Quest Diagnostics Eyes $250 Million Corewell Boost as 2026 EPS Estimate Rises 11.2%

Zacks··US·Read original
2▲1 ▼0Impact / 5
Summary · why it matters

Quest Diagnostics is expanding across physician, hospital and consumer channels, with its Corewell Health Co-Lab Solutions joint venture expected to add about $250 million to 2026 revenues and launch its joint venture laboratory in early 2027. The Zacks Consensus Estimate for Quest Diagnostics' 2026 earnings per share has increased 11.2% to $11.15 over the past 60 days, while the consensus estimate for 2026 revenues is pegged at $12.01 billion, implying 8.9% growth from the year-ago reported number. In the second quarter of 2026, physician channel revenues rose in the high single-digit range and hospital channel revenues grew at a double-digit rate, and New York State approved Haystack MRD, allowing commercial expansion across all 50 states. The company's Invigorate program now targets 3% annual cost savings and productivity improvements, though second-quarter cost of services increased 10.9% year over year and adjusted operating margin declined 40 basis points to 16.5%. As of June 30, 2026, long-term debt stood at $5.63 billion against $626 million in cash and cash equivalents, and management continues to assume a 30-basis-point revenue impact in 2026 from the expiration of enhanced Affordable Care Act exchange subsidies.

Impact on assets 4

Biotech & Genomic Medicine▲ · 2 stocks
Robotics & Physical AI▲ · 1 stocks
Health Care▲ · 1 stocks

Off-coverage companies 1

Corewell HealthPrivate▲ Positive
Demandrelevance

Corewell Health's Co-Lab Solutions joint venture with Quest is expected to add about $250 million to 2026 revenues and launch its joint venture laboratory in early 2027.

© 2026 MarketIVNews