Almost $20 trillion in revenue—and a record-breaking $1.87 trillion in profits. Introducing the 2025 Fortune 500, the definitive list of the biggest companies in America.

Fortune 500

The 300 companies on this year’s list brought in over $12.6 trillion in revenue for the latest 12 months, with the median revenue figure at $22 billion.

America's Most Innovative Companies

Leaders in all industries rely more than ever on Big Tech—and appreciate the giants that deliver, at scale, without drama.

World's Most Admired Companies

Industries included in the sector are insurance and managed care, medical products and facilities, pharmacy services, and pharmaceutical companies.

Fortune Sector Leaders: Health Care

The Fortune 500, in its 70th year in 2024, ranks the biggest U.S. companies by revenue.

The 26th edition of the list shows how much esteem Big Tech giants command among other business leaders.

The 25th Fortune World’s Most Admired Companies list suggests that tech giants’ peers respect them as much as ever.

The 300 companies on this list are transforming industries from the inside out.

The Fortune 500, in its 69th year in 2023, ranks the biggest U.S. companies by revenue.

Just as it dominates our economy, Big Tech now dominates Fortune’s annual ranking of corporate reputation.

This year’s Fortune 500 marks the 68th running of the list.

After a year in which humanity leaned more heavily than ever on tech giants, see which companies topped Fortune's ranking of corporate reputation.

This year’s Fortune 500 marks the 67th running of the list.

F500-2021-324-Quest Diagnostics

Millions of people turn to the laboratory company to conduct the important tests that track cholesterol levels, white blood cell count, and other crucial measurements that ensure healthy lives. Quest Diagnostics also helps pharmaceutical companies conduct the clinical trials that could lead to life-saving treatments.

For an astounding 13th straight year, Apple claims the top spot in Fortune’s annual ranking of corporate reputation, based on a survey of almost 3,800 executives, directors, and analysts.

This year's Fortune 500 marks the 66th running of the list.

Quest Diagnostics Flies Coronavirus Tests and Samples Across the United States

The clinical diagnostics company’s services range from routine blood work to gene-based testing.

Here are the World's Most Admired Companies for 2019 as ranked in their industries. See who made the list.

This year's Fortune 500 marks the 65th running of the list.

Here are the World's Most Admired Companies for 2018 as ranked in their industries. See who made the list.

This year's Fortune 500 marks the 64th running of the list.

Here are the World's Most Admired Companies for 2017 as ranked in their industries. See who made the list.

This year's Fortune 500 marks the 63rd running of the list.

Here are the World's Most Admired Companies for 2016 as ranked in their industries. See who made the list.

This year's Fortune 500 marks the 62nd running of the list.

Business insiders have spoken: Asked which companies they most admire, more than 4,100 executives, directors, and analysts chose these top 50 All-Stars.

This year's Fortune 500 marks the 61st running of the list. Wal-Mart claims the top spot again. See who made the list.

Wal-Mart stayed on top as its sales crept closer to half-a-trillion dollars. Apple moved into the top five. And UnitedHealth Group continued its steady climb. 

Sector

Industry

Current All-Star Rank

Previous All-Star Rank

Industry Rank

Previous Industry Rank

Overall Score

Innovation

People Management

Use of Corporate Assets

Social Responsibility

Quality of Management

Financial Soundness

Long-Term Investment Value

Quality of Products/Services

Global Competitiveness

Culture rank

Process rank

Product rank

Years on list

Previous rank

Key Financials (last Fiscal Year)

Revenues ($M)

Profits ($M)

Assets ($M)

Total Stockholder Equity ($M)

Profit Ratios

Profit as % of Revenues

Profits as % of Assets

Profits as % of Stockholder Equity

Earnings Per Share (last Fiscal Year)

Earnings Per Share ($)

EPS % Change (from prior fiscal year)

EPS % Change (5 year annual rate)

EPS % Change (10 year annual rate)

Total Return

Total Return to Investors (last year)

Total Return to Investors (5 year, annualized)

