Education
About Us
Working with TipRanks
Follow Us
Quest Diagnostics (DGX)
:DGX
Top Page
Quest Diagnostics
(NYSE:DGX)
Select Model
Select Model
Rating:73Outperform
Price Target:
$203.00
▲(12.62% Upside)
Quest Diagnostics receives a strong overall score due to its solid financial performance and positive earnings call, which highlighted strategic growth and raised guidance. While technical indicators are neutral and valuation is moderate, the company's strategic acquisitions and operational improvements position it well for future growth.
Positive Factors
Revenue Growth
Quest Diagnostics' strong revenue growth, driven by organic expansion and acquisitions, indicates robust demand for its services and effective strategic execution.
Operational Improvements
Quest's focus on automation and cost-saving initiatives enhances operational efficiency, supporting long-term profitability and competitive positioning.
Strategic Acquisitions
Strategic acquisitions bolster Quest's market presence and service offerings, driving sustained growth and expanding its diagnostic capabilities.
Negative Factors
Revenue Volatility
Revenue volatility poses a risk to consistent financial performance, potentially impacting long-term planning and investment strategies.
Legislative Impact
Potential legislative changes could affect Quest's volumes and profitability, introducing uncertainty in regulatory compliance and market dynamics.
Debt Fluctuations
Fluctuating debt levels can strain financial flexibility and increase risk, potentially impacting Quest's ability to finance growth initiatives.
Quest Diagnostics (DGX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$20.27B
Dividend Yield1.75%
Average Volume (3M)995.30K
Price to Earnings (P/E)21.4
Beta (1Y)0.21
Revenue Growth13.74%
EPS Growth14.87%
CountryUS
Employees55,000
SectorHealthcare
Sector Strength45
IndustryMedical - Diagnostics & Research
Share Statistics
EPS (TTM)2.60
Shares Outstanding111,242,360
10 Day Avg. Volume1,270,225
30 Day Avg. Volume995,297
Financial Highlights & Ratios
PEG Ratio6.95
Price to Book (P/B)2.47
Price to Sales (P/S)1.70
P/FCF Ratio18.42
Enterprise Value/Market Cap1.36
Enterprise Value/Revenue2.54
Enterprise Value/Gross Profit7.64
Enterprise Value/Ebitda12.91
Forecast
1Y Price Target
$201.70Price Target Upside11.89% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering11
Quest Diagnostics Business Overview & Revenue Model
Company DescriptionQuest Diagnostics Incorporated provides diagnostic testing, information, and services in the United States and internationally. The company develops and delivers diagnostic information services, such as routine testing, non-routine and advanced clinical testing, anatomic pathology testing, and other diagnostic information services. It offers diagnostic information services primarily under the Quest Diagnostics brand, as well as under the AmeriPath, Dermpath Diagnostics, ExamOne, and Quanum brands to patients, clinicians, hospitals, independent delivery networks, health plans, employers, direct contract entities, and accountable care organizations through a network of laboratories, patient service centers, phlebotomists in physician offices, call centers and mobile paramedics, nurses, and other health and wellness professionals. The company also provides risk assessment services for the life insurance industry; and healthcare organizations and clinicians robust information technology solutions. Quest Diagnostics Incorporated was founded in 1967 and is headquartered in Secaucus, New Jersey.
How the Company Makes MoneyQuest Diagnostics generates revenue primarily through its diagnostic testing services. The company earns money by performing laboratory tests for healthcare providers, hospitals, and patients, billing insurance companies and patients directly for these services. Key revenue streams include routine testing, which constitutes a significant portion of their business, and specialized testing, such as genetic and molecular diagnostics. Additionally, Quest Diagnostics has established partnerships with numerous healthcare organizations and payers, which help to expand their reach and enhance service offerings. The company also derives income from health and wellness programs, providing employers with testing services that promote employee health and manage healthcare costs.
Quest Diagnostics Key Performance Indicators (KPIs)
Any
Net Revenue Growth by Segment
Tracks the growth rate of revenue in each segment, highlighting areas of expansion or contraction and providing insight into the company’s strategic direction.
