Labcorp vs Quest Diagnostics: Revenue, Profit and Business Model
Labcorp reported $14B of revenue in FY2025 and $876.5M of net income. Quest Diagnostics reported $11B of revenue in FY2025 and $992M of net income.
Latest financial snapshot
Labcorp
- Latest revenue
- $14B (FY2025)
- Net income
- $876.5M
- Net margin
- 6.3%
- Revenue growth
- +4.3% a year, FY2016–FY2025
Quest Diagnostics
- Latest revenue
- $11B (FY2025)
- Net income
- $992M
- Net margin
- 9.0%
- Revenue growth
- +4.8% a year, FY2016–FY2025
Financial summary
Labcorp
Revenue rose from $13.01 billion in 2024 to $13.95 billion in 2025 (up 7.2%), with diluted EPS of $10.46, adjusted EPS of $16.44, and free cash flow of $1.21 billion. Momentum carried into 2026: second-quarter revenue reached $3.73 billion (up 5.8%, 4.2% organic), adjusted operating margin widened 70 basis points to 15.8%, and adjusted EPS climbed 14.9% to $4.99. In July 2026 management raised full-year guidance to 5.4%-6.3% revenue growth and adjusted EPS of $18.10-$18.55, and the board added $1.0 billion to the buyback authorization.
Quest Diagnostics
Quest's results follow three phases. Before the pandemic, revenue grew slowly, from $7.21B in 2016 to $7.73B in 2019. COVID-19 testing then lifted revenue to $10.79B and net income to $1.995B in 2021. Revenue fell back to $9.25B in 2023 as that demand faded. Acquisitions and organic volume restarted growth: revenue reached $9.87B in 2024 and $11.035B in 2025, when operating income was $1.556B and operating cash flow was $1.886B. In the first half of 2026, revenue rose 9.7% to $5.938B and net income attributable to Quest rose 13.9% to $572M. Quest raised its quarterly dividend 7.5% to $0.86 per share in 2026.
Revenue and profit by year
Labcorp
| Year | Revenue | Net income | Margin | Growth | Source |
|---|---|---|---|---|---|
| FY2025 | $14B | $876.5M | 6.3% | +7.2% | Source |
| FY2024 | $13B | $746M | 5.7% | +7.0% | Source |
| FY2023 | $12.2B | $418M | 3.4% | +2.5% | Source |
| FY2022 | $11.9B | $1.3B | 10.8% | -9.7% | Source |
| FY2021 | $13.1B | $2.4B | 18.1% | -6.0% | Source |
| FY2020 | $14B | $1.6B | 11.1% | +21.0% | Source |
| FY2019 | $11.6B | $823.8M | 7.1% | +2.0% | Source |
| FY2018 | $11.3B | $883.7M | 7.8% | +9.9% | Source |
| FY2017 | $10.3B | $1.2B | 11.9% | +7.9% | Source |
| FY2016 | $9.6B | $711.8M | 7.5% | — | Source |
Quest Diagnostics
| Year | Revenue | Net income | Margin | Growth | Source |
|---|---|---|---|---|---|
| FY2025 | $11B | $992M | 9.0% | +11.8% | Source |
| FY2024 | $9.9B | $871M | 8.8% | +6.7% | Source |
| FY2023 | $9.3B | $854M | 9.2% | -6.4% | Source |
| FY2022 | $9.9B | $946M | 9.6% | -8.4% | Source |
| FY2021 | $10.8B | $2B | 18.5% | +14.3% | Source |
| FY2020 | $9.4B | $1.4B | 15.2% | +22.1% | Source |
| FY2019 | $7.7B | $858M | 11.1% | +2.6% | Source |
| FY2018 | $7.5B | $736M | 9.8% | +1.7% | Source |
| FY2017 | $7.4B | $772M | 10.4% | +2.6% | Source |
| FY2016 | $7.2B | $645M | 8.9% | — | Source |
Where the revenue comes from
Labcorp
- Diagnostics Laboratories~78%
Routine and specialty testing ordered by physicians, hospitals, health systems, employers, payers, and patients.
- Biopharma Laboratory Services~22%
Central laboratory, early development, companion diagnostics, and clinical-trial laboratory support for pharmaceutical, biotech, medical device, and diagnostic customers.
- Health-System Partnerships
Embedded in diagnostics
Transactions and partnerships that shift hospital or regional laboratory testing volume onto Labcorp infrastructure.
- Specialty and Esoteric Testing
Embedded in diagnostics
Higher-complexity areas such as oncology, women's health, genetics, neurology, autoimmune disease, and precision medicine.
Quest Diagnostics
- Diagnostic Information Services - Routine Clinical Testing~60-65%
High-volume routine clinical chemistry, hematology, urinalysis, and basic microbiology tests performed for physicians, hospitals, and other healthcare providers. These tests have lower margins but provide the volume base that drives operating leverage. Reimbursed primarily through Medicare, Medicaid, and commercial insurance.
- Diagnostic Information Services - Advanced Diagnostics~20-25%
Higher-margin specialized testing including oncology (Haystack MRD, molecular profiling), neurology (AD-Detect Alzheimer's tests), genomics (Blueprint Genetics), advanced cardiometabolic panels, infectious disease testing, and women's health/prenatal genetics. These tests command premium pricing and represent the primary growth vector.
