Quest Diagnostics and Danaher Report Strong Q3 Growth Amid Tariff Review

Quest Diagnostics and Danaher, two major players in the medical technology and diagnostics sector, have reported significant year-over-year sales growth in their third-quarter financial results. This positive performance comes as the industry faces potential challenges from a national security investigation into medical equipment imports.

Quest Diagnostics Sees Double-Digit Revenue Increase

Quest Diagnostics, a leader in diagnostic information services, announced a substantial 13.1% increase in third-quarter revenue, reaching $2.82 billion compared to the same period in 2024. The company's President and CEO, Jim Davis, attributed this growth to "broad-based adoption of our clinical innovations, contributions from acquisitions, and growth in our consumer channel."

Notably, Quest Diagnostics reported organic growth of 6.8%, demonstrating strong performance in its core business. In light of these results, the company has raised its 2025 revenue outlook to between $10.96 billion and $11 billion.

The positive financial report follows Quest's recent agreement to acquire select laboratory assets from Fresenius Medical Care, further expanding its presence in the kidney dialysis testing market.

Danaher Exceeds Expectations with Solid Performance

Danaher, which operates in the biomedical testing and diagnostics space, reported third-quarter revenue of approximately $6.1 billion, marking a 4.5% increase year-over-year. Rainer M. Blair, President and CEO of Danaher, expressed encouragement over the results, citing "DBS-driven execution paired with continued momentum in our bioprocessing business and better-than-anticipated respiratory revenue at Cepheid" as key factors in exceeding revenue, earnings, and cash flow expectations.

Industry Outlook Amid Tariff Review

While both companies posted strong financial results, the medtech industry is currently under scrutiny from the Trump administration. In late September, a national security investigation was launched under Section 232 of the Trade Expansion Act, focusing on imports of personal protective equipment, medical consumables, and medical equipment, including devices.

Despite this ongoing review, neither Quest Diagnostics nor Danaher cited the administration's tariff investigation as a headwind in their third-quarter results. However, the potential impact of this review on the industry remains a point of interest for investors and analysts moving forward.