The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how testing & diagnostics services stocks fared in Q2, starting with RadNet (NASDAQ: RDNT).

The testing and diagnostics services industry plays a crucial role in disease detection, monitoring, and prevention, serving hospitals, clinics, and individual consumers. This sector benefits from stable demand, driven by an aging population, increased prevalence of chronic diseases, and growing awareness of preventive healthcare. Recurring revenue streams come from routine screenings, lab tests, and diagnostic imaging, with reimbursement from Medicare, Medicaid, private insurance, and out-of-pocket payments. However, the industry faces challenges such as pricing pressures, regulatory compliance, and the need for continuous investment in new testing technologies. Looking ahead, industry tailwinds include the expansion of personalized medicine, increased adoption of at-home and rapid diagnostic tests, and advancements in AI-driven diagnostics that enhance accuracy and efficiency. However, headwinds such as reimbursement uncertainties, competition from decentralized testing solutions, and regulatory scrutiny over test validity and cost-effectiveness may impact profitability. Adapting to evolving healthcare models and integrating automation will be key for sustaining growth and maintaining operational efficiency.

The 5 testing & diagnostics services stocks we track reported a strong Q2. As a group, revenues beat analysts’ consensus estimates by 2.6%.

Luckily, testing & diagnostics services stocks have performed well with share prices up 20.8% on average since the latest earnings results.

RadNet (NASDAQ: RDNT)

With over 350 imaging facilities across seven states and a growing artificial intelligence division, RadNet (NASDAQ: RDNT) operates a network of outpatient diagnostic imaging centers across the United States, offering services like MRI, CT scans, PET scans, mammography, and X-rays.

RadNet reported revenues of $498.2 million, up 8.4% year on year. This print exceeded analysts’ expectations by 1.6%. Overall, it was an exceptional quarter for the company with a beat of analysts’ EPS and same-store sales estimates.

Dr. Howard Berger, President and Chief Executive Officer of RadNet, commented, “Both the Imaging Center and Digital Health reportable operating segments demonstrated strong growth and achieved record quarterly results. In the second quarter of 2025, total Company Revenue grew 8.4% and Digital Health segment Revenue increased 30.9% from last year’s same quarter. Growth was driven by strong increases in aggregate and same center procedural volumes, improved reimbursement from commercial and capitated payors, a continuing shift in procedural volumes towards advanced imaging modalities and incremental Digital Health sales and licenses of workflow software and AI solutions.”

RadNet delivered the slowest revenue growth of the whole group. Interestingly, the stock is up 41.5% since reporting and currently trades at $75.50.

Is now the time to buy RadNet? Access our full analysis of the earnings results here, it’s free.

Best Q2: Guardant Health (NASDAQ: GH)

Pioneering the field of "liquid biopsy" with technology that can identify cancer-specific genetic mutations from a simple blood draw, Guardant Health (NASDAQ: GH) develops blood tests that detect and monitor cancer by analyzing tumor DNA in the bloodstream, helping doctors make treatment decisions without invasive biopsies.

Guardant Health reported revenues of $232.1 million, up 30.9% year on year, outperforming analysts’ expectations by 10%. The business had an exceptional quarter with full-year revenue guidance exceeding analysts’ expectations and a beat of analysts’ EPS estimates.

Guardant Health delivered the biggest analyst estimates beat, fastest revenue growth, and highest full-year guidance raise among its peers. The market seems happy with the results as the stock is up 19.4% since reporting. It currently trades at $54.

Is now the time to buy Guardant Health? Access our full analysis of the earnings results here, it’s free.

Weakest Q2: NeoGenomics (NASDAQ: NEO)

Operating a network of CAP-accredited and CLIA-certified laboratories across the United States and United Kingdom, NeoGenomics (NASDAQ: NEO) provides specialized cancer diagnostic testing services, including genetic analysis, molecular testing, and pathology consultation for oncologists and healthcare providers.

NeoGenomics reported revenues of $181.3 million, up 10.2% year on year, falling short of analysts’ expectations by 0.9%. It was a softer quarter as it posted a significant miss of analysts’ full-year EPS guidance estimates.

NeoGenomics delivered the weakest performance against analyst estimates and weakest full-year guidance update in the group. Interestingly, the stock is up 24.8% since the results and currently trades at $8.08.

Read our full analysis of NeoGenomics’s results here.

Quest (NYSE: DGX)

Processing approximately one-third of the adult U.S. population's lab tests annually, Quest Diagnostics (NYSE: DGX) provides laboratory testing and diagnostic information services to patients, physicians, hospitals, and other healthcare providers across the United States.

Quest reported revenues of $2.76 billion, up 15.2% year on year. This number beat analysts’ expectations by 1.4%. It was a strong quarter as it also recorded a solid beat of analysts’ sales volume estimates and full-year revenue guidance slightly topping analysts’ expectations.

The stock is up 8.4% since reporting and currently trades at $180.62.

Read our full, actionable report on Quest here, it’s free.

Labcorp (NYSE: LH)

With over 600 million tests performed annually and involvement in 90% of FDA-approved drugs in 2023, Labcorp (NYSE: LH) provides laboratory testing services and drug development solutions to doctors, hospitals, pharmaceutical companies, and patients worldwide.

Labcorp reported revenues of $3.53 billion, up 9.5% year on year. This result surpassed analysts’ expectations by 1%. Zooming out, it was a satisfactory quarter as it also logged a narrow beat of analysts’ full-year EPS guidance estimates but a slight miss of analysts’ organic revenue estimates.

The stock is up 9.9% since reporting and currently trades at $275.40.

Read our full, actionable report on Labcorp here, it’s free.

Market Update

Thanks to the Fed’s series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), and a notable surge followed Donald Trump’s presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape.

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