Quest Diagnostics (NYSE:DGX) Announces Earnings Results

Quest Diagnostics (NYSE:DGX) issued its earnings results on Thursday. The medical research company reported $3.12 EPS for the quarter, beating the consensus estimate of $2.82 by $0.30, FiscalAI reports. Quest Diagnostics had a net margin of 9.07% and a return on equity of 15.60%. The company had revenue of $3.04 billion during the quarter, compared to analysts’ expectations of $2.97 billion. During the same quarter in the previous year, the company posted $2.62 EPS. The business’s revenue for the quarter was up 10.2% compared to the same quarter last year. Quest Diagnostics updated its FY 2026 guidance to 11.050-11.250 EPS.

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

• Quest Diagnostics reported second-quarter revenue growth of 10.2% to $3.04 billion, with adjusted diluted EPS up 19.1%, and said the results were driven by broad demand across physician, hospital and consumer channels.
• The company raised full-year 2026 guidance, now expecting revenue of $11.95 billion-$12.05 billion and adjusted EPS of $11.05-$11.25, citing strong first-half performance and continued momentum.
• Management said volume trends remain strong, with physician, hospital and consumer channels all growing; hospital revenues were up in double digits, and Quest sees a healthy pipeline for more co-lab and outreach deals.
• The company said reimbursement and pricing were broadly stable, with overall pricing roughly flat year over year and no meaningful change in bad debt or patient collections despite broader hospital-sector concerns.
• Quest highlighted continued progress in higher-growth advanced diagnostics, including Haystack MRD receiving New York State approval and expanded access via Flatiron integration, plus strong growth in brain health and cardiometabolic testing.

Quest Diagnostics Trading Up 7.7%

Shares of Quest Diagnostics stock traded up $16.15 during trading hours on Thursday, hitting $225.98. The company’s stock had a trading volume of 1,608,021 shares, compared to its average volume of 951,134. Quest Diagnostics has a 12 month low of $165.78 and a 12 month high of $237.78. The stock has a 50 day moving average of $201.60 and a 200 day moving average of $196.99. The company has a market capitalization of $25.02 billion, a PE ratio of 25.09, a price-to-earnings-growth ratio of 2.46 and a beta of 0.58. The company has a debt-to-equity ratio of 0.67, a current ratio of 1.18 and a quick ratio of 1.08.

Quest Diagnostics Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Wednesday, July 22nd. Shareholders of record on Wednesday, July 8th were paid a $0.86 dividend. This represents a $3.44 dividend on an annualized basis and a yield of 1.5%. The ex-dividend date of this dividend was Wednesday, July 8th. Quest Diagnostics’s payout ratio is presently 38.01%.

Key Quest Diagnostics News

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

• Positive Sentiment: Quest Diagnostics beat Q2 estimates, reporting adjusted EPS of $3.12 versus consensus around $2.81-$2.82 and revenue of $3.04 billion versus expectations of about $2.97 billion. Quest Diagnostics Reports Second Quarter 2026 Financial Results; Raises Revenue and EPS Guidance for Full Year 2026
• Positive Sentiment: The company raised full-year 2026 guidance, now expecting adjusted EPS of $11.05-$11.25 and revenue of $11.95 billion-$12.05 billion, both above prior expectations. Quest Diagnostics raises annual forecast on testing demand
• Positive Sentiment: Quarterly revenue rose 10.2% year over year, helped by 10.0% organic growth, suggesting demand trends are still supportive for the core testing business. Transcript: Quest Diagnostics Q2 2026 Earnings Conference Call
• Neutral Sentiment: Multiple reports on the earnings release and conference call reinforced the same message: solid execution, stronger guidance, and positive management commentary. Quest Diagnostics: Q2 Earnings Snapshot
• Neutral Sentiment: DGX had been rising ahead of earnings as investors positioned for a possible beat, and the strong report appears to have validated that optimism. Quest Diagnostics Rallies Ahead of Earnings as Investors Weigh Growth Initiatives

Wall Street Analyst Weigh In

Several equities analysts have weighed in on the company. Jefferies Financial Group reissued a “buy” rating and issued a $225.00 target price on shares of Quest Diagnostics in a research note on Tuesday, April 21st. Barclays upped their price target on Quest Diagnostics from $225.00 to $230.00 and gave the company an “overweight” rating in a research note on Wednesday, April 22nd. Evercore set a $225.00 price target on shares of Quest Diagnostics in a research report on Tuesday, April 21st. Wall Street Zen lowered shares of Quest Diagnostics from a “buy” rating to a “hold” rating in a research note on Monday. Finally, Robert W. Baird boosted their price objective on shares of Quest Diagnostics from $232.00 to $236.00 and gave the company a “neutral” rating in a report on Monday, July 13th. Six investment analysts have rated the stock with a Buy rating and six have given a Hold rating to the company’s stock. According to MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus price target of $220.73.

Insider Activity

In related news, SVP Karthik Kuppusamy sold 8,147 shares of the stock in a transaction that occurred on Thursday, June 4th. The stock was sold at an average price of $200.00, for a total transaction of $1,629,400.00. Following the completion of the sale, the senior vice president directly owned 13,510 shares of the company’s stock, valued at approximately $2,702,000. This represents a 37.62% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO J. E. Davis sold 10,000 shares of the stock in a transaction that occurred on Monday, June 1st. The stock was sold at an average price of $194.14, for a total value of $1,941,400.00. Following the sale, the chief executive officer directly owned 132,423 shares of the company’s stock, valued at approximately $25,708,601.22. The trade was a 7.02% 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. Insiders own 0.88% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in DGX. Virtu Financial LLC bought a new stake in Quest Diagnostics in the 4th quarter valued at $527,000. Compound Planning Inc. boosted its stake in Quest Diagnostics by 169.7% in the 4th quarter. Compound Planning Inc. now owns 3,582 shares of the medical research company’s stock worth $622,000 after purchasing an additional 2,254 shares during the period. Corient Private Wealth LLC increased its holdings in Quest Diagnostics by 533.8% during the 4th quarter. Corient Private Wealth LLC now owns 165,729 shares of the medical research company’s stock worth $28,759,000 after purchasing an additional 139,582 shares in the last quarter. Alpine Woods Capital Investors LLC increased its holdings in Quest Diagnostics by 10.7% during the 4th quarter. Alpine Woods Capital Investors LLC now owns 19,402 shares of the medical research company’s stock worth $3,367,000 after purchasing an additional 1,881 shares in the last quarter. Finally, Strive Financial Group LLC acquired a new stake in shares of Quest Diagnostics in the 4th quarter valued at about $88,000. Institutional investors and hedge funds own 88.06% of the company’s stock.

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.