olivLaw · US equity research
Quest Diagnostics Incorporated DGX
Services-Medical Laboratories · SIC 8071 · Vertical: Services-Medical Laboratories (SIC 8071)
Quest Diagnostics is a leading US clinical laboratory testing provider for physicians, hospitals and employers. In 2026 it is growing quickly on volume and on acquisitions of hospital lab assets, and management raised its guidance again in October.
The AI analysis may be outdated: new filings came after its sources (see the «AI analysis» section).
At the close of 04 Nov 2026, Quest Diagnostics Incorporated (DGX) stock was 255.68 USD (+3.49% on the day), with market capitalisation 28.1 bn USD, P/E 25.5 on diluted EPS of 10.03 USD over the last 12 months, dividend yield 1.32%, beta 0.14, 52-week range 173.49–255.68 USD. Latest reported quarter (Q3 2026): revenue of 3.1 bn USD (+10.0% YoY), net income of 312.0 m USD (+27.3% YoY), diluted EPS 2.78 USD.
Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.
Price history
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Technical reading
- RSI (14)
- 67.7
- strong (55–70)
- Bollinger (20, 2)
- 225.54 – 256.26
- in the upper half of the band · %B 0.98 · band width 12.8%
- SMA 50 / 200
- 238.95 / 213.07
- uptrend (price > SMA50 > SMA200)
- MACD (12, 26, 9)
- 4.41 / 2.87
- MACD above signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | S&P 500 | vs S&P 500 | Vertical median | |
|---|---|---|---|---|
| 1 month | +10.1% | −1.1% | +11.2 pp | — |
| 3 months | +8.4% | −0.5% | +8.9 pp | — |
| 6 months | +35.2% | +4.4% | +30.8 pp | — |
| Year to date | +47.3% | +12.3% | +35.0 pp | — |
| 1 year | +43.6% | +13.5% | +30.1 pp | −3.1% |
| 3 years | +90.9% | +76.4% | +14.5 pp | +62.1% |
| 5 years | +81.9% | +63.7% | +18.2 pp | — |
Price returns, dividends excluded.
Quarterly results
Latest quarter: Q3 2026 · 30 Sept 2026
Quarterly margins
Quarterly statements · USD
| Fiscal year | Q4 '24 | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | Q2 '26 | Q3 '26 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 2.6 bn | 2.7 bn | 2.8 bn | 2.8 bn | 2.8 bn | 2.9 bn | 3.0 bn | 3.1 bn |
| Cost of revenue | 1.8 bn | 1.8 bn | 1.8 bn | 1.9 bn | 1.9 bn | 2.0 bn | 2.0 bn | 2.1 bn |
| SG&A | 466.0 m | 476.0 m | 486.0 m | 501.0 m | 504.0 m | 504.0 m | 529.0 m | 523.0 m |
| Operating income | 361.0 m | 346.0 m | 438.0 m | 386.0 m | 386.0 m | 399.0 m | 459.0 m | 479.0 m |
| Depreciation & amortisation | 135.0 m | 140.0 m | 143.0 m | 142.0 m | 145.0 m | 147.0 m | 146.0 m | 147.0 m |
| Pre-tax income | 299.0 m | 276.0 m | 384.0 m | 328.0 m | 330.0 m | 334.0 m | 412.0 m | 416.0 m |
| Income tax | 68.0 m | 59.0 m | 97.0 m | 77.0 m | 81.0 m | 74.0 m | 88.0 m | 99.0 m |
| Net income | 222.0 m | 220.0 m | 282.0 m | 245.0 m | 245.0 m | 252.0 m | 320.0 m | 312.0 m |
| Diluted EPS | 1.91 ≈ | 1.94 | 2.47 | 2.16 | 2.17 ≈ | 2.24 | 2.84 | 2.78 |
| Operating cash flow | 464.0 m | 314.0 m | 544.0 m ≈ | 563.0 m ≈ | 465.0 m | 278.0 m | 597.0 m ≈ | 611.0 m ≈ |
| Capex | 123.0 m | 117.0 m | 108.0 m ≈ | 144.0 m ≈ | 158.0 m | 114.0 m | 138.0 m ≈ | 166.0 m ≈ |
| Dividends paid | 84.0 m | 84.0 m | 90.0 m ≈ | 89.0 m ≈ | 90.0 m | 88.0 m | 96.0 m ≈ | 95.0 m ≈ |
| Share repurchases | 151.0 m | — | — | 150.0 m ≈ | 300.0 m | — | — | 150.0 m ≈ |
≈ derived quarter (cumulative difference / share-days average)
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Today's P/E sits at the 100 percentile of its own 44-quarter history (min 7.9, median 18.3, max 23.2; quarters with earnings only).
