Quest Diagnostics Inc. reported a strong second quarter in 2025 with sales of $2.76 billion, up 15.2% year-over-year, and adjusted earnings of $2.62 per share, exceeding expectations. However, potential headwinds from tariffs and the Protecting Access to Medicare Act (PAMA) could impact financial performance. Revenue per requisition decreased by 0.4%, but requisition volume increased by 16.3%.

The company raised its full-year 2025 guidance for revenue to $10.80 billion-$10.92 billion and adjusted earnings to $9.63-$9.83. Quest Diagnostics faced negative impacts from tariffs in the second quarter and anticipates ongoing challenges in the third and fourth quarters. A potential $100 million financial hit looms if PAMA is not deferred.

Investment firm William Blair remains positive about Quest Diagnostics’ performance, citing predictable revenue and earnings growth. Shares of DGX stock are trading higher by 6.19% at $176.75. The company’s slightly higher valuation is supported by a strong economic environment, steady revenue growth, and market trends. William Blair maintains an Outperform rating on the stock.

Read more at Yahoo Finance: Quest Diagnostics Raises Outlook, But Warns Of Tariff And Medicare Act Risks