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Quest Diagnostics Q3 2026 Earnings Call
Quest raises 2026 revenue guidance after 10% jump to $3.1B but warns of $120M PAMA cuts for 2027.
In brief
Quest raises 2026 revenue guidance after 10% jump to $3.1B but warns of $120M PAMA cuts for 2027. Quest Diagnostics reported Q3 2026 revenue of $3.1 billion, up 10% year-over-year, and raised full-year guidance but warned of potential $120 million in 2027 reimbursement cuts from flawed PAMA data collection. Originally…
Q3 2026 Results
![[Quest Diagnostics Q3 2026 Earnings Call] Quest Raises Guidance as Revenue Jumps 10% to $3.1B, but PAMA Cuts Loom at ~$120M for 2027](https://img.biggo.com/cAgaIr3-vAEYFuHrqLpRSh1i-eKqqW6I-pV_TTQOYrc/fit/1720/0/sm/0/aHR0cHM6Ly9pbWcuYmdvLm9uZS9uZXdzLWltYWdlL2Vhcm5pbmdzX2NhcmQvMjAyNi0xMC9VU19ER1hfMjAyNi0xMC0yMl8xNzkyNjgxMTQzLndlYnA.webp)
Quest Diagnostics reported third-quarter 2026 revenues of $3.1 billion, up 10% year-over-year, and adjusted earnings per share of $3.00, a 15.4% increase.
Guidance Raised
The company raised full-year 2026 revenue guidance to $12.065 billion to $12.105 billion, reflecting 9.3% to 9.7% growth.
PAMA Impact
Quest estimates a ~1% revenue hit (~$120 million) for 2027 due to flawed PAMA data collection process.
PAMA Data Concerns
CEO Jim Davis noted independent labs accounted for 76.5% of reported volume to CMS, while hospital outreach was less than 10%.
RESULTS Act Push
Quest is pushing for the bipartisan RESULTS Act, with a CBO score expected mid-November 2026.
Cybersecurity Incident
Quest disclosed unauthorized access to a test ordering system but said operations were not materially disrupted.
Apple Health Partnership
Quest announced a partnership with Apple Health to allow lab ordering directly from the app.
Consumer Health Growth
Consumer health revenue grew over 30% for the full year, highlighted by new Apple Health integration.
Advanced Diagnostics
Advanced diagnostics revenue grew double-digit, including cardiometabolic, hormone, and Alzheimer’s disease testing.
PAMA Code Cuts
775 codes face maximum 15% reduction, and 1,200 of 1,550 codes will be cut under PAMA.
2027 Impact Estimate
Quest estimates cumulative PAMA impact for 2027 through 2029 will be less than 1.3% of total revenues.
2027 Guidance
Quest expects 2027 revenue guidance with Q4 results early next year and an Investor Day on March 25, 2027.
The essence
Quest Diagnostics reported Q3 2026 revenue of $3.1 billion, up 10% year-over-year, and raised full-year guidance but warned of potential $120 million in 2027 reimbursement cuts from flawed PAMA data collection.
