Quest Diagnostics is outperforming its growth targets: Revenue increased about 12% and earnings more than 10% in 2025, while 2026 guidance calls for nearly 8% revenue growth and more than 13% earnings growth. Consumer health is a major organic-growth driver. Quest's $250 million consumer-testing business is expected to grow at least 30% in 2026, supported by direct-to-consumer testing and partnerships with companies including Apple Health, Hims & Hers, Oura and WHOOP.
Quest has deployed $2.8 billion on acquisitions and partnerships since 2024, while integrating health-system and Fresenius laboratory businesses. The company also faces uncertainty from potential PAMA reimbursement cuts, with worst-case exposure estimated at slightly above $100 million. Myriad Genetics Sees Stock Surge with Hereditary Cancer Tests Quest Diagnostics (NYSE:DGX) CEO and President Jim Davis said the diagnostic testing company is exceeding the growth framework it outlined at its prior investor day, driven largely by organic growth, consumer-health demand and partnerships rather than a heavier-than-expected pace of acquisitions.
Davis said Quest had previously targeted 4% to 5% revenue growth, including 1% to 2% from acquisitions, along with 7% to 9% earnings-per-share growth. He said revenue rose about 12% in 2025 and earnings grew just above 10%. For 2026, Quest has guided for revenue growth of nearly 8% and earnings growth of more than 13%, approaching 14%. → 2 Stocks Breaking Out Post-FOMC With One Thing in Common LifeMD Shares Come Back to Life on GLP-1 Business Growth While Quest had initially contemplated $1.5 billion in mergers and acquisitions, Davis said the company has deployed $2.8 billion of capital in M&A since 2024.
Its acquisition activity was concentrated in 2024, including LifeLabs in Canada and outreach laboratory transactions involving Allina Health, OhioHealth and University Hospitals, among others. Since then, Quest has focused on integrating those operations while also taking on large partnership-related businesses that were not structured as acquisitions. Those include a co-lab arrangement with Corewell Health that Davis described as a $250 million business, as well as laboratory testing previously handled by Fresenius for dialysis patients, representing about $100 million in business. → J.B.
Hunt's Stock Plunges After Market Misprices Profit Warning Exact Sciences Serves Investors Exactly What They Wished For Davis said Quest's core physician-office business remains structurally stronger than it was before the COVID-19 pandemic. He cited the aging population, continued prevalence of chronic conditions and the expanding use of newer tests. Quest expects to test 250 million people in 2026, representing an estimated 110 million to 120 million unique individuals, Davis said.
The company continues to see elevated levels of diabetes, cardiovascular disease, liver disease and other chronic conditions across the population it serves. → Priced for a Pullback or More Gains? These 3 Stocks Are Testing the Limits He also highlighted growing adoption of tests associated with cardiovascular risk and metabolic health, including Lp(a), ApoB and insulin-resistance testing. Blood-based biomarkers used in assessing Alzheimer's disease are gaining traction beyond neurologists and are increasingly being used in primary care, Davis said.
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