Q2 EPS Estimates for Quest Diagnostics Cut by Zacks Research

Key Points

• Zacks Research cut its Q2 2026 EPS estimate for Quest Diagnostics to $2.77 from $2.84, signaling a slightly more cautious near-term outlook. The firm also trimmed some longer-term earnings forecasts.
• Quest Diagnostics recently beat quarterly expectations, reporting $2.50 EPS on revenue of $2.90 billion versus estimates of $2.37 EPS and $2.83 billion in revenue. The company also raised its FY2026 guidance to $10.63–$10.83 EPS.
• Despite the lowered estimate, analyst sentiment remains mixed but constructive, with several firms raising price targets and the stock maintaining a Moderate Buy consensus. The average price target stands at $216.58, above the recent share price of $187.80.

Quest Diagnostics Incorporated (NYSE:DGX - Free Report) - Investment analysts at Zacks Research cut their Q2 2026 earnings per share (EPS) estimates for Quest Diagnostics in a research note issued on Tuesday, May 12th. Zacks Research analyst Team now expects that the medical research company will post earnings of $2.77 per share for the quarter, down from their previous forecast of $2.84. The consensus estimate for Quest Diagnostics' current full-year earnings is $10.72 per share. Zacks Research also issued estimates for Quest Diagnostics' Q1 2027 earnings at $2.62 EPS, Q2 2027 earnings at $2.86 EPS and Q4 2027 earnings at $3.05 EPS.

Other analysts have also recently issued research reports about the company. UBS Group lifted their target price on Quest Diagnostics from $210.00 to $220.00 and gave the stock a "neutral" rating in a research report on Wednesday, April 22nd. Robert W. Baird boosted their price objective on Quest Diagnostics from $224.00 to $229.00 and gave the company a "neutral" rating in a research note on Wednesday, April 22nd. Barclays increased their price objective on Quest Diagnostics from $225.00 to $230.00 and gave the company an "overweight" rating in a report on Wednesday, April 22nd. Wall Street Zen upgraded shares of Quest Diagnostics from a "hold" rating to a "buy" rating in a research report on Saturday, April 25th. Finally, Mizuho upped their price target on shares of Quest Diagnostics from $210.00 to $235.00 and gave the company an "outperform" rating in a research report on Thursday, February 12th. Seven research analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the stock. Based on data from MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus price target of $216.58.

Quest Diagnostics Price Performance

Shares of NYSE:DGX opened at $187.80 on Friday. The company has a debt-to-equity ratio of 0.67, a current ratio of 1.18 and a quick ratio of 1.08. Quest Diagnostics has a 12 month low of $164.65 and a 12 month high of $213.50. The firm has a market capitalization of $20.79 billion, a P/E ratio of 20.75, a P/E/G ratio of 2.27 and a beta of 0.60. The company's fifty day moving average price is $196.15 and its 200 day moving average price is $189.94.

Quest Diagnostics (NYSE:DGX - Get Free Report) last announced its quarterly earnings results on Tuesday, April 21st. The medical research company reported $2.50 EPS for the quarter, beating the consensus estimate of $2.37 by $0.13. The company had revenue of $2.90 billion for the quarter, compared to analyst estimates of $2.83 billion. Quest Diagnostics had a net margin of 9.07% and a return on equity of 15.60%. The firm's revenue was up 9.2% on a year-over-year basis. During the same period in the prior year, the firm posted $1.94 earnings per share. Quest Diagnostics has set its FY 2026 guidance at 10.630-10.830 EPS.

Quest Diagnostics announced that its board has initiated a share buyback plan on Tuesday, February 10th that authorizes the company to buyback $1.00 billion in shares. This buyback authorization authorizes the medical research company to repurchase up to 4.7% of its stock through open market purchases. Stock buyback plans are generally an indication that the company's management believes its shares are undervalued.

Insider Buying and Selling

In related news, SVP Patrick Plewman sold 2,855 shares of the stock in a transaction on Thursday, March 5th. The stock was sold at an average price of $206.21, for a total transaction of $588,729.55. Following the completion of the sale, the senior vice president directly owned 15,198 shares of the company's stock, valued at $3,133,979.58. This trade represents a 15.81% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, SVP Michael E. Prevoznik sold 3,878 shares of the company's stock in a transaction on Thursday, March 5th. The stock was sold at an average price of $206.21, for a total transaction of $799,682.38. Following the transaction, the senior vice president owned 37,557 shares of the company's stock, valued at approximately $7,744,628.97. The trade was a 9.36% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 18,421 shares of company stock worth $3,790,214 over the last three months. 0.88% of the stock is owned by company insiders.

Institutional Investors Weigh In On Quest Diagnostics

A number of hedge funds have recently added to or reduced their stakes in the company. Brighton Jones LLC purchased a new stake in shares of Quest Diagnostics in the fourth quarter valued at approximately $323,000. Cresset Asset Management LLC lifted its holdings in Quest Diagnostics by 4.6% in the second quarter. Cresset Asset Management LLC now owns 4,003 shares of the medical research company's stock valued at $719,000 after acquiring an additional 176 shares during the period. Gabelli Funds LLC acquired a new stake in Quest Diagnostics in the second quarter valued at $287,000. Bank of Nova Scotia boosted its position in shares of Quest Diagnostics by 7.2% during the 2nd quarter. Bank of Nova Scotia now owns 14,339 shares of the medical research company's stock worth $2,576,000 after purchasing an additional 962 shares in the last quarter. Finally, Daiwa Securities Group Inc. increased its holdings in shares of Quest Diagnostics by 17.1% in the 2nd quarter. Daiwa Securities Group Inc. now owns 18,599 shares of the medical research company's stock valued at $3,341,000 after purchasing an additional 2,718 shares in the last quarter. Institutional investors and hedge funds own 88.06% of the company's stock.

Key Quest Diagnostics News

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

• Positive Sentiment: Zacks Research raised Quest Diagnostics’ earnings estimates for FY2026, Q1 2027, Q3 2027, and FY2027, indicating continued confidence in future profitability.
• Neutral Sentiment: Market commentary in Barron’s highlighted Quest Diagnostics as one of several stocks showing signs of recovery after a rough patch, which may support sentiment but is not a company-specific catalyst. Quest Diagnostics, Altria, and 12 More Stocks That Are Coming Back to Life After a Rough Patch
• Neutral Sentiment: A Yahoo Finance narrative article said Quest Diagnostics’ investment case is shifting with new valuation work, suggesting changing investor views rather than a direct fundamental update. How The Investment Narrative For Quest Diagnostics (DGX) Is Shifting With New Valuation Work
• Negative Sentiment: Zacks Research cut estimates for Q2 2026, Q2 2027, and slightly reduced FY2028 EPS, which could pressure the stock by signaling some caution about near-term growth and margin trends.

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.

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