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Quest Diagnostics Incorporated
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S&P 500
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$25.9B
Market Cap
19.8
P/E
2.04
PEG
9.2%
ROCE
14.8%
ROE
0.90
D/E
14.5%
OPM
-3.0%
% from 52W High
81
α RS
🔍 DGX is showing a multi-screen setup because it matches 3 of 39 tracked screener presets, Sector RRG has Health Care in the Leading quadrant with the trail still strengthening, RS Rating is 81, and it has maintained a 24-day Near 52-Week High momentum persistence. The main caution: the Price Pessimism preset's Backtest win rate is only 45%. Net: Mixed signal stack, not a recommendation. ? Conviction RRG RS Rating Momentum Streaks Backtest
Sources
Conviction 3/39 · Health Care in Leading quadrant · RS Rating 81 · Near 52-Week High streak: 24d · Backtest win rate 45%
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Currency-adjusted total returns for DGX including FX impact
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Ratio Health
— Excellent
— Good
— Average
— Poor
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About

Quest Diagnostics Incorporated provides diagnostic testing and services in the United States. The company develops and delivers diagnostic information services, such as routine, non-routine and advanced clinical testing, anatomic pathology testing, and other diagnostic information services. It also provides services under the Quest Diagnostics brand, as well as under the AmeriPath, Dermpath Diagnostics, ExamOne, and Quanum brands to physicians, hospitals, patients and consumers, health plans, government agencies, employers, retailers, pharmaceutical companies and insurers commercial clinical laboratories, and accountable care organizations through a network of laboratories, patient service centers, phlebotomists in physician offices, call centers and mobile phlebotomists, nurses, and other health and wellness professionals. In addition, the company offers risk assessment services for the life insurance industry; healthcare IT healthcare providers and payers; testing and medical director services at hospital laboratories; test offerings in cardiometabolic and endocrine; cancer; clinical drug monitoring and toxicology; infectious disease, including autoimmune; neurology diagnostics, including Alzheimer’s disease; and women’s health, such as prenatal genetic; workplace drug testing, testing urine, hair, and oral fluid specimens services; and employer population health services, including biometric screenings, flu shots, and related preventative services. Further, it provides population health solutions; extended care services; develops in vitro diagnostic tests; laboratory diagnostic information and digital health connectivity systems; underwriting support services, including data gathering, paramedical examinations, and clinical laboratory testing and analytics; and national specimen collection and health data solutions. Quest Diagnostics Incorporated was founded in 1967 and is headquartered in Secaucus, New Jersey.

