Quest Diagnostics to Highlight Strategic Priorities to Drive Sustainable Growth and Deliver Long-term Shareholder Value at 2025 Investor Day
Quest Diagnostics (NYSE: DGX) outlined its strategic vision at its 2025 Investor Day, projecting 4-5% compound annual revenue growth and 7-9% adjusted EPS growth beyond 2025. The company's growth strategy focuses on expanding market access in physician and hospital channels, achieving double-digit growth in advanced diagnostics across five key clinical areas, and leveraging strategic partnerships.
Key initiatives include driving growth through diagnostic innovation, expanding hospital collaborative lab solutions, growing consumer-initiated testing via questhealth.com, and focusing on advanced diagnostics in oncology, cardiometabolic health, women's health, brain health, and autoimmune disorders. The company aims to achieve 3% annual productivity savings through its Invigorate initiative and modernize IT systems through Project Nova.
For Q1 2025, Quest expects weather-related impacts to create a $25 million revenue headwind and approximately $0.10 EPS impact.
Quest Diagnostics (NYSE: DGX) ha delineato la sua visione strategica durante il 2025 Investor Day, prevedendo una crescita annuale dei ricavi del 4-5% e una crescita dell'EPS rettificato del 7-9% oltre il 2025. La strategia di crescita dell'azienda si concentra sull'espansione dell'accesso al mercato nei canali dei medici e degli ospedali, raggiungendo una crescita a doppia cifra nei diagnostici avanzati in cinque aree cliniche chiave e sfruttando partnership strategiche.
Le iniziative chiave includono la promozione della crescita attraverso l'innovazione diagnostica, l'espansione delle soluzioni di laboratorio collaborativo per gli ospedali, la crescita dei test avviati dai consumatori tramite questhealth.com e un focus sui diagnostici avanzati in oncologia, salute cardiometabolica, salute delle donne, salute cerebrale e disturbi autoimmuni. L'azienda punta a ottenere un risparmio annuale del 3% in produttività attraverso l'iniziativa Invigorate e a modernizzare i sistemi IT attraverso il Progetto Nova.
Per il primo trimestre del 2025, Quest prevede che gli impatti legati al clima creino un fronte di ricavi di 25 milioni di dollari e un impatto di circa 0,10 dollari sull'EPS.
Quest Diagnostics (NYSE: DGX) delineó su visión estratégica en su Día del Inversor 2025, proyectando un crecimiento anual compuesto de ingresos del 4-5% y un crecimiento del EPS ajustado del 7-9% más allá de 2025. La estrategia de crecimiento de la compañía se centra en expandir el acceso al mercado en los canales de médicos y hospitales, logrando un crecimiento de dos dígitos en diagnósticos avanzados en cinco áreas clínicas clave y aprovechando asociaciones estratégicas.
Las iniciativas clave incluyen impulsar el crecimiento a través de la innovación diagnóstica, expandir soluciones de laboratorio colaborativo para hospitales, crecer en pruebas iniciadas por consumidores a través de questhealth.com y centrarse en diagnósticos avanzados en oncología, salud cardiometabólica, salud de la mujer, salud cerebral y trastornos autoinmunes. La compañía busca lograr un ahorro de productividad anual del 3% a través de su iniciativa Invigorate y modernizar los sistemas de TI a través del Proyecto Nova.
Para el primer trimestre de 2025, Quest espera que los impactos relacionados con el clima creen un viento en contra de ingresos de 25 millones de dólares y un impacto de aproximadamente 0,10 dólares en el EPS.
퀘스트 진단(Quest Diagnostics) (NYSE: DGX)는 2025 투자자 데이에서 전략적 비전을 제시하며 연평균 4-5%의 매출 성장과 조정된 EPS 성장 7-9%을 2025년 이후로 전망했습니다. 회사의 성장 전략은 의사 및 병원 채널에서 시장 접근을 확장하고, 5개의 주요 임상 분야에서 고급 진단의 두 자릿수 성장을 달성하며, 전략적 파트너십을 활용하는 데 중점을 두고 있습니다.
