Financial Analysis

"BUSINESS ACQUISITIONS 2025 Acquisitions During 2025, the Company completed acquisitions for an aggregate purchase price of $101 million, net of cash acquired, including the acquisition discussed below. The acquisitions resulted in goodwill of $80 million, all of which is deductible for tax purposes. The acquisitions also resulted in $20 million of customer-related intangible assets. Acquisition of select assets of Spectra Laboratories During February 2025, the Company entered into a definitive agreement to acquire select clinical testing assets and select dialysis-related water testing assets of Fresenius Medical Care's wholly-owned Spectra Laboratories, a leading provider of renal-specific laboratory testing services in the United States. During August 2025, the acquisition of the select clinical testing assets closed and during November 2025 the acquisition of the select dialysis-related water testing assets closed. The Company paid $84 million of aggregate cash consideration for the businesses. Based on the preliminary purchase price allocation, which may be revised as additional information becomes available during the measurement period, the assets acquired consist of $68 million of tax-deductible goodwill and $16 million of customer-related intangible assets. The intangible assets are being amortized over a useful life of 15 years. Venture with Corewell Health During August 2025, the Company and Corewell Health signed a definitive agreement to enter into a venture whic …

BusinessCombinationDisclosureTextBlock · excerpt; the full note is in the filing

"COMMITMENTS AND CONTINGENCIES Letters of Credit and Contractual Obligations The Company can issue letters of credit under its Secured Receivables Credit Facility and Senior Unsecured Revolving Credit Facility (see Note 13). In support of its risk management program, to ensure the Companys performance or payment to third parties, $78 million in letters of credit under the Secured Receivables Credit Facility were outstanding as of December 31, 2025. The letters of credit primarily represent collateral for current and future automobile liability and workers compensation loss payments. The Company has certain noncancelable commitments, primarily under take-or-pay arrangements, to purchase products or services from various suppliers, mainly for consulting and other service agreements, and standing orders to purchase reagents and other laboratory supplies. As of December 31, 2025, the approximate total future purchase commitments are $514 million, of which $217 million are expected to be incurred in 2026, $256 million are expected to be incurred in 2027 through 2028 and the balance thereafter. During the years ended December 31, 2025, 2024 and 2023, $252 million, $263 million and $222 million, respectively, were purchased under noncancelable commitments. Billing and Collection Agreement In September 2016, the Company entered into a ten-year agreement with a third party to outsource its billing and related operations for the majority of the Companys revenues. Services under the agr …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

"DEBT Long-term debt (including finance lease obligations) as of December 31, 2025 and 2024 consisted of the following: 2025 2024 3.50% Senior Notes due March 2025 $ $ 601 3.45% Senior Notes due June 2026 501 503 4.60% Senior Notes due December 2027 400 400 4.20% Senior Notes due June 2029 499 499 4.625% Senior Notes due December 2029 600 599 2.95% Senior Notes due June 2030 799 799 2.80% Senior Notes due June 2031 564 550 6.40% Senior Notes due November 2033 756 750 5.00% Senior Notes due December 2034 840 813 6.95% Senior Notes due July 2037 175 175 5.75% Senior Notes due January 2040 246 246 4.70% Senior Notes due March 2045 300 300 Other 21 17 Debt issuance costs (30) (35) Total long-term debt 5,671 6,217 Less: Current portion of long-term debt 504 602 Total long-term debt, net of current portion $ 5,167 $ 5,615 Secured Receivables Credit Facility The Company is party to a $600 million secured receivables credit facility (the Secured Receivables Credit Facility), which it amended during November 2025 in order to extend the maturity to November 2027. The facility includes a $200 million uncommitted accordion which, if utilized, brings the total capacity under the facility to $800 million. The entire facility can be used for borrowings. Additionally, the Company can choose to utilize up to $150 million of such capacity to issue letters of credit (see Note 18). Issued letters of credit reduce the available borrowing capacity under the facility. Interest on borrowings under t …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

