Quest Diagnostics (NYSE: DGX) stock soared 5.03% in pre-market trading on Tuesday after the medical laboratory operator reported better-than-expected first-quarter results and reaffirmed its full-year guidance.

The company posted adjusted earnings per share of $2.21 for Q1 2025, surpassing analysts' estimates of $2.15. Revenue climbed 12.1% year-over-year to $2.65 billion, exceeding Wall Street expectations of $2.63 billion.

Quest Diagnostics' CEO Jim Davis attributed the strong performance to "contributions from acquisitions and large enterprise accounts, demand for our advanced diagnostics portfolio, and expanded health plan access." He noted that growth rebounded in March following weather-related impacts earlier in the quarter.

Investors appear encouraged by Quest's decision to maintain its full-year 2025 guidance, projecting revenue between $10.70 billion and $10.85 billion and adjusted earnings per share of $9.55 to $9.80. This outlook aligns with analysts' expectations and suggests confidence in the company's ability to sustain growth throughout the year.

The positive market reaction highlights investor optimism about Quest's ability to navigate challenges and capitalize on opportunities in the healthcare diagnostics sector. As the company continues to expand its services and partnerships, it remains well-positioned to benefit from increasing demand for diagnostic testing and healthcare information services.