Quest Diagnostics Incorporated is a leading provider of diagnostic information services, primarily operating through its Diagnostic Information Services (DIS) and Diagnostic Solutions (DS) segments. The company offers diagnostic insights from laboratory testing, serving a diverse clientele that includes physicians, hospitals, patients, health plans, employers, and government agencies . Additionally, Quest Diagnostics provides risk assessment services for insurers and healthcare information technology solutions for healthcare providers and payers . The company conducts most of its business in the United States but has recently expanded into the Canadian market through acquisitions .
- Diagnostic Information Services (DIS) - Provides diagnostic insights from laboratory testing, serving a wide range of customers including physicians, hospitals, patients, health plans, employers, and government agencies. This segment is characterized by a high volume of relatively low-dollar transactions, with revenues recognized primarily upon completion of the testing process .
- Diagnostic Solutions (DS) - Offers risk assessment services for insurers and healthcare information technology solutions for healthcare providers and payers. This segment includes solutions under various brands, such as:
- AmeriPath - Specializes in anatomic pathology services.
- Dermpath Diagnostics - Focuses on dermatopathology services.
- ExamOne - Provides risk assessment services for the insurance industry.
- Quanum - Delivers healthcare information technology solutions .
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| Name | Position | External Roles | Short Bio | |
|---|---|---|---|---|
James E. Davis ExecutiveBoard | Chairman, CEO, and President | None | Joined DGX in 2013. Became CEO on Nov 1, 2022, and Chairman on Apr 1, 2023. Previously held leadership roles at GE and InSightec. | View Report → |
Catherine T. Doherty Executive | Senior Vice President, Regional Businesses | None | Joined DGX in 1990. Held multiple leadership roles, including SVP of Clinical Franchise Solutions and Marketing. | |
Karthik Kuppusamy Executive | Senior Vice President, Clinical Solutions | None | Joined DGX in 2014. Oversees clinical franchises and pharmaceutical services. Formerly worked at GE Healthcare. | |
Mark A. Gardner Executive | Senior Vice President, Molecular Genomics and Oncology | None | Joined DGX in October 2022. Previously held leadership roles at Corza Medical, OmniSeq, and Thermo Fisher Scientific. | |
Mark E. Delaney Executive | Senior Vice President and Chief Commercial Officer | None | Joined DGX in March 2022. Previously held leadership roles at Hill-Rom Holdings and GE Healthcare. | |
Michael E. Prevoznik Executive | Senior Vice President and General Counsel | None | Joined DGX in 1999. Oversees legal, compliance, and governmental affairs. Previously worked at SmithKline Beecham. | |
Patrick Plewman Executive | Senior Vice President, Diagnostics Services | None | Joined DGX in 2013. Oversees data-driven analytics and services offerings. Formerly CEO of diaDexus, Inc. | |
Sam A. Samad Executive | Executive Vice President and CFO | None | Joined DGX in July 2022. Former CFO of Illumina and held senior roles at Cardinal Health and Eli Lilly. | |
Denise M. Morrison Board | Director | Board Member at MetLife, Inc. and Visa, Inc.; Founder of Denise Morrison & Associates | Joined DGX board in 2019. Former CEO of Campbell Soup Company. | |
Gary M. Pfeiffer Board | Director | None | Joined DGX board in 2004. Former CFO of DuPont and Secretary of Finance for Delaware. | |
Luis A. Diaz, Jr. Board | Director | Head of Solid Tumor Oncology at Memorial Sloan Kettering Cancer Center | Joined DGX board in 2023. Renowned oncologist known for pioneering work in cancer biomarkers and immunotherapy. | |
Robert B. Carter Board | Director | Board Member at New York Life; Trustee at University of Memphis | Joined DGX board in May 2024. Former CIO of FedEx Corporation. | |
Timothy L. Main Board | Director | Non-Executive Chairman of WNS (Holdings) Limited | Joined DGX board in 2014. Extensive experience in capital markets, technology, and corporate governance. | |
Timothy M. Ring Board | Lead Independent Director | Board Member at Becton, Dickinson and Company; Co-founder of TeamFund, Inc. | Joined DGX board in 2011. Former CEO of C.R. Bard, Inc. | |
Tracey C. Doi Board | Director | Board Member at Pentair plc; Trustee at SunAmerica Series Trust and Season Series Trust | Joined DGX board in 2021. Former CFO of Toyota Motor North America. | |
Vicky B. Gregg Board | Director | Cofounder of Guidon Partners LLC; Board Member at Acadia Healthcare and Erlanger Health System | Joined DGX board in 2014. Former CEO of BlueCross BlueShield of Tennessee. | |
Wright L. Lassiter III Board | Director | CEO of CommonSpirit Health; Board Member at Fortive Corporation | Joined DGX board in 2020. Former CEO of Henry Ford Health System. |
- With COVID-19 revenues becoming insignificant and impacting growth by only about 50 basis points , how does Quest plan to compensate for this decline and maintain or accelerate organic growth going forward?