The approximate percentage of net revenues by type of payer customer was as follows: Year Ended December 31, 2025 2024 2023 Healthcare insurers: Fee-for-service 36 % 37 % 37 % Capitated 3 3 3 Total healthcare insurers 39 40 40 Government payers (principally fee-for-service) 16 13 11 Client payers 31 33 34 Patients (including coinsurance and deductible responsibilities) 12 11 12 Total DIS 98 97 97 DS 2 3 3 Net revenues 100 % 100 % 100 %

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STOCK OWNERSHIP AND COMPENSATION PLANS Employee and Non-employee Directors Stock Ownership Programs The ELTIP provides for three types of awards: (a) stock options, (b) stock appreciation rights and (c) stock awards. The ELTIP provides for the grant to eligible employees of either non-qualified or incentive stock options, or both, to purchase shares of Company common stock at an exercise price no less than the fair market value of the Company's common stock on the date of grant. Grants of stock appreciation rights allow eligible employees to receive a payment based on the appreciation of Company common stock in cash, shares of Company common stock or a combination thereof. The stock appreciation rights are granted at an exercise price no less than the fair market value of the Company's common stock on the date of grant. Stock options and stock appreciation rights granted under the ELTIP expire on the date designated by the Board of Directors but in no event more than ten years from date of grant. No stock appreciation rights have been granted under the ELTIP. Under the ELTIP, awards are subject to forfeiture if employment terminates prior to the end of the vesting period prescribed by the Board of Directors. For all award types, the vesting period is generally over three years from the date of grant. For performance share units, the actual amount of shares earned is based on the achievement of the performance goals specified in the awards. The performance goals for awards gra …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

"FAIR VALUE MEASUREMENTS Assets and Liabilities Measured at Fair Value on a Recurring Basis The following table provides a summary of the recognized assets and liabilities that are measured at fair value on a recurring basis: Basis of Fair Value Measurements Total Level 1 Level 2 Level 3 December 31, 2025 Assets: Deferred compensation trading securities $ 78 $ 78 $ $ Cash surrender value of life insurance policies 72 72 Equity investments 2 2 Fixed-to-variable interest rate swaps 14 14 Total $ 166 $ 80 $ 86 $ Liabilities: Deferred compensation liabilities $ 150 $ $ 150 $ Contingent consideration 96 96 Total $ 246 $ $ 150 $ 96 Redeemable noncontrolling interest $ 80 $ $ $ 80 December 31, 2024 Assets: Deferred compensation trading securities $ 72 $ 72 $ $ Cash surrender value of life insurance policies 64 64 Total $ 136 $ 72 $ 64 $ Liabilities: Deferred compensation liabilities $ 140 $ $ 140 $ Contingent consideration 106 106 Fixed-to-variable interest rate swaps 34 34 Total $ 280 $ $ 174 $ 106 Redeemable noncontrolling interest $ 83 $ $ $ 83 The Company offers certain employees the opportunity to participate in a non-qualified supplemental deferred compensation plan. A participant's deferrals, together with Company matching credits, are invested in a variety of participant-directed stock and bond mutual funds that are classified as trading securities. The trading securities are classified within Level 1 of the fair value hierarchy because the changes in the fair value of these …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

GOODWILL AND INTANGIBLE ASSETS The changes in goodwill for the years ended December 31, 2025 and 2024 were as follows: 2025 2024 Balance, beginning of year $ 8,856 $ 7,733 Goodwill acquired during the year 80 1,146 Adjustments to goodwill 9 (23) Balance, end of year $ 8,945 $ 8,856 Principally all of the Companys goodwill as of December 31, 2025 and 2024 was associated with its DIS business. For the year ended December 31, 2025, goodwill acquired was principally associated with the acquisition of select clinical testing assets and select dialysis-related water testing assets of Fresenius Medical Care's wholly-owned Spectra Laboratories (see Note 6). For the year ended December 31, 2025, adjustments to goodwill principally related to foreign currency translation, partially offset by the finalization of the purchase price allocation for a 2024 acquisition. For the year ended December 31, 2024, goodwill acquired was principally associated with the acquisitions of LifeLabs, the laboratory business of three physician groups in New York, select assets of the outreach laboratory services business of Allina Health, select assets of the outreach laboratory services business of OhioHealth and the outreach laboratory services business of University Hospitals (see Note 6). For the year ended December 31, 2024, adjustments to goodwill related to foreign currency translation. Intangible assets as of December 31, 2025 and 2024 consisted of the following: Weighted Average Amortization Period …

