Quest Diagnostics (DGX) stock surged 5.44% in pre-market trading on Tuesday following the release of its better-than-expected first-quarter 2025 financial results. The medical laboratory operator reported adjusted earnings per share of $2.21, surpassing analysts' estimates of $2.15, and revenue of $2.65 billion, exceeding expectations of $2.63 billion.

The company's impressive performance was driven by a robust 12.1% increase in revenue, including nearly 2.5% organic growth. Quest Diagnostics attributed this growth to contributions from acquisitions, large enterprise accounts, and increased demand for its advanced diagnostics portfolio. CEO Jim Davis noted that demand rebounded strongly in March following weather-related impacts early in the quarter.

Investors were particularly encouraged by Quest Diagnostics' decision to reaffirm its full-year 2025 revenue and adjusted EPS guidance. The company expects revenue between $10.70 billion and $10.85 billion, with adjusted earnings per share ranging from $9.55 to $9.80. This outlook, combined with the strong Q1 results, has bolstered investor confidence in Quest's ability to maintain its growth trajectory and navigate potential challenges in the healthcare diagnostics sector.