Quest Diagnostics (DGX)
NYSE:DGX
Top Page
Quest Diagnostics
(NYSE:DGX)
Select Model
Select Model
Rating:70Neutral
Price Target:
$221.00
▲(15.40% Upside)
Action:ReiteratedDate:03/13/26
DGX scores as solid overall, driven mainly by steady financial quality and a constructive 2026 outlook (guided growth and margin expansion). The score is tempered by structurally lower margins vs prior peaks, softer cash conversion, and mixed near-term technical momentum, while valuation appears reasonable but not a standout.
Positive Factors
Revenue growth & guidance
Management's 2026 revenue guidance (6.0%–7.1% growth) and recent re-acceleration indicate sustainable demand across physician, hospital and consumer channels. Over 2–6 months this supports durable top-line momentum, underpinned by national lab scale and major partnerships that drive recurring volume.
Negative Factors
Structural margin compression
Margins remain materially below prior peak levels, reflecting mix shifts to high-volume lower-rev relationships and pricing pressures. Persistent margin compression limits free cash flow and reinvestment capacity, meaning margin recovery will require sustained higher-margin test growth or continued efficiency gains.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue growth & guidance
Management's 2026 revenue guidance (6.0%–7.1% growth) and recent re-acceleration indicate sustainable demand across physician, hospital and consumer channels. Over 2–6 months this supports durable top-line momentum, underpinned by national lab scale and major partnerships that drive recurring volume.
Read all positive factors
Quest Diagnostics (DGX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$21.04B
Dividend Yield1.8%
Average Volume (3M)791.99K
Price to Earnings (P/E)19.4
Beta (1Y)0.16
Revenue Growth13.74%
EPS Growth14.87%
CountryUS
Employees55,000
SectorHealthcare
Sector Strength45
IndustryMedical - Diagnostics & Research
Share Statistics
EPS (TTM)2.42
Shares Outstanding109,866,320
10 Day Avg. Volume712,233
30 Day Avg. Volume791,985
Financial Highlights & Ratios
PEG Ratio1.42
Price to Book (P/B)2.69
Price to Sales (P/S)1.75
P/FCF Ratio14.17
Enterprise Value/Market Cap1.32
Enterprise Value/Revenue2.51
Enterprise Value/Gross Profit7.55
Enterprise Value/Ebitda13.63
Forecast
1Y Price Target
$220.00Price Target Upside14.88% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering11
EPS Forecast (FY)10.63
Revenue Forecast (FY)$11.76B
Quest Diagnostics Business Overview & Revenue Model
Company Description
Quest 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 cl...
How the Company Makes Money
Quest Diagnostics primarily makes money by performing diagnostic tests and related services and receiving reimbursement from commercial insurers, government payers (e.g., Medicare/Medicaid), hospitals/health systems, employers, and out-of-pocket p...
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 Earnings Call Summary
Earnings Call Date:Feb 10, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 21, 2026
Earnings Call Sentiment Positive
The call conveyed strong organic growth, meaningful volume expansion, double-digit full-year revenue and EPS growth, a sizable increase in cash from operations, robust consumer and advanced diagnostics momentum, and clear cost-saving/automation progress. Near-term challenges include margin dilution from new low-margin CoLab ramping and implementation costs, a small decline in revenue-per-requisition driven by large-volume lower-price relationships, weather-related seasonality risk in early 2026, cash-flow comparatives due to one-time items, and unresolved structural/regulatory PAMA risks and some reimbursement uncertainties for new oncology tests. On balance the company presented positive operating and financial momentum with manageable near-term headwinds.Positive Updates
Quarterly Revenue Growth
Consolidated revenues of $2.81B in Q4, up 7.1% year-over-year; consolidated organic revenues grew 6.4%.
Negative Updates
Margin Pressure from New Relationships and Investments
Adjusted operating margin declined to 15.3% in Q4 from 15.6% last year; Corewell CoLab (~$250M revenue) is expected at low single-digit margins in 2026 (dilutive in 2026, improving to low-teens by 2027) and Project Nova investment will dilute EPS by ~ $0.25 in 2026.
Read all updates
Q4-2025 Updates
Positive
Negative
Quarterly Revenue Growth
Consolidated revenues of $2.81B in Q4, up 7.1% year-over-year; consolidated organic revenues grew 6.4%.