GoodwillAndIntangibleAssetsDisclosureTextBlock · excerpt; the full note is in the filing

TAXES ON INCOME The Company's pre-tax income before equity in earnings of equity method investees consisted of approximately $1.2 billion, $1.1 billion and $1.1 billion from U.S. operations and pre-tax income of $96 million, $28 million and $7 million from foreign operations for the years ended December 31, 2025, 2024 and 2023, respectively. The components of income tax expense (benefit) for the years ended December 31, 2025, 2024 and 2023 were as follows: 2025 2024 2023 Current: Federal $ 171 $ 204 $ 235 State and local 33 52 59 Foreign 5 4 3 Deferred: Federal 55 4 (38) State and local 21 2 (10) Foreign 29 7 (1) Total $ 314 $ 273 $ 248 A reconciliation of the federal statutory income tax rate to the Company's effective income tax rate for the years ended December 31, 2025, 2024 and 2023 was as follows (dollars in millions): 2025 2024 2023 U.S. federal statutory tax rate $ 277 21.0 % $ 247 21.0 % $ 237 21.0 % State and local income taxes, net of federal benefit (a) 47 3.5 41 3.5 38 3.4 Foreign tax effects 14 1.0 3 0.3 Effect of cross-border tax laws 2 0.2 (1) (0.1) (2) (0.2) Tax credits (8) (0.6) (12) (1.1) (11) (1.0) Nontaxable or nondeductible expenses: Excess tax benefits on stock-based compensation arrangements (18) (1.3) (9) (0.7) (11) (1.0) Other, net 6 0.5 12 1.0 10 0.9 Changes in unrecognized tax benefits (1) (0.1) (2) (0.2) (2) (0.2) Other, net: Impact of noncontrolling interests (13) (1.0) (13) (1.1) (14) (1.2) Other adjustments 8 0.6 7 0.6 3 0.3 Effective income ta …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

LEASES The Company determines if an arrangement is or contains a lease at contract inception. The Company leases office space, patient service centers, clinical laboratories, warehouses, logistic hubs and equipment primarily through operating leases, with a limited number of finance leases. A right-of-use asset , representing the underlying asset during the lease term, and a lease liability , representing the payment obligation arising from the lease, are recognized on the balance sheet at lease commencement based on the present value of the payment obligation. For operating leases, expense is recognized on a straight-line basis over the lease term. For finance leases, interest expense on the lease liability is recognized using the effective interest method and amortization of the right-of-use asset is recognized on a straight-line basis over the shorter of the estimated useful life of the asset or the lease term. Short-term leases with an initial term of 12 months or less are not recorded on the balance sheet; the Company recognizes lease expense for these leases on a straight-line basis over the lease term. For the years ended December 31, 2025, 2024, and 2023, lease expense associated with short-term leases was not material. The Company primarily uses its collateralized incremental borrowing rate in determining the present value of lease payments as the Company's leases generally do not provide an implicit rate. Such incremental borrowing rates, which take into account int …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

