Quest Diagnostics Q3 revenue up 13.1% to $2.82 bln, FY23 EPS forecast raised.

• Q3 revenues: $2.82 bln, up 13.1% YoY • Reported EPS: $2.16, up 8.5% YoY • Adjusted EPS: $2.60, up 13.0% YoY • YTD cash provided by operations: $1.4 bln, up 63.1% YoY • Full-year 2025 EPS: $8.58-$8.66 • Adjusted EPS: $9.76-$9.84

Webster Financial (WBS), a regional banking company, reported its Q3 CY2025 results, showcasing robust revenue growth and earnings per share (EPS) that exceeded Wall Street expectations. The company's revenue surged by 13.1% year-on-year (YoY) to $732.6 million, surpassing analyst estimates of $726.1 million. The non-GAAP profit per share was $1.54, 1.1% above analysts' consensus estimates of $1.52 WBS Q3 Deep Dive: Diverse Lending Growth and HSA Opportunity Drive Stable Results^[1].

The company's adjusted EPS was $2.16, up 8.5% YoY, while the adjusted operating income was $330 million, missing analysts' estimates of $379.4 million by 13%. Webster Financial's market capitalization stands at $8.94 billion, trading at $54.58 per share WBS Q3 Deep Dive: Diverse Lending Growth and HSA Opportunity Drive Stable Results^[1].

Key drivers of Webster Financial's performance include broad-based loan and deposit growth, strong asset quality, and early progress in new business lines like the Marathon credit partnership. CEO John Ciulla highlighted the company's diversified balance sheet growth and conservative credit positioning as significant contributors to the quarter's performance. All major loan portfolios posted gains, and deposit growth was supported by strength in both commercial and healthcare segments WBS Q3 Deep Dive: Diverse Lending Growth and HSA Opportunity Drive Stable Results^[1].

Looking ahead, management is focused on leveraging recent legislative changes to expand its Health Savings Account (HSA) Bank business and continuing to invest in digital enrollment capabilities. President Luis Massiani described the upcoming expansion of HSA eligibility as a "great opportunity" for deposit and fee growth. CFO Neal Holland cautioned that net interest income is expected to remain flat next quarter, with seasonal deposit outflows and margin pressure from high-quality, lower-yield loan originations likely to offset balance sheet growth WBS Q3 Deep Dive: Diverse Lending Growth and HSA Opportunity Drive Stable Results^[1].

The company's outlook is shaped by continued growth in core lending and deposit franchises, managing margin pressure, and capital allocation in light of regulatory changes. Webster Financial expects its full-year 2025 EPS to range between $8.58 and $8.66, with adjusted EPS projected at $9.76 to $9.84 WBS Q3 Deep Dive: Diverse Lending Growth and HSA Opportunity Drive Stable Results^[1].