- Diagnostic Information Services - Hospital Outreach and Health System Partnerships~10-15%
Laboratory services provided under partnership arrangements with hospital systems, including acquired outreach operations (NewYork-Presbyterian, Memorial Hermann, Hackensack Meridian, Mercy, Steward) and joint ventures (Sonora Quest with Banner Health). These partnerships provide captive patient volumes and institutional credibility.
- Consumer-Initiated Testing and Retail Partnerships~2-3%
Direct-to-consumer testing through QuestDirect, questhealth.com, and retail partnerships with Walmart, Safeway, and CVS. Includes wellness panels, genetic tests, hormone assessments, and specialized health screenings. Generates direct patient payments at list price with the highest margins in the portfolio.
- Pharmaceutical Services and Corporate~1-2%
Clinical trials testing support for pharmaceutical companies, research collaborations, and corporate activities. Includes testing for drug development, companion diagnostics, and post-market surveillance.
Business model and strategy
Labcorp
How it makes money
Labcorp makes money in two segments. Diagnostics Laboratories ($10.88 billion of 2025 revenue, about 78%) collects specimens through roughly 2,000 patient service centers, in-office phlebotomists, and courier and aircraft routes, runs routine and specialty tests in automated labs, and bills commercial insurers, Medicare and Medicaid, physicians, hospitals, and consumers.
Growth strategy
Labcorp's stated priorities are leading in specialty testing, being the partner of choice for health systems and regional labs, growing consumer health, and using technology and AI to cut cost. In 2025 it launched more than 130 new tests and signed or closed 13 health-system and regional lab transactions; 2026 deals include outreach assets from Crouse Health, Parkview Health, and Tribal Diagnostics.
Competitive advantage
Labcorp's edge is physical density plus breadth. About 2,000 patient service centers, more than 6,000 in-office phlebotomists, a nightly aircraft fleet out of Burlington, and large automated hub labs keep cost per test low.
Quest Diagnostics
How it makes money
Quest Diagnostics earns fee-for-service revenue for lab tests ordered by physicians, hospitals, health plans, employers and consumers. Diagnostic Information Services (DIS) produced $2.978B of the company's $3.043B Q2 2026 revenue. Payment comes from commercial insurers, Medicare and Medicaid, hospitals that send it outreach or reference work, employers, and patients paying directly through questhealth.com.
Growth strategy
Quest is growing in four ways. First, it buys hospital outreach labs and signs Co-Lab Solutions lab-management deals, such as its Corewell Health joint venture in Michigan. Second, it adds large partner volume, such as dialysis testing for Fresenius Medical Care.
Competitive advantage
Quest's main advantage is density. It has a national patient service center footprint, in-network contracts with most major U.S. health plans, EHR connections to physician offices, and regional labs that spread fixed costs across hundreds of millions of tests a year. Only Labcorp operates at comparable U.S. scale. That scale lets Quest offer health systems a lower-cost option for outreach testing.
Questions about Labcorp vs Quest Diagnostics
Which company has higher revenue — Labcorp Holdings Inc. or Quest Diagnostics Incorporated?
Labcorp Holdings Inc. reported $14.0B (FY2025), while Quest Diagnostics Incorporated reported $11.0B (FY2025). By last reported revenue, Labcorp Holdings Inc. is the larger business, with Quest Diagnostics Incorporated reporting a smaller revenue base.
What is the market cap of Labcorp Holdings Inc. vs Quest Diagnostics Incorporated?
Labcorp Holdings Inc.'s market capitalisation stands at $25.1B, while Quest Diagnostics Incorporated's is $27.2B. Quest Diagnostics Incorporated carries the higher market valuation, reflecting investors' expectations of its future earnings power relative to Labcorp Holdings Inc..
Which is more financially efficient — Labcorp Holdings Inc. or Quest Diagnostics Incorporated?
Labcorp Holdings Inc. generates $197k / employee in revenue per employee, while Quest Diagnostics Incorporated generates $194k / employee. Labcorp Holdings Inc. shows higher revenue efficiency per headcount, though this reflects business model differences — capital-light software companies routinely outperform labour-intensive manufacturers on this metric.
How do Labcorp Holdings Inc. and Quest Diagnostics Incorporated make money?
Labcorp Holdings Inc. and Quest Diagnostics Incorporated generate revenue in fundamentally different ways. Labcorp Holdings Inc.: Labcorp makes money in two segments. Quest Diagnostics Incorporated: Quest Diagnostics earns fee-for-service revenue for lab tests ordered by physicians, hospitals, health plans, employers and consumers.
Which company is valued higher relative to revenue — Labcorp Holdings Inc. or Quest Diagnostics Incorporated?
On a price-to-sales (P/S) basis, Labcorp Holdings Inc. trades at 1.8x P/S and Quest Diagnostics Incorporated at 2.5x P/S. Quest Diagnostics Incorporated commands a higher revenue multiple, typically indicating that investors expect faster growth or higher future margins compared to Labcorp Holdings Inc.. A higher multiple is not inherently better — it may also signal that the stock is priced for perfection.
Is Labcorp Holdings Inc. bigger than Quest Diagnostics Incorporated?
By last reported revenue, Labcorp Holdings Inc. ($14.0B (FY2025)) is the larger company compared to Quest Diagnostics Incorporated ($11.0B (FY2025)). Revenue scale is one dimension of size — market capitalisation, employee count, and geographic reach are also relevant depending on the context.
Figures come from each company's filings and the sources linked beside them. Amounts reported in another currency are shown in US dollars at an approximate rate and marked with ~. Back to the Labcorp vs Quest Diagnostics overview