"In December 2023, the Financial Accounting Standards Board (""FASB"") issued a new accounting standard which requires companies to make additional income tax disclosures. The pronouncement was effective for annual filings for the year ended December 31, 2025. The adoption of this standard, which the Company adopted on a retrospective basis, did not have a material impact on the Company's results of operations, financial position or cash flows. See Note 8 for the additional disclosures. In November 2024, the FASB issued a new accounting standard which will require companies to disaggregate certain income statement expenses. The pronouncement is effective for annual filings for the year ended December 31, 2027 and for interim periods within the year ended December 31, 2028. The Company does not expect the adoption of this standard to have a material impact on its results of operations, financial position or cash flows. In July 2025, the One Big Beautiful Bill Act (OBBBA) was enacted. The OBBBA makes permanent key elements of the Tax Cuts and Jobs Act of 2017, including 100% bonus depreciation, domestic research cost expensing and the business interest expense limitation, among other tax changes. Many of the tax provisions of the OBBBA are designed to accelerate tax deductions, which leads to lower cash tax payments. The new legislation has multiple effective dates, with certain provisions effective in 2025 and others in the future. The tax provisions of the legislation did not …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

RESTRUCTURING ACTIVITIES AND IMPAIRMENT CHARGES Invigorate Program The Company is engaged in a multi-year program called Invigorate, which includes structured plans to drive savings and improve productivity across the value chain, including in such areas as patient services, logistics and laboratory operations, revenue services, information technology and procurement. The Invigorate program aims to deliver 3% annual cost savings and productivity improvements to partially offset pressures from an inflationary environment, including labor and benefit cost increases and reimbursement pressures. The Company is leveraging automation and artificial intelligence to improve productivity and also improve quality across the entire value chain, not just in the laboratory. Other areas of focus include reducing denials and patient concessions, and enhancing the digital experience. Restructuring and Impairment Charges The following table provides a summary of the Company's pre-tax restructuring and impairment charges for the years ended December 31, 2025, 2024 and 2023: 2025 2024 2023 Employee separation costs $ 28 $ 28 $ 25 Asset impairment charges 29 29 Total restructuring and impairment charges $ 57 $ 28 $ 54 The Company's pre-tax restructuring charges for the years ended December 31, 2025, 2024 and 2023 included $28 million, $28 million and $25 million, respectively, of employee separation costs associated with various workforce reduction initiatives as the Company continued to restruc …

RestructuringAndRelatedActivitiesDisclosureTextBlock · excerpt; the full note is in the filing

REVENUE RECOGNITION DIS Net revenues in the Companys DIS business accounted for greater than 95% of the Companys consolidated net revenues for the years ended December 31, 2025, 2024 and 2023 and are primarily comprised of a high volume of relatively low-dollar transactions. The DIS business, which provides clinical testing services and other services, satisfies its performance obligation and recognizes revenues primarily upon completion of the testing process (when results are reported) or when services have been rendered. The Company estimates the amount of consideration it expects to be entitled to receive from payer customer groups in exchange for providing services using the portfolio approach. These estimates include the impact of contractual allowances (including payer denials), and patient price concessions, as discussed below. The portfolios determined using the portfolio approach consist of the following groups of payer customers: healthcare insurers, government payers, client payers and patients. Contracts in the DIS business do not contain significant financing components based on the typical period of time between performance of services and collection of consideration. The process for estimating revenues and the ultimate collection of accounts receivable involves significant judgment and estimation. The Company follows a standard process, which considers historical denial and collection experience and other factors (including the period of time that the receivab …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

"BUSINESS SEGMENT INFORMATION The Company's DIS business is the only reportable segment based on the manner in which the Chief Executive Officer, who is the Company's CODM, assesses performance and allocates resources across the organization. The CODM uses the reported measure of segment profit (or loss) in assessing segment performance versus budget and when deciding how to allocate resources to segments. The DIS business provides diagnostic information services to a broad range of customers within its primary customer channels - physicians, hospitals, and patients and consumers. The DIS business accounted for greater than 95% of net revenues in 2025, 2024 and 2023. All other operating segments include the Company's DS businesses, which consist of its risk assessment services and healthcare information technology businesses. The Company's DS businesses offer solutions for insurers and offer solutions for healthcare providers and payers. As of December 31, 2025, substantially all of the Companys services were provided within the United States and substantially all of the Companys assets were located within the United States. The following table is a summary of segment information for the years ended December 31, 2025, 2024 and 2023. Segment asset information is not presented since it is not received by the CODM at the operating segment level. The CODM regularly reviews certain consolidated expenses, including employee compensation costs. ""Other segment items"" principally co …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

"SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidation The consolidated financial statements include the accounts of all entities controlled by the Company through its direct or indirect ownership of a majority voting interest. Additionally, the consolidated financial statements include the accounts of variable interest entities (VIEs) in which the Company has a variable interest and for which the Company is the primary beneficiary as it has both: (1) the power to direct the activities of the VIE that most significantly impact the VIEs economic performance and (2) the obligation to absorb losses of the VIE that potentially could be significant to the VIE or the right to receive benefits from the VIE that potentially could be significant to the VIE. All significant intercompany accounts and transactions are eliminated in consolidation. Income attributable to the minority interest in the Company's majority owned and controlled consolidated subsidiaries is recorded as net income attributable to noncontrolling interests in the consolidated statements of operations and the noncontrolling interest is reflected as a separate component of consolidated stockholders' equity in the consolidated balance sheet. Equity Method Investments Investments in entities which the Company does not control, but in which it has a substantial ownership interest (generally between 20% and 49%) and can exercise significant influence, are accounted for using the equity method of accountin …

SignificantAccountingPoliciesTextBlock · excerpt; the full note is in the filing

"STOCKHOLDERS EQUITY AND REDEEMABLE NONCONTROLLING INTEREST Stockholders' Equity Series Preferred Stock Quest Diagnostics is authorized to issue up to 10 million shares of Series Preferred Stock, par value $1.00 per share. The Company's Board of Directors has the authority to issue such shares without stockholder approval and to determine the designations, preferences, rights and restrictions of such shares. No shares are currently outstanding. Common Stock Under the Company's Restated Certificate of Incorporation the number of authorized shares of common stock, par value $0.01 per share, is 600 million shares. Changes in Accumulated Other Comprehensive Loss by Component Comprehensive income (loss) includes: Foreign currency translation adjustments; and Net deferred gains (losses) on cash flow hedges, which represent deferred gains (losses), net of tax, on interest rate-related derivative financial instruments designated as cash flow hedges, net of amounts reclassified to interest expense (see Note 15). For the years ended December 31, 2025, 2024, and 2023, the tax effects related to the deferred gains (losses) on cash flow hedges were not material. Foreign currency translation adjustments related to indefinite investments in non-U.S. subsidiaries are not adjusted for income taxes. The changes in accumulated other comprehensive loss by component for 2025, 2024 and 2023 were as follows: Foreign Currency Translation Adjustments Net Deferred Gains on Cash Flow Hedges, net of tax …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing

SUBSEQUENT EVENTS Venture with Corewell Health During August 2025, the Company and Corewell Health signed a definitive agreement to enter into a venture which will perform laboratory testing in the state of Michigan via a new laboratory facility. The parties completed the transaction during January 2026. Under the terms of the venture, Quest and Corewell Health will continue to serve providers and patients in Michigan from their existing patient service centers (which will be run by the venture) and their existing laboratories until a new laboratory is operational during 2027. Equity ownership of the venture is shared 51% by Quest and 49% by Corewell Health and Quest will consolidate the business in its consolidated financial statements. Based on the preliminary purchase price allocation, which may be revised as additional information becomes available during the measurement period, the assets acquired and liabilities assumed principally consist of $179 million of goodwill, of which $22 million is deductible for tax purposes, $124 million of customer-related intangible assets, $19 million of operating lease assets, $19 million of operating lease liabilities, and $12 million of deferred income tax liabilities. The intangible assets are being amortized over a useful life of 15 years.

