Quest Diagnostics (NYSE:DGX) Releases Earnings Results, Beats Expectations By $0.30 EPS

Quest Diagnostics (NYSE:DGX) released its earnings results on Thursday. The medical research company reported $3.12 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.82 by $0.30, FiscalAI reports. Quest Diagnostics had a return on equity of 16.01% and a net margin of 9.18%.The company had revenue of $3.04 billion during the quarter, compared to analyst estimates of $2.97 billion. During the same quarter in the prior year, the company earned $2.62 earnings per share. The company’s revenue for the quarter was up 10.2% on a year-over-year basis. Quest Diagnostics updated its FY 2026 guidance to 11.050-11.250 EPS.

Here are the key takeaways from Quest Diagnostics’ conference call:

• Quest Diagnostics reported second-quarter revenue growth of 10.2% to $3.04 billion, with adjusted diluted EPS up 19.1%, and said the results were driven by broad demand across physician, hospital and consumer channels.
• The company raised full-year 2026 guidance, now expecting revenue of $11.95 billion-$12.05 billion and adjusted EPS of $11.05-$11.25, citing strong first-half performance and continued momentum.
• Management said volume trends remain strong, with physician, hospital and consumer channels all growing; hospital revenues were up in double digits, and Quest sees a healthy pipeline for more co-lab and outreach deals.
• The company said reimbursement and pricing were broadly stable, with overall pricing roughly flat year over year and no meaningful change in bad debt or patient collections despite broader hospital-sector concerns.
• Quest highlighted continued progress in higher-growth advanced diagnostics, including Haystack MRD receiving New York State approval and expanded access via Flatiron integration, plus strong growth in brain health and cardiometabolic testing.

Quest Diagnostics Stock Performance

DGX opened at $228.05 on Friday. The stock’s 50 day moving average price is $203.23 and its two-hundred day moving average price is $197.59. The firm has a market capitalization of $25.24 billion, a P/E ratio of 24.21, a price-to-earnings-growth ratio of 2.61 and a beta of 0.58. The company has a quick ratio of 1.08, a current ratio of 1.59 and a debt-to-equity ratio of 0.72. Quest Diagnostics has a 12-month low of $165.78 and a 12-month high of $237.78.

Quest Diagnostics Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Wednesday, July 22nd. Investors of record on Wednesday, July 8th were paid a dividend of $0.86 per share. The ex-dividend date was Wednesday, July 8th. This represents a $3.44 annualized dividend and a yield of 1.5%. Quest Diagnostics’s dividend payout ratio is presently 36.52%.

More Quest Diagnostics News

Here are the key news stories impacting Quest Diagnostics this week:

• Positive Sentiment: Quest Diagnostics posted Q2 results that beat Wall Street expectations on both revenue and earnings, helped by stronger demand for routine diagnostic and preventive testing. The company also raised its full-year 2026 outlook, which investors are reading as evidence that growth is holding up well. Article: Quest Diagnostics Reports Second Quarter 2026 Financial Results; Raises Revenue and EPS Guidance for Full Year 2026
• Positive Sentiment: Mizuho raised its price target on DGX to $260 and kept an outperform rating, signaling confidence that the company can still outperform from here. Article: Quest Diagnostics price target raised by Mizuho
• Positive Sentiment: Truist also lifted its target to $250, while Robert W. Baird increased its target to $255, reflecting continued analyst optimism after the earnings beat and raised guidance. Article: Quest Diagnostics price target raised by Truist Financial Corporation
• Neutral Sentiment: Several market commentary pieces highlighted DGX as a momentum stock and noted the shares recently reached a 52-week high. That supports bullish sentiment, but these articles are mostly follow-up coverage rather than a new fundamental catalyst. Article: Are You Looking for a Top Momentum Pick? Why Quest Diagnostics (DGX) Is a Great Choice

Analyst Upgrades and Downgrades

DGX has been the subject of several research analyst reports. UBS Group reissued a “neutral” rating and issued a $232.00 price objective on shares of Quest Diagnostics in a research note on Friday. Truist Financial upped their target price on Quest Diagnostics from $225.00 to $250.00 and gave the company a “hold” rating in a report on Friday. Mizuho increased their price target on shares of Quest Diagnostics from $235.00 to $260.00 and gave the stock an “outperform” rating in a research report on Friday. Weiss Ratings upgraded shares of Quest Diagnostics from a “buy (b)” rating to a “buy (b+)” rating in a report on Thursday, July 9th. Finally, Jefferies Financial Group reaffirmed a “buy” rating and set a $245.00 price objective on shares of Quest Diagnostics in a research report on Thursday. Six analysts have rated the stock with a Buy rating and six have given a Hold rating to the company’s stock. Based on data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $231.73.

Insider Buying and Selling at Quest Diagnostics

In related news, SVP Karthik Kuppusamy sold 8,147 shares of the business’s stock in a transaction dated Thursday, June 4th. The stock was sold at an average price of $200.00, for a total transaction of $1,629,400.00. Following the transaction, the senior vice president directly owned 13,510 shares in the company, valued at $2,702,000. The trade was a 37.62% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO J. E. Davis sold 10,000 shares of the company’s stock in a transaction that occurred on Monday, June 1st. The shares were sold at an average price of $194.14, for a total value of $1,941,400.00. Following the completion of the transaction, the chief executive officer directly owned 132,423 shares of the company’s stock, valued at approximately $25,708,601.22. This trade represents a 7.02% 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. Company insiders own 0.88% of the company’s stock.

Institutional Trading of Quest Diagnostics

Institutional investors and hedge funds have recently modified their holdings of the company. Quattro Advisors LLC bought a new position in Quest Diagnostics in the fourth quarter worth $25,000. DV Equities LLC bought a new stake in Quest Diagnostics in the 4th quarter valued at $27,000. Caitong International Asset Management Co. Ltd bought a new stake in Quest Diagnostics in the 3rd quarter valued at $33,000. State of Wyoming raised its stake in shares of Quest Diagnostics by 89.6% in the 4th quarter. State of Wyoming now owns 201 shares of the medical research company’s stock valued at $35,000 after buying an additional 95 shares in the last quarter. Finally, Quarry LP raised its stake in shares of Quest Diagnostics by 156.0% in the 3rd quarter. Quarry LP now owns 279 shares of the medical research company’s stock valued at $53,000 after buying an additional 170 shares in the last quarter. 88.06% of the stock is currently owned by institutional investors.

About Quest Diagnostics

Quest Diagnostics (NYSE: DGX) is a leading provider of diagnostic information services that supports clinical decision-making for patients, physicians and healthcare organizations. The company operates a network of clinical laboratories and patient service centers that perform a broad range of laboratory tests and diagnostic assays used in routine care, disease diagnosis, monitoring and screening.

Its services span core clinical laboratory testing, anatomic pathology, molecular and genomic diagnostics, infectious disease testing and toxicology.