DGX|Earnings Snapshot
EPS
| Qtr | Est | Actual | +/− |
|---|---|---|---|
| Q3'26 | $2.86 | - | - |
| Q2'26 | $2.82 | $3.12 | +10.5% |
| Q1'26 | $2.37 | $2.50 | +5.6% |
| Q4'25 | $2.45 | $2.42 | -1.4% |
| Q3'25 | $2.50 | $2.60 | +3.9% |
| Q2'25 | $2.57 | $2.62 | +1.9% |
Revenue
| Qtr | Est | Actual | +/− |
|---|---|---|---|
| Q3'26 | $3.1B | - | - |
| Q2'26 | $3.0B | $3.0B | +1.3% |
| Q1'26 | $2.8B | $2.9B | +2.4% |
| Q4'25 | $2.8B | $2.8B | +0.9% |
| Q3'25 | - | $2.8B | - |
| Q2'25 | - | $2.8B | - |
Market Data
DGX Stock Snapshot
DGX is currently trading at $238.35, giving Quest Diagnostics Incorporated a market cap of 26.26B and a P/E ratio of 24.7. Today's range spans $236.34–$239.38, with shares opening at $236.34 and moving up $0.13 (0.1%) from the prior close. DailyIQ's technical score sits at 91/100 (BUY) with a news sentiment reading of 76/100.
Over the past year DGX has traded between $171.18 and $240.13 - the current price is +39.2% off the 52-week low and -0.7% from the high. 25 analysts cover the stock with a Hold consensus and a mean 12-month target of $245.87 (range $204.00–$265.00), implying upside of +3.2%.
The combination of bullish technicals and bullish sentiment for Quest Diagnostics Incorporated (DGX) is the kind of setup that shows up in systematic screens before the more discretionary investors arrive. Score 91/100 (BUY), price $238.35 (near 52-week highs), sentiment 76/100. The current P/E ratio stands at 24.7. At 26.26B in Healthcare market cap, this large-cap name has the right size to matter to a wide range of buyers. Annual range: $171.18–$240.13.
Earnings revision cycles in large-cap Healthcare names tend to compound: when technicals confirm a BUY thesis (91/100) and news sentiment (76/100, bullish) supports the narrative, analyst upgrades follow price rather than lead it. At $238.35 (near 52-week highs), DGX's position within the $171.18–$240.13 annual range suggests there's room for multiple expansion before the stock encounters meaningful technical resistance.
Company Insights: Quest Diagnostics Incorporated (DGX)
Quest Diagnostics Incorporated (DGX) is a significant player in the healthcare sector, specializing in diagnostic testing and research services across the United States and internationally. The company's operations are fundamental to healthcare delivery, providing essential diagnostic information to a wide array of clients including physicians, hospitals, health plans, and pharmaceutical companies. Its extensive network of laboratories and patient service centers underpins its ability to deliver a broad spectrum of clinical and anatomic pathology testing.
The company's value proposition is anchored in its comprehensive service offering and expansive reach within the diagnostic landscape. By providing critical insights derived from laboratory testing, Quest Diagnostics supports clinical decision-making and patient care pathways. This essential role in the healthcare ecosystem is further augmented by its offerings in risk assessment services and healthcare IT solutions, reinforcing its integrated approach.
Financially, Quest Diagnostics has demonstrated a pattern of consistent revenue growth, alongside a strong track record of exceeding earnings per share (EPS) estimates over the past five quarters. While EPS saw a slight dip in Q4 2025 compared to the prior quarter, revenue continued its upward trajectory, indicating underlying business strength. This financial performance, coupled with positive analyst sentiment, suggests a robust operational foundation and market confidence.
Market Position
Quest Diagnostics holds a leading position in the U.S. diagnostic testing market, serving a diverse client base.
Its extensive laboratory network and brand recognition provide a significant competitive advantage.
The company's integrated services, including risk assessment and IT solutions, broaden its market penetration.