Tracks the growth rate of revenue in each segment, highlighting areas of expansion or contraction and providing insight into the company’s strategic direction.
Data provided by:
Main Street Data
Main Street DataQuest Diagnostics Earnings Call Summary
Earnings Call Date:Oct 21, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Jan 29, 2026
Earnings Call Sentiment Positive
Quest Diagnostics reported strong top-line and bottom-line growth driven by strategic acquisitions, operational improvements, and expansion in advanced diagnostics. While there were challenges related to tariffs, wage increases, and potential legislative impacts, the company managed these within its guidance and raised its full-year outlook.Q2-2025 Updates
Positive Updates
Strong Top-Line Growth
Quest Diagnostics reported a 15.2% increase in top-line growth, with 5.2% organic revenue growth driven by innovative clinical solutions and expanded business from enterprise accounts.
Operational Excellence and Cost Savings
The company targeted 3% annual cost savings through its Invigorate program, deploying automation and AI technologies. Employee retention improved, contributing to productivity gains.
Advanced Diagnostics Expansion
Double-digit revenue growth was achieved in advanced cardiometabolic, autoimmune, and brain health diagnostics, with significant growth in Alzheimer's disease testing.
Acquisitions Driving Growth
Acquisitions contributed significantly to growth, particularly the LifeLabs acquisition, which accounted for approximately 8% of the 10% M&A-driven growth.
Increased Full-Year 2025 Guidance
The full-year revenue guidance was raised to between $10.8 billion and $10.92 billion, with adjusted EPS expected to be in the range of $9.63 to $9.83.
Negative Updates
Tariffs and Wage Increases Impact
The company faced impacts from tariffs in China and Europe and wage increases, although these were managed within the updated guidance.
Revenue Per Requisition Decline
Total revenue per requisition decreased by 0.4% compared to the prior year, primarily due to the impact of the LifeLabs acquisition, which carries a lower revenue per requisition.
Potential Impact of Legislative Changes
Concerns were raised about the potential impact of the 'One Big Beautiful Bill' and PAMA changes, with possible effects on the number of insured individuals and Quest's volumes.
Company Guidance
During the Quest Diagnostics second quarter 2025 conference call, the company raised its full-year 2025 guidance, highlighting a strong quarter with a 15.2% increase in top-line growth, including a 5.2% organic revenue growth. Adjusted earnings per share rose by 11.5% due to productivity gains from automation and digitization. The company reported consolidated revenues of $2.76 billion, with diagnostic information services up 15.7%. Total volume increased by 16.3%, driven primarily by acquisitions like LifeLabs, which contributed approximately 8% to the 10% growth from M&A. The adjusted EPS for the quarter was $2.62, with cash from operations increasing 67.1% year-over-year. The updated full-year guidance projects revenues between $10.8 billion and $10.92 billion, with adjusted EPS in the range of $9.63 to $9.83. Organic revenue growth is expected to be between 3.5% to 4%, with further contributions from acquisitions. The company also emphasized its focus on operational improvements through Project Nova and the Invigorate program, aiming for annual cost savings and productivity improvements of 3%.Quest Diagnostics Financial Statement Overview
Summary
Quest Diagnostics presents a solid financial profile with strong profitability and efficient cash flow management. While revenue growth has been mixed, the company maintains a healthy operational structure with strong margins. The balance sheet indicates moderate leverage, which should be monitored to avoid potential risks. Overall, Quest Diagnostics is well-positioned but would benefit from improved revenue growth consistency.Income Statement