Total Return to Investors (10 year, annualized)

Q2 2025

Q1 2025

Q4 2024

Quest Diagnostics (DGX): Company Profile, Stock Price, News, Rankings

legacy

Quest Diagnostics

quest diagnostics

Welcome to the Quest Diagnostics Second Quarter twenty twenty five Conference Call. At the request of the company, this call is being recorded. The entire contents of this call, including the presentation and question and answer session that will follow, are the copyrighted property of Quest Diagnostics with all rights reserved. Any redistribution, retransmission or rebroadcast of this call in any form without the written consent of Quest Diagnostics is strictly prohibited. Now I would like to introduce Sean Bevec, Vice President of Investor Relations for Quest Diagnostics. Please go ahead.

Thank you, and good morning. I'm joined by Jim Davis, our Chairman, Chief Executive Officer and President Sam Samad, our Chief Financial Officer. During this call, we may make forward looking statements and will discuss non GAAP measures. We provide a reconciliation of non GAAP measures to comparable GAAP measures in the tables to our earnings press release. Actual results may differ materially from those projected.

Risks and uncertainties that may affect Quest Diagnostics' future results include, but are not limited to, those described in our most recent annual report on Form 10 ks and subsequently filed quarterly reports on Form 10 Q and current reports on Form eight ks. For this call, references to reported EPS refer to reported diluted EPS and references to adjusted EPS refer to adjusted diluted EPS. Growth rates associated with our long term outlook projections, including consolidated revenue growth, revenue growth from acquisitions, organic revenue growth, and adjusted earnings growth are compound annual growth rates. Now here is Jim Davis.

Thanks, Sean, and good morning, everyone. At our Investor Day in March, we communicated our strategy to drive growth through innovative solutions that meet the evolving needs of our customers. Our strong second quarter results reinforce this strategic direction. Given our performance in the quarter and continued utilization trends, we're raising our full year 2025 guidance. During the quarter, we saw strong top line growth of 15.2%, including 5.2% organic revenue growth as increased demand for our innovative clinical solutions and expanded business from enterprise accounts complemented growth from acquisitions.

Our adjusted earnings per share grew 11.5% as a result of strong top line growth combined with productivity gains from our deployment of automation, digitization, and other advanced technologies. Before Sam provides more detail on our results, I'll highlight a few ways our strategy is enabling growth. We are focused on delivering solutions that meet the evolving needs of our core clinical customers, physicians and hospitals, as well as customers in the higher growth areas of consumer, life sciences, and data analytics. We enable growth across our customer channels through faster growing advanced diagnostics in five key clinical areas, which are advanced cardiometabolic, autoimmune, brain health, oncology, and women's and reproductive health. In addition, acquisitions are a key growth driver, and our strategy emphasizes accretive outreach purchases and independent labs.

Finally, we are focused on driving operational improvements across the business with the deployment of automation, AI, and other advanced technologies for improved quality, productivity, and customer and employee experiences. Here are some of the updates on the progress we have made in these areas in the second quarter. In the physician channel, we delivered approximately 20% revenue growth driven primarily by acquisitions complemented by organic revenue growth in the high single digits. Demand for our innovative clinical solutions contributed significantly to organic revenue growth as physicians ordered more tests per requisition across our portfolio supported by strong commercial execution. We also saw robust growth from large enterprise accounts, particularly in functional medicine, a growing area of preventative health care in which providers often order a range of lab tests to identify and act on multiple health risks.

Large enterprises value our ability to scale diagnostic innovation to improve access, quality, and affordability. Later this summer, we expect to begin providing laboratory testing under our previously announced relationship with Fresenius Medical Care to support over time more than two hundred thousand kidney dialysis patients in The US. In the hospital channel, revenues grew low single digits with collaborative lab solutions driving our growth in the quarter. As hospitals grapple with financial pressures and shortages of skilled lab technologists, they are choosing Quest to access our best in class expertise, innovation, and efficiency instead of running their own lab. Our acquisition of Outreach Labs also provides hospitals with capital for investment in their core care missions.

