Accessibility StatementSkip Navigation Quest Diagnostics to Improve Laboratory Testing Experience with Industry-First Epic Collaboration Quest Diagnostics (NYSE: DGX) and Epic today announced a first-of-its-kind collaboration designed to streamline and improve experiences for... SECAUCUS, N.J., Sept. 25, 2025 /PRNewswire/ -- Quest Diagnostics Incorporated (NYSE:Â DGX), a leader in diagnostic information services, today announced that it will report third quarter 2025 financial results on Tuesday, October 21 ...

The Zacks Medical - Outpatient and Home Healthcare industry has been witnessing a rapid shift toward digital healthcare treatment. In the past few years, there has been a significant rise in demand for telemedicine-focused online medical and artificial intelligence (AI)-powered technology services. The rising elderly global population is necessitating many healthcare companies that were traditionally not technology-based to provide technology-enabled services to survive in the market. Per a report by Grand ...

PALO ALTO, Calif. & SECAUCUS, N.J.--(BUSINESS WIRE)---- $GH--Guardant Health, Inc. (Nasdaq: GH), a leading precision oncology company, and Quest Diagnostics (NYSE: DGX), a leader in diagnostic information services, today announced a broad strategic collaboration to make Guardant's Shieldâ... blood- based screening test available to physicians and patients served by Quest in the United States. Shield is the first and only blood test to receive full FDA approval as a primary screening option for colorectal c. ...

Core Insights - Quest Diagnostics and Epic have announced a collaboration aimed at enhancing the laboratory testing experience for healthcare providers and patients in the United States [1][2][3] Group 1: Collaboration Details - The partnership will support Project Nova, a multi-year initiative by Quest to simplify and improve customer-facing processes, enhancing experiences for patients and providers across various EHR platforms [2][5] - Epic's Diagnostic Enterprise system will be integrated into Quest's national laboratory operations, including technologies like Aura, Beaker Laboratory, and MyChart [2][3] Group 2: Expected Benefits - Customers can expect faster and more convenient services, improved access to health insights, and quicker turnaround times for testing services [4][7] - The collaboration aims to streamline systems related to lab ordering, results reporting, and patient appointment scheduling, enhancing overall operational efficiency [7] Group 3: Leadership and Implementation - A cross-organization team experienced in large-scale implementations will oversee a phased rollout, ensuring a smooth transition for health systems and providers [5] - The focus will be on creating a comprehensive test list and improving patient engagement through MyChart [3][5]

Core Insights - Quest Diagnostics focuses on meeting the evolving needs of physicians, hospitals, and consumers through strategic acquisitions and advanced diagnostics to enhance patient care and drive growth [1][3][4] - The company has experienced an 18.8% stock rally over the past year, outperforming the industry and closely matching the S&P 500's performance [2] - Quest Diagnostics has a market capitalization of $20.53 billion and an earnings yield of 5.3%, surpassing the industry's yield of 4.9% [2] Growth Momentum - The physician channel grew by 20% in Q2 2025, driven by acquisitions and high-single-digit organic gains, reflecting increased tests per requisition and strong commercial execution [3] - The hospital channel is adapting to market challenges by providing strategic options for accessing diagnostic innovations without the burden of running a lab [3][8] - The consumer-testing channel, QuestHealth.com, is expanding its offerings and partnerships with wellness brands [4] Acquisition Strategy - Quest Diagnostics completed eight acquisitions in 2024, including LifeLabs and select lab assets from Allina Health, enhancing its market presence [5][6] - The acquisition of PathAI Diagnostics aims to increase the adoption of AI and digital pathology for improved cancer diagnosis [5] Advanced Diagnostics Potential - The company focuses on five clinical areas: advanced cardiometabolic, autoimmune, brain health, oncology, and women's and reproductive health, achieving double-digit revenue growth in several areas [10][11] - New tests, such as the AD-Detect blood test for Alzheimer's and the AB 42/40 and p-tau-217 panel, are being launched to support growth in brain health and oncology [10][11] Financial Concerns - As of Q2 2025, long-term debt stood at $5.17 billion, with cash and cash equivalents at $319 million, raising concerns about interest payment capacity [12] - The times interest ratio declined to 6.1%, indicating potential challenges in meeting interest obligations [12] Macroeconomic Challenges - The evolving U.S. healthcare system poses risks, including reduced utilization and reimbursement from government payers, which may impact Quest Diagnostics' operations [13] - Industry consolidation has led to larger insurance plans with significant bargaining power, complicating fee negotiations for Quest Diagnostics [13] Earnings Estimates - The Zacks Consensus Estimate for Quest Diagnostics' 2025 earnings per share has increased by 0.4% to $9.74, with revenue estimates at $10.85 billion, indicating a 9.9% growth from the previous year [14]

