Quest Diagnostics Incorporated provides diagnostic testing and services in the United States. It offers routine, non-routine, and advanced clinical testing, anatomic pathology testing, and other diagnostic information services under the Quest Diagnostics, AmeriPath, Dermpath Diagnostics, ExamOne, and Quanum brands. The company serves physicians, hospitals, patients, health plans, government agencies, employers, retailers, pharmaceutical companies, and insurers through a network of laboratories, patient service centers, and other channels. Founded in 1967, it is headquartered in Secaucus, New Jersey.
Quest raises 2026 outlook on strong Q2 and new test approval
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New York approval opens Haystack MRD to all 50 states New York State approved Quest's Haystack MRD liquid biopsy test, making it available in all 50 states. This regulatory win expands the market for a high-value cancer test, supporting future revenue growth and lifting DGX shares.
This is a new regulatory milestone that directly expands Quest's addressable market for a premium test.
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Attunio Health picks Quest as national lab backbone Attunio Health selected Quest as its national lab partner for precision psychiatry, with at-home blood collection via Getlabs. This adds new test volume from a growing mental health platform, a modest but positive demand driver for DGX.
A new partnership that adds incremental testing volume and shows Quest winning new business.
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Q2 beat and raised 2026 guidance boost outlook Quest reported Q2 revenue up 10.2% to $3.04B and adjusted EPS of $3.12, beating estimates, and raised full-year 2026 revenue and EPS guidance. Strong organic growth and a tax benefit drove the increase, signaling momentum.
The guidance raise and earnings beat are the core fundamental drivers of the stock's recent move.
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Analysts raise fair value and price targets after Q2 Analysts lifted Quest's fair value estimate to $239.38 from $223.44, with price targets mostly $245–$265. The upgrades reflect the earnings beat and higher guidance, though UBS stayed Neutral on margin concerns, a mild counterweight.
Analyst upgrades following the earnings beat reinforce the positive sentiment and help explain the stock's rise.
Q3 2026
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Quest raises 2026 outlook on strong Q2 and new test approval
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New York approval opens Haystack MRD to all 50 states New York State approved Quest's Haystack MRD liquid biopsy test, making it available in all 50 states. This regulatory win expands the market for a high-value cancer test, supporting future revenue growth and lifting DGX shares.
This is a new regulatory milestone that directly expands Quest's addressable market for a premium test.
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Attunio Health picks Quest as national lab backbone Attunio Health selected Quest as its national lab partner for precision psychiatry, with at-home blood collection via Getlabs. This adds new test volume from a growing mental health platform, a modest but positive demand driver for DGX.
A new partnership that adds incremental testing volume and shows Quest winning new business.
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Q2 beat and raised 2026 guidance boost outlook Quest reported Q2 revenue up 10.2% to $3.04B and adjusted EPS of $3.12, beating estimates, and raised full-year 2026 revenue and EPS guidance. Strong organic growth and a tax benefit drove the increase, signaling momentum.
The guidance raise and earnings beat are the core fundamental drivers of the stock's recent move.
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Analysts raise fair value and price targets after Q2 Analysts lifted Quest's fair value estimate to $239.38 from $223.44, with price targets mostly $245–$265. The upgrades reflect the earnings beat and higher guidance, though UBS stayed Neutral on margin concerns, a mild counterweight.
Analyst upgrades following the earnings beat reinforce the positive sentiment and help explain the stock's rise.
News & notes movingDGX
United States
Artificial Intelligence▲
Apple Plans Health App Overhaul With Readiness Score, New Watch Sensors
Apple Inc. is undertaking a major overhaul of its Health app and Apple Watch strategy, the Wall Street Journal reported on September 9, 2026. The company will debut the Apple Watch Series 12 and Ultra 4 with an upgraded Health Sensing System alongside an Apple Intelligence-driven software redesign coming to iOS 27 that introduces a daily readiness score synthesizing activity, sleep, and vitals into a single 0-to-10 rating with plain-language guidance. The redesign adds personalized insights, long-term health analysis, at-home physical assessments, lab testing through Quest Diagnostics, and longevity features such as Health Age. Apple scaled back its planned AI health-coaching service, code-named Mulberry, after management decided the original concept did not compete strongly enough with products from Oura and Whoop, and Services chief Eddy Cue took over Apple's health organization after longtime executive Jeff Williams retired. Oura reported a 74% increase in revenue to $1.21 billion for the nine months through June and earned $60.8 million as it filed for a U.S. IPO, while Apple plans to launch the new Health experience first in U.S. English with additional languages coming later and some key features requiring newer hardware such as the Apple Watch Series 12 or Ultra 4.