Our pipelines for hospital outreach M and A and collaborative lab solutions remain strong. In addition to our physician and hospital channels, we are highly focused on expanding access for our consumer channel. During the quarter, we continued to see strong growth across our expanding array of offerings, including a new women's hormone panel on questhealth dot com. We recently fulfilled our one millionth customer order since launching this enhanced online platform in the fall of twenty twenty two, demonstrating ongoing consumer demand for greater health information. Complementing our consumer initiated channel, we continue to expand our partnerships with top consumer and wellness brands who value our high quality lab testing, broad access, and flexible technology integrations as the lab engine inside of their offerings.

In advanced diagnostics, we delivered double digit revenue growth in several areas, including advanced cardiometabolic, especially testing for metabolic and endocrine disorders and chronic kidney disease as well as for our analyzer autoimmune solution. In brain health, we drove robust growth for our a d detect blood tests for Alzheimer's disease. During the quarter, we launched our new AB four thousand two hundred forty and p tau two seventeen AD DETECT panel, which is designed to help physicians confirm amyloid brain pathology in symptomatic patients. In oncology, we are ramping up our commercial outreach to drive Haystack MRD market adoption while we also continue to convert participants from our early experience program. A recent study in the New England Journal of Medicine affirmed the high sensitivity and specificity of our Haystack MRD test, finding it identified complete response to an immunotherapy in phase two trials several months before standard imaging tests.

Finally, Quest continues to be at the forefront of serving public health needs. Earlier this month, we announced the launch of a molecular test for diagnosing Oroposh virus, which we developed under a CDC contract to enhance the nation's preparedness for emerging infectious diseases. Turning now to operational excellence. We continue to target 3% annual cost savings and productivity improvements through our Invigorate program. We are deploying innovative automation and AI technologies, including digitizing processes to improve quality, productivity, and customer and employee experiences.

We have now installed our front end automation solution, which speeds specimen aliquoting and labeling in half a dozen sites. We also recently completed a successful pilot of our automated accessioning platform at our Clifton lab. We plan to roll out both solutions across our lab network through the rest of the year and into 2026. Along with automation enhancements, strong employee retention improves productivity across our operations and service lines. During the quarter, employee retention further improved, building on trends in recent quarters.

Overall, we are pleased with our progress in the quarter, executing on our strategy to serve customers and drive gains in revenue and productivity. And now Sam will provide more details on our performance and 2025 guidance. Sam?

Thanks, Jim. In the second quarter, consolidated revenues were $2,760,000,000 up 15.2 versus the prior year. Consolidated organic revenues grew by 5.2%. Revenues for Diagnostic Information Services were up 15.7% compared to the prior year, reflecting recent acquisitions as well as organic growth in our physician and hospital channels. Total volume measured by the number of requisitions increased 16.3% versus the 2024 with organic volume up 2.1%.

Total revenue per requisition was down 0.4% versus the prior year, driven primarily by the impact of the LifeLabs acquisition, which carries a lower revenue per rec. On an organic basis, revenue per requisition was up 3.3% in the quarter versus last year, driven primarily by an increase in the number of tests per requisition and test mix. Unit price reimbursement remained consistent with our expectations. Reported operating income in the second quarter was $438,000,000 or 15.9% of revenues compared to $355,000,000 or 14.8% of revenues last year. On an adjusted basis, operating income was $466,000,000 or 16.9% of revenues compared to $398,000,000 or 16.6% of revenues last year.

The increase in adjusted operating income was due to recent acquisitions and organic revenue growth, partially offset by wage increases. Reported EPS was $2.47 in the quarter compared to 2.03 a year ago. Adjusted EPS was $2.62 versus $2.35 the prior year. EPS in the second quarter was impacted by higher interest expense versus the prior year. Foreign exchange rates had no meaningful impact on our results.