Fiscal years
| Fiscal year | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 7.5 bn | 7.7 bn | 9.4 bn | 10.8 bn | 9.9 bn | 9.3 bn | 9.9 bn | 11.0 bn |
| Revenue YoY | +1.7% | +2.6% | +22.1% | +14.3% | −8.4% | −6.4% | +6.7% | +11.8% |
| Net income | 736.0 m | 858.0 m | 1.4 bn | 2.0 bn | 946.0 m | 854.0 m | 871.0 m | 992.0 m |
| Net income YoY | −4.7% | +16.6% | +66.8% | +39.4% | −52.6% | −9.7% | +2.0% | +13.9% |
| Diluted EPS | 5.29 | 6.28 | 10.47 | 15.55 | 7.97 | 7.49 | 7.69 | 8.75 |
| Diluted EPS YoY | −3.8% | +18.7% | +66.7% | +48.5% | −48.7% | −6.0% | +2.7% | +13.8% |
| net % | 9.8% | 11.1% | 15.2% | 18.5% | 9.6% | 9.2% | 8.8% | 9.0% |
| Free cash flow | 817.0 m | 843.0 m | 1.6 bn | 1.8 bn | 1.3 bn | 864.0 m | 909.0 m | 1.4 bn |
Reported results vs expectations
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Balance sheet & financial health
Fiscal year 2025 · 31 Dec 2025
- Cash
- 420.0 m USD
- Financial debt
- 5.7 bn USD
- Net debt
- 5.3 bn USD
- Equity
- 7.2 bn USD
- Total assets
- 16.2 bn USD
- Debt / equity
- 0.79x
- Current ratio
- 1.04x
- ROE
- 14.2%
- ROA
- 6.1%
- FCF margin
- 12.3%
Financial statements (source on every figure)
Revenue and net income (USD)
Margins
Income statement · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Revenue | 9.4 bn | 10.8 bn | 9.9 bn | 9.3 bn | 9.9 bn | 11.0 bn | SEC (XBRL)· 26 Feb 2026verified |
| Cost of revenue | 5.8 bn | 6.6 bn | 6.5 bn | 6.2 bn | 6.6 bn | 7.4 bn | SEC (XBRL)· 26 Feb 2026verified |
| Gross profit | 3.6 bn | 4.2 bn ≈ | 3.4 bn ≈ | 3.1 bn ≈ | 3.2 bn ≈ | 3.7 bn ≈ | SEC (XBRL)· 26 Feb 2026derived |
| SG&A | 1.6 bn | 1.7 bn | 1.9 bn | 1.6 bn | 1.8 bn | 2.0 bn | SEC (XBRL)· 26 Feb 2026verified |
| Operating income | 2.0 bn | 2.4 bn | 1.4 bn | 1.3 bn | 1.3 bn | 1.6 bn | SEC (XBRL)· 26 Feb 2026verified |
| Depreciation & amortisation | 361.0 m | 408.0 m | 437.0 m | 439.0 m | 493.0 m | 570.0 m | SEC (XBRL)· 26 Feb 2026verified |
| EBITDA | 2.3 bn ≈ | 2.8 bn ≈ | 1.9 bn ≈ | 1.7 bn ≈ | 1.8 bn ≈ | 2.1 bn ≈ | SEC (XBRL)· 26 Feb 2026derived |
| Interest expense | 166.0 m | 152.0 m | 148.0 m | 163.0 m | — | — | SEC (XBRL)· 22 Feb 2024verified |
| Pre-tax income | 1.9 bn | 2.6 bn | 1.2 bn | 1.1 bn | 1.2 bn | 1.3 bn | SEC (XBRL)· 26 Feb 2026verified |
| Income tax | 460.0 m | 597.0 m | 264.0 m | 248.0 m | 273.0 m | 314.0 m | SEC (XBRL)· 26 Feb 2026verified |
| Net income | 1.4 bn | 2.0 bn | 946.0 m | 854.0 m | 871.0 m | 992.0 m | SEC (XBRL)· 26 Feb 2026verified |
| Diluted EPS | 10.47 | 15.55 | 7.97 | 7.49 | 7.69 | 8.75 | SEC (XBRL)· 26 Feb 2026verified |
| Weighted average diluted shares | 136.0 m | 128.0 m | 118.0 m | 113.0 m | 113.0 m | 113.0 m | SEC (XBRL)· 26 Feb 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Revenue − Cost of revenue; Operating income + Depreciation & amortisation.
