Quest Diagnostics Incorporated (DGX) closed out 2025 with a bang, reporting fourth-quarter results that sent shares soaring to a fresh 52-week high. The diagnostic testing giant delivered adjusted earnings of $2.42 per share on Tuesday, beating the Street's forecast of $2.36.

Revenue came in at $2.81 billion, up 7.1% from the same period last year and ahead of the $2.75 billion consensus estimate. Organic revenue growth clocked in at 6.4%, showing that the company's core business continues firing on all cylinders.

"We closed 2025 with a strong fourth quarter, and delivered double-digit growth in revenues and earnings per share for the full year," said Jim Davis, Chairman, CEO, and President. "Our robust performance demonstrates continued execution of our strategy to deliver category-defining clinical innovations that fulfill customers' needs and to form strategic collaborations supporting growth."

Volume Growth Tells an Interesting Story

Operating income climbed 7% to $386 million, while adjusted operating income reached $429 million with a margin of 15.3%, compared to $409 million and a 15.6% margin in the prior year.

Total requisition volume jumped 8.5% compared to the fourth quarter of 2024, with organic volume up 7.9%. Revenue per requisition edged down slightly by 0.1%, but CFO Sam Samad offered helpful context on that metric.

"Corewell Health and Fresenius Medical Care deliver significant volume growth at a lower revenue per requisition than our company average," Samad explained on Tuesday. "Excluding these two relationships, our organic volume growth accelerated to 4.1% in the fourth quarter, while our revenue per requisition growth remained solid at approximately 3.0%. Unit price remained consistent with our expectations."

Returning Cash to Shareholders

Quest Diagnostics sweetened the deal for investors by authorizing a 7.5% increase in its quarterly dividend to 86 cents per share from 80 cents. That brings the annual payout to $3.44 per share.

The Board also added $1 billion to the company's share repurchase authorization, topping off the approximately $400 million that remained available as of December 31, 2025.

Looking Ahead to 2026

"As we look ahead to 2026, our guidance reflects our continued confidence in our business strengths and market fundamentals, which include favorable demographic trends, increasing use of blood-based lab diagnostics, and growing interest in preventive health and wellness," Davis said on Tuesday.

The company expects fiscal 2026 adjusted earnings between $10.50 and $10.70 per share, comfortably above the analyst consensus of $10.43. Revenue guidance of $11.7 billion to $11.82 billion also tops expectations of $11.39 billion.

Quest Diagnostics shares responded enthusiastically to the news, jumping 6.35% to $203.40 on Tuesday and notching a new 52-week high in the process.