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Quest Diagnostics Growth Drivers Investors Should Watch Now in 2026
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Key Takeaways
DGX is using broad testing demand, advanced diagnostics and partnerships to support 2026 growth.
Physician revenues rose high single digits, while hospital revenues grew in the second quarter.
DGX targets annual cost savings as AI, automation and Project Nova address labor and reimbursement woes.
Quest Diagnostics Incorporated (DGX - Free Report) is combining broad testing demand, wider payer access, advanced diagnostics and partnership-led expansion to support revenue growth in 2026.
For investors, the key question is whether these drivers can keep lifting revenues while automation, artificial intelligence and cost programs protect profitability against reimbursement, integration and spending pressures.
Quest Diagnostics Builds on Broad-Based Demand
Quest Diagnostics’ base business continues to benefit from physicians, hospitals and consumers. In the second quarter of 2026, physician-channel revenues increased in the high-single-digit range, supported by new customer wins, higher business from existing customers, acquisitions and growth in regions with expanded health plan access.
Hospital-channel revenues grew at a double-digit rate, mainly from Co-Lab Solutions with Corewell Health. QuestHealth.com also generated revenue growth, helped by demand for wellness panels, newer thyroid testing services and technology integrations with consumer, wearable and wellness partners.
In the past year, DGX shares have gained 39.4% compared with the industry’s 33.5% growth.
Image Source: Zacks Investment Research
Labcorp Holdings Inc. (LH - Free Report) remains a relevant comparison point because it competes in laboratory services and broader diagnostics. Quest’s growth signals therefore matter not only for DGX holders but also for investors tracking how scale and access affect the testing market.
DGX Expands Advanced Diagnostics Across Key Areas
Advanced Diagnostics remains one of Quest’s clearer growth engines. The company is expanding across cardiometabolic and endocrine health, autoimmune disorders, brain health, oncology, and women’s and reproductive health, with several targeted areas delivering double-digit revenue growth in the second quarter of 2026.
Demand remained elevated for ApoB, Lp(a) and liver fibrosis tests. The AD-Detect brain-health portfolio again delivered double-digit growth, while New York State approval of Haystack MRD enabled commercial expansion across all 50 states.
Quest Diagnostics Uses Deals to Extend Reach
Quest continues to use acquisitions and joint ventures to expand geographic reach, health plan access and specialized testing capabilities. The company targets 1%-2% annual revenue growth from acquisitions, with an emphasis on hospital outreach assets and independent laboratories.
The Corewell Health laboratory venture is a central example. Formed in January 2026, the Michigan joint venture is owned 51% by Quest and 49% by Corewell, is expected to contribute about $250 million to 2026 revenues and is scheduled to launch a new joint venture laboratory in early 2027.
DaVita Inc. (DVA - Free Report) is another healthcare-services peer tied to the broader kidney-care ecosystem. Quest’s acquired Fresenius Medical Care testing assets and kidney-care collaboration underscore how lab services can deepen ties with providers serving chronic disease populations.
DGX Targets Efficiency Through AI and Automation
Quest’s Invigorate program now targets 3% annual cost savings and productivity improvements. The effort is designed to offset labor, benefit and reimbursement pressures while improving service quality across laboratory and administrative workflows.
The company expanded AI-enabled cervical cancer screening and front-end specimen-processing automation to additional laboratories in the second quarter. It also launched IntelliDraw for specimen collection at physician offices and plans an AI-based supply tool at patient service centers, while Project Nova remains a multiyear order-to-cash transformation with the first implementation wave planned for fall 2027.
In the past 30 days, estimates for Quest Diagnostics’ 2026 earnings have moved north by 3.7%.
Image Source: Zacks Investment Research
Quest Diagnostics Signals Support a Balanced View
The bottom line is that Quest has several visible growth drivers, but the case is not one-sided. Broad demand, advanced diagnostics and partnerships support revenues, while elevated debt, reimbursement uncertainty, cost inflation and margin execution remain important risks.
DGX currently carries a Zacks Rank #2 (Buy), supported by favorable estimate-revision trends. The stock also has a Momentum Score of A, Value Score of B, Growth Score of B and VGM Score of A, a combination that points to favorable short-term characteristics across price action, valuation and growth.
The Style Scores are designed to complement the Zacks Rank, not replace it. For DGX, the Rank and scores support a constructive near-term view, while the longer-term outlook remains more balanced because execution around Project Nova, partnership margins and reimbursement pressure still matters.