Artificial Intelligence › Edge & On-device AI Silicon ▲Demand
AAPL · Technology · Positive Apple is overhauling its Health app and launching Apple Watch Series 12/Ultra 4 with an upgraded Health Sensing System and AI-driven readiness score.
Oura Health · Competition · Neutral Oura is cited as a rival whose products led Apple to scale back its Mulberry AI coaching service, but Oura's own revenue growth and IPO filing are reported as context.
DGX · Demand · Positive Apple's redesigned Health app will offer at-home lab testing through Quest Diagnostics, a concrete new service partnership.
Labcorp Reaffirms 2026-2029 Outlook Despite CMS Lab Payment Cuts
Labcorp Holdings said the CMS plan to cut Medicare payment rates for laboratory services by 15% starting in 2026, with further reductions through 2029, will not impact its 2026-2029 long-term outlook. The company reaffirmed that over that period it expects compound annual revenue growth between 5% and 8%, adjusted operating margin expansion between 75 and 150 basis points by the end of 2029, compound annual adjusted EPS growth between 8.5% and 11.5%, and compound annual free cash flow growth in line with adjusted earnings growth. Labcorp said it had considered the anticipated continuation of Protecting Access to Medicare Act-related reimbursement pressure in developing the guidance, which was released at its Investor Day on Sept. 10. The company also argued the cuts will negatively impact patient access to lab services and said it continues to support the bipartisan Reforming and Enhancing Sustainable Updates to Laboratory Testing Services, or RESULTS, Act. Labcorp closed Tuesday down about 3%, while rival Quest Diagnostics was off about 4%.
LH · Regulation · Neutral CMS 15% Medicare lab payment cuts starting 2026 are a regulatory headwind, but Labcorp reaffirmed its 2026-2029 outlook and says the cuts won't impact guidance.
DGX · Regulation · Negative Named as rival that fell ~4% amid CMS Medicare lab payment cuts, which pressure lab-services reimbursement.
Quest Diagnostics Falls 5.1% After CMS Cuts Lab Reimbursement Rates
Quest Diagnostics stock dropped 5.1% through 11:30 a.m. Tuesday after the Centers for Medicare & Medicaid Services disclosed Monday that it has been paying about 16% more for lab work than private insurers pay. Effective Jan. 1, 2027, CMS says it will cut reimbursement rates for lab costs by up to 15%, a move the agency estimates will save taxpayers $1 billion per year. Quest Diagnostics disclosed in its 10-K filing with the SEC that it received approximately 11% of its revenue from CMS reimbursement in 2025, and the company flagged reductions in Medicare and Medicaid rates as a key risk to its testing volume and collected revenue. If CMS cuts rates by the full 15%, Quest Diagnostics' annual revenue would decrease by 1.65%, and with successive 15% per year reductions possible from 2027 through 2029, the worst-case scenario implies a reduction of slightly less than 5% in its business. With the stock already down 5.1%, that worst-case scenario is more than priced in, leaving little reason to expect further declines.
DGX · Regulation · Negative CMS will cut lab reimbursement rates by up to 15% effective 2027, and Quest gets ~11% of revenue from CMS, hitting its testing revenue.
Quest Diagnostics Eyes $250 Million Corewell Boost as 2026 EPS Estimate Rises 11.2%
Quest Diagnostics is expanding across physician, hospital and consumer channels, with its Corewell Health Co-Lab Solutions joint venture expected to add about $250 million to 2026 revenues and launch its joint venture laboratory in early 2027. The Zacks Consensus Estimate for Quest Diagnostics' 2026 earnings per share has increased 11.2% to $11.15 over the past 60 days, while the consensus estimate for 2026 revenues is pegged at $12.01 billion, implying 8.9% growth from the year-ago reported number. In the second quarter of 2026, physician channel revenues rose in the high single-digit range and hospital channel revenues grew at a double-digit rate, and New York State approved Haystack MRD, allowing commercial expansion across all 50 states. The company's Invigorate program now targets 3% annual cost savings and productivity improvements, though second-quarter cost of services increased 10.9% year over year and adjusted operating margin declined 40 basis points to 16.5%. As of June 30, 2026, long-term debt stood at $5.63 billion against $626 million in cash and cash equivalents, and management continues to assume a 30-basis-point revenue impact in 2026 from the expiration of enhanced Affordable Care Act exchange subsidies.
