QUEST DIAGNOSTICS INC
For the period ended Jun 30, 2026. Filed Jul 23, 2026.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2026 · Filed Jul 23, 2026
DGX$255.63+0.3%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-03-31; filed 2026-04-22.
0001022079-26-000043
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-06-30; filed 2026-07-23.
0001022079-26-000070
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 110 previous paragraphs and 143 current paragraphs.
59 unchanged; 42 reworded; 34 added; 9 removed; 0 previous and 8 current paragraphs rearranged.
Tables are not compared: 4 previous and 4 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (34)
Current report
Second Quarter Highlights
Current report
Senior Notes Offering and Repayment of Existing Senior Notes
Current report
Results for the three months ended June 30, 2026 were affected by certain items that on a net basis decreased diluted earnings per share by $0.28 as follows:
Current report
•pre-tax charges of $4 million ($1 million recorded in cost of services and $3 million recorded in selling, general and administrative expenses), or $0.04 per diluted share, primarily associated with workforce reductions and integration costs incurred in connection with further restructuring and integrating our business; and
Current report
•pre-tax gains of $1 million, recorded in equity in earnings of equity method investees, net of taxes, or $0.01 per diluted share, representing gains associated with changes in the carrying value of our strategic investments; and
Current report
Results for the six months ended June 30, 2026 were affected by certain items that on a net basis decreased diluted earnings per share by $0.54 as follows:
Current report
•pre-tax amortization expense of $75 million, recorded in amortization of intangible assets, or $0.50 per diluted share;
Current report
•pre-tax charges of $6 million, principally recorded in equity in earnings of equity method investees, net of taxes, or $0.04 per diluted share, representing losses associated with changes in the carrying value of our strategic investments; partially offset by
Current report
Results for the three months ended June 30, 2025 were affected by certain items that on a net basis decreased diluted earnings per share by $0.15 as follows:
Current report
•pre-tax charges of $28 million, recorded in other operating expense (income), net, or $0.19 per diluted share, primarily representing a $24 million impairment charge on certain long-lived assets related to the exit of a business and, to a lesser extent, losses associated with the increase in the fair value of the contingent consideration accrual associated with previous acquisitions; and
Current report
•a pre-tax gain of $46 million, recorded in other operating expense (income), net, or $0.30 per diluted share, from a payroll tax credit under the Coronavirus Aid, Relief, and Economic Security Act ("CARES Act") associated with the retention of employees;
Current report
•pre-tax gains of $2 million ($1 million recorded in other income, net and $1 million recorded in equity in earnings of equity method investees, net of taxes), or $0.01 per diluted share, representing net gains associated with changes in the carrying value of our strategic investments; and
Current report
•$3 million of excess tax benefits associated with stock-based compensation arrangements, recorded in income tax expense, or $0.02 per diluted share.
Current report
Results for the six months ended June 30, 2025 were affected by certain items that on a net basis decreased diluted earnings per share by $0.42 as follows:
Current report
•pre-tax amortization expense of $78 million recorded in amortization of intangible assets, or $0.51 per diluted share;
Current report
•pre-tax charges of $30 million, recorded in other operating expense (income), net, or $0.21 per diluted share, primarily representing a $24 million impairment charge on certain long-lived assets related to the exit of a business, and, to a lesser extent, losses associated with the increase in the fair value of the contingent consideration accrual associated with previous acquisitions; and
Current report
•pre-tax charges of $26 million ($7 million recorded in cost of services and $19 million recorded in selling, general and administrative expenses), or $0.17 per diluted share, primarily associated with workforce reductions and integration costs incurred in connection with further restructuring and integrating our business; partially offset by
Current report
•pre-tax gains of $2 million ($1 million recorded in other income, net and $1 million recorded in equity in earnings of equity method investees, net of taxes), or $0.01 per diluted share, representing net gains associated with changes in the carrying value of our strategic investments; and
Current report
•$12 million of excess tax benefits associated with stock-based compensation arrangements, recorded in income tax expense, or $0.10 per diluted share.
