Research · Sep 3, 2026
[DGX] Quest Diagnostics Thesis 2026: Acquisitions and Lab Expansion Drive Double-Digit Revenue Growth
Quest Diagnostics Incorporated FY25 revenue $11.04B (+12%); op income $1.60B (+19%); NI $992M (+14%); EPS $8.75 (+14%). FCF $1.36B (+50%). Q4 revenue $2.81B (+7.1%); organic +6.4%. Diagnostic Information Services revenue +7.3%. Total volume (requisitions) +8.5%; organic volume +7.9%. Revenue per requisition -0.1%. Excluding Corewell + Fresenius, organic volume +4.1% Q4, RPR +3%. Physician channel high single-digit organic Q4 (broad-based demand + geographic expansion). Hospital low single-digit (Collaborative Lab Solutions / CoLab). Consumer: questhealth.com expanded to 150+ tests + wellness partnerships. Clinical innovations: autoimmune testing, brain health (Alzheimer's), oncology (Haystack MRD, flow MRD). INFIGURATE program: 3% annual cost savings + AI/automation. PAMA legislation 1-year delay. Buyback $450M FY25 (+198% YoY). FY26 guide: revenue $11.7B-$11.82B (+6-7.1%); reported EPS $9.45-$9.65; adjusted EPS $10.50-$10.70; cash from operations ~$1.75B; capex ~$550M; ~$0.25 EPS dilution from Project Nova; CoLab with Corewell adding ~$250M organic revenue at low single-digit margins. Risks: PAMA / Medicare reimbursement, LabCorp + regional hospital competition, M&A integration, Project Nova execution, consumer channel competition.