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BUSINESS ACQUISITIONS During August 2025, the Company and Corewell Health signed a definitive agreement to form a new entity which will perform laboratory testing in the state of Michigan via a new laboratory facility. The parties completed the transaction during January 2026. In connection with the transaction, Corewell Health contributed a laboratory business over which the Company obtained a controlling financial interest. Under the terms of the transaction, the Company and Corewell Health are continuing to serve providers and patients in Michigan from their existing patient service centers (which are operated by the newly formed entity) and their existing laboratories until a new laboratory is operational during 2027. Equity ownership of the newly formed entity is shared 51% by the Company and 49% by Corewell Health and the Company is consolidating the entity in its consolidated financial statements. The total purchase consideration transferred to Corewell Health in conjunction with the formation of the entity included $38 million of cash consideration and a 49% non-controlling interest in the entity, with such interest valued at $253 million. Based on the preliminary purchase price allocation, which may be revised as additional information becomes available during the measurement period, the assets acquired and liabilities assumed principally consist of $179 million of goodwill, of which $22 million is deductible for tax purposes, $124 million of customer-related intangi …

BusinessCombinationDisclosureTextBlock · excerpt; the full note is in the filing

"COMMITMENTS AND CONTINGENCIES Letters of Credit The Company can issue letters of credit under its $600 million secured receivables credit facility and its $750 million senior unsecured revolving credit facility. For further discussion regarding the facilities, see Note 13 to the audited consolidated financial statements in the Company's 2025 Annual Report on Form 10-K. In support of its risk management program $82 million in letters of credit under the secured receivables credit facility were outstanding as of June 30, 2026, providing collateral for current and future automobile liability and workers compensation loss payments. Contingent Lease Obligations The Company remains subject to contingent obligations under certain real estate leases for which no liability has been recorded. For further details, see Note 18 to the audited consolidated financial statements in the Companys 2025 Annual Report on Form 10-K. Certain Legal Matters The Company may incur losses associated with these proceedings and investigations, but it is not possible to estimate the amount of loss or range of loss, if any, that might result from adverse judgments, settlements, fines, penalties, or other resolution of these proceedings and investigations based on the stage of these proceedings and investigations, the absence of specific allegations as to alleged damages, the uncertainty as to the certification of a class or classes and the size of any certified class, if applicable, and/or the lack of reso …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

"DEBT Long-Term Debt Long-term debt (including finance lease obligations) as of June 30, 2026 and December 31, 2025 consisted of the following: June 30, 2026 December 31, 2025 3.45% Senior Note due June 2026 $ $ 501 4.60% Senior Notes due December 2027 400 400 4.20% Senior Notes due June 2029 500 499 4.625% Senior Notes due December 2029 600 600 2.95% Senior Notes due June 2030 799 799 2.80% Senior Notes due June 2031 551 564 6.40% Senior Notes due November 2033 748 756 5.00% Senior Notes due December 2034 826 840 5.00% Senior Notes due June 2036 494 6.95% Senior Notes due July 2037 175 175 5.75% Senior Notes due January 2040 246 246 4.70% Senior Notes due March 2045 300 300 Other 35 21 Debt issuance costs (32) (30) Total long-term debt 5,642 5,671 Less: Current portion of long-term debt 10 504 Total long-term debt, net of current portion $ 5,632 $ 5,167 Senior Notes Offering and Repayment of Existing Senior Notes In May 2026, the Company completed a senior notes offering consisting of $500 million aggregate principal amount of 5.00% senior notes due June 2036 (the ""2036 Senior Notes"") which were issued at an original issue discount of $6 million. The 2036 Senior Notes are unsecured obligations of the Company that rank equally with the Company's other senior unsecured obligations and do not have a sinking fund requirement. The Company incurred $5 million of debt issuance costs associated with the 2036 Senior Notes, which are included as a reduction to the carrying value of …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

The approximate percentage of net revenue by type of payer customer was as follows: Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Healthcare insurers: Fee-for-service 35 % 37 % 34 % 36 % Capitated 2 3 2 3 Total healthcare insurers 37 40 36 39 Government payers (principally fee-for-service) 16 16 16 16 Client payers 32 30 32 31 Patients (including coinsurance and deductible responsibilities) 13 12 14 12 Total DIS 98 98 98 98 DS 2 2 2 2 Net revenues 100 % 100 % 100 % 100 %

