Quest Diagnostics (NYSE:DGX) Posts Earnings Results, Beats Expectations By $0.13 EPS

Quest Diagnostics (NYSE:DGX) issued its earnings results on Thursday. The medical research company reported $3.00 earnings per share for the quarter, beating the consensus estimate of $2.87 by $0.13, FiscalAI reports. The firm had revenue of $3.10 billion for the quarter, compared to analysts’ expectations of $3.05 billion. Quest Diagnostics had a net margin of 9.18% and a return on equity of 16.01%. The firm’s revenue was up 10.0% compared to the same quarter last year. 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 Up 2.5%

Shares of NYSE:DGX opened at $244.90 on Friday. The stock’s 50-day moving average price is $237.53 and its two-hundred day moving average price is $216.64. The company has a current ratio of 1.59, a quick ratio of 1.46 and a debt-to-equity ratio of 0.72. Quest Diagnostics has a 12-month low of $171.18 and a 12-month high of $248.84. The firm has a market cap of $27.03 billion, a price-to-earnings ratio of 26.00, a PEG ratio of 2.16 and a beta of 0.54.

Quest Diagnostics Dividend Announcement

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

Wall Street Analysts Forecast Growth

DGX has been the topic 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 research report on Wednesday. Mizuho upped their price objective on shares of Quest Diagnostics from $235.00 to $260.00 and gave the company an “outperform” rating in a research note on Friday, July 24th. JPMorgan Chase & Co. lifted their target price on shares of Quest Diagnostics from $220.00 to $250.00 and gave the company a “neutral” rating in a report on Tuesday, July 28th. Jefferies Financial Group reaffirmed a “buy” rating and set a $245.00 price objective on shares of Quest Diagnostics in a research report on Thursday, July 23rd. Finally, Truist Financial lifted their price objective on shares of Quest Diagnostics from $250.00 to $260.00 and gave the company a “hold” rating in a research report on Monday, September 21st. One analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating and six have issued a Hold rating to the company. According to data from MarketBeat.com, Quest Diagnostics presently has a consensus rating of “Moderate Buy” and an average price target of $243.64.

Insider Activity at Quest Diagnostics

In other Quest Diagnostics news, SVP Michael Prevoznik sold 22,677 shares of the business’s stock in a transaction dated Friday, August 28th. The stock was 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 owned 37,557 shares of the company’s stock, valued at approximately $9,130,482.27. The trade was a 37.65% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO J. Davis sold 10,000 shares of the stock in a transaction that occurred on Tuesday, September 1st. The stock was sold at an average price of $242.72, for a total transaction of $2,427,200.00. Following the sale, the chief executive officer directly owned 122,423 shares of the company’s stock, valued at approximately $29,714,510.56. This trade represents a 7.55% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders have sold 34,277 shares of company stock worth $8,316,493. 0.88% of the stock is owned by insiders.

Key Stories Impacting Quest Diagnostics

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

• Positive Sentiment: Quarterly results exceeded estimates. Quest reported third-quarter revenue of $3.10 billion, up 10% year over year, while adjusted diluted EPS reached $3.00 versus analysts’ consensus of approximately $2.85–$2.87. Adjusted EPS increased 15.4% from the prior-year period. 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, reported EPS of $10.21 to $10.31, and adjusted EPS of $11.25 to $11.35. Strong testing demand, a 14.4% increase in organic requisition volume, margin gains and expected consumer-health revenue growth above 30% support the improved outlook. Quest Diagnostics: 3 Key Takeaways for Long-Term Investors
• Neutral Sentiment: The earnings beat did not fully satisfy investors. Despite the better results and guidance increase, commentary characterized the quarter as solid but not sufficiently strong relative to elevated expectations. DGX is trading near its 52-week high and at a valuation of roughly 26 times earnings, which may have limited the upside response. Why Quest’s Third Quarter Wasn’t Enough
• Negative Sentiment: Cybersecurity concerns add uncertainty. Quest discovered unauthorized access to its Quanum LSM system on October 21. The system contains records for some patients, and the company is investigating the incident. The potential scope, customer impact, remediation costs and regulatory consequences remain unclear, creating a near-term overhang for DGX. Quest Diagnostics Reports Unauthorized Access

About Quest Diagnostics

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.