Balance sheet · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Cash | 1.2 bn | 872.0 m | 315.0 m | 686.0 m | 549.0 m | 420.0 m | SEC (XBRL)· 26 Feb 2026verified |
| Receivables | 1.5 bn | 1.4 bn | 1.2 bn | 1.2 bn | 1.3 bn | 1.4 bn | SEC (XBRL)· 26 Feb 2026verified |
| Inventories | 223.0 m | 208.0 m | 192.0 m | 190.0 m | 188.0 m | 189.0 m | SEC (XBRL)· 26 Feb 2026verified |
| Current assets | 3.1 bn | 2.7 bn | 1.9 bn | 2.4 bn | 2.4 bn | 2.4 bn | SEC (XBRL)· 26 Feb 2026verified |
| Property, plant & equipment, net | 1.6 bn | 1.7 bn | 1.8 bn | 1.8 bn | 2.1 bn | 2.2 bn | SEC (XBRL)· 26 Feb 2026verified |
| Goodwill | 6.9 bn | 7.1 bn | 7.2 bn | 7.7 bn | 8.9 bn | 8.9 bn | SEC (XBRL)· 26 Feb 2026verified |
| Intangibles (excl. goodwill) | 1.2 bn | 1.2 bn | 1.1 bn | 1.2 bn | 1.8 bn | 1.6 bn | SEC (XBRL)· 26 Feb 2026verified |
| Total assets | 14.0 bn | 13.6 bn | 12.8 bn | 14.0 bn | 16.2 bn | 16.2 bn | SEC (XBRL)· 26 Feb 2026verified |
| Accounts payable | 1.6 bn | 1.6 bn | 1.4 bn | 1.4 bn | 1.4 bn | 1.6 bn | SEC (XBRL)· 26 Feb 2026verified |
| Short-term debt | 2.0 m | 2.0 m | 2.0 m | 303.0 m | 602.0 m | 504.0 m | SEC (XBRL)· 26 Feb 2026verified |
| Long-term debt | 4.0 bn | 4.0 bn | 4.0 bn | 4.4 bn | 5.6 bn | 5.2 bn | SEC (XBRL)· 26 Feb 2026verified |
| Current liabilities | 1.8 bn | 1.8 bn | 1.6 bn | 1.8 bn | 2.2 bn | 2.3 bn | SEC (XBRL)· 26 Feb 2026verified |
| Equity | 6.8 bn | 6.5 bn | 5.9 bn | 6.3 bn | 6.8 bn | 7.2 bn | SEC (XBRL)· 26 Feb 2026verified |
Cash flow · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Operating cash flow | 2.0 bn | 2.2 bn | 1.7 bn | 1.3 bn | 1.3 bn | 1.9 bn | SEC (XBRL)· 26 Feb 2026verified |
| Capex | 418.0 m | 403.0 m | 404.0 m | 408.0 m | 425.0 m | 527.0 m | SEC (XBRL)· 26 Feb 2026verified |
| Free cash flow | 1.6 bn ≈ | 1.8 bn ≈ | 1.3 bn ≈ | 864.0 m ≈ | 909.0 m ≈ | 1.4 bn ≈ | SEC (XBRL)· 26 Feb 2026derived |
| Investing cash flow | -772.0 m | 21.0 m | -543.0 m | -1.1 bn | -2.5 bn | -631.0 m | SEC (XBRL)· 26 Feb 2026verified |
| Financing cash flow | -1.3 bn | -2.5 bn | -1.7 bn | 160.0 m | 1.1 bn | -1.4 bn | SEC (XBRL)· 26 Feb 2026verified |
| Dividends paid | 297.0 m | 309.0 m | 305.0 m | 314.0 m | 331.0 m | 353.0 m | SEC (XBRL)· 26 Feb 2026verified |
| Share repurchases | 325.0 m | 2.2 bn | 1.4 bn | 275.0 m | 151.0 m | 450.0 m | SEC (XBRL)· 26 Feb 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
1 indicators that do not apply to the sector.