Cash from operations was $858,000,000 year to date through the second quarter versus $514,000,000 in the prior year. This year over year increase of 67.1% was driven by higher operating income, a one time CARES Act tax credit and the timing of receipts and disbursements. Turning now to our updated full year 2025 guidance. Revenues are expected to be between $10,800,000,000 and $10,920,000,000 Reported EPS is to be in a range of $8.6 to $8.8 and adjusted EPS in a range of $9.63 to $9.83 Cash from two operations is now expected to be approximately $1,550,000,000 and capital expenditures are expected to be approximately 500,000,000 Our 2025 guidance reflects the following considerations. Our updated revenue guidance assumes approximately 3.5% to 4% organic revenue growth in addition to contributions from acquisitions completed in 2024 and announced to date. It does not assume any contribution from prospective M and A. We are making investments in 2025 related to Project Nova, which we expect will modernize our entire order to cash process. Most of these investments will occur in the second half of the year.

Operating margin is expected to expand versus the prior year. Our below the line assumptions for net interest expense, adjusted tax rate and full year share count remain unchanged from our prior guidance. Finally, updated EPS guidance assumes that we can absorb the impact of tariffs currently in place, primarily in Europe and China. With that, I will now turn it back to Jim.

Thanks, Sam. To summarize, we delivered robust top line and bottom line growth in the second quarter on strong execution of our strategy and utilization trends. Through our sharp customer focus, we grew demand for innovative clinical solutions and expanded business from enterprise accounts to complement growth from acquisitions. Given our performance in the quarter and continued utilization trends, we are raising our full year 2025 guidance. Finally, I want to thank our more than 55,000 colleagues for their hard work this quarter to fulfill our purpose to create a healthier world, one life at a time. Now we'd be happy to take your questions. Operator?

Thank you. We will now open it up to questions. At the request of the company, we ask that you please limit yourself to one question. If you have additional questions, we ask that you please fall back in the queue. Our first question comes from Ann Hynes with Mizuho Securities. Your line is open. You may ask your question.

Great. Thank you. Good morning. I want to focus my question just on the Washington backdrop. Obviously, with the one big beautiful bill passed and the CBO came out yesterday and said this will lead to $10,000,000 more uninsured over the next few years between the ACA and Medicaid.

How do you view that many people going uninsured? How should we view that impact on Quest over the coming years? And then secondly, as it relates to Washington, what are your thoughts on PAMA going into 2026? Thanks.

Okay. Good morning, Ann, and thanks for the question. So first, let's put the one big beautiful bill into some context here. First, you know, the The US health care system, we spend $5,000,000,000,000 a year. And over the next ten years, with a 5% inflation, you know, that'll amount to $62,000,000,000,000.62000000000000.

What the one beautiful bill act is taking out is $1,000,000,000,000, so less than right right around 1.5%. Now what we did read yesterday, yes, about ten million lives could come out over the next ten years. From a Medicaid standpoint, it's actually no impact in '26, very, very little impact in '27, given that they're giving the states time to react to the to these changes. On the exchange, we estimate that no more than four to 5% of our revenue today comes from the exchange. And, again, given the timing of when these lives would come out of those plans, best, we worst case scenario, we estimate no more than a 30 to 40 basis point impact on volume in 2026.

So we we don't really see that big of an impact in '26 or in '27. I think the other thing to keep in mind is with the people that are on the exchange, these people are working. They have jobs. In some cases, they're small business owners or they're self employed, And, so they have incomes, and and so they may be able to pay higher premiums to keep their their insurance. We also know that, some people go to the exchange, because they are subsidized, and they could hop on to their employer's health insurance.

But they're choosing the exchange today because it is a cheaper alternative than signing on to their own employer's health plan.

So so Anne, this is Sam. Good morning. Just to underscore or, reemphasize these the financial assumptions that Jim briefly mentioned, and make sure that, I'm sure we'll get more questions on this on the call. So I just want to make sure people are clear. For the Medicaid impact, we don't believe there's a material impact.

