Quest Diagnostics Reports 15.2% Revenue Growth to $2.761 Billion in Q2 2025

Quest Diagnostics Incorporated reported significant financial growth in its latest 10-Q filing for the second quarter of 2025, with net revenues reaching $2.761 billion, a 15.2% increase from $2.397 billion in the same period of 2024. For the first half of 2025, the company generated $5.413 billion in revenues, compared to $4.763 billion in the first half of 2024, marking a 13.6% increase. The company's net income attributable to Quest Diagnostics also rose to $282 million for the second quarter, up from $229 million year-over-year, while the six-month net income increased to $502 million from $423 million.

Operating costs and expenses for the second quarter of 2025 totaled $2.323 billion, up from $2.042 billion in the prior year, primarily driven by increased costs of services, which rose to $1.818 billion from $1.593 billion. The company reported an operating income of $438 million for the second quarter, compared to $355 million in the same quarter of 2024. The increase in operating income reflects the company's ability to manage costs effectively despite rising expenses.

Strategically, Quest Diagnostics has been active in expanding its business through acquisitions. In August 2024, the company acquired LifeLabs Inc. for approximately $1 billion, enhancing its diagnostic capabilities in Canada. Additionally, in February 2025, Quest entered into an agreement to acquire select assets of Fresenius Medical Care's Spectra Laboratories, a move expected to close in the second half of 2025. These acquisitions are part of Quest's strategy to broaden its service offerings and geographic reach.

Operationally, the company reported a slight increase in its employee headcount, reflecting ongoing investments in talent to support its growth initiatives. The company continues to focus on enhancing its digital capabilities and improving customer engagement through its diagnostic information services. As of June 30, 2025, Quest Diagnostics maintained a strong balance sheet with total assets of $15.969 billion, down from $16.153 billion at the end of 2024, and total stockholders' equity of $7.265 billion, up from $6.813 billion.

Looking ahead, Quest Diagnostics anticipates continued growth driven by its strategic initiatives, including the integration of recent acquisitions and ongoing enhancements to its service offerings. The company is also focused on its multi-year Invigorate program, which aims to achieve annual cost savings and productivity improvements of 3% to offset inflationary pressures. Overall, Quest Diagnostics remains optimistic about its ability to deliver value to its shareholders while navigating the evolving healthcare landscape.