Valuation
olivLaw classification
Score: 74 / 100
A scoring methodology on indicators and valuation, not investment advice.
score >= 65 · margin_of_safety >= 0.15 · agreement in ['high', 'medium']
Closing price
04 Nov 2026Source: olivLaw, closing series
Market cap: 28.1 bn USD
Key indicators
Coverage and freshness
Score by group
- Valuation83
- Balance sheet79
- Quality95
- Growth26
- Returns68
Estimated value range
The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 23.65 – 557.07 USD.
Valuation assumptions are editorial choices, not measured; beta is not measured.
Method ranges (USD per share)
— — Mid · ▏ Price
Valuation methods
- DCF (discounted cash flow)unavailable · the reported interest expense is far older than the latest period (the filer changed its XBRL tag): a stale figure is not used
- Peers: EV/EBITDA293.29 – 557.07 (Mid 350.29)5 companies used · median multiple 18.8x · quartiles 16.0x – 28.6xAMS, BLLN, FTRE, LH, RDNT
- Peers: P/E227.92 – 364.34 (Mid 331.44)4 companies used · median multiple 33.1x · quartiles 22.7x – 36.3xADVB, CDNA, LH, VCYT
- Dividend discount (DDM)23.65 – 31.81 (Mid 27.13)
Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.
Assumptions (illustrative, editorial)
- Risk-free rate
- 4.3%
- Equity risk premium
- 5.0%
- Beta (default)
- 1.00
- Cost of equity
- 9.3%
- Terminal growth
- 2.5%
Factor scorecard
Attractive profile · Score 74/100
| Factor | Value | Score | Weight used |
|---|---|---|---|
| ROIC · Quality | 13.2% | 100 (vs peers) | 11% |
| Net margin · Quality | 9.5% | 83 (vs peers) | 7% |
| FCF conversion · Quality | 121.8% | 100 (on a fixed band) | 7% |
| Revenue CAGR 3Y · Growth | 3.7% | 31 (on a fixed band) | 9% |
| EPS CAGR 3Y · Growth | 3.2% | 21 (on a fixed band) | 9% |
| Net debt / EBITDA · Balance sheet | 2.1x | 80 (vs peers) | 11% |
| Interest coverage · Balance sheet | unavailable | unavailable | — |
| Current ratio · Balance sheet | 1.7x | 75 (on a fixed band) | 4% |
| P/E (TTM) · Valuation | 25.5x | 83 (vs peers) | 11% |
| EV/EBITDA · Valuation | 14.2x | 100 (vs peers) | 11% |
| FCF yield · Valuation | 4.9% | 61 (on a fixed band) | 9% |
| Shareholder yield (distributions) · Returns | 3.3% | 47 (on a fixed band) | 7% |
| Payout ratio (FCF) · Returns | 26.8% | 100 (on a fixed band) | 4% |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet79/100 · 2/3 factors with a value
- Growth26/100 · 2/2 factors with a value
- Quality95/100 · 3/3 factors with a value
- Returns68/100 · 2/2 factors with a value
- Valuation83/100 · 3/3 factors with a value
Memo
Quest Diagnostics Inc (DGX). Latest full fiscal year: 2025; data up to 2026-09-30.
Figures computed from the financial statements: revenue 11.0 bn USD in 2025; YoY growth 11.8%; net margin 9.5%; ROE 15.2%; net debt/EBITDA 2.1x.