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"FAIR VALUE MEASUREMENTS Assets and Liabilities Measured at Fair Value on a Recurring Basis The following table provides a summary of the recognized assets and liabilities that are measured at fair value on a recurring basis: Basis of Fair Value Measurements Quoted Prices in Active Markets for Identical Assets/Liabilities Significant Other Observable Inputs Significant Unobservable Inputs June 30, 2026 Total Level 1 Level 2 Level 3 Assets: Deferred compensation trading securities $ 94 $ 94 $ $ Cash surrender value of life insurance policies 75 75 Total $ 169 $ 94 $ 75 $ Liabilities: Deferred compensation liabilities $ 170 $ $ 170 $ Contingent consideration 100 100 Fixed-to-variable interest rate swaps 21 21 Total $ 291 $ $ 191 $ 100 Redeemable noncontrolling interest $ 80 $ $ $ 80 Basis of Fair Value Measurements December 31, 2025 Total Level 1 Level 2 Level 3 Assets: Deferred compensation trading securities $ 78 $ 78 $ $ Cash surrender value of life insurance policies 72 72 Equity investments 2 2 Fixed-to-variable interest rate swaps 14 14 Total $ 166 $ 80 $ 86 $ Liabilities: Deferred compensation liabilities $ 150 $ $ 150 $ Contingent consideration 96 96 Total $ 246 $ $ 150 $ 96 Redeemable noncontrolling interest $ 80 $ $ $ 80 A detailed description regarding the Company's fair value measurements is contained in Note 7 to the audited consolidated financial statements in the Company's 2025 Annual Report on Form 10-K. The Company offers certain employees the opportunity to pa …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

"In November 2024, the Financial Accounting Standards Board (""FASB"") issued a new accounting standard which will require companies to disaggregate certain income statement expenses. The pronouncement is effective for annual filings for the year ended December 31, 2027 and for interim periods within the year ended December 31, 2028. The Company does not expect the adoption of this standard to have a material impact on its results of operations, financial position or cash flows. In September 2025, the FASB issued a new accounting standard which impacts internal-use software accounting by removing all references to software development project stages such that the guidance is neutral to different software development methods. The pronouncement is effective for annual filings for the year ended December 31, 2028 and for interim periods within such year. The Company is currently evaluating the impact of the standard."

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RESTRUCTURING ACTIVITIES AND IMPAIRMENT CHARGES Invigorate Program The Company is engaged in a multi-year program called Invigorate, which includes structured plans to drive savings and improve productivity across the value chain, including in such areas as patient services, logistics and laboratory operations, revenue services, information technology and procurement. The Invigorate program aims to deliver 3% annual cost savings and productivity improvements to partially offset pressures from the current inflationary environment, including labor and benefit cost increases and reimbursement pressures. The Company is leveraging automation and artificial intelligence to improve productivity and also improve quality across the entire value chain, not just in the laboratory. Other areas of focus include reducing denials and patient concessions, enhancing the digital experience, and selecting and retaining talent. Restructuring Charges and Impairment Charges The following table provides a summary of the Company's pre-tax restructuring and impairment charges for the three and six months ended June 30, 2026 and 2025: Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Employee separation costs $ 2 $ 1 $ 9 $ 12 Asset impairment charges 24 24 Total restructuring and impairment charges $ 2 $ 25 $ 9 $ 36 The Company's pre-tax restructuring charges for the three and six months ended June 30, 2026 included $2 million and $9 million, respectively, related to employee s …

RestructuringAndRelatedActivitiesDisclosureTextBlock · excerpt; the full note is in the filing