Quest Diagnostics shows strong profitability with a stable gross profit margin of approximately 33% and a net profit margin of 12.04% TTM. However, revenue growth has been inconsistent, with a slight decline from 2022 to 2024, but a positive uptick in 2025. The EBIT and EBITDA margins are healthy, reflecting efficient operations, but there is room for improvement in revenue growth consistency.75
Positive
Balance Sheet
The company's balance sheet is moderately leveraged with a debt-to-equity ratio of 0.88 TTM. The equity ratio of 45.27% indicates a stable equity base, but the increasing debt levels over the years may pose potential risks. Return on equity is strong at 17.53% TTM, showing effective use of equity to generate profits.70
Positive
Cash Flow
Quest Diagnostics demonstrates robust cash flow management with a consistent operating cash flow and a free cash flow to net income ratio of 0.97 TTM, indicating efficient cash conversion. Free cash flow growth is strong, though it has fluctuated in the past amid capital expenditures and financing activities.80
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 10.85B | 9.87B | 9.25B | 9.88B | 10.79B | 9.44B |
| Gross Profit | 3.61B | 3.24B | 3.07B | 3.43B | 4.21B | 3.63B |
| EBITDA | 2.14B | 1.89B | 1.73B | 1.82B | 3.16B | 2.41B |
| Net Income | 969.00M | 871.00M | 854.00M | 946.00M | 2.00B | 1.43B |
Balance Sheet | ||||||
| Total Assets | 16.20B | 16.15B | 14.02B | 12.84B | 13.61B | 14.03B |
| Cash, Cash Equivalents and Short-Term Investments | 432.00M | 549.00M | 686.00M | 315.00M | 872.00M | 1.16B |
| Total Debt | 6.38B | 7.09B | 5.50B | 4.71B | 4.77B | 4.81B |
| Total Liabilities | 8.82B | 9.26B | 7.60B | 6.83B | 7.05B | 7.13B |
| Stockholders Equity | 7.26B | 6.78B | 6.31B | 5.89B | 6.44B | 6.76B |
Cash Flow | ||||||
| Free Cash Flow | 1.39B | 909.00M | 864.00M | 1.31B | 1.83B | 1.59B |
| Operating Cash Flow | 1.89B | 1.33B | 1.27B | 1.72B | 2.23B | 2.00B |
| Investing Cash Flow | -942.00M | -2.55B | -1.06B | -543.00M | 21.00M | -772.00M |
| Financing Cash Flow | -1.27B | 1.08B | 160.00M | -1.73B | -2.54B | -1.27B |
Quest Diagnostics Technical Analysis
Neutral
180.26
Price Trends
182.43
Negative
177.90
Positive
172.11
Positive
Market Momentum
0.26
Positive
44.22
Neutral
13.10
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DGX, the sentiment is Neutral. The current price of 180.26 is below the 20-day moving average (MA) of 183.55, below the 50-day MA of 182.43, and above the 200-day MA of 172.11, indicating a neutral trend. The MACD of 0.26 indicates Positive momentum. The RSI at 44.22 is Neutral, neither overbought nor oversold. The STOCH value of 13.10 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for DGX.
Quest Diagnostics Risk Analysis
Quest Diagnostics disclosed 27 risk factors in its most recent earnings report. Quest Diagnostics reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Quest Diagnostics Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| ― | $37.49B | 31.49 | 19.80% | ― | 3.53% | -10.72% | |
| ― | $20.27B | 21.38 | 13.69% | 1.75% | 13.74% | 14.87% | |
| ― | $11.48B | 41.96 | 3.12% | 0.29% | 3.33% | 32.86% | |
| ― | $26.42B | -101.10 | -24.32% | ― | 44.38% | 22.87% | |
| ― | $15.39B | 12.71 | 68.11% | ― | -3.32% | ― | |
| ― | $12.24B | -11.71 | -35.51% | ― | 12.56% | -464.28% | |
| ― | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
DGX
Quest Diagnostics
180.26
27.19
17.76%
EXAS
Exact Sciences
63.50
-6.14
-8.82%
ILMN
Illumina
100.35
-45.65
-31.27%
RVTY
Revvity
97.16
-20.27
-17.26%
IQV
IQVIA Holdings
217.43
1.09
0.50%
NTRA
Natera
192.22
67.48
54.10%
Quest Diagnostics Corporate Events
Quest Diagnostics Reports Strong Q3 2025 Results
Oct 22, 2025
Quest Diagnostics Incorporated, a leading provider of diagnostic information services, announced its third-quarter financial results for 2025, highlighting significant growth in revenue and earnings. The company operates in the healthcare sector, offering diagnostic insights from laboratory testing to improve health outcomes.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.