Benjamin Shaver

Benjamin Shaver asked about the 2026 guidance assumptions regarding price per requisition versus requisition growth, and within the pricing assumption, how test per requisition versus unit pricing is expected to play out.

Answer

CFO Sam Samad stated that specific revenue per requisition guidance is not provided. Qualitatively, he noted that the high-volume, lower revenue per requisition Fresenius business will negatively impact total revenue per requisition in 2026. However, excluding Fresenius and Corewell, revenue per requisition would be consistent with past trends. Mr. Samad emphasized continued improvement in test per requisition, driven by advanced diagnostics, early screening options, evolving guidelines, and physicians gravitating towards more testing, a trend observed throughout 2025 and expected to continue in 2026.

Benjamin Shaver, on behalf of Pito Chickering, asked about Quest Diagnostics' 2026 guidance assumptions regarding price per requisition versus requisition growth, and within the pricing assumption, how test per requisition versus unit pricing is expected to play out.

Answer

CFO Sam Samad stated that specific revenue per requisition guidance is not provided. Qualitatively, he explained that the high-volume, lower revenue per requisition business from Fresenius Medical Care will negatively impact the total revenue per requisition in 2026. However, excluding Corewell Health and Fresenius, the revenue per requisition would be consistent with prior trends. Mr. Samad highlighted that a key factor is the continued improvement in test per requisition, driven by advanced diagnostics, early screening options, evolving guidelines, and physicians gravitating towards more testing, a trend observed throughout 2025 and expected to continue in 2026.

Benjamin Shaver asked for a breakdown of the Q4 pricing strength, the timing of the EBITDA benefit from portfolio restructuring, and the company's plans for capital allocation given its strong cash position.

Answer

CFO Kasandra Rossi noted that hospital admin fees were just under a third of the pricing component and that about one-third of the $30M restructuring EBITDA benefit was realized in 2024, with the rest to come in 2025. CEO Mark Ordan stated that a strong balance sheet is a priority in turbulent times and that the board will determine the best use of cash as the year progresses.