Quest Diagnostics (NYSE:DGX) Posts Earnings Results

Quest Diagnostics (NYSE:DGX) posted its earnings results on Tuesday. The medical research company reported $2.50 earnings per share for the quarter, topping analysts’ consensus estimates of $2.37 by $0.13, FiscalAI reports. Quest Diagnostics had a return on equity of 15.57% and a net margin of 8.99%.The firm had revenue of $2.90 billion for the quarter, compared to the consensus estimate of $2.83 billion. During the same quarter in the prior year, the business earned $1.94 EPS. The business’s revenue for the quarter was up 9.2% on a year-over-year basis. Quest Diagnostics updated its FY 2026 guidance to 10.630-10.830 EPS.

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

• Quest delivered a strong Q1 — revenues up 9.2% (organic +9%) and adjusted EPS up ~13% to $2.50 — and raised full‑year guidance to $11.78–$11.90B in revenue and $10.63–$10.83 in adjusted EPS.
• Growth was broad‑based across physician, hospital and consumer channels, with collaborations (Corewell, Fresenius) contributing ~7% of organic volume and specialty offerings like AD‑Detect more than doubling year‑over‑year.
• Management highlighted operational gains from automation and AI — including a ~40% productivity lift for AI‑assisted customer‑service agents and ~350k uses of the Quest AI Companion — which supported margin expansion and adjusted operating income.
• Cash from operations fell to $278M (from $314M) and guidance includes ongoing investments and costs (≈$550M capex, a ~<$0.25 EPS drag from Project Nova this year) plus a $7–$10M headwind from elevated fuel costs.
• Regulatory and reimbursement uncertainty remains a wildcard — Quest is preparing for the PAMA data submission and notes the RESULTS Act or CMS data collection could materially affect 2027 Medicare rates, while CMS’s CRUSH initiative was not viewed as a material exposure for Quest today.

Quest Diagnostics Price Performance

Shares of DGX opened at $205.12 on Wednesday. The firm has a market cap of $22.70 billion, a PE ratio of 23.44, a P/E/G ratio of 2.54 and a beta of 0.66. The company has a current ratio of 1.04, a quick ratio of 0.96 and a debt-to-equity ratio of 0.72. The firm has a fifty day simple moving average of $200.53 and a two-hundred day simple moving average of $189.02. Quest Diagnostics has a 1-year low of $164.65 and a 1-year high of $213.50.

Quest Diagnostics Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Monday, April 20th. Investors of record on Monday, April 6th were issued a $0.86 dividend. This represents a $3.44 dividend on an annualized basis and a yield of 1.7%. The ex-dividend date was Monday, April 6th. This is an increase from Quest Diagnostics’s previous quarterly dividend of $0.80. Quest Diagnostics’s dividend payout ratio (DPR) is presently 39.31%.

Insider Activity at Quest Diagnostics

In other Quest Diagnostics news, SVP Michael E. Prevoznik sold 3,878 shares of the business’s stock in a transaction on Thursday, March 5th. The shares were sold at an average price of $206.21, for a total transaction of $799,682.38. Following the completion of the sale, the senior vice president directly owned 37,557 shares in the company, valued at approximately $7,744,628.97. The trade was a 9.36% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, EVP Catherine T. Doherty sold 5,558 shares of the business’s stock in a transaction on Thursday, March 5th. The shares were sold at an average price of $206.21, for a total transaction of $1,146,115.18. Following the sale, the executive vice president owned 67,122 shares of the company’s stock, valued at approximately $13,841,227.62. This represents a 7.65% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 24,083 shares of company stock valued at $4,945,262 in the last quarter. 8.16% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Quest Diagnostics