- Considering that M&A contributed approximately 4% to revenue growth in the quarter and that LifeLabs alone added about $70 million , is the company's growth overly reliant on acquisitions, and what risks do you see in integrating multiple acquisitions, especially in new markets like Canada?
- As you expand into new geographies where health systems previously limited your reach , what challenges do you anticipate in gaining market share in these areas, and how might this affect pricing and relationships with local providers?
- Given the anticipated increase in interest expense due to recent debt issuance and the plan to retire lower coupon senior notes in 2025 , how will this higher interest burden impact your margins and ability to invest in growth initiatives?
- With the dilution from the Haystack MRD acquisition being approximately $0.20 this year and expected improvements next year , can you detail when you expect this investment to become accretive and what is the plan if reimbursement does not meet expectations?
Research analysts who have asked questions during QUEST DIAGNOSTICS earnings calls.
Andrew Brackmann
William Blair & Company, L.L.C.
4 questions for DGX
David Westenberg
Piper Sandler
4 questions for DGX
Elizabeth Anderson
Evercore ISI
4 questions for DGX
Jack Meehan
Nephron Research LLC
4 questions for DGX
Kevin Caliendo
UBS
4 questions for DGX
Michael Cherny
Leerink Partners
4 questions for DGX
Patrick Donnelly
Citi
4 questions for DGX
Pito Chickering
Deutsche Bank
4 questions for DGX
Erin Wilson Wright
Morgan Stanley
3 questions for DGX
Ann Hynes
Mizuho Financial Group
2 questions for DGX
Luke Sergott
Barclays
2 questions for DGX
Michael Ryskin
Bank of America Merrill Lynch
2 questions for DGX
Noah Kava
Jefferies
2 questions for DGX
Aaron
Bank of America
1 question for DGX
Anna Krasinski
Barclays
1 question for DGX
Erin Wright
Morgan Stanley
1 question for DGX
Lisa Gill
JPMorgan Chase & Co.
1 question for DGX
Meghan Holtz
Jefferies Financial Group Inc.
1 question for DGX
Stephanie Davis
Barclays
1 question for DGX
Tycho Peterson
Jefferies
1 question for DGX
Competitors mentioned in the company's latest 10K filing.
| Company | Description |
|---|---|
The largest commercial clinical laboratory competitor in the diagnostic information services industry, competing primarily in the fragmented and highly competitive clinical testing market. |
Notable M&A activity and strategic investments in the past 3 years.