Current report
DIS revenues for the three months ended June 30, 2026 increased by 10.3% compared to the prior year period.
Current report
Net revenues for the six months ended June 30, 2026 increased by 9.7% compared to the prior year period principally driven by organic revenue growth of 9.5%.
Current report
DIS revenues for the six months ended June 30, 2026 increased by 9.9% compared to the prior year period.
Current report
For the six months ended June 30, 2026:
Current report
Other Operating Expense (Income), Net
Current report
For both the three and six months ended June 30, 2025, other operating expense (income), net includes a$46 million gain from a payroll tax credit under the CARES Act associated with the retention of employees. Additionally, during the threeandsix months ended June 30, 2025, we recorded an impairment charge of$24 million on certain long-lived assets related to the exit of a business. Also, both periods include losses associated with the increase in the fair value of the contingent consideration accrual associated with previous acquisitions.
Current report
For the three months ended June 30, 2026, interest expense, net decreased by $4 million compared to the prior year period primarily due to lower interest rates associated with our indebtedness and higher interest income on cash and cash equivalents.
Current report
Other Income, Net
Current report
For the threeand six months ended June 30, 2025, other income, net included $11 million and $9 million, respectively, of gains associated with investments in our deferred compensation plans.
Current report
Income tax expense for the six months ended June 30, 2026 and 2025 was $162 million and $156 million, respectively.
Current report
The effective income tax rate for the six months ended June 30, 2026 and 2025 was 21.8% and 23.6%, respectively. The effective income tax rate benefited from $14 million and $12 million of excess tax benefits associated with stock-based compensation arrangements for the six months ended June 30, 2026 and 2025, respectively. The effective income tax rate for the six months ended June 30, 2026 also included income tax benefits of approximately $11 million, or $0.10 per diluted share, primarily related to the favorable resolution of various income tax contingencies.
Current report
Equity in earnings of equity method investees, net of taxes, for the three months ended June 30, 2026 was principally consistent with the prior year period.
Current report
Net cash used in financing activities for the six months ended June 30, 2026 and 2025 was $381 million and $854 million, respectively. The prior year period includes the repayment in full of the outstanding indebtedness under our $600 million of 3.50% Senior Notes due March 30, 2025 at maturity. The current year period includes approximately $100 million of treasury stock purchases.
Current report
During the six months ended June 30, 2026, we completed the issuance of the 2036 Senior Notes and repaid in full at maturity our $500 million of 3.45% Senior Notes due June 1, 2026. During the six months ended June 30, 2026, there were no borrowings or repayments under our secured receivables credit facility or our senior unsecured revolving credit facility.
Current report
For the six months ended June 30, 2026, we repurchased 0.5 million shares of our common stock for $100 million.
Removed paragraphs (9)
Previous report
First Quarter Highlights
Previous report
Results for the three months ended March 31, 2026 were affected by certain items that on a net basis decreased diluted earnings per share by $0.26 as follows:
Previous report
•pre-tax charges of $7 million, principally recorded in equity in earnings of equity method investees, net of taxes, or $0.05 per diluted share, representing the losses associated with changes in the carrying value of our strategic investments;
Previous report
•$12 million of excess tax benefits associated with stock-based compensation arrangements, recorded in income tax expense, or $0.11 per diluted share.
Previous report
Results for the three months ended March 31, 2025 were affected by certain items that on a net basis decreased diluted earnings per share by $0.27 as follows:
Previous report
DIS revenues for the three months ended March 31, 2026 increased by 9.4% compared to the prior year period.
Previous report
Other Operating Expense, Net
Previous report
Other Expense, Net
Previous report
Net cash used in financing activities for the three months ended March 31, 2026 and 2025 was $152 million and $561 million, respectively. This $409 million decrease in net cash used in financing activities for the three months ended March 31, 2026, compared to the prior year period, was primarily a result of the prior year period including the repayment in full of the outstanding indebtedness under our $600 million of 3.50% senior notes (which matured on March 30, 2025) using a combination of cash on hand and $215 million of borrowings under our secured receivables credit facility.