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Good quarter Investor Presentation One-Pager? Q2 2026
Revenue
$3.04B
+10.2% YoY
Operating Income
$459M
+4.6% YoY
Operating Margin
15.1%
-0.8pp YoY
Net Income
$320M
+13.4% YoY
What Went Right
  • Revenue grew 10.2% to $3.04B, with ~10% organic growth across physician, hospital and consumer channels.
  • Adjusted diluted EPS rose 19.1% to $3.12; excluding a $0.10 one-time tax benefit, growth was 15.3%.
  • Total requisition volume increased 13.1% (13.0% organic); excluding Corewell and Fresenius, volumes still grew 4.1%.
What to Watch
  • ACA exchange subsidy expiration remains a ~30bp full-year revenue headwind; enrollment is down >20%, though rec volume is down only ~8% and tests per requisition are up.
  • PAMA reimbursement risk persists: possible new CMS rates effective January 1, with RESULTS Act passage and further delay both still possible.
  • Q2 adjusted operating margin fell 40bp to 16.5%, driven by Nova, Corewell/Fresenius dilution and supplemental deferred compensation; H2 faces higher fuel costs and ~70% of full-year Nova spend.
Management Guidance
  • FY2026 revenue raised to $11.95B-$12.05B, growth of 8.3%-9.2%.
  • FY2026 adjusted EPS raised to $11.05-$11.25; reported EPS guided to $9.97-$10.17.
  • FY2026 cash from operations ~$1.8B; capital expenditures ~$550M; adjusted effective tax rate now expected consistent with 2025.
Investor Lens
The thesis is stronger after this call: organic growth is broad-based, adjusted EPS beat/momentum is solid, and guidance was raised again for the full year. Management expects operating margin expansion for FY2026 despite known cost headwinds, and it sees no deterioration in bad debt or hospital collection trends. The main overhangs remain regulatory/reimbursement — PAMA and the ACA subsidy expiry — but management believes the impact on revenue is manageable and pricing overall is roughly flat.
From investor presentation · AI-generated analysis · Not investment advice
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📈 STRONG Q2 revenue +10.2%, adjusted EPS +19.1%; FY guide raised
Revenue
Consolidated revenue was $3.04B, up 10.2% YoY, with organic growth of 10%. Diagnostic Information Services revenue rose 10.3% to $2.98B, with 10.1% organic growth, led by double-digit hospital growth and robust physician and consumer demand.
Profitability
Reported net income attributable to Quest Diagnostics was $320M, up 13.4%, and reported diluted EPS was $2.84, up 15%. Adjusted net income was $350M, up 17.3%, and adjusted diluted EPS was $3.12, up 19.1%, including a $0.10 favorable tax-contingency benefit.
Margins
Reported operating margin was 15.1%, down 80bp YoY; adjusted operating margin was 16.5%, down 40bp. The decline was driven by ~70bp combined impact from Nova, Corewell/Fresenius mix and supplemental deferred compensation, partially offset by organic revenue growth.
Balance Sheet
Cash from operations was $875M year-to-date through Q2, up from $858M a year ago, despite a one-time CARES Act tax credit in the prior year. Capital expenditures were $252M year-to-date, with full-year capex still expected at ~$550M.
Key Risks
Management flagged PAMA data collection ending July 31, 2026, with possible new Medicare rates effective January 1 and uncertain lab participation. It also cited the ACA exchange subsidy expiration as a ~30bp full-year revenue headwind and noted higher fuel costs and increased Nova spend in H2.
Outlook
Full-year revenue guidance was raised to $11.95B-$12.05B and adjusted EPS to $11.05-$11.25. Management continues to expect full-year operating margin expansion versus 2025, with utilization trends in the first three weeks of July consistent with Q2.
Generated by AI · Q2 2026 results · Not investment advice
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✓ 📞 Earnings Call Transcripts (5 quarters) submit a missing quarter
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📞 Earnings Call Transcripts (5)
Q2 2026 Q2 2026 2026-07-23
Q2 2026 saw over 10% revenue growth and a 19% rise in adjusted EPS, driven by strong demand across all channels and operational improvements. Full-year guidance was raised, with robust performance in advanced diagnostics and stable financial metrics.
Q1 2026 Q1 2026 2026-04-21
Q1 2026 saw over 9% revenue growth and a 13% rise in adjusted EPS, driven by strong organic demand, advanced diagnostics, and productivity gains from AI and automation. Full-year guidance for revenue and EPS was raised, with continued investment in innovation and digital transformation.
Q4 2025 Q4 2025 2026-02-10
Delivered double-digit revenue and EPS growth in 2025, driven by innovation, strategic partnerships, and strong demand across all channels. 2026 guidance projects 6–7.1% revenue growth, margin expansion, and continued investment in automation and advanced diagnostics.
Q3 2025 Q3 2025 2025-10-21
Q3 delivered strong revenue and margin growth, driven by robust demand, acquisitions, and consumer health momentum. Full-year guidance was raised, with continued margin expansion expected, though headwinds from PAMA and healthcare subsidies remain.
Q2 2025 Q2 2025 2025-07-22
Q2 saw 15.2% revenue growth and 11.5% adjusted EPS growth, driven by strong demand, acquisitions, and advanced diagnostics. 2025 guidance was raised, with minimal expected impact from policy changes and tariffs, and robust performance across all channels.
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Financial Model
Projections are built from each company's audited annual financials (Income Statement, Balance Sheet, Cash Flow) over the last 5 fiscal years. Forward assumptions — revenue growth %, EBITDA margin, D&A (USD millions), interest expense, tax rate, and capex — are AI-generated using historical context and refreshed twice a year: after the December results season and after the September/Q4 results season.

DCF Valuation
Fair Value = Σ(FCFt / (1+WACC)t) + Terminal Value. Terminal Value uses the Gordon Growth Model: FCF5 × (1+g) / (WACC−g). Default WACC: 10% (US risk-free ~4.5%, equity risk premium ~5.5%). Default terminal growth: 3% (long-run US nominal GDP proxy).

CAGR Tracker
Expected 5-year CAGR = (DCF Fair Value / Current Price)1/5 − 1. Assumes fair value is reached in exactly 5 years — a mechanical estimate only.

Data Sources & Limitations
Financial statements sourced from public filings. Prices updated daily. Forward assumptions are AI-generated. All monetary values in USD millions. Non-US ADR companies may have currency conversion inaccuracies. Models are point-in-time and do not update intra-quarter or account for M&A, macro shocks, or extraordinary items.

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Investment Risk:
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No Investment Recommendation:
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Information Sources:
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