Quest Diagnostics (DGX) to Highlight Strategic Priorities to Drive Sustainable Growth

At a meeting with analysts and investors at its 2025 Investor Day, members of the leadership team of Quest Diagnostics (NYSE: DGX), a leading provider of diagnostic information services, will discuss the company's strategies to drive sustainable growth and deliver long-term shareholder value.

"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 4-5% CAGR and adjusted EPS growth at a 7-9% CAGR beyond 2025."

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 $25 million and to EPS of approximately $0.10.

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 United States ("GAAP"). The term "adjusted" refers to non-GAAP operating performance measures that exclude special items such as restructuring and integration charges, amortization expense, excess tax benefits ("ETB") associated with stock-based compensation, gains and losses associated with changes in the carrying value of our strategic investments, and other items.

The company has provided a compound annual growth rate projection beyond 2025 of 7-9% for adjusted diluted EPS, which is a non-GAAP measure. The company is unable to present a reconciliation of adjusted diluted EPS to reported diluted EPS, the most comparable GAAP measure, due to the inherent uncertainty and variability in the nature and amount of special items referenced above, and the amount of these items could be significant in any of the associated periods.

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.

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