The estimated value range is 227.92–364.34 USD per share (median of 3 methods, agreement: medium); assumptions are illustrative. Against the central value of 331.44 USD, the price of 255.68 USD leaves a potential of 29.6% (value / price − 1) and a margin of safety of 22.9% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
olivLaw score 74/100, methodological classification: attractive profile (score, margin of safety and method agreement together; not a judgement of the right price). Not investment advice.
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- ROIC: 13.2%
- Net margin: 9.5%
- FCF conversion: 121.8%
- Net debt / EBITDA: 2.1x
- Current ratio: 1.7x
- P/E (TTM): 25.5x
- EV/EBITDA: 14.2x
- Payout ratio (FCF): 26.8%
What contradicts it
- EPS CAGR 3Y: 3.2%
Not assessed (insufficient data or a ratio without meaning): Interest coverage.
Versus the vertical median
Services-Medical Laboratories (SIC 8071) · same industry (4-digit SIC) · compared with 23 companies
The size band was not applied: too few companies would have remained; the vertical includes much smaller or larger companies.
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| NTRANatera, Inc. | 56.4 bn | — | -12.5% | -7.1% | +35.9% | +64% / +599% |
| LHLabcorp Holdings Inc. | 29.9 bn | 30.2 | 11.4% | 6.9% | +7.2% | +37% / +70% |
| DGXQuest Diagnostics Inc | 28.1 bn | 25.5 | 15.2% | 9.5% | +11.8% | +44% / +91% |
| GHGuardant Health, Inc. | 22.6 bn | — | — | -38.3% | +32.9% | +55% / +570% |
| CAICaris Life Sciences, Inc. | 9.5 bn | 97.6 | 17.2% | 9.2% | +97.0% | +30% / unavailable |
| GRALGRAIL, Inc. | 6.4 bn | — | -16.1% | -236.9% | +17.2% | +30% / unavailable |
| RDNTRadNet, Inc. | 6.3 bn | — | -2.1% | -0.9% | +11.5% | −3% / +142% |
| CDNACaredx, Inc. | 4.5 bn | 35.9 | 33.0% | 25.9% | +13.8% | +380% / +784% |
| VCYTVeracyte, Inc. | 4.2 bn | 37.5 | 8.8% | 20.4% | +16.0% | +11% / +105% |
| FTREFortrea Holdings Inc. | 2.0 bn | — | -12.3% | -2.6% | +1.0% | +64% / −29% |
| PSNLPersonalis, Inc. | 1.7 bn | — | -62.1% | -147.7% | −17.7% | +47% / +932% |
| BLLNBillionToOne, Inc. | 1.3 bn | 118.4 | 30.2% | 11.3% | +100.0% | −13% / unavailable |
| CSTLCastle Biosciences, Inc. | 1.1 bn | — | -4.2% | -5.4% | +3.7% | −11% / +79% |
| FLGTFulgent Genetics, Inc. | 541.5 m | — | -8.0% | -26.0% | +13.8% | −33% / −29% |
| YDESYD Bio Limited | 492.0 m | — | -445.1% | -1,392.6% | +16.9% | −40% / unavailable |
| BDSXBiodesix, Inc. | 226.7 m | — | -540.0% | -27.0% | +24.1% | +160% / −28% |
| XGNExagen Inc. | 206.2 m | — | -113.8% | -26.6% | +19.7% | +8% / +363% |
| SERASera Prognostics, Inc. | 59.0 m | — | -49.7% | -34,866.7% | +5.2% | −39% / +4% |
| AMSAmerican Shared Hospital Services | 8.2 m | — | -7.5% | -5.8% | −0.9% | −43% / −48% |
| MDXHMdxhealth SA | 8.0 m | — | -2,440.4% | -31.1% | +19.8% | −96% / −95% |
| ACONAclarion, Inc. | 5.0 m | — | -59.0% | -10,978.5% | +65.6% | −72% / −100% |
| ADVBAdvanced Biomed Inc. | 3.5 m | 0.4 | 84.8% | 5,231.3% | unavailable | −75% / unavailable |
| BGLCBioNexus Gene Lab Corp. | 2.8 m | — | -33.7% | -82.4% | −21.9% | −79% / −90% |
| BNRBurning Rock Biotech Limited | 0 | — | -10.1% | -10.3% | +9.2% | −41% / +55% |
1- and 3-year price returns: for DGX from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (USD)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | 153.48 Total return -39% · Per year -39% | 271.43 Total return 8% · Per year 8% | 408.99 Total return 62% · Per year 62% |
| 3 years | 146.70 Total return -40% · Per year -15% | 292.14 Total return 19% · Per year 6% | 483.64 Total return 95% · Per year 25% |
| 5 years | 140.21 Total return -40% · Per year -10% | 314.42 Total return 31% · Per year 5% | 571.91 Total return 134% · Per year 19% |
- Exit P/E± 73.03
- Net margin± 51.12
- Annual revenue growth± 42.27
- Annual dilution± 4.30
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 26 Oct 2026 · Model: claude-sonnet-5-5.