DGX · Capital · Positive Zacks Consensus 2026 EPS estimate rose 11.2% to $11.15 over the past 60 days.
DGX · Demand · Positive Corewell Health Co-Lab Solutions JV expected to add ~$250M to 2026 revenues, with physician and hospital channel revenues growing.
Corewell Health · Demand · Positive Corewell Health's Co-Lab Solutions joint venture with Quest is expected to add about $250 million to 2026 revenues and launch its joint venture laboratory in early 2027.
CMS Proposes Up to 15% Lab Fee Cuts; Quest, Labcorp Slide Premarket
The Centers for Medicare & Medicaid Services released preliminary reimbursement proposals that could cut laboratory fee payments by as much as 15% starting Jan. 1, 2027, sending Quest Diagnostics down 6.9% and Labcorp down 4.5% in premarket trading. CMS said the proposed changes, based on data from more than 6,400 laboratories, were intended to realign Medicare payments with private-insurer rates, arguing Medicare currently pays laboratories roughly 16% more than private insurers, and estimated the changes could save taxpayers about $1 billion annually. The proposal followed Quest shares reaching a fresh 52-week high of $248.84, and a Truist Securities note maintaining a Hold rating while raising its price target to $260 from $250 did little to offset concerns about lower reimbursement rates for routine clinical testing. Elsewhere in premarket trading, On Holding jumped 6.4% after the Swiss sportswear company said its board authorized the repurchase of up to $1 billion of its Class A ordinary shares through the end of 2029, alongside new long-term growth targets at its investor day. Vicor surged nearly 9.9% after raising its third-quarter 2026 revenue outlook to sequential growth of more than 20% from roughly 10%, citing royalties from its expanding non-exclusive Vertical Power Delivery licensing program, while Endava fell 12% after placing CFO Mark Thurston on administrative leave pending an accounting investigation and appointing Conor McShane of AlixPartners as interim CFO.
DGX · Regulation · Negative CMS proposed cutting Medicare lab fee payments by up to 15% starting 2027, directly pressuring Quest's reimbursement rates.
LH · Regulation · Negative CMS's proposed up-to-15% cut in Medicare laboratory fee payments would reduce Labcorp's reimbursement for routine clinical testing.
ONON · Capital · Positive On Holding's board authorized a $1 billion share buyback through 2029 alongside new long-term growth targets.
VICR · Capital · Positive Vicor raised its Q3 2026 revenue outlook to over 20% sequential growth, citing royalties from its expanding Vertical Power Delivery licensing program.
Alibaba Cloud Targets 20 Gigawatts of Data Centers by 2032
Alibaba CEO Eddie Wu said at the company's Apsara Conference that Alibaba Cloud plans to operate more than 20 gigawatts of data centers globally by 2032, according to FactSet, and he also launched the Zhenwu V900 chip. Quest Diagnostics and Labcorp Holdings each dropped more than 5% after the Centers for Medicare & Medicaid Services released a report showing Medicare has been paying 16% more for laboratory services than private payors, with the federal entity saying it will align most Medicare payments with private sector rates. Vicor rallied 9% after the power electronics company issued third quarter guidance forecasting sequential revenue growth of more than 20% quarter over quarter, versus prior guidance of nearly 10%. On Holding jumped more than 6% after the Swiss sportswear company set new midterm financial targets at its Investor Day, including absolute net sales reaching at least CHF5.6 billion by 2029 and gross profit margin of 65% throughout the period, and said it will repurchase up to an aggregate of $1 billion in Class A ordinary shares by December 2029 while reiterating its full year 2026 outlook. GameStop gained 3.5% after CEO Ryan Cohen disclosed a purchase of 1.2 million shares.