주요 이니셔티브에는 진단 혁신을 통한 성장 촉진, 병원 협력 실험실 솔루션 확대, questhealth.com을 통한 소비자 주도 테스트 성장, 그리고 종양학, 심혈관 대사 건강, 여성 건강, 뇌 건강 및 자가면역 질환에서의 고급 진단에 집중하는 것이 포함됩니다. 회사는 Invigorate 이니셔티브를 통해 연간 3%의 생산성 절감을 달성하고, 프로젝트 노바(Project Nova)를 통해 IT 시스템을 현대화할 계획입니다.
2025년 1분기 동안 퀘스트는 기후와 관련된 영향으로 2500만 달러의 매출 압박과 약 0.10달러의 EPS 영향이 있을 것으로 예상하고 있습니다.
Quest Diagnostics (NYSE: DGX) a présenté sa vision stratégique lors de son Investor Day 2025, prévoyant une croissance annuelle des revenus de 4-5% et une croissance du BPA ajusté de 7-9% au-delà de 2025. La stratégie de croissance de l'entreprise se concentre sur l'expansion de l'accès au marché dans les canaux des médecins et des hôpitaux, atteignant une croissance à deux chiffres dans les diagnostics avancés dans cinq domaines cliniques clés et tirant parti de partenariats stratégiques.
Les initiatives clés incluent la stimulation de la croissance par l'innovation diagnostique, l'expansion des solutions de laboratoire collaboratives pour les hôpitaux, la croissance des tests initiés par les consommateurs via questhealth.com et un accent sur les diagnostics avancés en oncologie, santé cardiométabolique, santé des femmes, santé cérébrale et troubles auto-immuns. L'entreprise vise à réaliser des économies de productivité annuelles de 3% grâce à son initiative Invigorate et à moderniser ses systèmes informatiques grâce au Projet Nova.
Pour le premier trimestre de 2025, Quest s'attend à ce que les impacts liés aux conditions météorologiques créent un vent de face de 25 millions de dollars en revenus et un impact d'environ 0,10 $ sur le BPA.
Quest Diagnostics (NYSE: DGX) skizzierte seine strategische Vision an seinem Investorentag 2025 und prognostizierte 4-5% jährliches Umsatzwachstum und 7-9% bereinigtes EPS-Wachstum über 2025 hinaus. Die Wachstumsstrategie des Unternehmens konzentriert sich auf die Erweiterung des Marktzugangs in den Arzt- und Krankenhauskanälen, das Erreichen eines zweistelligen Wachstums in der fortgeschrittenen Diagnostik in fünf wichtigen klinischen Bereichen und die Nutzung strategischer Partnerschaften.
Zu den wichtigsten Initiativen gehören das Vorantreiben des Wachstums durch diagnostische Innovationen, die Erweiterung von kooperativen Laborlösungen für Krankenhäuser, das Wachstum von verbraucherinitiierten Tests über questhealth.com und der Fokus auf fortgeschrittene Diagnostik in Onkologie, kardiometabolischer Gesundheit, Frauengesundheit, Gehirngesundheit und Autoimmunerkrankungen. Das Unternehmen strebt an, durch die Initiative Invigorate jährliche Produktivitätsersparnisse von 3% zu erzielen und die IT-Systeme durch das Projekt Nova zu modernisieren.
Für das erste Quartal 2025 erwartet Quest wetterbedingte Auswirkungen, die einen Umsatzrückgang von 25 Millionen Dollar und einen geschätzten EPS-Einfluss von etwa 0,10 Dollar verursachen werden.
- Projected 4-5% revenue CAGR beyond 2025
- Higher 7-9% adjusted EPS CAGR projection beyond 2025
- Expected double-digit growth in advanced diagnostics across five clinical areas
- 3% annual cost savings target through Invigorate initiative
- IT modernization through Project Nova to reduce long-term costs
- Q1 2025 weather impact causing $25M revenue headwind
- Q1 2025 weather impact causing $0.10 EPS reduction
Insights
Quest Diagnostics' 2025 Investor Day reveals a compelling growth story with projected long-term revenue growth of 4-5% CAGR and adjusted EPS growth of 7-9% CAGR beyond 2025. This earnings growth outpacing revenue highlights anticipated margin expansion through operational efficiencies.
The company's growth strategy targets multiple channels with clear revenue drivers. In the core business, expanded health plan network access should enhance market penetration, while their hospital strategy leveraging CoLab solutions creates recurring revenue streams. The 3% annual productivity target through the Invigorate initiative provides a credible path to margin improvement through automation, robotics, and AI implementation.