We don't believe there's any impact in 2026 and an immaterial impact in 2027. For the exchange impact, assuming these subsidies are not renewed at the end of this year, we expect in 2026 approximately 30 basis points of impact on our volumes. That's what we've sized. Obviously, there's assumptions around that, but that's what we believe.

And you also asked about PAMA. So here's the most recent update. So look. We're pursuing two strategies. Number one is PAMA reform, and number two, is a is a sixth delay in the cuts.

With respect to PAMA reform, our Accla Trade Association has introduced language that would turn into legislation and a bill to the three committees, two in the house and one in the senate, that ultimately, decide on health care policy in in The US. That language is in front of the committees. We expect that to be turned into a bill later this summer, and then the traditional process, will start from there. The committees, you know, discuss the bills. If there's differences between the two committees in the house and the one in the senate, they get together, they reconcile this.

And our hope is that it it will turn into a bill. And whether it gets, you know, voted on as an independent bill or it gets put into some larger health care type of package towards the end of the year, that remains to be seen. The alternative path is obviously continue to push for another delay if we don't if we don't see the PAMA reform getting enacted this year. But I can tell you we have strong bipartisan support in each of the three committees where this legislation will be discussed.

Thank you. Our next question comes from Kevin Caliendo with UBS. Your line is open. You may ask your question.

Good morning, guys. Thanks for taking my question. Wanted to talk about the comment, the modernization investments. You know, it sounds like some of it may have come forward into 2Q. Are you still anticipating sort of 20¢ for the full year?

And I I guess the second part of that is in the context of margins expanding year over year, you've been able to do that the first two quarters. Do you still anticipate that happening in the second half even with these modernization investments?

Yes. So, hey, good morning, Kevin. So this is Sam. Let me tackle, your two the two components of your question here. With regards to modernization expenses, we had called out approximately $0.20 around modernization and we have talked about also some QRA expenses that we're going to incur as well.

So, and we said that we're going to incur these expenses this year. We've had some QRA expenses already in the first half. We haven't had much in terms of modernization expenses yet in the first half. So the bulk of those are going to occur in the second half. In terms of margin expansion, yes, we had good healthy margin expansion in Q2 and in the first half.

And our expectation for the full year is that we continue to have operating margin expansion for the full year. So that's still the prevailing assumption in our guidance.

Thank you. Our next question comes from Elizabeth Anderson with Evercore ISI. Your line is open. You may ask your question.

Hi, guys. Good morning and thanks so much for the question. Maybe a follow-up from Anne's question about the Hicks exposure and maybe brought more broadly. If we think back to sort of uninsured utilization rates, are there the 30 bps of impact What are you assuming in your assumptions for potential utilization of, like, an uninsured population?

And how do we think about that as maybe a potential offset to some of the headwinds that you described from that one big beautiful bill?

Yeah. So, thanks for the question. So the uninsured is is a very small, portion of our revenue today. Now, again, if if you take all if you take all the lines that you expect to fall out of the exchange, again, we believe, you know, call it 65, 70%, are going to find other alternatives. Okay?

Alternative number one is they just simply pay the higher rate. Alternative number two is they hop on to, an employer's insurance plan that already exists out there. The third alternative is is that they go uninsured. But, again, we don't think that's going to be the majority of the people because, again, the majority of the folks that are on exchange programs today, they have income. By definition, they're not on Medicaid because they have incomes.

And, again, they've got the two alternatives. So we don't feel like it's gonna be a major impact, as Sam said, you know, 30 basis point impact on volume in 2026.

Thank you. Our next question comes from Erin Wright with Morgan Stanley. Your line is open. You may ask your question.

Great. Thanks so much. So last quarter, you talked a little bit about how it progressed throughout the quarter in terms of utilization trends and how that was accelerating. Some of that was because of the weather dynamics at the time. But how are we trending now into kind of the third quarter?

I guess, how would you characterize the utilization throughout the quarter as well? And was it relatively consistent? And anything you can, I guess, parse out in terms of underlying utilization versus market share gains, that that would be helpful? Thanks.

