Quest Diagnostics Quest Week Day 1: Capital Structure

Research evidence excerpt

Quest Diagnostics Quest Week Day 1: Capital Structure

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

21 May 2026

Correction (first published 20 May 2026) (See disclosures for details)

Quest Diagnostics Neutral

DGX, DGX US

Quest Week Day 1: Capital Structure Price (18 May 26):$189.84

Managed Care and Facilities

We continue our 2026 Company Week & C-Suite Call Series with Quest Lisa C. Gill AC

Diagnostics (DGX). We will be hosting a conference call tomorrow (Thursday, (1-212) 622-6466

May 21) at 2:00pm ET with CEO Jim Davis and CFO Sam Samad; please reach lisa.c.gill@jpmorgan.com

out to us or your J.P. Morgan sales contact for details. On Day 1, we take a deeper Cole Harris

look at Quest’s capital structure, cash flow trends, and uses of cash. We see DGX (1-212) 622-9068

as well-positioned to execute on the capital allocation approach refreshed at their cole.harris@jpmorgan.com

2025 Investor Day, balancing a nearer-term focus on growth investments (tuck-in John Stansel, CFA

acquisitions and supporting capex) with an unchanged commitment around (1-212) 622-0083

john.stansel@jpmorgan.com

returning capital to shareholders.

Benjamin Rossi

• Capital allocation priorities to focus on growth investments through 2027, (1-212)benjamin.rossi@jpmorgan.com622-9603

with flexibility to return cash to shareholders. DGX has deployed over J.P. Morgan Securities LLC

$11.6 billion of cash over the last five years since 2021, 39% of which was

allocated towards share repurchases, 29% for acquisitions, 19% for capital

expenditures, and 14% for dividends. Capital deployment was more balanced

in 2025 as DGX invested in updating lab infrastructure (i.e. enhancing esoteric

testing capabilities, IT/operational improvements through Project Nova) while

integrating recent acquisitions.