Read all positive updates
Company Guidance
Quest’s 2026 guidance targets revenues of $11.70–$11.82 billion (growth of 6.0%–7.1%, excluding prospective M&A), reported EPS of $9.45–$9.65 and adjusted EPS of $10.50–$10.70, cash from operations of ~ $1.75 billion and capital expenditures of ~ $550 million; management expects operating margin to expand year‑over‑year even while absorbing roughly $0.25 of EPS dilution from Project Nova, the greater-than‑expected January severe‑weather headwind (already contemplated in the guide), and the Corewell CoLab contribution of ~ $250 million of organic revenue in 2026 at low single‑digit margins (CoLab Solutions overall expected to approach ~$1 billion in annual revenue in 2026); the outlook assumes price roughly flat, share count and interest expense consistent with 2025, and lower 2026 operating cash flow versus 2025 reflecting about $150 million of one‑time benefits in 2025 and one additional payroll cycle in 2026 of ~ $120 million.Quest Diagnostics Financial Statement Overview
Summary
Income Statement
68
Positive
Balance Sheet
72
Positive
Cash Flow
64
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 11.04B | 9.87B | 9.25B | 9.88B | 10.79B |
| Gross Profit | 3.52B | 3.24B | 3.07B | 3.43B | 4.21B |
| EBITDA | 2.19B | 1.89B | 1.73B | 1.82B | 3.16B |
| Net Income | 992.00M | 871.00M | 854.00M | 946.00M | 2.00B |
Balance Sheet | |||||
| Total Assets | 16.23B | 16.15B | 14.02B | 12.84B | 13.61B |
| Cash, Cash Equivalents and Short-Term Investments | 420.00M | 549.00M | 686.00M | 315.00M | 872.00M |
| Total Debt | 6.92B | 7.09B | 5.50B | 4.71B | 4.77B |
| Total Liabilities | 8.94B | 9.26B | 7.60B | 6.83B | 7.05B |
| Stockholders Equity | 7.17B | 6.78B | 6.31B | 5.89B | 6.44B |
Cash Flow | |||||
| Free Cash Flow | 1.36B | 909.00M | 864.00M | 1.31B | 1.83B |
| Operating Cash Flow | 1.89B | 1.33B | 1.27B | 1.72B | 2.23B |
| Investing Cash Flow | -631.00M | -2.55B | -1.06B | -543.00M | 21.00M |
| Financing Cash Flow | -1.39B | 1.08B | 160.00M | -1.73B | -2.54B |
Quest Diagnostics Technical Analysis
Neutral
191.51
Price Trends
198.51
Negative
189.49
Positive
183.13
Positive
Market Momentum
-0.66
Positive
38.70
Neutral
49.28
Neutral
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 191.51 is below the 20-day moving average (MA) of 196.18, below the 50-day MA of 198.51, and above the 200-day MA of 183.13, indicating a neutral trend. The MACD of -0.66 indicates Positive momentum. The RSI at 38.70 is Neutral, neither overbought nor oversold. The STOCH value of 49.28 is Neutral, 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 |
|---|---|---|---|---|---|---|---|
72 Outperform | $8.43B | 23.17 | 11.85% | 3.31% | 5.32% | 336.29% | |
70 Neutral | $21.04B | 19.42 | 13.88% | 1.80% | 13.74% | 14.87% | |
66 Neutral | $31.16B | 35.17 | 28.52% | ― | 6.90% | 3.86% | |
64 Neutral | $27.36B | -150.47 | -15.28% | ― | 38.17% | -28.77% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
49 Neutral | $10.31B | -30.76 | 164.85% | ― | 30.38% | 24.17% |
* Healthcare Sector Average
DGX
Quest Diagnostics
191.51
26.49
16.05%
QGEN
Qiagen
40.89
-1.28
-3.04%
WAT
Waters
320.00
-13.77
-4.13%
NTRA
Natera
193.03
44.58
30.03%
GH
Guardant Health
78.60
33.44
74.05%
Quest Diagnostics Corporate Events
Business Operations and StrategyExecutive/Board Changes
Quest Diagnostics Adds Veteran Healthcare Leader to Board
Positive
Mar 12, 2026
On March 9, 2026, Quest Diagnostics’ board elected Timothy Wentworth, former CEO of Walgreens Boots Alliance, Evernorth Health Services and Express Scripts, as an independent director, expanding the board to 11 members. Wentworth, who receiv...
Business Operations and StrategyStock BuybackDividendsFinancial Disclosures
Quest Diagnostics Posts Strong 2025 Results, Boosts Shareholder Returns
Positive
Feb 10, 2026
On February 10, 2026, Quest Diagnostics reported that fourth-quarter 2025 revenue rose 7.1% year-on-year to $2.81 billion and full-year revenue increased 11.8% to $11.04 billion, with full-year diluted EPS up 13.8% to $8.75 and cash from operation...
Business Operations and Strategy
Quest Diagnostics Highlights Growth Strategy at Healthcare Conference
Positive
Jan 12, 2026
On January 12, 2026, Quest Diagnostics outlined its growth strategy and operational priorities at the 44th Annual J.P. Morgan Healthcare Conference, emphasizing its role in an approximately $89 billion U.S. lab market and a roughly $5 billion Cana...
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.