Quest Diagnostics Exceeds Growth Targets as Consumer Testing Demand Rises
Quest Diagnostics (NYSE:DGX) is outperforming its growth targets, with revenue increasing about 12% and earnings more than 10% in 2025. The company has raised guidance for 2026 to nearly 8% revenue growth and over 13% earnings growth, driven by strong demand from consumer health testing. The $250 million direct-to-consumer testing segment is expected to grow at least 30%, supported by partnerships with Apple Health, Hims & Hers, Oura, and WHOOP. CEO Jim Davis emphasized that the company's performance has been fueled more by organic growth than acquisitions, despite deploying over $2.8 billion in M&A since 2024. Quest is also integrating large partnership-related businesses such as a co-lab arrangement with Corewell Health and laboratory testing for Fresenius dialysis patients. However, the company faces potential financial risks from possible PAMA reimbursement cuts, which could impact it by over $100 million in worst-case scenarios.
Topics: acquisitions consumer testing diagnostics healthcare