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Quest Diagnostics Inc.’s DGX first-quarter 2025 adjusted earnings per share (EPS) of $2.21 beat the Zacks Consensus Estimate by 2.8%. The metric also exceeded the year-ago adjusted figure by 8.3%. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar).

Certain one-time expenses, like the ones related to amortization expenses, certain restructuring and integration charges, other expenses and excess tax benefits associated with stock-based compensations, were excluded from the quarter’s adjusted figures. GAAP earnings came in at $1.94 per share, up 12.8% from last year’s comparable figure.

DGX shares have gained nearly 6.7% in pre-market trading following the earnings report.

DGX’s Revenues in Detail

Revenues reported in the first quarter rose 12.1% year over year to $2.65 billion. The metric surpassed the Zacks Consensus Estimate by 1.5%.

Diagnostic Information Services revenues in the quarter were up 12.7% on a year-over-year basis to $2.59 billion. This figure also surpassed our model’s projection of $2.53 billion for the first quarter.

Quest Diagnostics Incorporated Price, Consensus and EPS Surprise

Quest Diagnostics Incorporated price-consensus-eps-surprise-chart | Quest Diagnostics Incorporated Quote

Volumes (measured by the number of requisitions) were up 12.5% year over year in the first quarter. Revenue per requisition increased 0.3% year over year.

DGX’s Margin Performance

The cost of services during the reported quarter was $1.79 billion, up 12.2% year over year. The gross profit came in at $863 million, up 11.9% year over year. The gross margin was 32.5%, almost similar to the year-ago quarter’s number.

SG&A expenses were $476 million in the quarter under review, up 8.1% from the first quarter of 2024. The adjusted operating margin of 14.6% represented a 60-basis-point expansion year over year.

DGX’s Liquidity and Financial Health

Quest Diagnostics exited the first quarter of 2025 with cash and cash equivalents of $188 million compared with $549 million at the end of fourth-quarter 2024. The cumulative net cash provided by operating activities at the end of the first quarter of 2025 was $314 million compared with $154 million at the end of the same period last year.

The company has a five-year annualized dividendgrowth rate of 7.17%.

DGX’s 2025 Guidance

Quest Diagnostics reaffirmed its full-year 2025 revenue outlook, expected in the range of $10.70 billion-$10.85 billion, which indicates a year-over-year increase of 8.4%-9.9%. The Zacks Consensus Estimate is pegged at $10.76 billion.