Quest Diagnostics (NYSE:DGX) Issues Earnings Results, Beats Estimates By $0.07 EPS

Posted by Amy Steele on Feb 10th, 2026

Quest Diagnostics (NYSE:DGX – Get Free Report) released its quarterly earnings data on Tuesday. The medical research company reported $2.42 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.35 by $0.07, FiscalAI reports. The business had revenue of $2.81 billion during the quarter, compared to analyst estimates of $2.75 billion. Quest Diagnostics had a net margin of 8.91% and a return on equity of 15.47%. Quest Diagnostics’s quarterly revenue was up 7.1% compared to the same quarter last year. During the same quarter in the previous year, the business earned $2.23 EPS. Quest Diagnostics updated its FY 2026 guidance to 9.45-9.650 EPS.

Here are the key takeaways from Quest Diagnostics’ conference call:

Positive Sentiment: Strong financials and clear 2026 targets — 2025 delivered double‑digit revenue and EPS growth with Q4 revenue of $2.81B and adjusted EPS of $2.42; 2026 guidance targets revenues of $11.7B–$11.82B and adjusted EPS of $10.50–$10.70.
Positive Sentiment: Multiple growth engines underway — consumer testing (QuestHealth.com expanded to 150+ tests and consumer revenue ~$250M), advanced diagnostics (ANA‑lyzer, AD‑Detect, Haystack and new Flow MRD), and scaling hospital co‑lab solutions (expect ~$1B in co‑lab revenue in 2026 and a Corewell JV lab opening in 2027).
Neutral Sentiment: PAMA update provides short‑term relief — implementation delayed to end of 2026 and data collection moved to H1 2025, but Quest warns the law’s data‑collection flaws remain and is pushing the Results Act for a long‑term fix.
Negative Sentiment: Margin headwinds and one‑time investments — operating margin is expected to expand overall, but 2026 will absorb a ~$0.25 EPS drag from Project Nova and be diluted by Corewell’s ~$250M of low single‑digit‑margin revenue (expected to improve in 2027), with Haystack MRD dilution easing as volumes ramp.
Positive Sentiment: Operational productivity gains — Quest hit its Invigorate target of 3% annual cost savings and is deploying automation and AI (virtual agent cut routine logistics calls up to 50%) to improve lab throughput and reduce logistics costs.

Quest Diagnostics Stock Up 7.5%

NYSE DGX traded up $14.25 on Tuesday, hitting $205.50. 976,020 shares of the company were exchanged, compared to its average volume of 1,063,259. The stock has a fifty day moving average of $181.33 and a 200-day moving average of $181.51. The company has a market cap of $22.86 billion, a PE ratio of 24.12, a PEG ratio of 2.41 and a beta of 0.66. The company has a current ratio of 1.13, a quick ratio of 1.04 and a debt-to-equity ratio of 0.71. Quest Diagnostics has a 12 month low of $157.20 and a 12 month high of $207.00.

Analysts Set New Price Targets

Several brokerages have issued reports on DGX. Weiss Ratings restated a “buy (b-)” rating on shares of Quest Diagnostics in a report on Monday, December 29th. Jefferies Financial Group upped their target price on Quest Diagnostics from $200.00 to $215.00 and gave the stock a “buy” rating in a report on Tuesday, October 21st. Barclays raised Quest Diagnostics from an “equal weight” rating to an “overweight” rating and set a $210.00 price objective for the company in a report on Friday, January 30th. Leerink Partners boosted their price target on Quest Diagnostics from $203.00 to $210.00 and gave the stock an “outperform” rating in a research report on Tuesday, October 21st. Finally, Wall Street Zen downgraded shares of Quest Diagnostics from a “buy” rating to a “hold” rating in a report on Sunday, January 25th. Eight investment analysts have rated the stock with a Buy rating and eight have assigned a Hold rating to the stock. According to data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $198.50.

Get Our Latest Research Report on Quest Diagnostics

Insider Buying and Selling at Quest Diagnostics

In related news, CEO J. E. Davis sold 55,093 shares of Quest Diagnostics stock in a transaction that occurred on Tuesday, November 25th. The stock was sold at an average price of $192.22, for a total transaction of $10,589,976.46. Following the transaction, the chief executive officer owned 120,480 shares of the company’s stock, valued at $23,158,665.60. The trade was a 31.38% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, Director Vicky B. Gregg sold 1,250 shares of the business’s stock in a transaction that occurred on Tuesday, November 25th. The stock was sold at an average price of $191.76, for a total value of $239,700.00. Following the completion of the transaction, the director owned 17,037 shares in the company, valued at $3,267,015.12. The trade was a 6.84% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders have sold 64,289 shares of company stock valued at $12,318,360. Corporate insiders own 8.16% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Ossiam raised its stake in Quest Diagnostics by 6.1% in the third quarter. Ossiam now owns 1,059 shares of the medical research company’s stock worth $202,000 after buying an additional 61 shares in the last quarter. NewEdge Advisors LLC lifted its position in Quest Diagnostics by 0.7% in the 3rd quarter. NewEdge Advisors LLC now owns 13,212 shares of the medical research company’s stock valued at $2,518,000 after acquiring an additional 87 shares in the last quarter. Hilltop Holdings Inc. increased its holdings in shares of Quest Diagnostics by 5.9% in the 3rd quarter. Hilltop Holdings Inc. now owns 1,688 shares of the medical research company’s stock worth $322,000 after purchasing an additional 94 shares in the last quarter. AXA S.A. raised its position in Quest Diagnostics by 6.0% in the 2nd quarter. AXA S.A. now owns 1,696 shares of the medical research company’s stock worth $305,000 after buying an additional 96 shares during the last quarter. Finally, Gabelli Funds LLC boosted its holdings in Quest Diagnostics by 6.3% in the third quarter. Gabelli Funds LLC now owns 1,700 shares of the medical research company’s stock worth $324,000 after purchasing an additional 100 shares during the last quarter. 88.06% of the stock is currently owned by hedge funds and other institutional investors.

Quest Diagnostics News Summary

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

Positive Sentiment: Q4 results beat expectations — adjusted EPS of $2.42 and revenue of $2.81B (up 7.1% YoY) topped consensus, showing continued demand for diagnostic testing. Quest Diagnostics (DGX) Beats Q4 Earnings and Revenue Estimates
Positive Sentiment: Board raises shareholder returns — quarterly dividend increased 7.5% to $0.86 and the company authorized an additional $1B in share repurchases, supporting per‑share value. Quest Diagnostics Increases Dividend, Announces Repurchase Increase
Positive Sentiment: Strong FY‑2025 footprint — full‑year revenue (~$11.04B), adjusted EPS ($9.85) and $1.89B cash from operations highlight healthy fundamentals heading into 2026. Quest Diagnostics Reports Fourth Quarter and Full Year 2025 Financial Results
Neutral Sentiment: Management hosted an earnings release and conference call; investors can review the transcript and slides for details on growth drivers and cost trends. Listen to Conference Call
Neutral Sentiment: Some outlets note management expects 2026 revenue and profit to be strong on continued lab‑test demand; media coverage is broadly positive but mixes takeaways on guidance. Quest Diagnostics forecasts 2026 profit, revenue above estimates
Negative Sentiment: FY‑2026 EPS guidance disappointed some analysts — company guided to reported EPS of $9.45–$9.65 (adjusted EPS guidance also provided), which is below several street estimates and could temper upside expectations. FY 2026 Guidance Provided

Quest Diagnostics Company Profile

(Get Free Report)

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.