Revenue Growth
Year-over-year revenue growth has been consistent, reflecting sustained demand for diagnostic services.
Strategic partnerships and a focus on specialized testing are key drivers of this expansion.
The recent integration of Guardant Health's colorectal cancer screening test expands its offering in high-growth areas.
Profitability Trends
Quest Diagnostics has a strong history of beating EPS estimates, indicating effective operational management.
While Q4 2025 saw a slight sequential EPS decrease, revenue growth suggests underlying operational strength.
Investments in AI deployment are aimed at enhancing productivity and contributing to future profitability.
Analyst Sentiment
Wall Street analysts maintain a positive outlook, citing outperformance and investor confidence.
Price target adjustments, such as Argus's increase to $225, signal upward revisions in valuation expectations.
The 'Buy' rating from Argus underscores the market's belief in Quest Diagnostics' continued growth potential.
Positioning DGX
Quest Diagnostics' consistent revenue growth and strong EPS beat history present a compelling case for inclusion in healthcare portfolios. Investors seeking exposure to the essential diagnostic services sector should consider adding to positions during pullbacks, particularly if market concerns temporarily overshadow fundamental strengths. Conversely, a significant deterioration in diagnostic demand or increased competitive pressures could warrant a reduction in exposure.
DGX Recent Earnings History
- Q4 2025
EPS: $2.42 actual vs $2.45 estimate (miss) · Revenue: $2,806M actual vs $2,781M estimate
- Q3 2025
EPS: $2.6 actual vs $2.5 estimate (beat) · Revenue: $2,816M actual
- Q2 2025
EPS: $2.62 actual vs $2.57 estimate (beat) · Revenue: $2,761M actual
- Q1 2025
EPS: $2.21 actual vs $2.15 estimate (beat) · Revenue: $2,652M actual
- Q4 2024
EPS: $2.23 actual vs $2.18 estimate (beat) · Revenue: $2,621M actual
What Moves DGX Stock?
Quest Diagnostics' stock performance is primarily driven by the demand for its diagnostic testing services and its ability to navigate the evolving healthcare landscape. Key factors include the growth in specialized testing, operational efficiency, and strategic partnerships.
Specialized Testing Growth
Quest Diagnostics is increasingly focusing on higher-margin specialized diagnostic tests, including oncology and genetic testing. These advanced services cater to a growing need for personalized medicine and more accurate disease detection.
Strong performance in these specialized areas directly translates to higher revenue and improved profitability. Positive developments or increased adoption of these tests tend to boost investor confidence and support the stock price.
Operational Efficiency
The company is actively implementing operational improvements, including the adoption of AI, to enhance laboratory throughput and reduce costs. Streamlining processes and improving efficiency are crucial for maintaining competitiveness in the diagnostics market.
Successful cost management and productivity gains can lead to better earnings per share and expanded profit margins. Investors closely monitor these operational metrics as indicators of management's effectiveness and the company's underlying financial health.
Strategic Partnerships
Quest Diagnostics forms strategic alliances and partnerships, such as its collaboration with Guardant Health for colorectal cancer screening. These collaborations expand the company's service offerings and market reach, integrating new diagnostic solutions into its network.
The success and scope of these partnerships can unlock new revenue streams and solidify Quest's position in key therapeutic areas. Positive news regarding new or expanding partnerships often leads to a favorable market reaction for the stock.
Key insight: Quest Diagnostics' stock is propelled by its expansion in specialized testing and successful operational enhancements. Continued strategic collaborations and efficient service delivery are paramount for sustained shareholder value.
Analyst Price Targets for DGX
The current spread of analyst price targets and ratings for Quest Diagnostics Incorporated (DGX).
Reflects the most recently tracked analyst ratings for DGX and may lag real-time updates. Not a recommendation to buy or sell.
DGX Competitive Positioning
Quest Diagnostics Incorporated (DGX) is tracked alongside these names in Diagnostics & Research on DailyIQ.