9988.HK · Capital · Positive Alibaba Cloud plans to operate over 20 GW of data centers globally by 2032 and launched the Zhenwu V900 chip, signaling major infrastructure investment.
DGX · Regulation · Negative CMS report says Medicare overpaid labs 16% and will align payments with private rates, pressuring Quest's lab reimbursement.
GME · Capital · Positive CEO Ryan Cohen disclosed buying 1.2 million GameStop shares.
LH · Regulation · Negative CMS plans to align Medicare lab payments with lower private-sector rates, hitting Labcorp's reimbursement.
ONON · Capital · Positive On Holding set midterm targets (CHF5.6B sales, 65% margin) and authorized up to $1B in buybacks.
VICR · Capital · Positive Vicor raised Q3 guidance to over 20% sequential revenue growth versus prior ~10%.
Quest Diagnostics Labs to Be Sold via Apple Health App
Quest Diagnostics announced that Apple Health app users in the United States will be able to purchase a tailored laboratory test panel, including over 50 biomarkers, directly through the app on iPhone and iPad later this year. The integration, first announced by Apple at its September event, will allow users to schedule blood draws and biometric readings at one of Quest's approximately 2,000 patient service centers for $119. Results will appear within the Apple Health app shortly after testing, with Quest collaborating with third-party providers to review orders and discuss results at no extra charge. Richard Adams, Senior Vice President and General Manager of Consumer at Quest, said the move aims to bridge clinical and consumer health, addressing preventive health needs for conditions like heart disease and diabetes that affect many American adults.
FDA Clears Roche and Lilly's Alzheimer's Blood Test
The FDA has cleared Elecsys pTau217, a blood test developed by Roche Holding AG and Eli Lilly and Company, to help identify whether people aged 55 and older with cognitive decline are likely or unlikely to have brain changes associated with Alzheimer's disease. The test will be available through Roche's installed base of more than 4,500 laboratory analyzers in the United States, and Labcorp and Quest Diagnostics also plan to offer it through their networks. This clearance follows European approval in May, marking regulatory progress in two major markets. However, the test is not intended as a standalone diagnostic and must be interpreted with other clinical information, and its price has not been disclosed. The test's potential lies in making Alzheimer's assessment more accessible compared to traditional methods like PET scans or cerebrospinal fluid testing, which are expensive and invasive.
McKesson reported second-quarter revenues of $105.4 billion, up 7.7% year over year and 1.2% above analyst expectations, while its stock remained flat at $868.87. Among the 39 healthcare providers and services stocks tracked, aggregate revenues beat consensus by 1.7% and next-quarter guidance came in 1.6% above estimates, yet the group's average share price fell 1.2% since earnings. CVS Health posted the best quarter with revenues of $106.1 billion, up 7.3% and 6.7% above expectations, but its stock dropped 9.1% to $94.90. AdaptHealth was the weakest performer, missing revenue estimates by 12.6% with revenues of $740.3 million and issuing significantly lower full-year revenue and EBITDA guidance, sending its stock down 46.2% to $5.83. Elevance Health reported flat revenues of $49.83 billion, beating estimates by 2.5%, but lost 469,000 customers and saw its stock fall 7.4% to $395.18, while Quest Diagnostics grew revenues 10.2% to $3.04 billion and its stock rose 12.6% to $236.32.
Quest Diagnostics Raised Full-Year Guidance and Posted Strong Quarterly Results
Quest Diagnostics raised its full year 2026 revenue and earnings guidance while reporting second quarter results that showed higher sales and net income versus the prior year. The stock has returned 34.48% year to date and 37.26% over one year, closing at $233.72. A widely followed narrative fair value estimate places the shares at $239.38, implying a modest undervaluation of about 2.4%. The narrative highlights the company's role as a lab engine for consumer wellness brands and the rising importance of health data analytics as drivers of long-term earnings power, though risks remain from potential PAMA reimbursement tightening and margin pressure from higher wage and technology costs.
Quest Diagnostics Stock Climbs After Raising Full-Year Forecast
Quest Diagnostics shares rose more than 8% last week after the medical testing leader boosted its full-year sales and profit forecast. Second-quarter revenue jumped 10% year over year to $3 billion, driven by partnerships with Corewell Health and Fresenius Medical Care, along with gains in its direct-to-consumer business and wellness-related sales. Adjusted earnings per share leaped 19% to $3.12, aided by automation and AI investments that improved lab efficiency. Management now projects full-year revenue of roughly $12 billion and adjusted earnings per share of $11.05 to $11.25.