Reworded paragraphs (42)
Previous wording
We have $500 million of 3.45% senior notes due June 1, 2026.
Current wording
In May 2026, we completed a senior notes offering consisting of $500 million aggregate principal amount of 5.00% senior notes due June 2036 (the "2036 Senior Notes"), which were issued at an original issue discount of $6 million. On June 1, 2026, the net proceeds from the 2036 Senior Notes and cash on hand were used to repay in full at maturity the outstanding indebtedness under our $500 million of 3.45% senior notes.
Previous wording
For the three months ended March 31, 2026, we incurred $7 million of pre-tax charges in connection with restructuring and integration activities, principally including employee separation costs, with the remainder including integration costs. Most of the charges will result in cash expenditures. Additional restructuring and integration charges may be incurred in future periods, including as we identify additional opportunities to achieve further savings and productivity improvements.
Current wording
For the six months ended June 30, 2026, we incurred $11 million of pre-tax charges in connection with restructuring and integration activities, including $9 million of employee separation costs, with the remainder including integration costs. Most of the charges will result in cash expenditures. Additional restructuring and integration charges may be incurred in future periods, including as we identify additional opportunities to achieve further savings and productivity improvements.
Previous wording
•pre-tax amortization expense of $37 million, recorded in amortization of intangible assets, or $0.25 per diluted share;
Current wording
•pre-tax amortization expense of $38 million, recorded in amortization of intangible assets, or $0.25 per diluted share;
Previous wording
•pre-tax charges of $2 million, recorded in other operating expense, net, or $0.02 per diluted share, primarily representing a loss associated with the increase in the fair value of the contingent consideration accrual associated with previous acquisitions; partially offset by
Current wording
•pre-tax charges of $1 million, principally recorded in other operating expense (income), net, or $0.02 per diluted share, primarily representing a loss associated with the increase in the fair value of the contingent consideration accrual associated with previous acquisitions; partially offset by
Previous wording
•$9 million of excess tax benefits associated with stock-based compensation arrangements, recorded in income tax expense, or $0.08 per diluted share.
Current wording
•pre-tax charges of $11 million ($2 million recorded in cost of services and $9 million recorded in selling, general and administrative expenses), or $0.08 per diluted share, primarily associated with workforce reductions and integration costs incurred in connection with further restructuring and integrating our business;
Previous wording
•pre-tax charges of $4 million, principally recorded in other operating expense, net, or $0.03 per diluted share, primarily representing a loss associated with the increase in the fair value of the contingent consideration accrual associated with previous acquisitions; partially offset by
Current wording
•pre-tax charges of $5 million, principally recorded in other operating expense (income), net, or $0.05 per diluted share, primarily representing a loss associated with the increase in the fair value of the contingent consideration accrual associated with previous acquisitions; and
Previous wording
•pre-tax charges of $19 million ($6 million recorded in cost of services and $13 million recorded in selling, general and administrative expenses), or $0.13 per diluted share, primarily associated with workforce reductions and integration costs incurred in connection with further restructuring and integrating our business; and
Current wording
•$14 million of excess tax benefits associated with stock-based compensation arrangements, recorded in income tax expense, or $0.13 per diluted share.
