Quest Diagnostics Incorporated reported a significant increase in financial performance for the first quarter of 2025, with net revenues reaching $2.652 billion, a 12.1% increase from $2.366 billion in the same period of 2024. The company's operating income also rose to $346 million, up from $300 million year-over-year, reflecting a 15.4% increase. Net income attributable to Quest Diagnostics was $220 million, compared to $194 million in the prior year, resulting in diluted earnings per share of $1.94, up from $1.72.
The growth in revenues was primarily driven by the company's Diagnostic Information Services (DIS) segment, which accounted for approximately 97.6% of total revenues. DIS revenues increased by 12.7% to $2.589 billion, bolstered by a 12.4% rise in requisition volume, although organic volume saw a slight decline of 0.9%. The increase in revenue per requisition was modest at 0.3%, influenced by a higher number of tests per requisition, offset by the lower revenue per requisition from the recently acquired LifeLabs Inc. The Diagnostic Solutions (DS) segment, however, experienced a decline in revenues, falling 7.7% to $63 million, primarily due to reduced revenues from risk assessment services.
In terms of operational developments, Quest Diagnostics continued to implement its multi-year "Invigorate" program aimed at enhancing productivity and achieving annual cost savings of 3%. The company incurred $19 million in pre-tax restructuring charges during the quarter, which included $11 million related to employee separation costs. Additionally, the company is in the process of acquiring select assets from Fresenius Medical Care's Spectra Laboratories, a move expected to close in the second half of 2025.
As of March 31, 2025, Quest Diagnostics reported total assets of $15.797 billion, a decrease from $16.153 billion at the end of 2024. The company’s cash and cash equivalents were significantly reduced to $188 million from $549 million, primarily due to increased cash used in financing activities, which totaled $561 million for the quarter. This included the repayment of $600 million in senior notes that matured in March 2025. The company also declared a quarterly cash dividend of $0.80 per share, up from $0.75 in the previous year, reflecting its commitment to returning value to shareholders.
Looking ahead, Quest Diagnostics remains focused on leveraging its acquisitions and operational efficiencies to drive growth. The company anticipates continued revenue growth from its DIS segment, supported by strategic initiatives and market expansion efforts. However, it also acknowledges potential challenges from market conditions and ongoing restructuring efforts. The management's outlook emphasizes a commitment to enhancing operational capabilities and maintaining financial flexibility to navigate future opportunities and challenges.