The Bull Case For Quest Diagnostics (DGX) Could Change Following Upbeat Guidance and Corewell Joint Venture — Learn Why

• Quest Diagnostics reported strong third-quarter results, raising its full-year 2025 guidance to net revenues of US$10.96–11.00 billion and announcing a joint venture with Corewell Health expected to generate roughly US$1 billion annually next year.
• These developments highlight a combination of robust organic growth, increased test volumes, and a focus on expanding clinical partnerships to support future performance.
• We will explore how management’s upward revenue guidance revision and new Corewell Health partnership could impact Quest Diagnostics’ investment narrative going forward.

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Quest Diagnostics Investment Narrative Recap

To be a Quest Diagnostics shareholder, you need to believe in the company’s ability to drive sustained growth through rising test volumes, recurring preventive testing, and innovation despite ever-present healthcare pricing pressures. The latest quarterly results reinforce organic growth and expanding clinical partnerships, but attention remains on evolving U.S. healthcare reimbursement policies, which still represent the biggest short-term catalyst and risk. The impact of the recent news on these factors is notable but does not materially change the underlying equation.

Among recent corporate actions, Quest’s new joint venture with Corewell Health stands out for its potential to accelerate patient volume growth and strengthen health system partnerships. This aligns closely with the near-term catalysts underpinning Quest’s updated revenue outlook and underscores management’s focus on long-term collaboration across the clinical testing sector.

However, in contrast to the growth story, investors should be aware of ongoing risks from policy changes and pricing headwinds, particularly those stemming from...

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

Quest Diagnostics is projected to reach $11.9 billion in revenue and $1.3 billion in earnings by 2028. This outlook relies on annual revenue growth of 4.1% and an earnings increase of $355 million from the current $945 million.

Uncover how Quest Diagnostics' forecasts yield a $191.56 fair value, a 5% upside to its current price.

Exploring Other Perspectives

Fair value estimates from the Simply Wall St Community vary widely, from US$157.30 to US$309.54, based on three distinct viewpoints. While opinions differ, ongoing concerns about healthcare policy and reimbursement changes could shape future expectations for Quest Diagnostics’ performance, highlighting the importance of reviewing a broad range of community insights.

Explore 3 other fair value estimates on Quest Diagnostics - why the stock might be worth as much as 69% 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 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.

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