Previous wording
•pre-tax amortization expense of $39 million recorded in amortization of intangible assets, or $0.26 per diluted share;
Current wording
•pre-tax amortization expense of $39 million recorded in amortization of intangible assets, or $0.25 per diluted share;
Previous wording
•pre-tax charges of $7 million ($1 million recorded in cost of services and $6 million recorded in selling, general and administrative expenses), or $0.04 per diluted share, primarily associated with workforce reductions and integration costs incurred in connection with further restructuring and integrating our business; and
Current wording
•pre-tax charges of $7 million ($1 million recorded in cost of services and $6 million recorded in selling, general and administrative expenses), or $0.04 per diluted share, primarily associated with workforce reductions and integration costs incurred in connection with further restructuring and integrating our business; partially offset by
Previous wording
•pre-tax gains of $8 million, recorded in equity in earnings of equity method investees, net of taxes, or $0.06 per diluted share, principally consisting of a non-recurring gain related to a lease; and
Current wording
•pre-tax gains of $54 million ($46 million recorded in other operating expense (income), net and $8 million recorded in equity in earnings of equity method investees, net of taxes), or $0.36 per diluted share, from a $46 million payroll tax credit under the CARES Act associated with the retention of employees and, to a lesser extent, an $8 million non-recurring gain related to a lease;
Previous wording
Net revenues for the three months ended March 31, 2026 increased by 9.2% compared to the prior year period principally driven by organic revenue growth of 9.0%.
Current wording
Net revenues for the three months ended June 30, 2026 increased by 10.2% compared to the prior year period principally driven by organic revenue growth of 10.0%.
Previous wording
•The increase in DIS revenues compared to the prior year period was principally driven by the organic growth of 9.2%.
Current wording
•The increase in DIS revenues compared to the prior year period was principally driven by organic growth of 10.1%.
Previous wording
•DIS volume increased by 10.9% compared to the prior year period principally driven by organic growth of 10.8%, of which approximately 7% was due to both our new relationship with Corewell Health to provide Collaborative Lab Solutions and increasing our laboratory testing at dialysis clinics owned by Fresenius Medical Care in the United States. Excluding the Corewell Health and Fresenius Medical Care related testing, organic volume increased 3.8% compared to the prior year period.
Current wording
•DIS volume increased by 13.1% compared to the prior year period principally driven by organic growth of 13.0%, of which approximately 9% was due to both our new relationship with Corewell Health to provide Collaborative Lab Solutions and increasing our laboratory testing at dialysis clinics owned by Fresenius Medical Care in the United States. Excluding the Corewell Health and Fresenius Medical Care related testing, organic volume increased by approximately 4% compared to the prior year period.
Previous wording
•Revenue per requisition decreased by 1.3% compared to the prior year period primarily driven by the business mix associated with our new relationships with Corewell Health and Fresenius Medical Care, which include a greater proportion of routine tests than most of our clinical testing. Excluding the Corewell Health and Fresenius Medical Care business mix impacts, revenue per requisition increased by approximately 2.5% primarily driven by an increase in the number of tests per requisition and favorable test mix.
Current wording
•Revenue per requisition decreased by 2.1% compared to the prior year period primarily driven by the business mix associated with our new relationships with Corewell Health and Fresenius Medical Care, which include a greater proportion of routine tests than most of our clinical testing. Excluding the Corewell Health and Fresenius Medical Care business mix impacts, revenue per requisition increased by approximately 2.5% primarily driven by an increase in the number of tests per requisition and favorable test mix.
Previous wording
For the three months ended March 31, 2026, cost of services increased by $164 million compared to the prior year period. The increase was primarily driven by higher compensation costs and, to a lesser extent, higher supplies expense, partially offset by cost savings and productivity improvements from our Invigorate program.
Current wording
For the three months ended June 30, 2026, cost of services increased by $198 million compared to the prior year period. The increase was primarily driven by higher compensation costs and, to a lesser extent, an increase in supplies expense reflecting higher testing volumes, partially offset by cost savings and productivity improvements from our Invigorate program.
Previous wording
SG&A consist principally of the costs associated with our sales and marketing efforts, billing operations, credit loss expense and general management and administrative support as well as administrative facility costs.
Current wording
SG&A consists principally of the costs associated with our sales and marketing efforts, billing operations, credit loss expense and general management and administrative support as well as administrative facility costs.