Possibly outdated: the newest document it read is from 22 Oct 2026; since then the company filed 10-Q (23 Oct 2026).
In brief
Quest Diagnostics is a leading US clinical laboratory testing provider for physicians, hospitals and employers 1. In 2026 it is growing quickly on volume and on acquisitions of hospital lab assets, and management raised its guidance again in October 1.
SWOT
Strengths
Weaknesses
Opportunities
- More acquisitions of hospital lab assets.
- Advanced tests (for example in neurology and oncology) with a higher price per test.
- Automation and AI to reduce cost per test.
Threats
- Enforcement of PAMA cuts to Medicare rates.
- Price pressure from large insurers.
- Competition for acquisitions and for lab staff.
- A cyberattack or system failure could halt operations.
Risks
- Rates and PAMAhigh
Any rate cut applied to a large test volume shows up directly in margin. The timing of political decisions is hard to anticipate.
- Price mixmedium
Revenue per requisition fell 4.2% in Q3 2026. If new volume stays cheaper than average, margin could come under pressure 1.
- Integration of acquisitionsmedium
Assets acquired from hospitals may stay below group margin during integration.
- Cybersecurity and datahigh
The company holds sensitive medical data; an incident would bring costs, litigation and disruption.
- Debt and capital allocationlow
With total debt of 5.55 bn USD, dividends and acquisitions could limit flexibility if cash flow weakened 1.
Investment thesis
What would need to be true (bull case)
What would break the thesis
- Revenue per requisition keeps falling faster than volume gains.
- PAMA cuts are applied to rates.
- Acquisitions bring below-average margins or integration costs.
- A cyber incident temporarily halts the labs.
What to watch
- Q4 2026 results and 2027 guidance (adjusted EPS, cash flow)February 2027
- Congressional decision on the timing of PAMA cutsQ4 2026 - Q1 2027
- Closing of the Northeastern US lab asset dealQ4 2026 - Q1 2027
- Revenue per requisition versus volumeQ4 2026
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 26 Oct 2026 · Model: claude-sonnet-5-5.
Possibly outdated: the newest document it read is from 22 Oct 2026; since then the company filed 10-Q (23 Oct 2026).
The business
Almost all revenue comes from diagnostic information services: routine and advanced tests (blood, urine, pathology, genetics, drug and infectious-disease testing) run in the company's own labs, with results delivered to physicians and patients. Orders come from physicians, hospitals, insurers and employers 1.
The model is volume-driven: the fixed costs of the lab network and logistics are spread over a large number of requisitions, so margin rises when volume rises. Price per requisition is largely set by insurers and public programs.
Segments
Diagnostic Information Services (DIS)
The main segment: nearly all third-quarter 2026 revenue and its growth came from here 1.
Other businesses
A small part of revenue, not detailed in the release 1.
Health-system partnerships
Acquisitions of hospital lab operations and joint ventures, for example a joint-venture lab with a Michigan health system; in its October 2026 release the company reported a definitive agreement to acquire select lab assets of a Northeastern US health system 1.
Market context
The US lab testing market is large, split among a few national players, hospital labs and specialists, and it grows steadily with an aging population, chronic disease and preventive testing. Demand is less cyclical than in other healthcare segments because most tests are ordered by physicians.
Pricing is the main pressure: insurers negotiate rates, and Medicare lab rates are set under the PAMA law, whose scheduled cuts Congress has delayed several times. Results depend on the timing of those decisions.