Quest Diagnostics Fair Value Estimate Raised to $239.38 After Q2 Beat and Higher Guidance
Analysts have lifted their Fair Value estimate for Quest Diagnostics from $223.44 to $239.38 following the company's second-quarter earnings beat and raised full-year guidance. The adjustment reflects updated models incorporating a revenue beat of 2% to $3.04 billion and an earnings per share beat of $0.30 versus Street expectations, along with higher revenue and earnings guidance. Bullish firms including BofA, Mizuho, Jefferies, and Barclays raised price targets into a $245 to $265 range, citing strong organic growth and sustained momentum, while UBS lifted its target to $232 but maintained a Neutral rating, flagging softer margins. Key changes in the Fair Value model include a slight decrease in revenue growth from 4.88% to 4.74%, an increase in profit margin from 10.67% to 11.01%, and a lower forward P/E from 21.17x to 20.92x.
Quest Diagnostics hits new 52-week high on strong earnings beat
Quest Diagnostics shares reached a new 52-week high of $216.87, gaining 11.5% over the past month and 24.5% year-to-date. The company reported first-quarter earnings of $2.50 per share, surpassing the consensus estimate of $2.37, and beat revenue expectations by 3.14%. For the current fiscal year, analysts project earnings of $10.72 per share on $11.84 billion in revenues, representing 8.83% EPS growth. The stock carries a Zacks Rank of 2, or Buy, supported by positive earnings estimate revisions, and a VGM Score of B. Industry peer Aveanna Healthcare Holdings also holds a Zacks Rank of 2 and has seen its shares rise 30.7% over the past month.
Quest Diagnostics Set to Report Q2 2026 Earnings, Analysts Expect 7.3% EPS Growth
Quest Diagnostics is scheduled to announce its fiscal second quarter 2026 results before the market opens on Thursday, July 23. Analysts expect the company to report an adjusted earnings per share of $2.81, up 7.3% from $2.62 in the same quarter last year. The company has surpassed Wall Street's bottom-line estimates in the past four quarterly reports. For the full fiscal year 2026, analysts forecast adjusted EPS of $10.72, an 8.8% increase from $9.85 in fiscal 2025. Quest Diagnostics shares have risen 18.2% over the past 52 weeks, outperforming the State Street Health Care Select Sector SPDR ETF's 16.3% gain but lagging the S&P 500 Index's 20.7% return.
Quest Diagnostics wins nationwide Haystack MRD access and expands into psychiatry
Quest Diagnostics received New York State approval for its Haystack MRD liquid biopsy test, enabling nationwide use for detecting residual or recurrent cancer. The approval follows published research indicating the test's high sensitivity for minimal residual disease monitoring. Quest Diagnostics also entered a national partnership with Attunio Health to support an AI-powered precision psychiatry platform, providing scalable laboratory infrastructure for mental health diagnostics across the United States. The Haystack MRD test now has regulatory clearance across all 50 states and clinical backing from major centers such as Memorial Sloan Kettering and City of Hope, positioning Quest to compete more directly with other cancer monitoring players like Guardant Health and Exact Sciences. On the mental health side, serving as the lab backbone for an AI-powered precision psychiatry platform gives Quest a role in turning biological markers into routine psychiatric decision support, an area where competitors such as Labcorp and Mayo Clinic Laboratories are also active.
Biotech & Genomic Medicine › Diagnostics & Precision Testing ▲Regulation
Biotech & Genomic Medicine › Tools, Diagnostics & CDMO ▲Demand
DGX · Regulation · Positive New York State approval enables nationwide use of Haystack MRD test.
DGX · Demand · Positive Partnership with Attunio Health for AI-powered precision psychiatry platform expands into mental health diagnostics.
Attunio Health · Demand · Positive National partnership with Quest provides scalable lab infrastructure for Attunio's AI precision psychiatry platform.
GH · Competition · Negative Quest's Haystack MRD approval positions it to compete more directly with Guardant Health in cancer monitoring.