| Company | Year | Details |
|---|---|---|
OhioHealth | 2024 | Quest Diagnostics acquired select assets from OhioHealth in an all‐cash deal valued at $200 million, completed on October 13, 2024; the deal expands cost-effective laboratory services with a shift of outreach testing to Quest’s Pittsburgh facility while preserving OhioHealth’s hospital lab operations. |
Three Physician Groups in New York | 2024 | Quest Diagnostics completed an all‐cash transaction for $300 million to acquire the laboratory business of three New York-based physician groups, integrating $243 million in goodwill and $57 million in customer-related intangible assets into its Diagnostic Information Services business to strengthen its regional presence. |
Allina Health | 2024 | The acquisition of select assets from Allina Health’s outreach laboratory services was executed as an all‐cash transaction for $230 million, incorporating $55 million in customer-related intangible assets and $175 million in goodwill, aimed at expanding high-quality lab services in Minnesota and western Wisconsin within Quest’s DIS segment. |
LifeLabs Inc. | 2024 | Quest Diagnostics acquired LifeLabs Inc. for approximately CAN $1.35 billion (around USD $1 billion) by combining cash on hand with proceeds from a $1.85 billion senior notes offering, with the deal expected to enhance diagnostic innovation in Canada while preserving LifeLabs’ brand and management team. |
PathAI Diagnostics | 2024 | Completed on June 10, 2024, this all‐cash acquisition for $100 million involved acquiring select assets including $55 million of tax-deductible goodwill and customer-related intangibles, with efforts to rebrand the Memphis laboratory as Quest’s national AI/digital R&D center to support enhanced pathology services. |
Lenco Diagnostic Laboratories, Inc. (Lenco) | 2024 | In an all‐cash transaction valued at $111 million on February 12, 2024, Quest Diagnostics acquired Lenco Diagnostic Laboratories, integrating $75 million of tax-deductible goodwill and $43 million in customer-related intangible assets, thereby strengthening its Diagnostic Information Services services in New York. |
Haystack Oncology, Inc. | 2023 | Quest Diagnostics’ acquisition of Haystack Oncology, completed on June 20, 2023, was an all‐cash transaction for $392 million (with additional contingent payments up to $150 million based on revenue targets and CMS milestones), aimed at bolstering its capabilities in minimal residual disease testing and liquid biopsy technology with significant goodwill and technology-related intangible assets acquired. |
New York-Presbyterian Laboratory Services | 2023 | The company acquired select assets of New York-Presbyterian’s laboratory services on April 17, 2023, in an all‐cash deal for $275 million, which included $222 million of tax-deductible goodwill and $53 million in customer-related intangible assets, integrating the business into its Diagnostic Information Services segment to expand its health system partnerships. |
Pack Health, LLC | 2022 | Acquired on February 1, 2022, for a net transaction value of $123 million (comprising $105 million cash and $18 million contingent on future revenues), the deal enhanced Quest Diagnostics’ extended care capabilities by integrating a patient engagement platform, with significant goodwill and intangible asset components recognized under the acquisition method. |
Recent press releases and 8-K filings for DGX.
- Corewell Health and Quest Diagnostics have signed a definitive agreement to form Diagnostic Lab of Michigan, LLC, aiming to expand access to quality, affordable lab services statewide.
- The joint venture will build a 100,000-square-foot state-of-the-art facility at Corewell’s Southfield Center, with operations slated to begin in Q1 2027.
- Ownership will be split 51% to Quest and 49% to Corewell Health, aligning with Quest’s growth and profitability criteria; financial terms were not disclosed.
- Quest will manage its Collaborative Lab Solutions for Corewell’s 21 hospital labs, with supply chain and reference agreements starting in late 2025 and lab management services in 2026.
- Quest Diagnostics secures Breakthrough Device Designation from FDA for its Haystack MRD test to identify MRD-positive patients with stage II colorectal cancer post-surgery.
- The designation aims to expedite development, assessment and review for premarket approval, 510(k) clearance and De Novo marketing under FDA’s Breakthrough Devices Program.
- Quest introduced a clinical laboratory-developed version of Haystack MRD in late 2024 and is broadening access for oncologists and pharmaceutical partners.
- Haystack MRD, a ctDNA-based liquid biopsy test, detects residual or recurrent solid-tumor cancer and is available for clinical use and investigational trials in the U.S., Germany and Finland.
- Quest Diagnostics closed the acquisition of select clinical testing assets from Fresenius Medical Care’s Spectra Laboratories, with additional dialysis-related water testing assets expected by end-2025.
- Signed a laboratory services agreement to begin providing comprehensive dialysis-related testing for Fresenius-operated clinics serving approximately 200,000 patients annually, with full transition by early 2026.
- The deal is expected to reduce transport times, optimize lab network utilization, and strengthen Quest’s leadership in chronic kidney disease diagnostics.
- Quest Diagnostics reported Q2 2025 revenue of $2.76 B (up 15.2% YoY), including 5.2% organic growth.
- Adjusted EPS was $2.62 (up 11.5% YoY), and adjusted operating margin expanded to 16.9% of revenues (vs. 16.6% last year).
- The company raised its full-year 2025 guidance to $10.80 B–$10.92 B in revenues and $9.63–$9.83 in adjusted EPS.