Trends
- Accelerating volumetailwind
Requisitions rose 14.5% in Q3 2026 while revenue per requisition fell 4.2%, a sign that new volume comes with a cheaper mix, including from acquisitions 1.
- Hospital outreach labstailwind
Hospitals increasingly sell their outpatient lab business. Quest buys such assets and forms joint ventures, which adds volume and network density 1.
- PAMA uncertaintymixed
Medicare lab rate cuts have been delayed several times; actual enforcement would weigh on margins across the sector, while another delay would preserve them.
- AI in diagnosticsmixed
AI tools for reading pathology slides, triaging results and automating workflows can lower cost per test and raise productivity, but they need investment and may let some small competitors enter niches.
- Consumer-initiated testingmixed
Patients increasingly order tests directly without a referral, which widens the market but shifts part of payment to the patient.
Competitive position
Quest and Labcorp dominate the national commercial segment. Quest's advantages are the density of its collection network, insurer contracts and the ability to take volume from hospitals. Disadvantages are exposure to payer rates and costly skilled labor.
Hospital labs remain the hardest competitor to displace; each outsourcing deal shrinks that pool.
- Laboratory Corporation of America (Labcorp)LH
Closest national rival, also active in drug development services.
- OPKO Health (BioReference)OPK
Smaller clinical lab with a focus on oncology and urology.
- Sonic Healthcare
Australian lab operator with a US presence, listed outside the US.
- Hospital and health-system labs
Local competitors and potential partners through outsourcing deals.
Links, dependencies and risks
Who the company is tied to, from its own SEC filings (customers, suppliers, production, partners, competitors, countries, regulation), from the 5 %+ holders' statements (13D/13G) and from what other companies say about it. Click a node for its evidence; on a listed company the graph moves to it.
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News & filings
In the press
- Quest Diagnostics confirms data breach exposed patient recordsBleepingComputer · 23 Oct 2026 · EN
- Quest Diagnostics warns of potential data theft after attack on lab service systemThe Record (Recorded Future) · 23 Oct 2026 · EN
- [AINews] Black OctoberLatent Space Newsletter · 23 Oct 2026 · EN
- Quest Diagnostics Reports Cyber Breach Affecting ‘Certain Patient Records’SecurityWeek · 23 Oct 2026 · EN
- Is Quest Diagnostics Stock Outperforming the Nasdaq?Yahoo Finance — News · 22 Sept 2026 · EN
- Stocks making the biggest moves premarket: Alibaba, Quest Diagnostics, On Holding, GameStop & moreCNBC — Top News · 22 Sept 2026 · EN
- Quest Diagnostics Sees Growth Outpace Targets as Consumer Testing SurgesYahoo Finance — News · 21 Sept 2026 · EN
- Quest Diagnostics CEO Sells 10,000 Shares for $2.4 MillionYahoo Finance — News · 08 Sept 2026 · EN
- Quest Diagnostics Stock: Is Wall Street Bullish or Bearish?Yahoo Finance — News · 25 Aug 2026 · EN
SEC filings
- Quarterly report23 Oct 2026
- Current report22 Oct 2026Other events
- Current report22 Oct 2026Results of operations · Financial statements and exhibits
- Current report06 Oct 2026Departure or appointment of officers
- Quarterly report23 Jul 2026
- Current report23 Jul 2026Results of operations · Financial statements and exhibits
- Current report21 May 2026Shareholder vote
- Current report08 May 2026Material agreement · Financial statements and exhibits
- Current report01 May 2026Other events · Financial statements and exhibits
- Quarterly report22 Apr 2026
Sources
- [1] Form 8-K, comunicatul de rezultate Q3 2026 · SEC / Quest Diagnostics · 22 Oct 2026
- [2] Rezultate trimestrul IV și anul 2025, ghidaj 2026, dividend · Quest Diagnostics · 10 Feb 2026
- [3] Form 8-K, comunicatul de rezultate Q2 2026 · SEC / Quest Diagnostics · 23 Jul 2026
- [4] Prezentare suplimentară Q4 2025 · Quest Diagnostics · 10 Feb 2026
Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.