Previous wording
For the three months ended March 31, 2026, SG&A increased by $28 million compared to the prior period. The increase was primarily driven by higher compensation costs.
Current wording
For the three months ended June 30, 2026, SG&A increased by $43 million compared to the prior period. The increase was primarily driven by higher compensation costs.
Previous wording
The changes in the value of our deferred compensation obligations is largely offset by changes in the value of the associated investments, which are recorded in other expense, net. For further details regarding our deferred compensation plans, see Note 17 to the audited consolidated financial statements included in our 2025 Annual Report on Form 10-K.
Current wording
The changes in the value of our deferred compensation obligations are largely offset by changes in the value of the associated investments, which are recorded in other expense, net. For further details regarding our deferred compensation plans, see Note 17 to the audited consolidated financial statements included in our 2025 Annual Report on Form 10-K.
Previous wording
For the three months ended March 31, 2026, amortization expense was principally consistent with the prior year period.
Current wording
For both the three andsix months ended June 30, 2026, amortization expense was principally consistent with the prior year periods.
Previous wording
Other operating expense, net includes miscellaneous income and expense items and other charges related to operating activities.
Current wording
Other operating expense (income), net includes miscellaneous income and expense items and other charges related to operating activities.
Previous wording
For both the three months ended March 31, 2026 and 2025, other operating expense, net primarily represents losses associated with the increase in the fair value of the contingent consideration accrual associated with previous acquisitions.
Current wording
For both the threeandsix months ended June 30, 2026, other operating expense (income), net primarily represents losses associated with the increase in the fair value of the contingent consideration accrual associated with previous acquisitions.
Previous wording
For the three months ended March 31, 2026, interest expense, net decreased by $4 million compared to the prior year period primarily due to the repayment in full of the outstanding indebtedness under our $600 million of 3.50% senior notes, which matured on March 30, 2025.
Current wording
For the six months ended June 30, 2026, interest expense, net decreased by $8 million compared to the prior year period primarily due to lower interest rates associated with our indebtedness and the repayment in full of the outstanding indebtedness under our $600 million of 3.50% senior notes, which matured on March 30, 2025.
Previous wording
Other expense, net represents miscellaneous income and expense items related to non-operating activities, such as gains and losses associated with investments and other non-operating assets.
Current wording
Other income, net represents miscellaneous income and expense items related to non-operating activities, such as gains and losses associated with investments and other non-operating assets.
Previous wording
For both the three months ended March 31, 2026 and 2025, other expense, net included $2 million of losses associated with investments in our deferred compensation plans.
Current wording
For the threeand six months ended June 30, 2026, other income, net included $16 million and $14 million, respectively, of gains associated with investments in our deferred compensation plans.
Previous wording
Income tax expense for the three months ended March 31, 2026 and 2025 was $74 million and $59 million, respectively.
Current wording
Income tax expense for the three months ended June 30, 2026 and 2025 was $88 million and $97 million, respectively.
Previous wording
The effective income tax rate for the three months ended March 31, 2026 and 2025 was 22.2% and 21.5%, respectively. The effective income tax rate benefited from $12 million and $9 million of excess tax benefits associated with stock-based compensation arrangements for the three months ended March 31, 2026 and 2025, respectively.
Current wording
The effective income tax rate for the three months ended June 30, 2026 and 2025 was 21.5% and 25.1%, respectively. The effective income tax rate benefited from $2 million and $3 million of excess tax benefits associated with stock-based compensation arrangements for the three months ended June 30, 2026 and 2025, respectively. The effective income tax rate for the three months ended June 30, 2026 also included income tax benefits of approximately $11 million, or $0.10 per diluted share, primarily related to the favorable resolution of various income tax contingencies.
Previous wording
Equity in earnings of equity method investees, net of taxes, decreased by $14 million for the three months ended March 31, 2026, compared to the prior year period, primarily due to the three months ended March 31, 2025 including an $8 million non-recurring gain related to a lease and the three months ended March 31, 2026 including $7 million of losses associated with changes in the carrying value of our strategic investments.
