.00M |
19.72% |
22.83% |
| Net Income |
281.00M |
22.71% |
27.73% |
| EPS |
2.51 |
22.44% |
27.41% |
Key Financial Ratios
operatingProfitMargin
15.9%
operatingCashFlowPerShare
$4.86
freeCashFlowPerShare
$3.89
dividendPayoutRatio
31.9%
Management Commentary
Transcript not provided in the data. No earnings call quotes or themes are available for extraction. When available, we will summarize management themes by strategy, operations, and market conditions with contextual quotes.
Forward Guidance
No formal forward guidance is included in the provided data. Based on Q2 2025 results and sector dynamics, the commentary would likely emphasize continued demand for diagnostic testing, ongoing cost discipline, and potential volume/mix-driven margin resilience. Our qualitative view anticipates: (1) base-case revenue growth in the low- to mid-single digits in 2H25 driven by volume and mix; (2) mid-teens EBITDA margins supported by operating leverage; (3) solid free cash flow generation in the USD hundreds of millions per quarter, enabling dividend continuity and debt management. Key factors to monitor include reimbursement trends, utilization levels, regulatory environment, and execution of strategic initiatives (AmeriPath, Dermpath, ExamOne and Quanum) that could influence mix and pricing.