April 21 (Reuters) – Quest Diagnostics on Tuesday raised its forecast for 2026 profit and revenue after posting first-quarter results above Wall Street estimates, citing resilient demand for routine diagnostic testing.
Shares of the New Jersey-based company were up 2.5% in premarket trading.
U.S. diagnostic testing providers are navigating post-pandemic normalization, leaning on routine testing and hospital laboratory management deals to drive volumes amid sustained reimbursement pressure and elevated labor costs.
Quest now expects full-year revenue between $11.78 billion and $11.90 billion above analysts’ average estimate of about $11.75 billion, according to LSEG data. The company had previously expected $11.70 billion to $11.82 billion.
It expects adjusted profit of $10.63 to $10.83 per share for the full year, up from its previous view of $10.50 to $10.70, above estimates $10.55 per share.
Quest’s Diagnostic Information Services, its largest business, recorded first-quarter revenue of $2.83 billion, up 9.4% from a year earlier, driven by a 10.8% rise in organic requisition volumes, the company said.
The company said the average amount it earned on each test fell 1.3% in the quarter ended March 31.
Leerink Partners analyst Michael Cherny said last week Quest should benefit from contributions from recently expanded contracts and hospital deals, though he cautioned some could weigh on margins as they ramp.
Quest also reported double-digit revenue growth in several areas of its advanced diagnostics business, including blood tests used to help identify Alzheimer’s disease and tests for cardiometabolic and endocrine conditions.
The company reported first-quarter revenue of $2.90 billion, compared with analysts’ estimate of $2.83 billion.
On an adjusted basis, the company posted a quarterly profit of $2.50 per share, beating expectations of $2.35 per share.
(Reporting by Sahil Pandey in Bengaluru; Editing by Shailesh Kuber)
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