Risk Factors
Quest Diagnostics faces risks primarily tied to regulatory changes, reimbursement pressures, and operational execution. Investors should monitor these factors as they can significantly impact revenue and profitability.
- Reimbursement Risk
Changes in government or private payer reimbursement rates for diagnostic tests can directly reduce Quest's revenue. Lower reimbursement for key services could significantly impact profitability. This risk materializes if major payers, like Medicare or large insurance companies, implement substantial rate cuts.
- Regulatory Scrutiny
The healthcare industry is subject to stringent regulations, including those related to billing, data privacy (HIPAA), and laboratory practices. Non-compliance can lead to significant fines, legal challenges, and reputational damage. Increased regulatory oversight or new compliance requirements could increase operating costs and disrupt services.
- Competition Risk
While a market leader, Quest faces competition from other large diagnostic labs and emerging players, particularly in specialized testing. Intense competition could lead to pricing pressures and a need for increased investment in technology and services. This risk is present if competitors gain market share or offer more attractive pricing or innovative solutions.
- Operational Execution
Quest's business relies on efficient laboratory operations, supply chain management, and timely delivery of results. Any disruptions, such as IT system failures, labor shortages, or supply chain interruptions, could negatively affect service quality and financial performance. This risk becomes critical during periods of rapid expansion or system upgrades.
- Payer Consolidation
Consolidation among health insurance providers can increase their bargaining power, potentially leading to less favorable contract terms for Quest. This could result in lower reimbursement rates or increased administrative burdens. The risk is heightened when major payers merge, creating larger entities with greater leverage.
Key Metrics for DGX
Quest Diagnostics' performance hinges on its ability to grow specialized testing volumes and manage operational efficiency. Investors should monitor these key metrics to gauge the company's trajectory.
Revenue Growth: Measures the increase in Quest Diagnostics' total sales year-over-year. Accelerating revenue growth indicates strong demand for DGX's services; deceleration suggests market challenges. This is fundamental to assessing the company's market position and expansion.
EPS Growth: Tracks the year-over-year increase in earnings per share for Quest Diagnostics. Rising EPS signals improved profitability; declining EPS can indicate cost pressures or lower sales. This directly impacts shareholder returns and valuation multiples for DGX.
Specialized Testing Volume: Reflects the demand for Quest Diagnostics' higher-margin, advanced diagnostic tests. Growth in this area is crucial for margin expansion; stagnation or decline suggests competitive pressures. This metric is vital for DGX's long-term growth strategy.
Lab Productivity: Assesses how efficiently Quest Diagnostics' laboratories are operating, often measured by tests per employee or turnaround times. Improved productivity boosts margins; declining efficiency can signal operational issues. This impacts DGX's cost structure and profitability.
Payer Mix: Indicates the proportion of revenue derived from different types of insurance payers (e.g., commercial, government). A favorable shift towards higher-reimbursing payers benefits Quest Diagnostics' revenue and margins. This is important for understanding DGX's pricing power and reimbursement environment.
Frequently Asked Questions About DGX
Is Quest Diagnostics (DGX) stock a good investment?
Quest Diagnostics' investment appeal often centers on its leading position in the essential diagnostic testing market. The company benefits from a broad service offering and a large network, serving diverse healthcare stakeholders. Investors might consider its consistent revenue growth and ability to beat earnings estimates as positive indicators, alongside its strategic focus on specialized testing and operational efficiency.
What drives Quest Diagnostics (DGX) stock price?
The stock price of Quest Diagnostics is influenced by several factors, including overall healthcare spending trends and demand for diagnostic services. Growth in specialized testing, the company's ability to secure contracts with health plans and employers, and advancements in technology like AI for operational improvements can positively impact its valuation. Conversely, reimbursement rate changes and competitive pressures could present headwinds.
Does Quest Diagnostics (DGX) pay a dividend?