Current wording
Equity in earnings of equity method investees, net of taxes, decreased by $13 million for the six months ended June 30, 2026, compared to the prior year period, primarily due to the six months ended June 30, 2025 including an $8 million non-recurring gain related to a lease and the six months ended June 30, 2026 including $7 million of losses associated with changes in the carrying value of our strategic investments.
Previous wording
As of March 31, 2026 and December 31, 2025, the fair value of our debt was estimated at approximately $5.6 billion and $5.7 billion, respectively, principally using quoted prices in active markets and yields for the same or similar types of borrowings, taking into account the underlying terms of the debt instruments. As of March 31, 2026 and December 31, 2025, the estimated fair value was more than (less than) the carrying value of the debt by $(15) million and $59 million, respectively. A hypothetical 10% increase in interest rates (representing 48 basis points and 44 basis points as of March 31, 2026 and December 31, 2025, respectively) would potentially reduce the estimated fair value of our debt by approximately $136 million and $135 million as of March 31, 2026 and December 31, 2025, respectively.
Current wording
As of June 30, 2026 and December 31, 2025, the fair value of our debt was estimated at approximately $5.6 billion and $5.7 billion, respectively, principally using quoted prices in active markets and yields for the same or similar types of borrowings, taking into account the underlying terms of the debt instruments. As of June 30, 2026 and December 31, 2025, the estimated fair value was (less than) more than the carrying value of the debt by $(5) million and $59 million, respectively. A hypothetical 10% increase in interest rates (representing 49 basis points and 44 basis points as of June 30, 2026 and December 31, 2025, respectively) would potentially reduce the estimated fair value of our debt by approximately $152 million and $135 million as of June 30, 2026 and December 31, 2025, respectively.
Previous wording
Borrowings under our secured receivables credit facility and our senior unsecured revolving credit facility are subject to variable interest rates. Interest on our secured receivables credit facility is based on either commercial paper rates for highly-rated issuers or the adjusted Term Secured Overnight Financing Rate ("Term SOFR"), plus a spread. Interest on our senior unsecured revolving credit facility is based on certain published rates plus an applicable margin based on changes in our public debt ratings. As such, our borrowing cost under this credit arrangement is subject to fluctuations in interest rates and changes in our public debt ratings. As of March 31, 2026, the borrowing rates under these debt instruments were: for our secured receivables credit facility, commercial paper rates for highly-rated issuers or the adjusted Term SOFR, plus a spread of 0.80%; and for our senior unsecured revolving credit facility, the adjusted Term SOFR, plus 1.00%. As of March 31, 2026, there were no borrowings outstanding under both the secured receivables credit facility and the senior unsecured revolving credit facility.
Current wording
Borrowings under our secured receivables credit facility and our senior unsecured revolving credit facility are subject to variable interest rates. Interest on our secured receivables credit facility is based on either commercial paper rates for highly-rated issuers or the adjusted Term Secured Overnight Financing Rate ("Term SOFR"), plus a spread. Interest on our senior unsecured revolving credit facility is based on certain published rates plus an applicable margin based on changes in our public debt ratings. As such, our borrowing cost under this credit arrangement is subject to fluctuations in interest rates and changes in our public debt ratings. As of June 30, 2026, the borrowing rates under these debt instruments were: for our secured receivables credit facility, commercial paper rates for highly-rated issuers or the adjusted Term SOFR, plus a spread of 0.80%; and for our senior unsecured revolving credit facility, the adjusted Term SOFR, plus 1.00%. As of June 30, 2026, there were no borrowings outstanding under either the secured receivables credit facility or the senior unsecured revolving credit facility.
Previous wording
The notional amount of fixed-to-variable interest rate swaps outstanding as of both March 31, 2026 and December 31, 2025 was $1.8 billion. The aggregate net fair value of the fixed-to-variable interest rate swaps was $1 million and $14 million, in a net asset (liability) position, as of March 31, 2026 and December 31, 2025, respectively.