Yeah. Thanks for the question. So, we did see strong utilization in the second quarter. And, yes, it was a definite, uptick from the first quarter. I would tell you that the drivers of that utilization, you know, first and foremost, it's our expanded access, that, you know, that we gained on January 1, and you don't instantly just start to pick up that business.

So we saw a nice steady increase from q one to q two. And, what I'm talking about is our access, through Elevance and our access through Centerra. Elevance, got us, know, we're in network in Nevada, Colorado, West Virginia, Georgia. And and together with the Centerra plan, we picked up a million new lives. So we feel good about the progress that we're making there.

Second, is our advanced diagnostic tests. Our Alzheimer's a b forty two forty tests, our advanced cardiometabolic tests, we continue to see nice, nice volume growth in some of these advanced diagnostics testing. And then finally, as you cite, yes, weather had a a big impact in our q one results. So I'm sure just the timing of, you know, people coming back into the health care system after they miss general health and wellness exams certainly did help in the second, in in the second quarter. In terms of utilization rates, as we sit here, in in the first, part of q three, were, no real changes.

It's consistent with what we've been seeing. And, again, there's a combination of of good utilization plus some big wins and the expanded access through the new, health plan access.

Thank you. Our next question comes from Michael Cherny with Leerink Partners. Your line is open. You may ask your question.

Good morning, and thanks for taking the question. Maybe if I can just ask a question on mix. I think Jim you said 3.3% organic rev correct mix. Can you dive a little bit more into what were the drivers of that dynamic? How much of it was contracting on your side, offensive moves versus just the way the market developed?

And how that should factor into your guidance for the remainder of the year?

Yes. I would say the majority of it is offensive. So, you're right. 3.3% organic rep per rec increase. You know, we've said for the year, prices flattish.

You know, it'll come in somewhere between plus or minus 30 basis points. So the other components in rep per rec are test per rec and test mix and business mix, payer mix. Test per rec, again, continue to be very strong, and we see it, again, with the advanced diagnostics testing. Our a b forty two forty significantly, significant growth, you know, quarter over quarter as well as year over year. Our work with functional medicine, entities, continues to grow in a very meaningful way.

Our own CIT business, as we mentioned in the script, was up 40%. And with that comes strong test mix, strong test per rep, improvement. So those are the underlying drivers. I don't see a change in those drivers, to tell you the truth. And and we just kind of expect it'll continue here in the rest of the year.

Thank you. Our next question comes from Patrick Donnelly with Citi. Your line is open. You may ask your question.

Hey, guys. Thanks for taking the questions. Maybe quick one, Sam, just on the cadence in the second half. Can you just talk about the 3Q setup in terms of margins, earnings would be helpful? And then a follow-up on PAMA.

Can you just talk about the financial setup here, what the implications are, how you guys think about potential offsets, what the pacing there would be helpful just to frame up the PAMA piece of it? Thank you, guys.

Yes. Thanks Patrick. I think I heard your question. Just let me know if I didn't quite capture it all. So I think you had mentioned what's the pacing here especially as it relates to Q3 in terms of margin and earnings.

And then you wanted some more color on PAMA, the financial impact and potential actions. So in terms of the pacing, really I'd reiterate what we've said at the beginning of the year and I think on the Q1 call as well, which we do expect that the pacing usually is that Q2 is our best margin and earnings quarter of the year. Q3 is usually, and I'm talking about traditionally what we've seen and especially if you take out and normalize some of the COVID impacts that we've seen in past years, at least the last few years. But usually Q3 is a slight step down from Q2. And then Q4 is a step down from Q3 with Q1 being the weakest quarter.

And so that's usually our, I would say, normal pacing in terms of margin and earnings. In terms of PAMA, I would say, the impact that we currently size is approximately $100,000,000 If PAMA does not get deferred for another year or if we don't get a permanent fix, we're looking at about $100,000,000 in terms of pricing impact on our business. We've mentioned that previously. Now we will take some actions to offset some of that. I will not give you a number in terms of how much exactly that would be, but we will offset a portion of that.

