Quest Diagnostics Incorporated

Welcome to the Quest Diagnostics second quarter 2026 conference call. At the request of the company, this call is being recorded. The entire contents of the call, including the presentation and the question and answer session that will follow, are the copyrighted property of Quest Diagnostics with all rights reserved. Any redistribution, retransmission, or rebroadcast of this call in any form without the written consent of Quest Diagnostics is strictly prohibited. I'd now like to introduce Dan Haemmerle, Vice President of Finance for Quest Diagnostics. Please go ahead, sir.

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. Also joining us is Dominique Chokshi, our new Head of Investor Relations who joined Quest Diagnostics last week. During this call, we may make forward-looking statements and will discuss non-GAAP measures. We provide a reconciliation of non-GAAP measures to comparable GAAP measures in the tables to our earnings press release. 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's Jim Davis.

Thanks, Dan, and good morning, everyone. Before we get started, I want to welcome Domini, who brings to Quest a strong record of investor relations and financial management experience from her nearly two decades with Merck. I also want to thank Dan for his leadership over the past few months as we completed the hiring process. Dan will continue to work closely with Domini over the coming weeks as she transitions into this new role. Now, turning to our results. Our strong performance in the second quarter demonstrates focused execution of our strategy to connect people and providers to innovative testing and actionable insights that illuminate paths for better health. In the quarter, we grew revenues by over 10%, driven by broad clinical demand from physicians, hospitals, and consumers, and increased volume from our collaborations with Corwell Health and Fresenius Medical Care. We also grew adjusted diluted earnings per share by over 19%. Our implementation of automation and AI across our business is driving continuous improvements in quality and productivity both in and outside our labs. We are also using advanced technologies to make it easier for our customers to engage with us and draw greater insights from our lab data. With our strategic execution and demographic and technological trends driving sustained demand, we are again raising our guidance for the year. I'll now provide more detail on how we executed our strategy across our key customer channels and operations during the quarter. Quest Diagnostics operates at the center of healthcare, providing insights to make health more proactive, personal, and connected. We deliver solutions that make testing simpler and smarter for our core clinical customers, physicians and hospitals, as well as for our customers in the higher growth areas of consumer health, life sciences, and data analytics. In the physician channel, we delivered high single-digit revenue growth in the second quarter on broad-based demand for our clinical innovations, new customer wins, and increased business with existing customers. We continue to deliver strong growth in several geographies where we have expanded our reach to physicians through increased health plan access and acquisitions in recent years. We also continue to grow our enterprise accounts, especially in clinical areas where providers value our ability to deliver solutions that serve the growing interest in prevention and wellness. In addition, our collaborations with Fresenius Medical Care continue to support growth in the quarter. Through this relationship, we have fostered new capabilities for serving nephrologists and other providers caring for the nearly 36 million people in the US with chronic kidney disease. Today, we provide a highly comprehensive kidney testing portfolio, spanning risk assessment to post-transplant monitoring for providers focused on this growing area of medicine. In the hospital channel, we grew revenues at a double-digit rate during the quarter, primarily from CoLab Solutions with Corwell Health in Michigan. In addition, revenues from reference testing grew versus the first quarter and prior year. Hospitals continue to contend with workforce, financial, and other pressures. As a preferred strategic partner, we empower hospitals to improve quality, expand access to new test innovations, and maximize cost efficiencies and capital allocation. As one example, during the quarter, we formed a new co-lab agreement with a nonprofit regional health system in California. Through these deep relationships, we have created a strong pipeline of potential collaborations and acquisitions of hospital outreach as well as independent labs. In the Consumer Health Channel, we deliver solutions that enable people to own their health. Wellness is not the absence of sickness. It's health that is proactive, personal, and connected. And we're helping to make wellness possible by illuminating early signals of disease and by making it easier for people and partners to link our biomarker insights with biometrics. We expect to continue to expand our own platform and solutions for partners as interest and investment in preventative health and wellness continues to grow. During the quarter, questhealth.com continued to generate robust revenue growth and strong demand for existing wellness panels and new services, such as our thyroid test offering. In addition, we continue to attract new partners as a result of our diagnostic innovations Flexible Technology Integrations, and SCALE. Our customer channels are also growing as we continue to deliver advanced diagnostics in five key clinical areas. Advanced cardiometabolic and endocrine, autoimmune, brain health, oncology, and women's and reproductive health. During the quarter, we grew revenues by double digits across several of these areas. These include advanced cardiometabolic tests like APOV and LP little a, as well as liver fibrosis testing, an area poised for additional growth given new treatments for late stage liver disease. We also continue to drive strong growth for our analyzer solution, which aids the diagnosis of autoimmune disorders. In brain health, we continue to drive robust double-digit growth across our portfolio of AD-detect blood tests, which include amyloid beta, p tau, and other biomarkers, demonstrating the clinical value of our multi-biomarker approach to dementia care. In oncology, we achieved key milestones for Haystack MRD during the quarter. New York State approved the test, placing it among an elite group of solid tumor ctDNA MRD tests to fulfill the state's rigorous quality criteria. This approval allows us to extend our commercial efforts to all 50 states. We also became the largest reference lab to extend access to cancer tests such as Haystack MRD through Flatiron Health's OncoEMR molecular profiling integration platform. We began a pilot of the solution with American Oncology Network, a leading community oncology organization, and plan to roll it out to Flatiron's 4,700 clinicians and other providers nationwide later this year. I'd like to turn now to operational excellence. We remain on track to deliver 3% in annual cost savings and productivity improvements through our Invigorate program. We are also making testing simpler and smarter by investing in AI and automation to improve our operations, services, and experiences both in and outside our labs. For instance, in our labs, we recently installed the WholeLogic Genius Digital Diagnostic System in two more locations following successful implementations at about half a dozen sites over the past year. The system first digitizes a Pap test slide and then uses AI to scan for signs of cervical cancer, helping to improve the quality of the slide review by our medical team. Our front-end specimen processing automation is delivering meaningful gains in productivity, and we look forward to extending the solution to other sites later this year. Beyond our labs, we recently launched IntelliDraw. a web-based tool that guides the clinical staff of our physician customers through the process of specimen collection, improving quality, and the service experience. In addition, we will be implementing an AI tool at patient service centers this year to cut the time it normally takes to track and order supplies. Overall, we are pleased with our growth, momentum with customers, and strategic execution in the second quarter. I'll now turn it over to Sam for more details on our performance and guidance. Sam?