View the Zacks #1 Rank List
Image: Bigstock
Quest Diagnostics Growth Drivers Investors Should Watch Now in 2026
Key Takeaways
Quest Diagnostics Incorporated (DGX - Free Report) is combining broad testing demand, wider payer access, advanced diagnostics and partnership-led expansion to support revenue growth in 2026.
For investors, the key question is whether these drivers can keep lifting revenues while automation, artificial intelligence and cost programs protect profitability against reimbursement, integration and spending pressures.
Quest Diagnostics Builds on Broad-Based Demand
Quest Diagnostics’ base business continues to benefit from physicians, hospitals and consumers. In the second quarter of 2026, physician-channel revenues increased in the high-single-digit range, supported by new customer wins, higher business from existing customers, acquisitions and growth in regions with expanded health plan access.
Hospital-channel revenues grew at a double-digit rate, mainly from Co-Lab Solutions with Corewell Health. QuestHealth.com also generated revenue growth, helped by demand for wellness panels, newer thyroid testing services and technology integrations with consumer, wearable and wellness partners.
In the past year, DGX shares have gained 39.4% compared with the industry’s 33.5% growth.
Image Source: Zacks Investment Research
Labcorp Holdings Inc. (LH - Free Report) remains a relevant comparison point because it competes in laboratory services and broader diagnostics. Quest’s growth signals therefore matter not only for DGX holders but also for investors tracking how scale and access affect the testing market.
DGX Expands Advanced Diagnostics Across Key Areas
Advanced Diagnostics remains one of Quest’s clearer growth engines. The company is expanding across cardiometabolic and endocrine health, autoimmune disorders, brain health, oncology, and women’s and reproductive health, with several targeted areas delivering double-digit revenue growth in the second quarter of 2026.
Demand remained elevated for ApoB, Lp(a) and liver fibrosis tests. The AD-Detect brain-health portfolio again delivered double-digit growth, while New York State approval of Haystack MRD enabled commercial expansion across all 50 states.
Quest Diagnostics Uses Deals to Extend Reach
Quest continues to use acquisitions and joint ventures to expand geographic reach, health plan access and specialized testing capabilities. The company targets 1%-2% annual revenue growth from acquisitions, with an emphasis on hospital outreach assets and independent laboratories.
The Corewell Health laboratory venture is a central example. Formed in January 2026, the Michigan joint venture is owned 51% by Quest and 49% by Corewell, is expected to contribute about $250 million to 2026 revenues and is scheduled to launch a new joint venture laboratory in early 2027.
DaVita Inc. (DVA - Free Report) is another healthcare-services peer tied to the broader kidney-care ecosystem. Quest’s acquired Fresenius Medical Care testing assets and kidney-care collaboration underscore how lab services can deepen ties with providers serving chronic disease populations.
DGX Targets Efficiency Through AI and Automation
Quest’s Invigorate program now targets 3% annual cost savings and productivity improvements. The effort is designed to offset labor, benefit and reimbursement pressures while improving service quality across laboratory and administrative workflows.
The company expanded AI-enabled cervical cancer screening and front-end specimen-processing automation to additional laboratories in the second quarter. It also launched IntelliDraw for specimen collection at physician offices and plans an AI-based supply tool at patient service centers, while Project Nova remains a multiyear order-to-cash transformation with the first implementation wave planned for fall 2027.
In the past 30 days, estimates for Quest Diagnostics’ 2026 earnings have moved north by 3.7%.
Image Source: Zacks Investment Research
Quest Diagnostics Signals Support a Balanced View
The bottom line is that Quest has several visible growth drivers, but the case is not one-sided. Broad demand, advanced diagnostics and partnerships support revenues, while elevated debt, reimbursement uncertainty, cost inflation and margin execution remain important risks.
DGX currently carries a Zacks Rank #2 (Buy), supported by favorable estimate-revision trends. The stock also has a Momentum Score of A, Value Score of B, Growth Score of B and VGM Score of A, a combination that points to favorable short-term characteristics across price action, valuation and growth.
The Style Scores are designed to complement the Zacks Rank, not replace it. For DGX, the Rank and scores support a constructive near-term view, while the longer-term outlook remains more balanced because execution around Project Nova, partnership margins and reimbursement pressure still matters.
You can see the complete list of today’s Zacks #1 Rank stocks here.