Core Insights - Quest Diagnostics Incorporated (DGX) is valued at a market cap of $20.5 billion and operates a comprehensive network of laboratories and services in the diagnostics industry [1][2] Company Overview - DGX is classified as a large-cap stock, emphasizing its significant size and influence in the diagnostics and research sector [2] - The company specializes in transforming diagnostic insights into actionable care through advanced technologies like digital pathology, bioinformatics, and data analytics [2] Stock Performance - Currently, DGX is trading 1.1% below its 52-week high of $185.62, with a 2.1% gain over the past three months, underperforming the Dow Jones Industrial Average's 9.8% return [3] - Over the past 52 weeks, DGX shares have surged 18.4%, outperforming the Dow Jones Industrial Average's 10.2% increase [4] - Year-to-date, DGX shares are up 21.7%, compared to the Dow Jones Industrial Average's 8.9% rise [4] Financial Performance - On July 22, DGX reported better-than-expected Q2 earnings, with net revenue growing 15.2% year-over-year to $2.8 billion, exceeding consensus estimates by 1.5% [5] - The adjusted EPS for DGX was $2.62, reflecting an 11.5% increase from the previous year and 1.9% above analyst expectations [5] - DGX raised its fiscal 2025 guidance, projecting revenue between $10.8 billion and $10.9 billion, and adjusted earnings in the range of $9.63 to $9.83 per share, indicating management's confidence in sustaining growth [5]

Core Viewpoint - Haystack Oncology, a subsidiary of Quest Diagnostics, has initiated a research collaboration with Rutgers Cancer Institute to evaluate the Haystack MRD test for optimizing postoperative therapy in patients with stage II/III non-small cell lung cancer (NSCLC) [1][2]. Group 1: Research Collaboration and Study Details - The collaboration aims to assess the use of the Haystack MRD test, a highly sensitive circulating tumor DNA (ctDNA) test, to guide postoperative therapy decisions [1]. - The MRD-PORT Trial (NCT06979661) is a prospective phase II study that will determine if the presence of residual tumor DNA after surgery can inform the use of radiation and systemic therapies [1][2]. - Patients testing positive for ctDNA post-surgery will be considered for adjuvant radiation and systemic therapies based on tumor biology and clinical context [2]. Group 2: Importance of ctDNA Testing - ctDNA MRD tests are increasingly recognized for their potential to identify residual or recurring cancer in patients with solid tumors [3]. - A study published in NEJM in April 2025 indicated that ctDNA testing using Haystack MRD identified clinical complete response at a median of 1.4 months, significantly faster than imaging tests which took over 6 months [3]. - A survey revealed that 96% of oncologists believe MRD testing can detect cancer recurrence earlier than current methods [3]. Group 3: Context of Lung Cancer - Lung cancer remains the leading cause of cancer-related deaths in the U.S., with high recurrence rates in stage II and III NSCLC patients [4]. - Studies indicate that patients who test positive for ctDNA after surgery experience significantly worse progression-free survival and overall survival compared to those who test negative [4]. Group 4: Company Background - Haystack Oncology has over 20 years of collaboration in advancing liquid biopsy technologies and developed the Haystack MRD test, which detects ultralow levels of ctDNA [5][6]. - The test is available for commercial use as a lab-developed test (LDT) by Quest Diagnostics and is also utilized in clinical trials as an investigational device [6].

Core Thesis - Quest Diagnostics Incorporated (DGX) is viewed positively due to its strong market position, financial performance, and growth potential in the diagnostic health information services sector [1][6]. Financial Performance - In 2024, Quest Diagnostics generated $9.9 billion in revenue and $1.9 billion in EBITDA, with projections of $11.2 billion in revenue and $2.3 billion in EBITDA by 2026 [2]. - The company is expected to achieve $1.2 billion in free cash flow by 2026 [2]. - The current share price is $180.14, with trailing and forward P/E ratios of 21.57 and 17.06 respectively [1]. Market Position - Quest Diagnostics serves 50% of hospitals and physicians in the U.S., one-third of U.S. adults, and over 90% of insured lives, indicating a significant market presence [2]. - The clinical laboratory sector operates as a duopoly between Quest and LabCorp, providing both companies with substantial pricing power [3]. Growth Drivers - The recurring nature of diagnostic testing, supported by strong physician integration and patient loyalty, offers a durable growth runway for Quest [4]. - Increasing chronic diseases and a deteriorating health landscape in the U.S. are expected to drive demand for diagnostic services [4]. - The company is projected to have EPS of $10.50+ in 2026 and $11.50+ in 2027, suggesting a potential share price of $230 based on a 20x multiple [5]. Capital Returns - Quest Diagnostics returns capital to shareholders through a $3.20 annual dividend, yielding 1.8%, and opportunistic buybacks [3].

Core Insights - Quest Diagnostics will present its strategy, performance, and market trends at the Jefferies Healthcare Services Conference on September 29, 2025 [1] - The presentation will include a live webcast available on the company's investor relations page, with an archived version accessible for 24 hours post-event [2] - Quest Diagnostics serves a significant portion of the U.S. population, providing diagnostic insights that empower health management [3] Company Overview - Quest Diagnostics is a leader in diagnostic information services, aiming to improve health outcomes through laboratory testing [3] - The company operates one of the largest databases of de-identified clinical lab results, which aids in disease identification and treatment [3] - Annually, Quest Diagnostics serves one in three adult Americans and half of the physicians and hospitals in the U.S. [3] Recent Developments - Quest Diagnostics has launched an advanced pharmacogenomic (PGx) laboratory offering, enhancing its service portfolio [4] - The 2025 Quest Diagnostics Drug Testing Index indicates a significant increase in fentanyl positivity in random tests compared to pre-employment screenings [5]

Core Insights - The company has shown strong fundamentals in the pharma services and distribution sector, with a positive outlook on the performance of public players in diagnostics [1][2] Company Leadership - Jim, the CEO, has been with the company for a long time and has made significant investments since taking on the CEO role [2] - Shawn Bevec is recognized as one of the strongest Investor Relations Officers in the industry, contributing positively to the company's reputation [2]