Quest (DGX) Q1 2025 Earnings Transcript

Motley Fool Transcribing, The Motley Fool

Tue, April 21, 2026 astatine 10:15 AM CDT 39 min read

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Tuesday, Apr. 22, 2025 astatine 8:30 a.m. ET

• Chairman, Chief Executive Officer, and President — James E. Davis

• Executive Vice President and Chief Financial Officer — Sameh Samad

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Jim Davis: Thanks, Shawn, and bully morning, everyone. In the archetypal quarter, we delivered beardown gross maturation of astir 12%, including astir 2.5% successful integrated maturation arsenic request rebounded successful March pursuing upwind impacts aboriginal successful the quarter. Our maturation was owed to contributions from acquisitions and ample endeavor accounts, request for our precocious diagnostics portfolio, and expanded wellness program access. We besides proceed to grow our usage of automation, robotics and AI, with the extremity of improving quality, lawsuit and worker experiences and productivity. We are reaffirming our gross and adjusted EPS guidance for the afloat twelvemonth 2025.

Now earlier turning to highlights from the quarter, I'd similar to concisely remark connected the caller tribunal lawsuit that vacated the FDA rule, to modulate laboratory developed tests arsenic aesculapian devices. The court's determination volition guarantee patients and providers tin proceed to entree innovative laboratory investigating services regulated nether CLIA without further regulatory costs to comply with the FDA LDT rule. We besides admit that, respective increasing areas of our concern already run nether the FDA's existing prime absorption strategy regulations, including companion diagnostics and laboratory services for objective trials. In addition, our concern is progressively global, arsenic we grow successful Canada done LifeLabs and supply notation investigating for galore countries.

We proceed to put successful prime absorption processes and technologies to navigate the complexity of the planetary regulatory environment. Now, I'll recap our strategy and sermon highlights from the archetypal quarter, past Sam volition supply much item successful our results. Our strategy to thrust maturation is focused connected delivering solutions that conscionable the evolving needs of our halfway objective customers, physicians and hospitals, arsenic good arsenic customers successful the higher maturation areas of consumer-initiated testing, beingness sciences and information analytics. We alteration maturation crossed our lawsuit channels done faster increasing precocious diagnostics successful 5 cardinal objective areas, which are precocious cardiometabolic, autoimmune, encephalon health, oncology, and women's and reproductive health.

In addition, acquisitions are a cardinal maturation operator and our strategy emphasizes accretive outreach purchases and autarkic labs. Finally, we are focused connected driving operational improvements crossed the concern with the deployment of automation, robotics and AI for improved quality, lawsuit and worker experiences and productivity. Here are immoderate of the updates connected the advancement we person made successful these areas successful the archetypal 4th of 2025. In the doc channel, we delivered gross maturation successful the high-teens, driven mostly by acquisitions. Organic gross maturation successful the doc transmission was mid-single-digits. Our expanding portfolio of precocious diagnostics continued to present coagulated growth.