Quest Diagnostics (NYSE:DGX – Get Free Report) announced its quarterly earnings results on Thursday. The medical research company reported $3.00 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.87 by $0.13, FiscalAI reports. Quest Diagnostics had a return on equity of 16.01% and a net margin of 9.18%. The company had revenue of $3.10 billion during the quarter, compared to the consensus estimate of $3.05 billion. During the same period in the previous year, the company posted $2.60 earnings per share. Quest Diagnostics’s revenue for the quarter was up 10.0% on a year-over-year basis.
Here are the key takeaways from Quest Diagnostics’ conference call:
- Strong third-quarter results: Revenue rose 10% to $3.1 billion and adjusted EPS increased 15.4% to $3.00, supported by broad organic growth across physician, hospital, and consumer channels.
- Quest raised and narrowed its 2026 outlook, now projecting revenue of $12.065 billion-$12.105 billion and adjusted EPS of $11.25-$11.35; the company also expects operating-margin expansion and approximately $1.9 billion in operating cash flow.
- Consumer health revenue is expected to grow more than 30% for the full year, with the upcoming Apple Health integration enabling users to purchase and manage testing for more than 50 biomarkers through the app; management said the channel carries accretive margins.
- Productivity initiatives, automation, and AI are helping offset wage and fuel inflation, while Quest continues to expand growth opportunities in kidney diagnostics, advanced testing, and hospital partnerships.
- Preliminary PAMA rate cuts could reduce 2027 revenue by approximately 1%, with a cumulative impact below 1.3% through 2029; Quest plans to offset part of the pressure but remains dependent on congressional passage of the RESULTS Act. Separately, the company disclosed unauthorized access to a test-ordering system, although it said operations have not been materially disrupted.
Quest Diagnostics Price Performance
DGX traded down $1.37 during midday trading on Thursday, hitting $237.56. 404,551 shares of the company traded hands, compared to its average volume of 976,068. The business has a 50 day simple moving average of $237.36 and a two-hundred day simple moving average of $216.31. Quest Diagnostics has a 52-week low of $171.18 and a 52-week high of $248.84. The company has a market capitalization of $26.22 billion, a price-to-earnings ratio of 25.23, a PEG ratio of 2.14 and a beta of 0.54. The company has a current ratio of 1.59, a quick ratio of 1.46 and a debt-to-equity ratio of 0.72.
Quest Diagnostics Dividend Announcement
The business also recently disclosed a quarterly dividend, which was paid on Wednesday, October 21st. Shareholders of record on Tuesday, October 6th were given a dividend of $0.86 per share. The ex-dividend date was Tuesday, October 6th. This represents a $3.44 dividend on an annualized basis and a yield of 1.4%. Quest Diagnostics’s dividend payout ratio is currently 36.52%.
Insider Transactions at Quest Diagnostics
In related news, SVP Michael E. Prevoznik sold 22,677 shares of the firm’s stock in a transaction dated Friday, August 28th. The shares were sold at an average price of $243.11, for a total value of $5,513,005.47. Following the transaction, the senior vice president directly owned 37,557 shares of the company’s stock, valued at approximately $9,130,482.27. This trade represents a 37.65% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP Mark E. Delaney sold 1,600 shares of Quest Diagnostics stock in a transaction dated Tuesday, July 28th. The stock was sold at an average price of $235.18, for a total value of $376,288.00. Following the completion of the sale, the senior vice president owned 10,335 shares in the company, valued at approximately $2,430,585.30. The trade was a 13.41% decrease in their ownership of the stock. 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. Insiders sold 34,277 shares of company stock valued at $8,316,493 over the last 90 days. Corporate insiders own 0.88% of the company’s stock.
Quest Diagnostics News Summary
Here are the key news stories impacting Quest Diagnostics this week:
- Positive Sentiment: Quarterly results beat expectations: Quest reported third-quarter revenue of $3.10 billion, up 10% year over year and ahead of the approximately $3.05 billion consensus. Adjusted diluted EPS was $3.00, above estimates near $2.85-$2.87 and up from $2.60 a year earlier. Quest Diagnostics Reports Third Quarter 2026 Financial Results
- Positive Sentiment: Full-year guidance was raised: Management now expects 2026 revenue of $12.065 billion to $12.105 billion, reported diluted EPS of $10.21 to $10.31, and adjusted diluted EPS of $11.25 to $11.35. The increase reflects strong organic growth and higher testing volumes. Quest Diagnostics Raises Earnings Guidance
- Positive Sentiment: Volume growth supported the outlook: Coverage characterized the quarter as being powered by a surge in testing volume, suggesting that Quest’s growth was supported by underlying demand rather than only pricing or acquisitions. Quest Diagnostics Q3 2026 Earnings
- Negative Sentiment: Cybersecurity investigation creates uncertainty: Quest said it discovered unauthorized access to its Quanum LSM system on October 21. The company is investigating the incident, and potential effects on operations, costs, data security or regulatory exposure remain unclear. Quest Diagnostics Investigates Cybersecurity Breach
Wall Street Analyst Weigh In
DGX has been the topic of a number of analyst reports. Barclays raised their price objective on shares of Quest Diagnostics from $250.00 to $260.00 and gave the stock an “overweight” rating in a research note on Wednesday, October 7th. Robert W. Baird increased their price target on shares of Quest Diagnostics from $236.00 to $255.00 and gave the stock a “neutral” rating in a report on Friday, July 24th. JPMorgan Chase & Co. increased their price target on shares of Quest Diagnostics from $220.00 to $250.00 and gave the stock a “neutral” rating in a report on Tuesday, July 28th. Truist Financial raised their price target on shares of Quest Diagnostics from $250.00 to $260.00 and gave the company a “hold” rating in a research report on Monday, September 21st. Finally, Argus set a $260.00 price objective on shares of Quest Diagnostics in a report on Wednesday, July 29th. One analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating and six have issued a Hold rating to the company’s stock. Based on data from MarketBeat, Quest Diagnostics presently has a consensus rating of “Moderate Buy” and a consensus price target of $243.64.
View Our Latest Report on Quest Diagnostics
Quest Diagnostics Company Profile
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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