Quest Diagnostics Incorporated

A rebroadcast of this call in any form without written consent of Quest Diagnostics is strictly prohibited. Now I'd like to introduce Sean Bevick, Vice President and Investor Relations for Quest Diagnostics. Please go ahead.

Thank you and good morning. I'm joined by Jim Davis, our Chairman, Chief Executive Officer and President, and Sam Samad, our Chief Financial Officer. During this call, we may make forward-looking statements and we'll discuss non-GAAP measures. We provide a reconciliation of non-GAAP measures to comparable GAAP measures in the tables to our earnings press release. Any actual results may differ materially from those projected. Risks and uncertainties that may affect Quest Diagnostics' future results include, but are not limited to, those described in our most recent annual report on Form 10-K and subsequently filed quarterly reports on Form 10-Q and current reports on Form 8-K. For this call, references to reported EPS refer to reported diluted EPS, and references to adjusted EPS refer to adjusted diluted EPS. Growth rates associated with our long-term outlook projections, including consolidated revenue growth, revenue growth from acquisitions, organic revenue growth, and adjusted earnings growth, are compound annual growth rates. Now, here is Jim Davis.

Thanks, Sean, and good morning. In the first quarter, we delivered strong revenue growth of approximately 12%, including nearly 2.5% in organic growth as demand rebounded in March following weather impacts early in the quarter. Our growth was due to contributions from acquisitions and large enterprise accounts, demand for our advanced diagnostics portfolio, and expanded health plan access. We also continue to expand our use of automation, robotics and AI with the goal of improving quality, customer and employee experiences and productivity. We are reaffirming our revenue and adjusted EPS guidance for the full year 2025. Now, before turning to highlights from the quarter, I'd like to briefly comment on the recent court case that vacated the FDA rule to regulate laboratory developed tests as medical devices. The court's decision will ensure patients and providers can continue to access innovative laboratory testing services regulated under CLIA without additional regulatory costs to comply with the FDA LDT rule. We also recognize that several growing areas of our business already operate under the FDA's existing quality management system regulations including companion diagnostics and lab services for clinical trials. In addition, our business is increasingly global as we expand in Canada through life labs and provide reference testing for many countries. We continue to invest in quality management processes and technologies to navigate the complexity of the global regulatory environment. Now I'll recap our strategy and discuss highlights from the first quarter. Then Sam will provide more detail in our results. Our strategy to drive growth is focused on delivering solutions that meet the evolving needs of our core clinical customers, physicians and hospitals, as well as customers in the higher growth areas of consumer initiated testing, life sciences and data analytics. We enable growth across our customer channels through faster growing advanced diagnostics in five key clinical areas. which are advanced cardiometabolic, autoimmune, brain health, oncology, and women's and reproductive health. In addition, acquisitions are a key growth driver, and our strategy emphasizes accretive outreach purchases and independent labs. Finally, we are focused on driving operational improvements across the business with the deployment of automation, robotics, and AI for improved quality, customer and employee experiences, and productivity. Here are some of the updates on the progress we have made in these areas in the first quarter of 2025. In the physician channel, we delivered revenue growth in the high teens, driven largely by acquisitions. Organic revenue growth in the physician channel was mid-single digits. Our expanding portfolio of advanced diagnostics continued to deliver solid growth. We also generated volume and revenue growth through access to new geographies as a result of new health plan partnerships that took effect on January 1st. In addition, we also grew from large enterprise accounts, including functional medicine providers, which are often early adopters of advanced diagnostics tests that over time moved to broader adoption. For example, we saw impressive uptake of our novel PFAS Forever Chemicals test which we launched a little over one year ago. Our ability to scale diagnostic innovation is attractive to large enterprise organizations seeking to improve access, quality, and affordability. During the quarter, Quest was named as the first independent national lab to be selected to the OptumHealth Preferred Lab Network. The OptumHealth PLN requires labs to meet rigorous quality and economic criteria to improve patient affordability and access. The OptumHealth network represents more than 85,000 Optum-employed, contracted, and affiliated physicians. Our addition to this PLN is an example of our attractiveness as a partner to enterprise providers seeking to improve quality and economic value. We also announced an agreement to provide comprehensive lab testing for Fresenius Medical Care's dialysis center serving more than 200,000 kidney dialysis patients in the U.S. Under a separate agreement, we also plan to acquire select lab assets from Fresenius Medical Care in the U.S. In the hospital channel, revenue growth in the quarter was largely driven by contributions from our collaborative lab solutions, formerly known as professional lab services. Running a lab and developing lab tasks requires investing in equipment, hiring specialized talent, and keeping pace with innovation and lab technology. Health systems continue to face supplies inflation, workforce challenges, and reduced access to capital. Through our reference testing, co-lab solutions, and outreach lab acquisitions, Quest provides hospitals with strategic options for accessing best-in-class diagnostic innovation without having to maintain a lab. At our recent investor day, we shared our plans to expand in three high-growth areas, consumer-initiated testing, life sciences, and data analytics. We recently enhanced the online shopping experience of our consumer-initiated test platform, questhealth.com, streamlining the order process, which contributed to a sharp uptick in first-time orders during the quarter. We also introduced 10 new tests on the platform. questhealth.com features fast access, physician consults, and for STIs and several other conditions, access to prescriptions for treatment. We recently shared our long-term outlook for double-digit growth in advanced diagnostics across five key clinical areas. Advanced cardiometabolic and autoimmune testing both grew at double-digit rates similar to trends seen last year. These areas help providers support preventative care for patients by identifying early health risks conventional lab tests can miss. In brain health, we generated double-digit growth from our innovative AD-DETECT blood tests for Alzheimer's disease. We are particularly excited about our latest AD-DETECT blood test panel, which we launched this month. This new panel combines results of amyloid beta and PTAU217, two well-established Alzheimer's biomarkers, to give physicians even greater confidence to confirm Alzheimer's brain pathology in symptomatic patients. In women's and reproductive health, prenatal and hereditary genetic testing grew double digits. In March, we launched a solution that enables a patient to self-collect a specimen for HPV cervical cancer screening at a doctor's office. We plan to roll out this self-collect option at our 2,000 patient service centers in the US early next month, complementing our STI-related self-collect option which has already seen high rates of adoption since its launch last year. During the quarter, we started to receive commercial orders for our Haystack MRD test for assessing early risk of cancer recurrence. We are investing in our connectivity with electronic medical records preferred by oncologists to improve ease of account setup and ordering. For instance, we plan to deploy Haystack MRD via EPICS Aura specialty EMR module later this year. Finally, Quest continues to be at the forefront of serving public health needs. We saw an uptick in our measles offerings, including testing that can be used for diagnosis or to assess vaccination status or prior infection. Turning to operational excellence, We continue to target 3% annual cost savings and productivity improvements through Invigorate. We are automating several areas of our laboratories from tuberculosis testing to cervical cancer screening to improve quality, customer and employee experiences, and productivity. We also recently shared goals for Project Nova, which we expect will modernize and simplify our entire order to cash process. While this initiative will take several years to fully implement, we expect to realize the benefits sooner, including lower IT spend and improved productivity. Project NOVA will also support our ability to optimize data insights and Gen AI. During the quarter, we announced a collaboration with Google Cloud to streamline data management and employ Gen AI to personalize customer and employee experiences. Finally, I want to thank our more than 55,000 Quest and LifeLabs colleagues for their dedication to living the Quest purpose, working together to create a healthier world, one life at a time. And now, Sam will provide more details on a performance and 2025 guidance. Sam?