Yes, Quest Diagnostics Incorporated (DGX) currently pays a quarterly dividend to its shareholders. The company has a history of returning capital to investors, which can be an attractive feature for income-focused portfolios. Investors should review the current dividend yield and payout history to assess its suitability within their investment strategy.
What is the valuation of Quest Diagnostics (DGX) stock?
Quest Diagnostics' valuation can be assessed using metrics such as its price-to-earnings (P/E) ratio, which stands at approximately 22.25. Comparing this to industry averages and its historical P/E can provide context. The company's market capitalization is around $22 billion, and its 52-week trading range is between $157.20 and $213.50, offering a perspective on its current market perception.
What are the risks of investing in Quest Diagnostics (DGX)?
Investing in Quest Diagnostics (DGX) carries risks inherent to the healthcare sector, including regulatory changes, reimbursement pressures from government and private payers, and intense competition. The company's reliance on a large volume of tests means that shifts in healthcare utilization or payer policies could impact revenue. Additionally, cybersecurity threats and the integration of new technologies present ongoing operational risks.
How is Quest Diagnostics' recent earnings performance?
Quest Diagnostics has demonstrated a mixed but generally positive earnings trend in recent quarters. While Q4 2025 saw a slight dip in EPS compared to the prior quarter, revenue saw an increase. Q1 2025 showed growth in both EPS and revenue year-over-year. The company has a track record of beating earnings estimates, indicating strong operational execution and market demand for its services.
What is Quest Diagnostics' growth strategy?
Quest Diagnostics' growth strategy appears to focus on expanding its offerings in specialized testing, which often carries higher margins. The company is also investing in operational improvements, including the deployment of AI, to enhance productivity and efficiency. Strategic partnerships and a commitment to innovation in diagnostic solutions are also key components of its forward-looking approach.
How does Quest Diagnostics leverage technology and AI?
The company is actively integrating technology, including artificial intelligence (AI), to enhance its operations and service delivery. This focus on AI deployment aims to improve productivity, streamline laboratory processes, and potentially unlock new insights from diagnostic data. These technological advancements are seen as crucial for maintaining a competitive edge and driving future growth.
What are the implications of Guardant Health's test accessibility through Quest Diagnostics?
The accessibility of Guardant Health's Shield blood-based screening test through Quest Diagnostics' national network signifies a strategic move to broaden access to important cancer screening tools. This collaboration could drive volume for Quest Diagnostics in specialized oncology testing and enhance its position as a provider of comprehensive diagnostic solutions. It also reflects the growing importance of liquid biopsy and early cancer detection.
What do analysts say about Quest Diagnostics (DGX) stock?
Recent analyst sentiment towards Quest Diagnostics (DGX) appears positive, with some reports adjusting price targets upward and maintaining buy ratings. Analysts often cite the company's outperformance and strong investor confidence as reasons for their outlook. The company's ability to exceed revenue and earnings expectations, fueled by organic growth and strategic initiatives, contributes to this favorable view.
Learn More
Introduction to Charts - Line, Bar & Candlestick Charts Explained A complete beginner-to-intermediate guide to understanding how charts summarize price action, including line charts, bar charts, candlesticks, and data intervals.
How Is Bitcoin Priced? Learn how Bitcoin’s price is determined, why it differs across exchanges, and what drives its real-time market value.
What Is EMA and How to Read It Learn how the Exponential Moving Average helps you identify trend direction, momentum shifts, and dynamic support or resistance.
Break of Structure (BOS) and Change of Character (CHoCH) Explained Learn how Break of Structure (BOS) and Change of Character (CHoCH) reveal trend continuation and reversals - and how smart money traders use them with liquidity and imbalances.
The Basic Principle of Technical Analysis - The Trend Understand how trends form, why they matter, how they are identified, and the core assumptions technical analysts rely on when studying market price behavior.
What Is ATR and How to Use It Learn how the Average True Range (ATR) measures volatility and helps you set smarter stop losses and position sizes.