A number of hedge funds have recently added to or reduced their stakes in DGX. Brighton Jones LLC purchased a new stake in Quest Diagnostics during the 4th quarter valued at $323,000. Cresset Asset Management LLC increased its stake in shares of Quest Diagnostics by 4.6% in the 2nd quarter. Cresset Asset Management LLC now owns 4,003 shares of the medical research company’s stock worth $719,000 after purchasing an additional 176 shares in the last quarter. Gabelli Funds LLC purchased a new stake in shares of Quest Diagnostics in the 2nd quarter worth $287,000. Bank of Nova Scotia increased its stake in shares of Quest Diagnostics by 7.2% in the 2nd quarter. Bank of Nova Scotia now owns 14,339 shares of the medical research company’s stock worth $2,576,000 after purchasing an additional 962 shares in the last quarter. Finally, Daiwa Securities Group Inc. increased its stake in shares of Quest Diagnostics by 17.1% in the 2nd quarter. Daiwa Securities Group Inc. now owns 18,599 shares of the medical research company’s stock worth $3,341,000 after purchasing an additional 2,718 shares in the last quarter. 88.06% of the stock is currently owned by hedge funds and other institutional investors.

Quest Diagnostics announced that its Board of Directors has authorized a share repurchase plan on Tuesday, February 10th that authorizes the company to buyback $1.00 billion in shares. This buyback authorization authorizes the medical research company to purchase up to 4.7% of its stock through open market purchases. Stock buyback plans are often an indication that the company’s management believes its shares are undervalued.

Wall Street Analyst Weigh In

DGX has been the topic of a number of analyst reports. Evercore set a $225.00 price target on Quest Diagnostics in a research report on Tuesday. Truist Financial boosted their price target on Quest Diagnostics from $205.00 to $220.00 and gave the stock a “hold” rating in a research report on Wednesday, February 11th. Wall Street Zen cut Quest Diagnostics from a “buy” rating to a “hold” rating in a research report on Sunday, March 15th. Barclays boosted their price target on Quest Diagnostics from $210.00 to $225.00 and gave the stock an “overweight” rating in a research report on Wednesday, February 11th. Finally, UBS Group boosted their price target on Quest Diagnostics from $190.00 to $210.00 and gave the stock a “neutral” rating in a research report on Wednesday, February 11th. Seven equities research analysts have rated the stock with a Buy rating and eight have given a Hold rating to the company’s stock. According to data from MarketBeat, Quest Diagnostics currently has a consensus rating of “Hold” and an average target price of $212.23.

Key Quest Diagnostics News

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

• Positive Sentiment: Q1 results beat and guidance raised — Quest reported Q1 revenue of $2.90B (+9.2% y/y) and adjusted EPS of $2.50, topping estimates; management raised full‑year 2026 adjusted EPS to $10.63–$10.83 and raised revenue guidance. Quest Diagnostics Reports First Quarter 2026 Financial Results; Raises Revenue and EPS Guidance for Full Year 2026
• Positive Sentiment: Revenue and volume drivers — Management cited resilient demand for routine diagnostic testing and 9.0% organic revenue growth driven by consumer testing and advanced diagnostics, supporting the stronger outlook. DGX Q1 deep dive: Organic growth, consumer testing momentum, and advanced diagnostics drive outlook
• Positive Sentiment: Partnerships and technology lift momentum — New partnerships and AI/analytics initiatives were highlighted as contributors to growth and margin leverage, which management and coverage pieces cited as supporting the raised outlook. Quest Diagnostics Gains Steam With Partnerships, Lifts Outlook
• Neutral Sentiment: Analyst commentary and targets — Analysts weighed in after the print; several firms maintain constructive price targets (median recent target ~$217.50) but coverage is mixed across firms. Analysts Offer Insights on Healthcare Companies: Quest Diagnostics (DGX)…
• Neutral Sentiment: Full earnings detail and management color available — Investors can review the earnings call transcript and slide deck for execution and margin guidance specifics. Quest Diagnostics Incorporated (DGX) Q1 2026 Earnings Call Transcript
• Negative Sentiment: Insider and institutional selling noted — Reports show meaningful insider sales and some large institutional reductions in recent quarters, which could limit upside if sustained. Quest Diagnostics rises after Q1 earnings beat and higher 2026 outlook

About Quest Diagnostics

Quest Diagnostics (NYSE: DGX) is a leading provider of diagnostic information services that supports clinical decision-making for patients, physicians and healthcare organizations. The company operates a network of clinical laboratories and patient service centers that perform a broad range of laboratory tests and diagnostic assays used in routine care, disease diagnosis, monitoring and screening.

Its services span core clinical laboratory testing, anatomic pathology, molecular and genomic diagnostics, infectious disease testing and toxicology.