Quest Diagnostics (NYSE:DGX) Announces Quarterly Earnings Results

Quest Diagnostics (NYSE:DGX) issued its quarterly earnings data on Thursday. The medical research company reported $3.00 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.87 by $0.13, FiscalAI reports. The company had revenue of $3.10 billion during the quarter, compared to the consensus estimate of $3.05 billion. Quest Diagnostics had a net margin of 9.53% and a return on equity of 16.21%. Quest Diagnostics’s revenue for the quarter was up 10.0% on a year-over-year basis. During the same quarter last year, the company earned $2.60 earnings per share.

Here are the key takeaways from Quest Diagnostics’ conference call:

• Strong third-quarter results: Revenue rose 10% to $3.1 billion and adjusted EPS increased 15.4% to $3.00, supported by broad organic growth across physician, hospital, and consumer channels.
• Quest raised and narrowed its 2026 outlook, now projecting revenue of $12.065 billion-$12.105 billion and adjusted EPS of $11.25-$11.35; the company also expects operating-margin expansion and approximately $1.9 billion in operating cash flow.
• Consumer health revenue is expected to grow more than 30% for the full year, with the upcoming Apple Health integration enabling users to purchase and manage testing for more than 50 biomarkers through the app; management said the channel carries accretive margins.
• Productivity initiatives, automation, and AI are helping offset wage and fuel inflation, while Quest continues to expand growth opportunities in kidney diagnostics, advanced testing, and hospital partnerships.
• Preliminary PAMA rate cuts could reduce 2027 revenue by approximately 1%, with a cumulative impact below 1.3% through 2029; Quest plans to offset part of the pressure but remains dependent on congressional passage of the RESULTS Act. Separately, the company disclosed unauthorized access to a test-ordering system, although it said operations have not been materially disrupted.

Quest Diagnostics Stock Performance

Quest Diagnostics stock opened at $241.49 on Friday. The stock has a market cap of $26.65 billion, a P/E ratio of 24.05, a price-to-earnings-growth ratio of 2.19 and a beta of 0.54. The company has a current ratio of 1.70, a quick ratio of 1.46 and a debt-to-equity ratio of 0.70. The stock has a 50 day moving average of $237.67 and a 200-day moving average of $216.82. Quest Diagnostics has a 52 week low of $171.18 and a 52 week high of $248.84.

Quest Diagnostics Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Wednesday, October 21st. Stockholders of record on Tuesday, October 6th were paid a dividend of $0.86 per share. This represents a $3.44 annualized dividend and a dividend yield of 1.4%. The ex-dividend date was Tuesday, October 6th. Quest Diagnostics’s dividend payout ratio is 36.52%.

Insider Transactions at Quest Diagnostics

In related news, CEO J. Davis sold 10,000 shares of Quest Diagnostics stock in a transaction on Tuesday, September 1st. The shares were sold at an average price of $242.72, for a total value of $2,427,200.00. Following the completion of the sale, the chief executive officer owned 122,423 shares in the company, valued at approximately $29,714,510.56. The trade was a 7.55% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP Michael Prevoznik sold 22,677 shares of the company’s stock in a transaction on Friday, August 28th. The shares were sold at an average price of $243.11, for a total transaction of $5,513,005.47. Following the completion of the sale, the senior vice president directly owned 37,557 shares in the company, valued at $9,130,482.27. This represents a 37.65% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders sold 34,277 shares of company stock valued at $8,316,493. 0.88% of the stock is currently owned by corporate insiders.

Analysts Set New Price Targets

DGX has been the subject of a number of recent analyst reports. Weiss Ratings raised shares of Quest Diagnostics from a “buy (a)” rating to a “buy (a+)” rating in a report on Wednesday. Argus set a $260.00 price objective on shares of Quest Diagnostics in a report on Wednesday, July 29th. Robert W. Baird set a $262.00 price objective on shares of Quest Diagnostics in a report on Friday. JPMorgan Chase & Co. upped their price objective on shares of Quest Diagnostics from $220.00 to $250.00 and gave the company a “neutral” rating in a research report on Tuesday, July 28th. Finally, Truist Financial raised their target price on Quest Diagnostics from $250.00 to $260.00 and gave the company a “hold” rating in a research note on Monday, September 21st. One equities research analyst has rated the stock with a Strong Buy rating, three have given a Buy rating and six have assigned a Hold rating to the company. Based on data from MarketBeat, the company has an average rating of “Moderate Buy” and a consensus target price of $244.27.

Quest Diagnostics News Summary

Here are the key news stories impacting Quest Diagnostics this week:

• Positive Sentiment: Third-quarter results beat estimates: Quest reported adjusted EPS of $3.00 versus the $2.87 consensus and revenue of $3.10 billion versus expectations of $3.05 billion. Revenue increased 10% year over year, while adjusted EPS rose 15.4%, reflecting stronger testing demand and margin improvement. Quest Diagnostics Reports Third Quarter 2026 Financial Results
• Positive Sentiment: Full-year guidance was raised: Quest now expects 2026 revenue of $12.065 billion to $12.105 billion and adjusted EPS of $11.25 to $11.35, above consensus estimates of approximately $12.0 billion and $11.19, respectively. Organic requisition volume rose 14.4% in the quarter, and consumer-health revenue is expected to grow more than 30% for the year. Quest Diagnostics Earnings Takeaways
• Positive Sentiment: Valuation and momentum remain supportive: Coverage characterized DGX as potentially undervalued following the guidance increase, while Zacks highlighted the company’s long-term momentum profile. Quest Diagnostics Could Be Undervalued
• Neutral Sentiment: Deutsche Bank raised its price target to $245 from $232 but maintained a Hold rating, indicating improved expectations without a clear bullish endorsement. Deutsche Bank Adjusts Quest Diagnostics Price Target
• Negative Sentiment: Patient-data breach creates a major overhang: Quest disclosed unauthorized access to its Quanum Lab Services Manager, a system used to order tests and access results. The company confirmed that personal and health information was compromised, potentially exposing it to regulatory scrutiny, litigation, remediation costs, and reputational damage. Quest Diagnostics Patient Data Breach

Quest Diagnostics Company Profile

Quest Diagnostics Incorporated (NYSE: DGX) is a provider of diagnostic information services. The company performs laboratory testing that helps physicians, hospitals and other healthcare providers diagnose, treat and monitor diseases and health conditions. Its services include routine blood and other specimen testing, pathology, molecular and genetic testing, and specialized diagnostic services.

Quest Diagnostics serves a broad range of customers, including hospitals, physician practices, health plans, employers, government agencies and individual consumers.