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Quest Diagnostics
(NYSE:DGX)
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Rating:70Outperform
Price Target:
$237.00
▲(21.53% Upside)
Action:Reiterated
Date:05/22/26
The score is driven primarily by solid underlying financial stability (steady margins, positive free cash flow, improving but still notable leverage) and a strong, guidance-raising earnings update pointing to continued growth and margin expansion. Technical signals are mixed/neutral and valuation is reasonable rather than compelling, keeping the overall rating in the solid-but-not-top-tier range.
Positive Factors
Sustained Revenue & Volume Growth
Consistent double-digit organic revenue and requisition growth demonstrates durable demand and effective commercial execution. Volume gains, supported by Corewell and Fresenius collaborations and stronger consumer channels, create predictable specimen flow and underpin revenue visibility and guide upgrades over the next several quarters.
Negative Factors
Meaningful Leverage Remains
Debt near parity with equity restricts strategic flexibility and increases vulnerability to rate or reimbursement shocks. Although leverage has improved from 2024, ongoing debt obligations limit capital allocation to M&A, buybacks or faster capex, and raise refinancing and interest-cost sensitivity over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Sustained Revenue & Volume Growth
Consistent double-digit organic revenue and requisition growth demonstrates durable demand and effective commercial execution. Volume gains, supported by Corewell and Fresenius collaborations and stronger consumer channels, create predictable specimen flow and underpin revenue visibility and guide upgrades over the next several quarters.
Read all positive factors
Quest Diagnostics Key Performance Indicators (KPIs)
Any
Revenue by Segment
Shows the revenue contribution from each business segment, indicating which areas are the most lucrative and where the company might focus future growth efforts.
Shows the revenue contribution from each business segment, indicating which areas are the most lucrative and where the company might focus future growth efforts.
Data provided by:
The Fly
The FlyQuest Diagnostics (DGX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$22.96B
Dividend Yield1.8%
Average Volume (3M)804.82K
Price to Earnings (P/E)22.6
Beta (1Y)0.06
Revenue Growth11.03%
EPS Growth14.34%
CountryUS
Employees55,000
SectorHealthcare
Sector Strength45
IndustryMedical - Diagnostics & Research
Share Statistics
EPS (TTM)9.17
Shares Outstanding110,696,430
10 Day Avg. Volume723,516
30 Day Avg. Volume804,818
Financial Highlights & Ratios
PEG Ratio1.43
Price to Book (P/B)2.69
Price to Sales (P/S)1.75
P/FCF Ratio14.17
Enterprise Value/Market Cap1.24
Enterprise Value/Revenue2.53
Enterprise Value/Gross Profit7.60
Enterprise Value/Ebitda13.41
Forecast
1Y Price Target
$226.50Price Target Upside16.14% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering10
EPS Forecast (FY)10.75
Revenue Forecast (FY)$11.86B
Quest Diagnostics Business Overview & Revenue Model
Company Description
Quest Diagnostics Incorporated, founded in 1967 and headquartered in Secaucus, New Jersey, is a premier provider of diagnostic testing, information, and related services, serving clients both domestically and internationally. Its core business inv...
How the Company Makes Money
Quest Diagnostics primarily makes money by performing diagnostic tests and being paid for those services by third-party payers (commercial insurers, Medicare and Medicaid) and by patients (out-of-pocket amounts such as copays and deductibles). Its...
Quest Diagnostics Earnings Call Summary
Earnings Call Date:Apr 21, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 23, 2026
Earnings Call Sentiment Positive
The call reported broadly strong commercial and operational performance: double-digit volume growth, ~9% organic revenue growth, margin expansion on an adjusted basis, AI/automation-driven productivity gains, and raised full‑year guidance. Near-term headwinds include mix-driven revenue-per-requisition pressure from large collaboration ramps, lower Q1 cash flow, wage/weather/fuel cost impacts, Project Nova investment dilution, and ongoing regulatory/Medicare rate uncertainty. Overall, the positives (revenue/volume growth, EPS improvement, strategic partnerships and productivity gains) outweigh the described challenges.Positive Updates
Strong Revenue Growth
Consolidated revenues of $2.9 billion, up 9.2% year-over-year; consolidated organic revenue growth of 9.0% in Q1.
Negative Updates
Revenue per Requisition Impacted by Business Mix
Total revenue per requisition declined 1.3% year-over-year due to a higher proportion of routine tests from Fresenius and Corewell collaborations; excluding those relationships, revenue per requisition rose ~2.5%.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Revenue Growth
Consolidated revenues of $2.9 billion, up 9.2% year-over-year; consolidated organic revenue growth of 9.0% in Q1.