Most impressive is Quest's strategic focus on advanced diagnostics across five clinical areas, positioned for double-digit growth. Their proprietary tests like Haystack MRD for cancer recurrence and AD-Detect for Alzheimer's represent high-margin offerings addressing significant clinical needs.
While the company noted a $25 million revenue headwind and $0.10 EPS impact from weather events in Q1, this represents a temporary setback against their reaffirmed full-year guidance. The capital deployment strategy balancing shareholder returns with strategic acquisitions appears well-calibrated for sustainable growth.
Quest's strategic roadmap demonstrates a sophisticated understanding of evolving healthcare dynamics. The company is making calculated moves into high-growth diagnostic segments that address critical unmet needs in healthcare delivery.
Their focus on five key clinical areas—oncology, cardiometabolic health, women's health, brain health, and autoimmune disorders—aligns perfectly with current medical priorities and demographic trends. The Haystack MRD test for minimal residual disease represents a significant advancement in cancer management, potentially changing treatment protocols by identifying recurrence earlier than traditional methods.
Similarly, the AD-Detect blood-based Alzheimer's testing service addresses a massive clinical need as new treatment options emerge for early-stage Alzheimer's. As treatment paradigms increasingly rely on early detection, Quest is positioning itself at a critical junction in the care pathway.
The consumer-initiated testing expansion through questhealth.com capitalizes on the growing trend of patient empowerment and direct access to healthcare information. Meanwhile, the hospital channel strategy acknowledges ongoing hospital financial pressures, offering solutions that improve efficiency while expanding Quest's testing volumes.
Project Nova's IT modernization initiative, while carrying implementation risks, addresses a fundamental need in diagnostic services where seamless information flow directly impacts patient care quality and provider satisfaction.
- Provides long-term outlook beyond 2025: Revenues expected to grow at 4
-5% compound annual growth rate (CAGR); adjusted diluted earnings per share (EPS) expected to grow at 7-9% CAGR - Reaffirms guidance for full year 2025
"We are confident in Quest's ability to grow at above-market rates in our core physician and hospital channels driven by increased market access, double-digit growth in advanced diagnostics across five key clinical areas, and the contributions of strategic partnerships and acquisitions," said Jim Davis, Chairman, CEO and President. "We expect our continuous improvement initiatives – including investments in automation, robotics, and AI – to strengthen quality, customer and employee experiences, and productivity. Further, our new Project Nova IT initiative will modernize our systems architecture and lower IT costs over the long-term. These factors are reflected in the long-term outlook we are articulating today, which anticipates revenue growth at a 4
At the meeting, members of the company's leadership team will highlight a range of strategic initiatives that are underway, including:
- Driving growth in the physician channel by delivering comprehensive diagnostic innovation, capitalizing on expanded health plan network access, extending geographic reach, and becoming a partner of choice for large enterprise customers.
- Growing in the hospital channel by serving hospitals through scaled and specialized reference testing, extending its range of collaborative lab solutions ("CoLab" previously Professional Laboratory Services) for helping hospitals manage their labs, and expanding in new geographies through accretive hospital lab outreach acquisitions.
- Expanding the company's presence in high-growth areas by driving continued growth in demand for questhealth.com consumer-initiated testing, supporting life science partners with testing and services, and delivering insights through data analytics.
- Generating double-digit growth from advanced diagnostics tests with a focus on five key clinical areas: oncology (including for the company's innovative Haystack MRD™ minimal residual disease test for early cancer recurrence), advanced cardiometabolic health, women's and reproductive health, brain health (featuring the company's AD-Detect™ blood-based Alzheimer's disease testing services), and autoimmune disorders.
- Delivering
3% annual productivity and cost savings through the company's Invigorate initiative, which focuses on fostering engaged employees, leaning out processes, and deploying technology to improve quality, productivity, and customer and employee experiences. - Modernizing the company's IT systems architectures through Project Nova, which will enhance customer and employee experiences, reduce IT costs and improve productivity across order to cash processes.
- Maintaining a disciplined capital deployment strategy that returns the majority of free cash flow to shareholders and drives growth through strategic investments and acquisitions.
