DGXMEDIUM SIGNALOPERATIONAL10-K

DGX rebranded Professional Laboratory Services to Collaborative Lab Solutions while maintaining steady revenue growth and improving operational efficiency across key business segments.

The rebranding from Professional Laboratory Services to Collaborative Lab Solutions signals a strategic repositioning to emphasize partnership-oriented hospital relationships, while both this segment and reference testing maintained solid performance at $800M and $1.2B respectively. The share count reduction of over 1.1 million shares indicates ongoing capital return activity, supporting shareholder value creation alongside operational improvements.

Comparing 2026-02-26 vs 2025-02-20View on EDGAR →
FINANCIAL ANALYSIS

DGX delivered solid financial performance with revenue growing 11.8% to $11.0B and gross profit expanding meaningfully by 35.1% to $3.6B, indicating improved operational leverage. Operating cash flow grew substantially to $1.9B while the company increased capital expenditures by 24% to $527M, suggesting continued investment in growth capabilities. The decline in net interest income and modest reduction in cash position reflect typical balance sheet optimization for a mature healthcare services company.

FINANCIAL STATEMENT CHANGES
Net Interest Income
P&L
-48%
$25.0M→$13.0M

Net interest income declined 48% — margin compression from rate changes or funding cost increases.

Operating Cash Flow
Cash Flow
+41.4%
$1.3B→$1.9B

Operating cash flow surged 41.4% — exceptional cash generation, highest quality earnings signal.

Gross Profit
P&L
+35.1%
$2.7B→$3.6B

Gross profit expanding — improving pricing power or product mix shift toward higher-margin offerings.

Capital Expenditure
Cash Flow
+24%
$425.0M→$527.0M

Capex increased 24% — ongoing investment in capacity or infrastructure for future growth.

Cash & Equivalents
Balance Sheet
-23.5%
$549.0M→$420.0M

Cash decreased 23.5% — monitor burn rate and upcoming capital needs.

Operating Income
P&L
+15.6%
$1.3B→$1.6B

Operating income improving — cost discipline or growing revenue base absorbing fixed costs.

Net Income
P&L
+13.9%
$871.0M→$992.0M

Net income grew 13.9% — bottom-line growth signals improving overall business health.

Revenue
P&L
+11.8%
$9.9B→$11.0B

Revenue growing 11.8% — solid top-line momentum, watch margins for quality of growth.

SG&A Expense
P&L
+11.1%
$1.8B→$2.0B

SG&A increased modestly — likely reflects growth-related hiring or sales expansion investment.

LANGUAGE CHANGES
NEW — 2026-02-26
PRIOR — 2025-02-20
ADDED
As of February 2, 2026, there were outstanding 109,866,320 shares of the registrant s common stock, $.01 par value.
Management's Discussion and Analysis of Financial Condition and Results of Operations 46 Item 7A.
Large physician practices value our ability to standardize services on a national or regional scale.
In 2025, we generated approximately $1.2 billion in revenue from reference testing, where we perform testing that hospitals do not perform in their own in-hospital labs.
In 2025, our Collaborative Lab Solutions (formerly known as Professional Laboratory Services) offering generated approximately $800 million in revenues and management fees supporting hospitals in the operation of their own labs.
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REMOVED
As of January 31, 2025, there were outstanding 110,978,069 shares of the registrant s common stock, $.01 par value.
Management's Discussion and Analysis of Financial Condition and Results of Operations 45 Item 7A.
In 2024, we generated over $1 billion in revenue from reference testing, where we perform testing that hospitals do not perform in their own in-hospital labs.
In 2024, our Professional Laboratory Services offering generated approximately $800 million in revenues and management fees supporting hospitals in the operation of their own labs.
Our key Professional Laboratory Services offerings include lab management outsourcing, test menu optimization and spend consolidation, supply chain management and providing, advanced data solutions.
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