Current wording
The notional amount of fixed-to-variable interest rate swaps outstanding as of both June 30, 2026 and December 31, 2025 was $1.8 billion. The aggregate net fair value of the fixed-to-variable interest rate swaps was $(21) million and $14 million, in a net (liability) asset position, as of June 30, 2026 and December 31, 2025, respectively.
Previous wording
Based on our net exposure to interest rate changes, a hypothetical 10% change to the variable rate component of our variable-rate indebtedness would not materially change our annual interest expense. A hypothetical 10% change in the SOFR curve (representing a 38 basis points change in the weighted average yield) would potentially change the fair value of our fixed- to-variable interest rate swaps by $44 million.
Current wording
Based on our net exposure to interest rate changes, a hypothetical 10% change to the variable rate component of our variable-rate indebtedness would not materially change our annual interest expense. A hypothetical 10% change in the SOFR curve (representing a 39 basis points change in the weighted average yield) would potentially change the fair value of our fixed- to-variable interest rate swaps by $43 million.
Previous wording
For further details regarding our outstanding debt, see Note 13 to the audited consolidated financial statements included in our 2025 Annual Report on Form 10-K. For details regarding our financial instruments and hedging activities, see Note 7 to the interim unaudited consolidated financial statements and Note 15 to the audited consolidated financial statements included in our 2025 Annual Report on Form 10-K.
Current wording
For further details regarding our outstanding debt, see Note 7 to the interim unaudited consolidated financial statements and Note 13 to the audited consolidated financial statements included in our 2025 Annual Report on Form 10-K. For details regarding our financial instruments and hedging activities, see Note 8 to the interim unaudited consolidated financial statements and Note 15 to the audited consolidated financial statements included in our 2025 Annual Report on Form 10-K.
Previous wording
Cash and cash equivalents consist of cash and highly-liquid short-term investments with original maturities, at the time of acquisition, of three months or less. Cash and cash equivalents as of March 31, 2026 totaled $393 million, compared to $420 million as of December 31, 2025.
Current wording
Cash and cash equivalents consist of cash and highly-liquid short-term investments with original maturities, at the time of acquisition, of three months or less. Cash and cash equivalents as of June 30, 2026 totaled $626 million, compared to $420 million as of December 31, 2025.
Previous wording
As of March 31, 2026, approximately 21% of our $393 million of consolidated cash and cash equivalents were held outside of the United States.
Current wording
As of June 30, 2026, approximately 12% of our $626 million of consolidated cash and cash equivalents were held outside of the United States.
Previous wording
Net cash provided by operating activities for the three months ended March 31, 2026 and 2025 was $278 million and $314 million, respectively. The $36 million decrease in net cash provided by operating activities for the three months ended March 31, 2026, compared to the prior year period, was primarily a result of the timing of operating receipts and disbursements and higher bonus payments in the current period versus a year ago, partially offset by increased operating income.
Current wording
Net cash provided by operating activities for the six months ended June 30, 2026 and 2025 was $875 million and $858 million, respectively. The $17 million increase in net cash provided by operating activities for the six months ended June 30, 2026, compared to the prior year period, was primarily a result of increased operating income being substantially offset by the prior year period including a $46 million gain from a payroll tax credit under the CARES Act.
Previous wording
Days sales outstanding, a measure of billing and collection efficiency, was 48 days as of March 31, 2026, 48 days as of December 31, 2025 and 47 days as of March 31, 2025.
Current wording
Days sales outstanding, a measure of billing and collection efficiency, was 50 days as of June 30, 2026, 48 days as of December 31, 2025 and 47 days as of June 30, 2025.
Previous wording
Net cash used in investing activities for the three months ended March 31, 2026 and 2025 was $152 million and $115 million, respectively. This $37 million increase in net cash used in investing activities for the three months ended March 31, 2026, compared to the prior year period, was primarily a result of increased cash used for business acquisitions.
