Quest Diagnostics

Management has balanced organic investments with disciplined M&A and shareholder returns. 2024 closed eight acquisitions, notably LifeLabs in Canada, and several hospital outreach assets that should enhance density and margins over time.

The quarterly dividend has been raised annually since 2011, to 0.80 dollars per share in 2025. Repurchases were opportunistic, including about 0.9 million shares for 150 million dollars in 2024 and an additional 0.9 million shares for 150 million dollars through Q3 2025, with 0.7 to 0.9 billion dollars authorization remaining during that period.

Capex is primarily growth and automation focused, with 2025 at approximately 500 million dollars, supporting productivity and moat deepening. Dilution from SBC is manageable. Track record on outreach acquisitions is favorable, but continued discipline on multiples and integration is essential.