Quest Diagnostics (QDI) AI Stock Analysis

Company Guidance

For full-year 2026, Quest expects revenues to be between $12.065 billion and $12.105 billion, reflecting a growth rate of 9.3%-9.7%, reported EPS to be in a range of $10.21-$10.31, adjusted EPS in a range of $11.25-$11.35, cash from operations to be approximately $1.9 billion, and capital expenditures to be approximately $550 million; operating margin is expected to expand versus the prior year, share count is expected to be slightly below 2025, adjusted effective tax rate is expected to be consistent with 2025, and interest expense is now expected to be lower than 2025. Consumer health growth is expected to exceed 30% for the full year, Invigorate remains on track to deliver 3% in annual cost savings and productivity improvements, and Project Nova is expected to have an EPS impact of $0.25, with approximately 70% of these expenses to be incurred in the second half of this year. For 2027, the PAMA impact is estimated at approximately 1% of total company revenues, with the cumulative impact expected to be less than 1.3% of total revenues for years 2027 through 2029; Quest intends to offset some of this anticipated headwind, expects utilization to continue at the same levels, and expects to maintain a flattish outlook in terms of pricing across its third-party payer partners, ex PAMA.