It's not going to be the majority. We're unable to take actions to offset the majority of $100,000,000 But we will take some actions to offset a portion of this negative impact if there is no permanent fix or if there is no delay.

Thank you. Our next question comes from Pito Chickering with Deutsche Bank. Your line is open. You may ask your question.

Hey, good morning guys and thanks for taking my question. Question here on tariffs for your presentation that you talked about how you're absorbing the impact of tariffs from China and Europe. Can you quantify the impact that you're absorbing? Any color on how it hits the third quarter and fourth quarter? And should we analyze the fourth quarter impact as we think about 2026?

Yes. We're not going to give a specific number, Pito. But as we've said before, I'll go back to our previous comments. We think the impact is manageable within our guidance. And so we are estimating that we would absorb this impact.

If we have tariff impact in Q2, yes, we had some impact from tariffs in Q2 that we absorbed in our results. Q3 and Q4, we do expect some negative impact. But again, we can manage it within our guidance and the updated guidance that we provided on the call. What's assumed in our guidance today is the tariffs that are in place, that are currently in place and currently implemented per law. I know there's a lot of uncertainty around what's going to happen August 1 or I mean there's always a lot of scenarios around that.

We have contracts in place with almost 80% of our spend on the supply side. So again, we believe that even with an August 1 scenario where tariffs do go up on certain products that we can offset that impact through the contracts that we have in place and through the alternate sourcing supply channels that we have looking at different vendors where we can resource some of the supplies from U. S. Manufacturers or at least U. S.-based manufacturing, not China based manufacturing.

Yes. Just again, to frame this, our spend of $2,000,000,000 80% of that spend is in The US. We said less than 1% was China. We had already executed on some moves out away from China that minimized, as Sam said, the impact in q one and q two. The other 20% is spread outside The US, outside of China, with the majority of that coming from Europe with our traditional big suppliers that are located there.

But as Sam said, you know, we have contracts in place. The language is favorable to us, so we feel very comfortable that it is manageable within the guidance that we've given this year.

Thanks, operator. Next question, please. Yep.

Thank you. Our next question comes from Jack Mann with Nephron Research. Your line is open. You may ask your question.

Thank you. Good morning, everyone. I wanted to ask about the LifeLabs acquisition. Is it possible you could call out within the $240,000,000 or so of M and A contribution in the quarter, how much came from LifeLabs versus other deals? And then just more broadly, how's the integration going? And just latest thoughts around EPS accretion? Thanks.

Let me I'll start and maybe talk just briefly on the financials. Maybe Jim can give some qualitative commentary on the acquisition. Listen, the acquisition is going really well is the punch line. But in terms of the contribution, Jack, from on revenues, so we had 10% growth from M and A in the quarter. I would say approximately 8% was from LifeLabs.

So that's the portion of the growth that came from LifeLabs of the 10% contribution from M and A. In terms of financial cadence or improvements that we're seeing, we had said operating margin is going to take a couple of years to get to be on parity with overall enterprise quest rates. I think we're tracking to that goal, if not better, and it's generating the EPS contribution that we expect when we size this deal and when we put our plans in place for this year. So progressing really well, but maybe I'll let Tim speak to the other qualitative Yeah.

So, Jack, first, we have a very strong management team in place in Canada that is doing a terrific job from an execution standpoint. I would tell you that we've already gotten, you know, some really good procurement synergies as you would expect when we look at contracts that we have, contracts that they have. We've gotten what I would call nice operational know how synergies. Right? How we do things, how they do things. And by the way, some things you know, it's not just a one way street.

You know, we've certainly learned some things from them from an operational standpoint that have helped us. So put all that together, and as Sam said, we're really pleased with, with the execution. We're pleased with the acquisition. It's generating nice top line growth for us. Obviously, it's inorganic, but when we look at the growth of LifeLabs itself, even though it wasn't in our numbers last q two, we're pleased with that growth.

So all in all, we're we're really happy with how we're tracking.