- Growth drivers included organic demand for advanced diagnostics, accretive acquisitions (e.g., LifeLabs), and productivity gains from automation and AI.
- Quest Diagnostics highlighted its strong market position in the clinical lab space, emphasizing widespread patient coverage and robust operational scale, including over 350,000 daily patients and serving more than 50% of U.S. hospitals and physicians.
- The presentation detailed strategic initiatives such as network expansion, productivity improvements, and innovations in high-value tests like the new Alzheimer’s blood-based diagnostic and oncology advancements.
- The company reaffirmed its long-term guidance of 4-5% revenue CAGR and 7-9% EPS CAGR, alongside updates on significant investments in M&A (including its recent LifeLabs acquisition) and consumer direct channels.
- Q1 2025 revenue reached $2.65 billion, up 12.1% year-over-year, reflecting robust quarterly performance .
- Reported diluted EPS of $1.94 (up 12.8% YoY) and adjusted EPS of $2.21, underscoring strong operational performance .
- Reaffirmed full-year guidance with expected revenues between $10.7B and $10.85B and EPS guidance of reported diluted EPS between $8.62 and $8.87 plus adjusted diluted EPS between $9.55 and $9.80 .
- Strategic investments in advanced diagnostics—including tests like PFAS forever chemicals, Haystack MRD, and an AD-Detect panel for Alzheimer’s—are fueling growth .
- Operational enhancements through automation, robotics, and AI are boosting quality and productivity .
- A robust M&A pipeline complemented by strategic acquisitions, enterprise account growth, and favorable regulatory developments (e.g., the court decision on FDA LDT rule) is driving further expansion .
- Quest Diagnostics announced the launch of its new AD-Detect™ blood test, which confirms Alzheimer’s pathology in patients with mild cognitive impairment or dementia using proprietary tandem mass spectrometry and immunoassay techniques.
- The test demonstrated over 90% sensitivity and specificity with positive and negative predictive values of 89% in a real-world heterogeneous population, offering a less invasive and more affordable alternative to PET imaging and lumbar puncture.
- The expansive network of nearly 8,000 patient access points supports broad adoption, excluding only New York where clinical approval is pending.
- Investor Day Overview: The event detailed Quest Diagnostics’ commitment to sustainable growth by addressing market trends such as rising obesity and evolving disease diagnostic needs, setting the stage for strategic operational improvements.
- Diagnostic Innovation: Executives highlighted investments in advanced clinical solutions, including enhanced blood-based testing, AI-driven digital pathology, and automation initiatives designed to drive above‐average growth in key clinical areas.
- Operational Transformation: The company is modernizing its order-to-cash process through Project Nova and expects to achieve 3% annual productivity savings by standardizing, simplifying, and digitizing its processes, further enhancing customer and employee experience.
- Financial and M&A Outlook: With reaffirmed 2025 guidance of approximately $10.78 billion in revenue and $9.68 EPS, Quest Diagnostics also outlined long-term targets of 4-5% revenue CAGR and 7-9% adjusted EPS CAGR, supported by disciplined M&A activities and strategic regional consolidations.
- Growth Outlook: The company presented a long-term strategy targeting 4%-5% revenue CAGR and 7%-9% adjusted EPS CAGR beyond 2025, underpinned by operational improvements and investments in advanced diagnostics.
- Expansion and Acquisitions: Quest highlighted the completion of several key acquisitions in 2024 expected to generate approximately $1 billion in annualized revenue, enhancing its reach in the hospital and physician channels.
- Innovative Market Positioning: The presentation emphasized leveraging technological innovations such as AI and automation to capitalize on strong market trends in both the US and Canadian lab sectors, driving above-market, double-digit growth in key clinical areas.
- Long-term growth outlook reaffirmed: The company projects 4-5% revenue CAGR and 7-9% adjusted EPS CAGR beyond 2025, driven by strategic investments in advanced diagnostics, automation, and IT modernization initiatives such as Project Nova.
- Full year 2025 guidance confirmed: Net revenues are expected to range between $10.70 billion and $10.85 billion, although first-quarter headwinds from adverse weather may impact revenue by approximately $25 million and EPS by $0.10.
- Focused expansion across key channels: Quest Diagnostics is actively enhancing its presence in the physician and hospital channels with initiatives aimed at increasing market access and operational productivity.