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

Quest Diagnostics (NYSE:DGX) released its quarterly earnings results on Thursday. The medical research company reported $3.00 earnings per share (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 the consensus estimate of $3.05 billion. During the same period last year, the business posted $2.60 EPS. The company’s revenue for the quarter 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

Quest Diagnostics stock traded down $1.97 during trading on Thursday, reaching $236.96. The company had a trading volume of 379,930 shares, compared to its average volume of 975,883. Quest Diagnostics has a 52 week low of $171.18 and a 52 week high of $248.84. The firm’s 50-day simple moving average is $237.36 and its 200 day simple moving average is $216.31. The firm has a market capitalization of $26.15 billion, a price-to-earnings ratio of 25.15, a price-to-earnings-growth ratio of 2.14 and a beta of 0.54. 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 Announces Dividend

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

Wall Street Analyst Weigh In

A number of research firms recently commented on DGX. JPMorgan Chase & Co. upped their price objective on Quest Diagnostics from $220.00 to $250.00 and gave the company a “neutral” rating in a research report on Tuesday, July 28th. Jefferies Financial Group reissued a “buy” rating and issued a $245.00 target price on shares of Quest Diagnostics in a report on Thursday, July 23rd. Argus set a $260.00 target price on Quest Diagnostics in a research report on Wednesday, July 29th. Truist Financial boosted their price target on Quest Diagnostics from $250.00 to $260.00 and gave the company a “hold” rating in a research note on Monday, September 21st. Finally, UBS Group restated a “neutral” rating and set a $250.00 price target on shares of Quest Diagnostics in a research note on Monday. One research analyst has rated the stock with a Strong Buy rating, three have given a Buy rating and six have issued a Hold rating to the company. According to data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average price target of $243.64.

More Quest Diagnostics News

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

Insider Activity 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 stock was sold at an average price of $242.72, for a total transaction of $2,427,200.00. Following the transaction, the chief executive officer directly 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 transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP Mark Delaney sold 1,600 shares of the business’s stock in a transaction dated Tuesday, July 28th. The shares were sold at an average price of $235.18, for a total value of $376,288.00. Following the sale, the senior vice president directly owned 10,335 shares of the company’s stock, valued at $2,430,585.30. This represents a 13.41% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders have sold 34,277 shares of company stock worth $8,316,493. Corporate insiders own 0.88% of the company’s stock.

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.