Quest Diagnostics (DGX) Is Up 7.1% After Q2 Results and Launch of New Diagnostic Tests – What's Changed

• Quest Diagnostics reported second quarter 2025 results last week, highlighting a rise in sales to US$2.76 billion and net income to US$282 million, while also unveiling new diagnostic tests for the Oropouche virus and Alzheimer's disease.
• Despite an impairment charge and slightly lowered annual guidance, the company's operational advances and new test launches appeared to drive optimism about future growth opportunities.
• We'll explore how Quest's introduction of advanced diagnostic offerings, particularly in neuro and infectious disease, may influence its investment outlook.

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Quest Diagnostics Investment Narrative Recap

To be a Quest Diagnostics shareholder, you need confidence in ongoing test innovation and steady expansion, even as short-term results can be affected by regulatory and reimbursement risks. The recent quarterly update shows revenue and earnings gains alongside new test launches, but the lowered annual guidance and an impairment charge suggest these developments will not have a material impact on the near-term earnings outlook. Operational execution and the ability to adapt to reimbursement changes remain the top catalyst and risk to watch.

Among Quest's recent announcements, the rollout of an FDA-cleared blood test for Alzheimer's disease may be the most relevant. This offering enhances Quest’s position in advanced diagnostics, a key area that could offset margin pressure from rising operational costs if adoption grows.

On the other hand, investors should be aware of the potential impact of regulatory risks, such as…

Read the full narrative on Quest Diagnostics (it's free!)

Quest Diagnostics' outlook anticipates $11.7 billion in revenue and $1.2 billion in earnings by 2028. This implies a 4.8% annual revenue growth rate and an increase in earnings of $308 million from the current $892 million.

Uncover how Quest Diagnostics' forecasts yield a $183.46 fair value, a 3% upside to its current price.

Exploring Other Perspectives

Fair value estimates from the Simply Wall St Community span a wide range, from US$157.30 to US$326.90, across three individual viewpoints. As you weigh these opposing perspectives, consider how regulatory risks can influence revenue and profit expectations over time.

Explore 3 other fair value estimates on Quest Diagnostics - why the stock might be worth as much as 83% more 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 3 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.

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