The Bull Case For Quest Diagnostics (DGX) Could Change Following Nationwide Epic Partnership Rollout—Learn Why

• In September 2025, Quest Diagnostics and Epic announced a collaboration to streamline laboratory testing processes and customer experiences across all electronic health record platforms in the United States, aiming to enhance convenience and simplify interactions for patients and providers at over 2,000 Quest service centers nationwide.
• This initiative marks the industry’s first nationwide rollout of Epic’s Diagnostic Enterprise system by a laboratory provider, positioning Quest to potentially accelerate adoption of future innovations like artificial intelligence and automation.
• To understand how this industry-first collaboration could influence Quest Diagnostics’ future, we’ll examine its implications on the company’s investment narrative.

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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 harness new technologies and partnerships to drive higher testing volumes, deeper provider integration, and greater efficiency. The just-announced collaboration with Epic could improve operational agility and patient experience, but it does not materially impact the biggest short-term catalyst: sustained volume growth in advanced and preventive testing. The main immediate risk, potential reductions in Medicare reimbursement, remains unchanged.

Of the recent announcements, Quest’s agreement with Guardant Health to offer the Shield blood-based colorectal cancer screening is particularly relevant. This expands Quest’s footprint in preventive testing, directly tying into expectations for higher recurring test volumes, a central catalyst for future revenue and margin expansion.

However, while these innovations offer growth potential, ongoing pressure on government reimbursement rates remains a key issue investors should be aware of; if rates drop, especially under PAMA, the potential impact to Quest’s margins and revenue could be...

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

Quest Diagnostics' outlook anticipates $11.9 billion in revenue and $1.3 billion in earnings by 2028. This scenario assumes a 4.1% annual revenue growth rate and an increase in earnings of $355 million from $945 million today.

Uncover how Quest Diagnostics' forecasts yield a $188.19 fair value, a 4% upside to its current price.

Exploring Other Perspectives

Simply Wall St Community members see wide fair value estimates for Quest Diagnostics, from US$157.30 up to US$307.93 across three user forecasts. While many focus on revenue growth from new test launches, remember robust volume gains remain the key driver for future earnings.

Explore 3 other fair value estimates on Quest Diagnostics - why the stock might be worth 13% 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.

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