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

Quest Diagnostics (NYSE:DGX) released its earnings results on Thursday. The medical research company reported $3.00 EPS for the quarter, topping analysts’ consensus estimates of $2.87 by $0.13, FiscalAI reports. Quest Diagnostics had a return on equity of 16.01% and a net margin of 9.18%. The firm had revenue of $3.10 billion for the quarter, compared to analysts’ expectations of $3.05 billion. During the same period in the prior year, the firm posted $2.60 earnings per share. The company’s quarterly revenue was up 10.0% on a year-over-year basis.

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

NYSE:DGX traded down $1.97 during mid-day trading on Thursday, reaching $236.96. The company’s stock had a trading volume of 379,930 shares, compared to its average volume of 975,883. The company has a current ratio of 1.59, a quick ratio of 1.46 and a debt-to-equity ratio of 0.72. The stock has a market cap of $26.15 billion, a P/E ratio of 25.15, a PEG ratio of 2.14 and a beta of 0.54. The firm’s fifty day moving average price is $237.36 and its two-hundred day moving average price is $216.31. Quest Diagnostics has a 12-month low of $171.18 and a 12-month high of $248.84.

Quest Diagnostics Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Wednesday, October 21st. Shareholders of record on Tuesday, October 6th were given a $0.86 dividend. The ex-dividend date of this dividend was Tuesday, October 6th. This represents a $3.44 dividend on an annualized basis and a yield of 1.5%. Quest Diagnostics’s payout ratio is 36.52%.

Insider Buying and Selling at Quest Diagnostics

In other news, CEO J. Davis sold 10,000 shares of the firm’s stock in a transaction dated Tuesday, September 1st. The shares were sold at an average price of $242.72, for a total transaction of $2,427,200.00. Following the sale, the chief executive officer owned 122,423 shares of the company’s stock, valued at $29,714,510.56. This trade represents a 7.55% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP Mark Delaney sold 1,600 shares of Quest Diagnostics stock in a transaction that occurred on Tuesday, July 28th. The stock was sold at an average price of $235.18, for a total transaction of $376,288.00. Following the completion of the sale, the senior vice president owned 10,335 shares of the company’s stock, valued at $2,430,585.30. This represents a 13.41% 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. In the last 90 days, insiders have sold 34,277 shares of company stock worth $8,316,493. Company insiders own 0.88% of the company’s stock.

Wall Street Analysts Forecast Growth

Several research analysts have issued reports on the stock. Robert W. Baird lifted their target price on shares of Quest Diagnostics from $236.00 to $255.00 and gave the stock a “neutral” rating in a report on Friday, July 24th. Barclays increased their price target on shares of Quest Diagnostics from $250.00 to $260.00 and gave the company an “overweight” rating in a report on Wednesday, October 7th. Argus set a $260.00 price target on shares of Quest Diagnostics in a research report on Wednesday, July 29th. Jefferies Financial Group restated a “buy” rating and issued a $245.00 price objective on shares of Quest Diagnostics in a report on Thursday, July 23rd. Finally, Wall Street Zen upgraded shares of Quest Diagnostics from a “hold” rating to a “buy” rating in a report on Tuesday, July 28th. One investment analyst has rated the stock with a Strong Buy rating, three have given a Buy rating and six have given a Hold rating to the company’s stock. According to MarketBeat.com, Quest Diagnostics has a consensus rating of “Moderate Buy” and an average target price of $243.64.

Quest Diagnostics News Roundup

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

• Positive Sentiment: Quarterly results beat expectations: Quest reported third-quarter revenue of $3.10 billion, up 10% year over year and ahead of the approximately $3.05 billion consensus. Adjusted diluted EPS was $3.00, above estimates near $2.85-$2.87 and up from $2.60 a year earlier. Quest Diagnostics Reports Third Quarter 2026 Financial Results
• Positive Sentiment: Full-year guidance was raised: Management now expects 2026 revenue of $12.065 billion to $12.105 billion, reported diluted EPS of $10.21 to $10.31, and adjusted diluted EPS of $11.25 to $11.35. The increase reflects strong organic growth and higher testing volumes. Quest Diagnostics Raises Earnings Guidance
• Positive Sentiment: Volume growth supported the outlook: Coverage characterized the quarter as being powered by a surge in testing volume, suggesting that Quest’s growth was supported by underlying demand rather than only pricing or acquisitions. Quest Diagnostics Q3 2026 Earnings
• Negative Sentiment: Cybersecurity investigation creates uncertainty: Quest said it discovered unauthorized access to its Quanum LSM system on October 21. The company is investigating the incident, and potential effects on operations, costs, data security or regulatory exposure remain unclear. Quest Diagnostics Investigates Cybersecurity 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.