Read all positive updates
Company Guidance
Quest raised full-year 2026 guidance to revenues of $11.78–$11.90 billion (growth 6.8%–7.8%), reported EPS $9.58–$9.78 and adjusted EPS $10.63–$10.83; cash from operations ~ $1.75 billion; capital expenditures ~ $550 million; share count and interest expense assumed consistent with 2025; operating margin expected to expand and guidance excludes prospective M&A. Management embedded contributions from Corewell (~$250M) and Fresenius (~$80–$100M) — together ~3.3% of revenue in the guide — and noted Project Nova dilution of ~$0.25 in 2026 (with >60% of Nova expenses in H2 and first wave rollout in fall 2027), an embedded fuel headwind of $7M–$10M (~$0.05–$0.07 EPS), and a continued Invigorate target of ~3% annual cost savings; the raise is supported by Q1 results (Q1 revenue $2.9B, +9.2%; organic revenue +9%; Q1 adjusted EPS $2.50, ~13% growth; adjusted operating margin 15.4%; total volume +10.9%).Quest Diagnostics Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
68
Positive
Cash Flow
63
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 11.28B | 11.04B | 9.87B | 9.25B | 9.88B | 10.79B |
| Gross Profit | 3.75B | 3.52B | 3.24B | 3.07B | 3.43B | 4.21B |
| EBITDA | 2.12B | 2.19B | 1.89B | 1.73B | 1.82B | 3.16B |
| Net Income | 1.02B | 992.00M | 871.00M | 854.00M | 946.00M | 2.00B |
Balance Sheet | ||||||
| Total Assets | 16.67B | 16.23B | 16.15B | 14.02B | 12.84B | 13.61B |
| Cash, Cash Equivalents and Short-Term Investments | 393.00M | 420.00M | 549.00M | 686.00M | 315.00M | 872.00M |
| Total Debt | 6.98B | 6.92B | 7.09B | 5.50B | 4.71B | 4.77B |
| Total Liabilities | 9.01B | 8.94B | 9.26B | 7.60B | 6.83B | 7.05B |
| Stockholders Equity | 7.37B | 7.17B | 6.78B | 6.31B | 5.89B | 6.44B |
Cash Flow | ||||||
| Free Cash Flow | 1.33B | 1.36B | 909.00M | 864.00M | 1.31B | 1.83B |
| Operating Cash Flow | 1.85B | 1.89B | 1.33B | 1.27B | 1.72B | 2.23B |
| Investing Cash Flow | -668.00M | -631.00M | -2.55B | -1.06B | -543.00M | 21.00M |
| Financing Cash Flow | -979.00M | -1.39B | 1.08B | 160.00M | -1.73B | -2.54B |
Quest Diagnostics Technical Analysis
Positive
195.02
Price Trends
197.49
Positive
197.96
Positive
189.76
Positive
Market Momentum
3.69
Positive
55.93
Neutral
17.81
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DGX, the sentiment is Positive. The current price of 195.02 is below the 20-day moving average (MA) of 205.23, below the 50-day MA of 197.49, and above the 200-day MA of 189.76, indicating a bullish trend. The MACD of 3.69 indicates Positive momentum. The RSI at 55.93 is Neutral, neither overbought nor oversold. The STOCH value of 17.81 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
74 Outperform | $8.55B | 21.96 | 11.28% | 3.31% | 4.79% | 333.61% | |
73 Outperform | $38.66B | -165.61 | -15.13% | ― | 36.59% | -11.94% | |
70 Outperform | $22.96B | 22.62 | 14.11% | 1.80% | 11.03% | 14.34% | |
69 Neutral | $36.96B | 47.77 | 8.04% | ― | 26.39% | -28.79% | |
52 Neutral | $21.22B | -47.21 | 184.27% | ― | 39.56% | -0.63% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
DGX
Quest Diagnostics
207.44
41.97
25.37%
QGEN
Qiagen
41.51
-6.42
-13.39%
WAT
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376.43
72.25
23.75%
NTRA
Natera
269.95
111.77
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GH
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160.05
110.28
221.58%
Quest Diagnostics Corporate Events
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
Quest Diagnostics Shareholders Back Board, Pay and Auditor
Positive
May 21, 2026
At its May 20, 2026 annual meeting of stockholders, Quest Diagnostics shareholders elected all nominated directors to serve until the 2027 annual meeting, with candidates including Robert B. Carter, James E. Davis, Luis A. Diaz, Jr., M.D., and CEO...
Private Placements and Financing
Quest Diagnostics Issues $500 Million Senior Unsecured Notes
Neutral
May 8, 2026
On May 6, 2026, Quest Diagnostics issued $500 million of 5.000% senior unsecured notes due June 30, 2036, with interest payable semiannually beginning December 30, 2026. The notes, which rank equally with the company’s other senior unsecured...
Business Operations and StrategyPrivate Placements and Financing
Quest Diagnostics Prices $500 Million Senior Notes Offering
Positive
May 1, 2026
On April 27, 2026, Quest Diagnostics priced a $500 million public offering of 5.000% senior notes due 2036 under its shelf registration statement. The company entered into an underwriting agreement with Goldman Sachs Co. LLC, J.P. Morgan Securiti...
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.