Thank you. Our next question comes from David Westenberg with Piper Sandler. Your line is open. You may ask your question.

Thank you very much, and, congrats on a good quarter. You, well, first of I wanna talk about, one of the slides that has client pay. It looks like it's contracted by about 5% over the last few years and then government has kind of gone up. Is some of that Life Lab and if not, what else would that be? And then how should we look at that on kind of a go forward basis?

And then just a clarity on wage increases, you kind of mentioned acquisitions helped drive net operating income offset by a little bit of wage inflation. Are we trending back to normal? Is that at least still going down? I know you had that that's been a headwind for last few years. So, I mean, at least, is that heading in the right direction now? Thank you.

Yeah. Just in terms of the payer mix, it's all driven by, you're adding in, you know, what will be over $700,000,000 of life lab revenue this year. So all of the other categories are just gonna mix down, by that amount. So that's what's driving that.

Yeah. And and, David, we we kinda lost, lost you there on the other parts of the question. Can you repeat? Because we maybe it's on our end, but we didn't hear the other part of the question.

It was on the, the wage increases. I'm sorry. They're making one.

Yeah. What what wage, inflation, has stayed in the three to 4%, range for the year, for the first half of the year, and we don't expect that to change in the second half of the year. What has changed, from a labor standpoint, though, is our attrition continues to come down, and we're in the, you know, mid teens and getting very, very close to where we were pre pandemic. And so as you know, that really helps us from a productivity standpoint. So pleased with that.

Thank you. Our next question comes from Andrew Brackman with William Blair. Your line is open. You may ask your question.

Guys, good morning. Thanks for taking the question. Jim, a few times you mentioned working with functional medicine entities as sort of a larger growth driver for you guys. Can you maybe help us size that as a broader opportunity, and what further investments are you making there? Thanks.

Yeah. I don't I don't wanna give exact numbers, but it's a sizable chunk of our business that's growing, almost in line with our own consumer initiated testing business. And and in many ways, look, funk when we sell through functional health, it is generally either patient paid or physician paid, and then the physician is charging the consumer. As you know, in functional medicine, the goal is to analyze a lot of things in the human body, hormone levels, obviously, all the cardiometabolic, all the chemistry testing. And then functional medicine seeks to treat the patient through nutritional changes, exercise changes, sleep changes, maybe supplements, but treat the patient in a very natural and holistic way.

And, you know, we're seeing just a surge in this across The US with all the focus on prevention, wellness, and, you know, and just people wanting to live longer. You see it in the podcasters, Peter Attia, Rich Roll, Andrew Humerman. These guys, in essence, are generating a lot of free marketing for us. They have these podcasts. They start talking about APOB and LP little a, and the next thing you know, we see a surge in APO b and LP little a testing.

So, it's it's become a a real trend in The US as people are focused again on prevention and wellness and longevity. And it it's sizable, and we expect it to grow double digits here as we move forward.

Quest Diagnostics Q2 2025 Earnings Call Transcript | Fortune

Fortune Editors

Fortune 500 Power Moves: Which executives gained and lost power, Aug. 23-Sept. 5, 2025

/2025/09/05/fortune-500-power-moves-aug-23-sept-5/

Nino Paoli

Davenport, Florida, Starbucks Coffee, outside exterior drive thru through.

Starbucks hops on the health craze with protein coffee weight-loss influencers had been concocting in its drive thru for months

/2025/09/04/starbucks-protein-coffee-cold-foam-launch-september-29-health-trend-gen-z-glp1-tiktok-functional-beverages-wellness-menu-innovation/

John Kell

With 100 Gen AI pilot projects but just six in production, Carnival Cruise Line’s CIO takes a measured approach to artificial intelligence journey

/2025/09/03/with-100-gen-ai-pilot-projects-but-just-six-in-production-carnival-cruise-lines-cio-takes-a-measured-approach-to-artificial-intelligence-journey/

Quest Diagnostics (DGX) Q2 2025 Earnings Call Transcript

Company Participants