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

Key Points

• Quest Diagnostics beat second-quarter expectations, reporting adjusted EPS of $3.12 versus estimates of about $2.82 and revenue of $3.04 billion versus $2.97 billion expected.
• The company said revenue rose 10.2% year over year, driven by broad demand across physician, hospital, and consumer channels, with adjusted diluted EPS up 19.1%.
• Full-year 2026 guidance was raised to revenue of $11.95 billion-$12.05 billion and adjusted EPS of $11.05-$11.25, reflecting strong first-half results and continued momentum.

Quest Diagnostics (NYSE:DGX - Get Free Report) issued its earnings results on Thursday. The medical research company reported $3.12 EPS for the quarter, beating analysts' consensus estimates of $2.82 by $0.30, FiscalAI reports. The business had revenue of $3.04 billion during the quarter, compared to analyst estimates of $2.97 billion. Quest Diagnostics had a return on equity of 15.60% and a net margin of 9.07%.During the same period in the prior year, the company posted $2.62 earnings per share. Quest Diagnostics's revenue 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 Price Performance

Shares of NYSE DGX traded up $16.15 during midday trading on Thursday, reaching $225.98. 1,608,021 shares of the company traded hands, compared to its average volume of 951,134. The firm has a market cap of $25.02 billion, a PE ratio of 25.09, a PEG ratio of 2.46 and a beta of 0.58. The stock's 50-day simple moving average is $201.60 and its 200-day simple moving average is $196.99. Quest Diagnostics has a 12 month low of $165.78 and a 12 month high of $237.78. The company has a debt-to-equity ratio of 0.67, a quick ratio of 1.08 and a current ratio of 1.18.

Quest Diagnostics Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, July 22nd. Shareholders of record on Wednesday, July 8th were paid a dividend of $0.86 per share. This represents a $3.44 annualized dividend and a yield of 1.5%. The ex-dividend date was Wednesday, July 8th. Quest Diagnostics's dividend payout ratio is currently 38.01%.

Insider Buying and Selling at Quest Diagnostics

In other news, SVP Karthik Kuppusamy sold 8,147 shares of the company's stock in a transaction dated Thursday, June 4th. The shares were sold at an average price of $200.00, for a total value of $1,629,400.00. Following the sale, the senior vice president owned 13,510 shares of the company's stock, valued at approximately $2,702,000. This represents a 37.62% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO J. E. Davis sold 10,000 shares of the stock in a transaction dated Monday, June 1st. The stock was sold at an average price of $194.14, for a total transaction of $1,941,400.00. Following the sale, the chief executive officer owned 132,423 shares of the company's stock, valued at $25,708,601.22. This trade represents a 7.02% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.88% of the stock is currently owned by insiders.

Institutional Trading of Quest Diagnostics

Several hedge funds have recently modified their holdings of DGX. Brighton Jones LLC acquired a new stake in Quest Diagnostics in the fourth quarter worth about $323,000. Quarry LP lifted its position in Quest Diagnostics by 130.8% during the 4th quarter. Quarry LP now owns 644 shares of the medical research company's stock valued at $112,000 after purchasing an additional 365 shares during the period. Brown Brothers Harriman & Co. lifted its position in Quest Diagnostics by 22.6% during the 4th quarter. Brown Brothers Harriman & Co. now owns 706 shares of the medical research company's stock valued at $123,000 after purchasing an additional 130 shares during the period. McMillan Office Inc. bought a new position in shares of Quest Diagnostics in the 4th quarter valued at about $84,000. Finally, Los Angeles Capital Management LLC bought a new position in shares of Quest Diagnostics in the 4th quarter valued at about $96,000. Institutional investors and hedge funds own 88.06% of the company's stock.

Quest Diagnostics News Roundup

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

• Positive Sentiment: Quest Diagnostics beat Q2 estimates, reporting adjusted EPS of $3.12 versus consensus around $2.81-$2.82 and revenue of $3.04 billion versus expectations of about $2.97 billion. Quest Diagnostics Reports Second Quarter 2026 Financial Results; Raises Revenue and EPS Guidance for Full Year 2026
• Positive Sentiment: The company raised full-year 2026 guidance, now expecting adjusted EPS of $11.05-$11.25 and revenue of $11.95 billion-$12.05 billion, both above prior expectations. Quest Diagnostics raises annual forecast on testing demand
• Positive Sentiment: Quarterly revenue rose 10.2% year over year, helped by 10.0% organic growth, suggesting demand trends are still supportive for the core testing business. Transcript: Quest Diagnostics Q2 2026 Earnings Conference Call
• Neutral Sentiment: Multiple reports on the earnings release and conference call reinforced the same message: solid execution, stronger guidance, and positive management commentary. Quest Diagnostics: Q2 Earnings Snapshot
• Neutral Sentiment: DGX had been rising ahead of earnings as investors positioned for a possible beat, and the strong report appears to have validated that optimism. Quest Diagnostics Rallies Ahead of Earnings as Investors Weigh Growth Initiatives

Analysts Set New Price Targets

A number of brokerages have recently issued reports on DGX. Weiss Ratings upgraded shares of Quest Diagnostics from a "buy (b)" rating to a "buy (b+)" rating in a research note on Thursday, July 9th. Wall Street Zen lowered shares of Quest Diagnostics from a "buy" rating to a "hold" rating in a research report on Monday. Truist Financial upped their target price on shares of Quest Diagnostics from $220.00 to $225.00 and gave the company a "hold" rating in a research note on Wednesday, April 22nd. Barclays upped their target price on shares of Quest Diagnostics from $225.00 to $230.00 and gave the company an "overweight" rating in a research note on Wednesday, April 22nd. Finally, Evercore set a $225.00 price target on shares of Quest Diagnostics in a research report on Tuesday, April 21st. Six equities research analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company's stock. According to MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $220.73.

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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