REVENUE RECOGNITION DIS Net revenues in the Companys DIS business accounted for over 95% of the Companys total net revenues for the three and six months ended June 30, 2026 and 2025 and are primarily comprised of a high volume of relatively low-dollar transactions. The DIS business, which provides clinical testing services and other services, satisfies its performance obligations and recognizes revenues primarily upon completion of the testing process (when results are reported) or when services have been rendered. The Company estimates the amount of consideration it expects to be entitled to receive from payer customer groups in exchange for providing services using the portfolio approach. These estimates include the impact of contractual allowances (including payer denials), and patient price concessions. The portfolios determined using the portfolio approach consist of the following groups of payer customers: healthcare insurers, government payers (including Medicare and Medicaid programs), client payers and patients. For further details regarding revenue recognition in the Company's DIS business, see Note 3 to the audited consolidated financial statements in the Company's 2025 Annual Report on Form 10-K. DS The Companys DS businesses primarily satisfy their performance obligations and recognize revenues when delivery has occurred or services have been rendered. Net Revenue and Net Accounts Receivable by Payer Customer Type The approximate percentage of net revenue by type …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

"BUSINESS SEGMENT INFORMATION The Company's DIS business is the only reportable segment based on the manner in which the Chief Executive Officer, who is the Company's Chief Operating Decision Maker (""CODM""), assesses performance and allocates resources across the organization. The CODM uses the reported measurement of segment profit (loss) in assessing segment performance versus budget and when deciding how to allocate resources to segments. The DIS business provides diagnostic information services to a broad range of customers within its primary customer channels - physicians, hospitals, and patients and consumers. The DIS business accounted for greater than 95% of net revenues in both 2026 and 2025. All other operating segments include the Company's DS businesses, which consist of its risk assessment services and healthcare information technology businesses. The Company's DS businesses offer solutions for insurers and offer solutions for healthcare providers and payers. As of June 30, 2026, substantially all of the Companys services were provided within the United States, and substantially all of the Companys assets were located within the United States. The following table is a summary of segment information for the three and six months ended June 30, 2026 and 2025. Segment asset information is not presented since it is not received by the CODM at the operating segment level. The CODM regularly reviews certain consolidated expenses, including employee compensation costs. …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

"SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The interim unaudited consolidated financial statements reflect all adjustments which in the opinion of management are necessary for a fair statement of results of operations, comprehensive income, financial condition, cash flows and stockholders' equity for the periods presented. Except as otherwise disclosed, all such adjustments are of a normal recurring nature. Operating results for the interim periods are not necessarily indicative of the results that may be expected for the full year. These interim unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements included in the Companys 2025 Annual Report on Form 10-K. The year-end balance sheet data was derived from the audited consolidated financial statements as of December 31, 2025 but does not include all the disclosures required by accounting principles generally accepted in the United States (GAAP). The accounting policies of the Company are the same as those set forth in Note 2 to the audited consolidated financial statements contained in the Companys 2025 Annual Report on Form 10-K. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts …

SignificantAccountingPoliciesTextBlock · excerpt; the full note is in the filing

STOCKHOLDERS EQUITY AND REDEEMABLE NONCONTROLLING INTEREST Stockholders' Equity Changes in Accumulated Other Comprehensive Loss by Component Comprehensive income (loss) includes: Foreign currency translation adjustments; Net deferred gains (losses) on cash flow hedges, which represent deferred gains (losses), net of tax, on interest rate-related derivative financial instruments designated as cash flow hedges, net of amounts reclassified to interest expense (see Note 8); and Net changes in available-for-sale debt securities, which represent unrealized holding gains (losses), net of tax, on available-for-sale debt securities. For the three and six months ended June 30, 2026 and 2025, the tax effects related to the deferred gains (losses) on cash flow hedges were not material. Foreign currency translation adjustments related to indefinite investments in non-U.S. subsidiaries are not adjusted for income taxes. The changes in accumulated other comprehensive loss by component for the three and six months ended June 30, 2026 were as follows: For the Three Months Ended June 30, 2026 Foreign Currency Translation Adjustments Net Deferred Gains on Cash Flow Hedges, net of tax Accumulated Other Comprehensive Loss Balance, March 31, 2026 $ (47) $ 4 $ (43) Other comprehensive loss before reclassifications (19) (19) Net current period other comprehensive loss (19) (19) Balance, June 30, 2026 $ (66) $ 4 $ (62) For the Six Months Ended June 30, 2026 Foreign Currency Translation Adjustments Ne …

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