Guidance for Full Year 2025
The company today reaffirmed its guidance for full year 2025, as per the table below. For the first quarter of 2025, the company now expects that worse-than-anticipated weather during the period will create a headwind to revenue of approximately
Low | High | ||
Net revenues | |||
Net revenues increase | 8.4 % | 9.9 % | |
Reported diluted EPS | |||
Adjusted diluted EPS | |||
Cash provided by operations | Approximately | ||
Capital expenditures | Approximately | ||
The additional table attached below includes reconciliations of non-GAAP adjusted measures to GAAP measures.
Note on Non-GAAP Financial Measures
As used in this press release the term "reported" refers to measures under accounting principles generally accepted in
The company has provided a compound annual growth rate projection beyond 2025 of 7
Non-GAAP adjusted measures are presented because management believes those measures are useful adjuncts to GAAP results. Non-GAAP adjusted measures should not be considered as an alternative to the corresponding measures determined under GAAP. Management may use these non-GAAP measures to evaluate our performance period over period and relative to competitors, to analyze the underlying trends in our business, to establish operational budgets and forecasts and for incentive compensation purposes. We believe that these non-GAAP measures are useful to investors and analysts to evaluate our performance period over period and relative to competitors, as well as to analyze the underlying trends in our business and to assess our performance. The additional table attached below includes reconciliations of non-GAAP adjusted measures to GAAP measures.
Participating in Investor Day
Advance registration is required. To register for the event, please go to: Quest Diagnostics 2025 Investor Day Registration.
A live webcast of the event will be broadcast on the Quest Diagnostics Investor Relations website.
A copy of the presentation materials discussed at the meeting and an archived copy of the webcast will be available on the Quest Diagnostics Investor Relations website.
About Quest Diagnostics
Quest Diagnostics works across the healthcare ecosystem to create a healthier world, one life at a time. We provide diagnostic insights from the results of our laboratory testing to empower people, physicians and organizations to take action to improve health outcomes. Derived from one of the world's largest databases of de-identifiable clinical lab results, Quest's diagnostic insights reveal new avenues to identify and treat disease, inspire healthy behaviors and improve healthcare management. Quest Diagnostics annually serves one in three adult Americans and half the physicians and hospitals in
Forward Looking Statements
The statements in this press release which are not historical facts may be forward-looking statements. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date that they are made and which reflect management's current estimates, projections, expectations or beliefs and which involve risks and uncertainties that could cause actual results and outcomes to be materially different. Risks and uncertainties that may affect the future results of the company include, but are not limited to, adverse results from pending or future government investigations, lawsuits or private actions, the competitive environment, the complexity of billing, reimbursement and revenue recognition for clinical laboratory testing, changes in government regulations, changing relationships with customers, payers, suppliers or strategic partners, acquisitions and other factors discussed in the company's most recently filed Annual Report on Form 10-K and in any of the company's subsequently filed Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, including those discussed in the "Business," "Risk Factors," "Cautionary Factors that May Affect Future Results" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" sections of those reports.
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ADDITIONAL TABLE FOLLOWS
The outlook for adjusted diluted EPS represents management's estimates for the full year 2025 before the impact of special items. Further impacts to earnings related to special items may occur throughout 2025. Additionally, the amount of ETB is dependent upon employee stock option exercises and our stock price, which are difficult to predict. The following table reconciles our 2025 outlook for diluted EPS under GAAP to our outlook for adjusted diluted EPS:
Low | High | ||
Diluted EPS | |||
Restructuring and integration charges (a) | 0.11 | 0.11 | |
Amortization expense (b) | 1.05 | 1.05 | |
Other charges (c) | 0.13 | 0.13 | |
ETB | (0.08) | (0.08) | |
Adjusted diluted EPS |
(a) Represents estimated pre-tax charges of
(b) Represents estimated pre-tax amortization expenses of
(c) Represents estimated pre-tax net losses of
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SOURCE Quest Diagnostics
FAQ
What is Quest Diagnostics' projected revenue growth rate beyond 2025?
How will weather conditions impact DGX's Q1 2025 performance?
What are the five key clinical areas DGX is focusing on for advanced diagnostics growth?
What is Project Nova and how will it benefit DGX operations?
What is Quest Diagnostics' annual productivity savings target through the Invigorate initiative?