LH · Competition · Negative Quest's entry into mental health diagnostics competes with Labcorp's active presence in that area.
Attunio Health Expands Precision Psychiatry Infrastructure with Quest Diagnostics and Getlabs
Attunio Health has expanded its clinical infrastructure by selecting Quest Diagnostics as its national laboratory backbone and integrating Getlabs for at-home blood collection, just days after publicly launching its AI-powered precision psychiatry platform. The partnership enables scalable access to advanced diagnostic testing across the United States, helping clinicians identify biological contributors to mental health conditions such as metabolic dysfunction, inflammation, hormonal imbalances, and genetic factors. Getlabs will allow certified mobile phlebotomists to collect blood and genetic samples directly from patients' homes or workplaces, reducing friction in diagnostic testing. The company says this infrastructure supports its Closed-Loop Precision Psychiatry model, where treatment is continuously informed by biological and behavioral data from wearables, blood biomarkers, and AI analysis.
Quest Diagnostics' Haystack MRD test received approval from the New York State Department of Health's Clinical Laboratory Evaluation Program, authorizing its use for identifying residual or recurring disease in patients with solid tumor cancers. The approval means the test is now available for patient testing in all 50 states, as New York was the final state requiring separate authorization. Following the news, DGX shares rose 3% to close at $203.11. The company continues to expand its oncology portfolio, with recent research presented at the ASCO Gastrointestinal Cancers Symposium highlighting the test's clinical value in monitoring colorectal cancer. Quest Diagnostics has a market capitalization of $22.48 billion, and the Zacks Consensus Estimate projects 2026 earnings growth of 8.8% and revenue growth of 7.2%.
Quest Diagnostics Holds Steady on Advanced Diagnostics Growth and Operational Gains
Quest Diagnostics is positioned for growth driven by advanced diagnostics and operational improvements, though debt and macroeconomic pressures remain concerns. The company saw high single-digit growth in physician channel revenues in the first quarter of 2026, supported by strong demand for innovative testing and expanded health plan access. Its AD-Detect blood test for Alzheimer's disease continued double-digit revenue growth, and the company is scaling its Co-Lab Solutions across all 21 hospitals of Corewell Health. However, long-term debt stood at $5.16 billion against a cash balance of only $393 million, with a debt-to-capital ratio of 42.5%. The Zacks Consensus Estimate for 2026 earnings per share is $10.72 on revenues of $11.83 billion, implying 7.2% growth.
Quest Diagnostics Stock Lags S&P 500 Over Past Year Despite Strong Q1 2026 Results
Quest Diagnostics shares have underperformed the S&P 500 over the past year, rising 8.5% compared to the index's 25.4% return, even after the company reported strong first-quarter 2026 results. The stock gained 4.5% on April 21 following revenue of $2.9 billion, a 9.2% year-over-year increase, and adjusted diluted earnings per share of $2.50, up 13.1%. Management raised its full-year 2026 outlook to adjusted diluted EPS of $10.63 to $10.83. Analysts maintain a consensus Moderate Buy rating with a mean price target of $223, a 14.4% premium to current levels.
National study finds nearly 70% of common UTI-causing bacteria resistant to top oral antibiotics
A national study published in Nature Communications finds that 69.5 percent of Klebsiella pneumoniae samples collected across 42 states were non-susceptible to the three most commonly used oral antibiotics. Scientists from the Hackensack Meridian Center for Discovery and Innovation and Quest Diagnostics screened more than 2,000 samples and identified 267 multidrug-resistant sequence types, with all bacteria classified as multidrug resistant. The gene CTX-M-15, easily swapped between bacteria on plasmids, is driving the resistance and also conferring stress and metal tolerance that may enhance survival outside human hosts. The research reveals a shift from healthcare-associated infections to widespread community reservoirs, with over two-thirds of samples from female patients and about three-quarters from people older than 60. Authors say the findings underscore the urgent need for new oral treatment options and provide a genetic blueprint for developing vaccines or other therapies.
Biotech & Genomic Medicine › Antiviral & Infectious-Disease Therapeutics ▲Demand
DGX · Demand · Neutral Quest Diagnostics provided samples for the study, but the article does not indicate a direct impact on its business; the findings may highlight a need for new diagnostics, but no specific effect is stated.
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