Quest Diagnostics (NYSE:DGX) Announces FY 2026 Earnings Guidance

Key Points

• Quest Diagnostics raised its FY 2026 outlook, projecting adjusted EPS of $11.25–$11.35 and revenue of approximately $12.1 billion, both above analyst consensus.
• Third-quarter results exceeded expectations, with revenue increasing 10% year over year to $3.10 billion and EPS reaching $3.00 versus the $2.87 consensus estimate. Organic requisition volume rose 14.4%, supporting management’s growth outlook.
• The company disclosed unauthorized access to its Quanum LSM system containing patient records; the scope, potential costs and regulatory or reputational consequences remain under investigation.

Quest Diagnostics (NYSE:DGX - Get Free Report) updated its FY 2026 earnings guidance on Friday morning. The company provided earnings per share guidance of 11.250-11.350 for the period, compared to the consensus EPS estimate of 11.190. The company issued revenue guidance of $12.1 billion, compared to the consensus revenue estimate of $12.0 billion.

Analyst Upgrades and Downgrades

A number of analysts have issued reports on the stock. UBS Group reiterated a "neutral" rating and issued a $250.00 price target on shares of Quest Diagnostics in a report on Monday. Argus set a $260.00 price objective on Quest Diagnostics in a research report on Wednesday, July 29th. JPMorgan Chase & Co. boosted their target price on Quest Diagnostics from $220.00 to $250.00 and gave the stock a "neutral" rating in a research report on Tuesday, July 28th. Jefferies Financial Group restated a "buy" rating and set a $245.00 price target on shares of Quest Diagnostics in a report on Thursday, July 23rd. Finally, Wall Street Zen raised shares of Quest Diagnostics from a "hold" rating to a "buy" rating in a report on Tuesday, July 28th. One investment analyst has rated the stock with a Strong Buy rating, three have given a Buy rating and six have issued a Hold rating to the stock. Based on data from MarketBeat, Quest Diagnostics presently has a consensus rating of "Moderate Buy" and a consensus target price of $244.27.

Quest Diagnostics Stock Up 0.1%

Shares of DGX stock traded up $0.18 during mid-day trading on Friday, hitting $243.46. The stock had a trading volume of 36,230 shares, compared to its average volume of 977,785. The firm has a market capitalization of $26.87 billion, a P/E ratio of 25.73, a price-to-earnings-growth ratio of 2.16 and a beta of 0.54. Quest Diagnostics has a 12-month low of $171.18 and a 12-month high of $248.84. The company has a debt-to-equity ratio of 0.72, a current ratio of 1.59 and a quick ratio of 1.46. The firm's 50-day moving average is $237.53 and its two-hundred day moving average is $216.64.

Quest Diagnostics (NYSE:DGX - Get Free Report) last posted its quarterly earnings data on Thursday, October 22nd. The medical research company reported $3.00 EPS for the quarter, topping the consensus estimate of $2.87 by $0.13. The firm had revenue of $3.10 billion during the quarter, compared to analyst estimates of $3.05 billion. Quest Diagnostics had a net margin of 9.18% and a return on equity of 16.01%. Quest Diagnostics's revenue was up 10.0% on a year-over-year basis. During the same quarter in the previous year, the business posted $2.60 EPS. On average, analysts predict that Quest Diagnostics will post 11.15 earnings per share for the current fiscal year.

Quest Diagnostics Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Wednesday, October 21st. Stockholders of record on Tuesday, October 6th were paid a $0.86 dividend. This represents a $3.44 annualized dividend and a dividend yield of 1.4%. The ex-dividend date of this dividend was Tuesday, October 6th. Quest Diagnostics's dividend payout ratio (DPR) is currently 36.52%.

Insider Activity

In related news, CEO J. E. Davis sold 10,000 shares of the stock in a transaction on Tuesday, September 1st. The stock was sold at an average price of $242.72, for a total value of $2,427,200.00. Following the transaction, the chief executive officer owned 122,423 shares of the company's stock, valued at $29,714,510.56. This represents a 7.55% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP Mark E. Delaney sold 1,600 shares of the company's stock in a transaction on Tuesday, July 28th. The shares were sold at an average price of $235.18, for a total transaction of $376,288.00. Following the completion of the sale, the senior vice president owned 10,335 shares of the company's stock, valued at approximately $2,430,585.30. This trade represents a 13.41% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders have sold 34,277 shares of company stock valued at $8,316,493. 0.88% of the stock is currently owned by insiders.

Key Headlines Impacting Quest Diagnostics

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

• Positive Sentiment: Third-quarter revenue rose 10.0% year over year to $3.10 billion, exceeding analyst expectations. Adjusted diluted EPS increased 15.4% to $3.00, also beating consensus estimates, while reported diluted EPS rose 28.7% to $2.78. Quest Diagnostics Reports Third Quarter 2026 Financial Results; Raises Revenue and EPS Guidance for Full Year 2026
• Positive Sentiment: Quest raised its 2026 guidance, now forecasting revenue of $12.065 billion to $12.105 billion, reported EPS of $10.21 to $10.31, and adjusted EPS of $11.25 to $11.35. The outlook reflects strong testing demand and improving margins. Quest Diagnostics Raises 2026 Earnings Guidance
• Positive Sentiment: Organic requisition volume climbed 14.4% during the quarter, and management expects consumer health revenue to grow more than 30% in 2026, suggesting broad-based demand and additional growth opportunities. Quest Diagnostics: 3 Key Takeaways for Long-Term Investors
• Neutral Sentiment: Despite beating estimates and raising guidance, some coverage characterized the quarter as merely adequate, indicating that investor expectations may already have been elevated and limiting the earnings-driven upside. Why Quest’s Good Enough Third Quarter Wasn’t Actually Enough
• Negative Sentiment: Quest disclosed unauthorized access to its Quanum LSM system, which contains patient records. The company is investigating the incident; the scope of affected information, potential costs, regulatory consequences, and reputational impact remain unclear. Quest Diagnostics Reports Unauthorized Access to Patient Records System

About Quest Diagnostics

Quest Diagnostics Incorporated NYSE: DGX is a provider of diagnostic information services. The company performs laboratory testing that helps physicians, hospitals and other healthcare providers diagnose, treat and monitor diseases and health conditions. Its services include routine blood and other specimen testing, pathology, molecular and genetic testing, and specialized diagnostic services.

Quest Diagnostics serves a broad range of customers, including hospitals, physician practices, health plans, employers, government agencies and individual consumers.

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