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

Key Points

• FY 2026 guidance: Quest provided EPS guidance of 10.630–10.830 and revenue guidance of $11.8–$11.9 billion, modestly above consensus EPS of 10.62 and in line with consensus revenue.
• Capital returns: The company raised its quarterly dividend to $0.86 per share (annualized $3.44, ~1.8% yield) and authorized a $1.0 billion share repurchase plan, representing up to about 4.7% of outstanding shares.
• Quarterly beat: Quest reported Q earnings of $2.50 per share (vs. $2.37 expected) and revenue of $2.90 billion (vs. $2.83 billion expected), outperforming analyst estimates for the quarter.

Quest Diagnostics (NYSE:DGX - Get Free Report) updated its FY 2026 earnings guidance on Tuesday. The company provided earnings per share guidance of 10.630-10.830 for the period, compared to the consensus earnings per share estimate of 10.620. The company issued revenue guidance of $11.8 billion-$11.9 billion, compared to the consensus revenue estimate of $11.8 billion.

Quest Diagnostics Trading Up 0.7%

Quest Diagnostics stock opened at $196.46 on Tuesday. The company has a debt-to-equity ratio of 0.72, a current ratio of 1.04 and a quick ratio of 0.96. Quest Diagnostics has a one year low of $160.02 and a one year high of $213.50. The stock has a market capitalization of $21.74 billion, a PE ratio of 22.45, a price-to-earnings-growth ratio of 2.52 and a beta of 0.66. The business's fifty day moving average is $200.52 and its 200 day moving average is $188.84.

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, topping analysts' consensus estimates of $2.37 by $0.13. Quest Diagnostics had a net margin of 8.99% and a return on equity of 15.57%. The firm had revenue of $2.90 billion during the quarter, compared to analyst estimates of $2.83 billion. Quest Diagnostics has set its FY 2026 guidance at 10.630-10.830 EPS. On average, sell-side analysts predict that Quest Diagnostics will post 10.6 EPS for the current year.

Quest Diagnostics Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Monday, April 20th. Shareholders of record on Monday, April 6th were given a dividend of $0.86 per share. This is a positive change from Quest Diagnostics's previous quarterly dividend of $0.80. The ex-dividend date of this dividend was Monday, April 6th. This represents a $3.44 dividend on an annualized basis and a yield of 1.8%. Quest Diagnostics's payout ratio is 39.31%.

Quest Diagnostics declared that its board has approved a share repurchase plan on Tuesday, February 10th that allows the company to buyback $1.00 billion in outstanding shares. This buyback authorization allows the medical research company to buy up to 4.7% of its shares through open market purchases. Shares buyback plans are often a sign that the company's board believes its stock is undervalued.

Wall Street Analysts Forecast Growth

A number of research firms have recently weighed in on DGX. Citigroup raised their price target on shares of Quest Diagnostics from $190.00 to $215.00 and gave the company a "neutral" rating in a report on Tuesday, February 10th. Evercore set a $210.00 price target on shares of Quest Diagnostics in a report on Wednesday, April 8th. Mizuho raised their price target on shares of Quest Diagnostics from $210.00 to $235.00 and gave the company an "outperform" rating in a report on Thursday, February 12th. UBS Group boosted their target price on shares of Quest Diagnostics from $190.00 to $210.00 and gave the stock a "neutral" rating in a research report on Wednesday, February 11th. Finally, Robert W. Baird set a $219.00 target price on shares of Quest Diagnostics in a research report on Wednesday, February 11th. Seven analysts have rated the stock with a Buy rating and eight have issued a Hold rating to the company's stock. According to data from MarketBeat, the stock presently has an average rating of "Hold" and an average price target of $210.69.

Insider Activity

In other Quest Diagnostics news, SVP Michael E. Prevoznik sold 3,878 shares of the company's stock in a transaction dated Thursday, March 5th. The shares were sold at an average price of $206.21, for a total value of $799,682.38. Following the transaction, the senior vice president owned 37,557 shares of the company's stock, valued at $7,744,628.97. This represents a 9.36% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, EVP Catherine T. Doherty sold 5,558 shares of the company's stock in a transaction dated Thursday, March 5th. The shares were sold at an average price of $206.21, for a total transaction of $1,146,115.18. Following the completion of the transaction, the executive vice president directly owned 67,122 shares in the company, valued at $13,841,227.62. The trade was a 7.65% decrease in their position. The SEC filing for this sale provides additional information. In the last 90 days, insiders sold 24,083 shares of company stock worth $4,945,262. 8.16% of the stock is owned by insiders.

Institutional Investors Weigh In On Quest Diagnostics

Several large investors have recently modified their holdings of the company. Virtu Financial LLC acquired a new stake in shares of Quest Diagnostics in the fourth quarter valued at approximately $527,000. Compound Planning Inc. boosted its holdings in shares of Quest Diagnostics by 169.7% in the fourth quarter. Compound Planning Inc. now owns 3,582 shares of the medical research company's stock valued at $622,000 after acquiring an additional 2,254 shares during the period. Corient Private Wealth LLC boosted its holdings in shares of Quest Diagnostics by 533.8% in the fourth quarter. Corient Private Wealth LLC now owns 165,729 shares of the medical research company's stock valued at $28,759,000 after acquiring an additional 139,582 shares during the period. Alpine Woods Capital Investors LLC lifted its holdings in shares of Quest Diagnostics by 10.7% during the fourth quarter. Alpine Woods Capital Investors LLC now owns 19,402 shares of the medical research company's stock worth $3,367,000 after purchasing an additional 1,881 shares during the period. Finally, Strive Financial Group LLC acquired a new stake in shares of Quest Diagnostics during the fourth quarter worth $88,000. 88.06% of the stock is owned by institutional investors and hedge funds.

Quest Diagnostics Company Profile

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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