QUEST DIAGNOSTICS INC Earnings Per Share Disclosure
| 2025 | 2024 | 2023 | |||||||||||||||
| Amounts attributable to Quest Diagnostics’ common stockholders: | |||||||||||||||||
| Net income attributable to Quest Diagnostics | $ | 992 | $ | 871 | $ | 854 | |||||||||||
| Less: Earnings allocated to participating securities | 4 | 5 | 4 | ||||||||||||||
Earnings available to Quest Diagnostics’ common stockholders – basic and diluted | $ | 988 | $ | 866 | $ | 850 | |||||||||||
| Weighted average common shares outstanding – basic | 111 | 111 | 112 | ||||||||||||||
| Effect of dilutive securities: | |||||||||||||||||
| Stock options and performance share units | 2 | 2 | 1 | ||||||||||||||
| Weighted average common shares outstanding – diluted | 113 | 113 | 113 | ||||||||||||||
| Earnings per share attributable to Quest Diagnostics’ common stockholders: | |||||||||||||||||
| Basic | $ | 8.87 | $ | 7.78 | $ | 7.59 | |||||||||||
| Diluted | $ | 8.75 | $ | 7.69 | $ | 7.49 | |||||||||||
About Earnings Per Share Disclosures
The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.
Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.