• In February 2026, Quest Diagnostics reported Q4 and full-year 2025 results with higher sales and earnings, issued 2026 guidance calling for US$11.70–US$11.82 billion in revenue and US$9.45–US$9.65 in diluted EPS, raised its quarterly dividend to US$0.86 per share, expanded its share repurchase authorization to US$10.50 billion, and signaled plans for additional hospital and independent lab acquisitions.
• The company also launched a new blood-based measurable residual disease test for multiple myeloma that aims to offer next-generation flow cytometry sensitivity at a fraction of typical next-generation sequencing costs while avoiding invasive bone marrow biopsies, potentially broadening access to advanced oncology monitoring.
• With Quest now pairing stronger guidance and a larger buyback with specialized oncology innovations, we’ll examine how this reshapes its investment narrative.

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Quest Diagnostics Investment Narrative Recap

To own Quest Diagnostics, you need to be comfortable with a large, capital intensive lab network that depends on stable reimbursement and steady test volumes, while increasingly leaning on advanced diagnostics and automation to support profitability. The latest results and 2026 guidance reinforce that the key near term catalyst remains execution in higher value testing and acquisitions, while PAMA and broader policy shifts on coverage stay the most important external risks; this news does not fundamentally change that balance.

Among the announcements, the 2026 guidance for US$11.70–US$11.82 billion in revenue and US$9.45–US$9.65 in diluted EPS is most relevant, because it frames how Quest expects its mix of advanced oncology, consumer testing, and pending hospital and independent lab deals to support earnings against reimbursement and cost pressures, and gives investors a concrete yardstick for judging whether these growth initiatives are offsetting those risks in the near term.

Yet while guidance looks constructive, investors should be aware that potential PAMA reimbursement cuts could still...

Quest Diagnostics' narrative projects $11.9 billion revenue and $1.3 billion earnings by 2028. This requires 4.1% yearly revenue growth and about a $355 million earnings increase from $945.0 million today.

Uncover how Quest Diagnostics' forecasts yield a $199.31 fair value, a 4% downside to its current price.

Exploring Other Perspectives

Three fair value estimates from the Simply Wall St Community span roughly US$157 to US$303 per share, showing just how far apart individual views can be. When you set those against Quest’s reliance on advanced and preventive testing to support growth under potential reimbursement pressure, it becomes even more important to weigh several perspectives before deciding what the business might be worth.

Explore 3 other fair value estimates on Quest Diagnostics - why the stock might be worth 24% less than the current price!

Build Your Own Quest Diagnostics Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Quest Diagnostics research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Quest Diagnostics research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Quest Diagnostics' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.