Current wording
Net cash used in investing activities for the six months ended June 30, 2026 and 2025 was $286 million and $239 million, respectively. This $47 million increase in net cash used in investing activities for the six months ended June 30, 2026, compared to the prior year period, was primarily a result of increased cash used for capital expenditures and business acquisitions.
Previous wording
During the three months ended March 31, 2026, there were no borrowings or repayments under our secured receivables credit facility. During the three months ended March 31, 2026, there were no borrowings or repayments under our senior unsecured revolving credit facility. During the three months ended March 31, 2025, we borrowed $215 million under our secured receivables credit facility, none of which was repaid prior to March 31, 2025. During the three months ended March 31, 2025, there were no borrowings or repayments under our senior unsecured revolving credit facility.
Current wording
During the six months ended June 30, 2025, we borrowed $400 million under our secured receivables credit facility, which was repaid prior to June 30, 2025. During the six months ended June 30, 2025, there were no borrowings or repayments under our senior unsecured revolving credit facility.
Previous wording
During the first quarter of 2026, our Board of Directors declared a quarterly cash dividend of $0.86 per common share. During each of the four quarters of 2025, our Board of Directors declared a quarterly cash dividend of $0.80 per common share.
Current wording
During each of the first and second quarters of 2026, our Board of Directors declared a quarterly cash dividend of $0.86 per common share. During each of the four quarters of 2025, our Board of Directors declared a quarterly cash dividend of $0.80 per common share.
Previous wording
In February 2026, our Board of Directors authorized us to repurchase an additional $1 billion of our common stock. As of March 31, 2026, $1.4 billion remained available under our share repurchase authorization. The share repurchase authorization has no set expiration or termination date.
Current wording
In February 2026, our Board of Directors authorized us to repurchase an additional $1 billion of our common stock. As of June 30, 2026, $1.3 billion remained available under our share repurchase authorization. The share repurchase authorization has no set expiration or termination date.
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Rearranged current paragraphs (8)
Current report — wording carried from elsewhere
For further details see Note 5 to the interim unaudited consolidated financial statements.
Current report — wording carried from elsewhere
•$2 million of excess tax benefits associated with stock-based compensation arrangements, recorded in income tax expense, or $0.02 per diluted share.
Current report — wording carried from elsewhere
•Revenue per requisition decreased by 2.8% compared to the prior year period primarily driven by the business mix associated with our new relationships with Corewell Health and Fresenius Medical Care, which include a greater proportion of routine tests than most of our clinical testing. Excluding the Corewell Health and Fresenius Medical Care business mix impacts, revenue per requisition increased by approximately 3% primarily driven by an increase in the number of tests per requisition.
Current report — wording carried from elsewhere
•The increase in DIS revenues compared to the prior year period was principally driven by organic growth of 9.6%.
Current report — wording carried from elsewhere
•DIS volume increased by 12.0% compared to the prior year period principally driven by organic growth of 11.9%, of which approximately 8% was due to both our new relationship with Corewell Health to provide Collaborative Lab Solutions and increasing our laboratory testing at dialysis clinics owned by Fresenius Medical Care in the United States. Excluding the Corewell Health and Fresenius Medical Care related testing, organic volume increased by approximately 4% compared to the prior year period.
Current report — wording carried from elsewhere
DS revenues for the six months ended June 30, 2026 were principally consistent with the prior year period.
Current report — wording carried from elsewhere
For the six months ended June 30, 2026, cost of services increased by $362 million compared to the prior year period. The increase was primarily driven by higher compensation costs and, to a lesser extent, an increase in supplies expense reflecting higher testing volumes, partially offset by cost savings and productivity improvements from our Invigorate program.
Current report — wording carried from elsewhere
For the six months ended June 30, 2026, SG&A increased by $71 million compared to the prior period. The increase was primarily driven by higher compensation costs.