Quest Diagnostics (DGX) Earnings Call Transcript

6 days ago 6

Motley Fool Transcribing, The Motley Fool

Tue, February 10, 2026 astatine 10:31 AM CST 45 min read

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Tuesday, February 10, 2026 astatine 8:30 a.m. ET

Chairman, Chief Executive Officer, and President — Jim Davis
Executive Vice President and Chief Financial Officer — Sam Samad

Jim Davis: Thanks, Shawn, and bully morning, everyone. With diligent execution of our strategy and a beardown 4th quarter, we generated double-digit maturation successful revenues and net per stock for the afloat year. In 2025, we expanded our category-defining objective innovation to conscionable robust demand, formed strategical collaborations with elite wellness attraction organizations, and further precocious our presumption arsenic the premier laboratory motor powering the wellness industry. We besides proceed to amended quality, productivity, and the lawsuit and diligent acquisition with process enhancements, AI, and automation.

As we look up to 2026, our guidance reflects our continued assurance successful our concern strengths and marketplace fundamentals, which see favorable demographic trends, expanding usage of blood-based laboratory diagnostics, and increasing involvement successful preventative wellness and wellness.

Now earlier I crook to this year’s highlights, I would similar to instrumentality a infinitesimal to remark connected PAMA. Last week, bipartisan authorities was enacted that delays the implementation of PAMA until 2026. This one-year hold successful complaint cuts was paired with an update to the information postulation play to 2025 from 2019 based connected the information to beryllium supplied by applicable laboratories to CMS aboriginal this year. We greatly admit Congress for recognizing the request to betterment PAMA and for providing this one-year hold of PAMA cuts, which provides meaningful short-term relief.

However, these steps bash not hole PAMA’s structural flaws, which see relying connected an estimated 10,000 positive labs to self-report information to found industry-representative information for outgo complaint setting. As a reminder, less than 1% of each the objective laboratories reported commercialized payer information to CMS successful 2017, resulting successful 3 rounds of excessive complaint cuts based connected information that did not bespeak the market. A antithetic attack is needed to forestall a repetition of excessive complaint cuts.

The RESULTS Act provides a common-sense semipermanent solution that corrects these deficiencies by, for example, eliminating the request for thousands of labs to self-report information and alternatively leveraging an autarkic third-party database that provides broad and typical information to acceptable close market-based rates. We volition proceed to enactment with our commercialized association, ACLA, to physique connected advancement successful securing the indispensable enactment successful Congress to walk RESULTS into instrumentality this year.