Zacks Research Has Optimistic Outlook of DGX FY2026 Earnings

Key Points

• Zacks Research raised its FY2026 EPS estimate for Quest Diagnostics to $10.66 from $10.57, while the consensus estimate stands at $10.73.
• Quest Diagnostics recently beat quarterly expectations, posting $2.50 EPS on $2.90 billion in revenue, both above analyst forecasts, with revenue up 9.2% year over year.
• The company has a FY2026 guidance range of $10.63 to $10.83 EPS, and analysts currently rate the stock a Moderate Buy with an average price target of $216.58.

Quest Diagnostics Incorporated (NYSE:DGX - Free Report) - Stock analysts at Zacks Research upped their FY2026 earnings per share (EPS) estimates for Quest Diagnostics in a report released on Tuesday, May 12th. Zacks Research analyst Team now expects that the medical research company will post earnings of $10.66 per share for the year, up from their prior forecast of $10.57. The consensus estimate for Quest Diagnostics' current full-year earnings is $10.73 per share. Zacks Research also issued estimates for Quest Diagnostics' Q4 2026 earnings at $2.60 EPS, Q3 2027 earnings at $2.97 EPS, FY2027 earnings at $11.50 EPS, Q1 2028 earnings at $2.89 EPS and FY2028 earnings at $12.50 EPS.

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

DGX has been the topic of several other research reports. Wall Street Zen upgraded Quest Diagnostics from a "hold" rating to a "buy" rating in a report on Saturday, April 25th. Citigroup raised their price target on Quest Diagnostics from $190.00 to $215.00 and gave the stock a "neutral" rating in a research note on Tuesday, February 10th. Robert W. Baird upped their price objective on shares of Quest Diagnostics from $224.00 to $229.00 and gave the company a "neutral" rating in a research note on Wednesday, April 22nd. UBS Group raised their target price on shares of Quest Diagnostics from $210.00 to $220.00 and gave the stock a "neutral" rating in a research report on Wednesday, April 22nd. Finally, Truist Financial upped their price target on shares of Quest Diagnostics from $220.00 to $225.00 and gave the stock a "hold" rating in a research report on Wednesday, April 22nd. Seven analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the company. According to MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $216.58.

Quest Diagnostics Stock Up 0.3%

Shares of NYSE DGX opened at $190.74 on Thursday. The firm has a market cap of $21.11 billion, a P/E ratio of 21.08, a price-to-earnings-growth ratio of 2.26 and a beta of 0.60. 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 has a 1 year low of $164.65 and a 1 year high of $213.50. The firm's 50 day moving average price is $196.56 and its 200 day moving average price is $189.91.

Hedge Funds Weigh In On Quest Diagnostics

Several hedge funds and other institutional investors have recently made changes to their positions in the business. Paradiem LLC acquired a new position in Quest Diagnostics during the 4th quarter valued at about $13,652,000. Lebenthal Global Advisors LLC raised its holdings in shares of Quest Diagnostics by 117.5% during the third quarter. Lebenthal Global Advisors LLC now owns 5,034 shares of the medical research company's stock valued at $959,000 after buying an additional 2,720 shares during the last quarter. Rakuten Investment Management Inc. acquired a new position in shares of Quest Diagnostics during the third quarter worth approximately $4,713,000. Union Bancaire Privee UBP SA bought a new position in Quest Diagnostics in the 4th quarter worth approximately $1,517,000. Finally, TKG Advisors LLC grew its holdings in Quest Diagnostics by 125.1% in the 3rd quarter. TKG Advisors LLC now owns 14,596 shares of the medical research company's stock worth $2,782,000 after buying an additional 8,112 shares in the last quarter. Institutional investors and hedge funds own 88.06% of the company's stock.

Insider Transactions at Quest Diagnostics

In other Quest Diagnostics news, SVP Patrick Plewman sold 2,855 shares of Quest Diagnostics stock in a transaction that occurred on Thursday, March 5th. The shares were sold at an average price of $206.21, for a total transaction of $588,729.55. Following the transaction, the senior vice president directly owned 15,198 shares of the company's stock, valued at $3,133,979.58. The trade was a 15.81% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, SVP Michael E. Prevoznik sold 3,878 shares of the business's stock in a transaction that occurred 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 sale, the senior vice president owned 37,557 shares of the company's stock, valued at approximately $7,744,628.97. This represents a 9.36% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 18,421 shares of company stock worth $3,790,214 over the last 90 days. Company insiders own 0.88% of the company's stock.

Quest Diagnostics announced that its Board of Directors has authorized a stock 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 generally a sign that the company's board of directors believes its shares are undervalued.

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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