Quest Diagnostics Quest Week Day 2: Lab Business Deep Dive

Research evidence excerpt

Quest Diagnostics Quest Week Day 2: Lab Business Deep Dive

J P M O R G A N North America Equity Research

21 May 2026

Quest Diagnostics Neutral

DGX, DGX US

Quest Week Day 2: Lab Business Deep Dive Price (20 May 26):$193.75

Managed Care and Facilities

On Day Two of Quest Week, we discuss DGX’s core lab business including key Lisa C. Gill AC

revenue drivers, trends in operational KPIs, and customer mix, an overview of the (1-212) 622-6466

growing consumer-initiated testing channel, and an update on the regulatory lisa.c.gill@jpmorgan.com

environment as it relates to PAMA and reimbursement cuts. We are hosting a Cole Harris

conference call at 2:00pm ET this afternoon with CEO Jim Davis and CFO Sam (1-212) 622-9068

Samad, please reach out to us or your J.P. Morgan sales contact for details. cole.harris@jpmorgan.com

John Stansel, CFA

• Underlying diagnostic testing fundamentals remain healthy and (1-212) 622-0083

structurally improved vs. pre-pandemic, supported by secular john.stansel@jpmorgan.com

demographic trends and market share gains. The aging of the American Benjamin Rossi

population coupled with growing prevalence of chronic disease continues to (1-212) 622-9603

benjamin.rossi@jpmorgan.com

drive accelerated testing demand, while a wider menu of available testing J.P. Morgan Securities LLC

options (i.e., advanced diagnostics, genetic screening, etc) has led physicians

to adopt a more comprehensive testing approach resulting in more dense

requisitions and price/mix benefits. DGX has also capitalized on a robust

pipeline of tuck-in acquisitions that have driven share gains and outsized

inorganic volume growth as hospitals and health systems increasingly look to

streamline non-core lab operations, which has also supported demand for Co-