A Business at a Glance
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QUEST DIAGNOSTICS INC
DGX
$25.8B
Mkt Cap
$227.86
-0.02%
QUEST DIAGNOSTICS INC (DGX) has a current P/E ratio of 26.0, compared to its historical median P/E of 16.1. The stock is currently considered Expensive based on its historical valuation range.
QUEST DIAGNOSTICS INC (DGX) has a 5-year average return on invested capital (ROIC) of 11.5%. This indicates solid capital allocation.
QUEST DIAGNOSTICS INC (DGX) has a market capitalization of $36.9B. It is classified as a large-cap stock.
Yes, QUEST DIAGNOSTICS INC (DGX) pays a dividend with a trailing twelve-month yield of 0.97%. The company also returns capital through share buybacks, with a buyback yield of 1.22%.
Based on historical P/E analysis, QUEST DIAGNOSTICS INC (DGX) appears expensive. The current P/E of 26.0 is 62% above its historical median of 16.1. The estimated fair value CAGR (P/E method) is 0.6%.
QUEST DIAGNOSTICS INC (DGX) operates in the Services-Medical Laboratories industry, within the Healthcare sector.
QUEST DIAGNOSTICS INC (DGX) reported annual revenue of $11.0 billion in its most recent fiscal year, based on SEC EDGAR filings.
Quest Diagnostics is a leading clinical laboratory testing company serving approximately one-third of the U.S. adult population annually and roughly half of U.S. physicians and hospitals. The company operates a diversified business model across multiple customer channels—physicians, hospitals, patients and consumers, health plans, employers, and pharmaceutical companies—generating net revenues of $11.0 billion in 2025. Quest's core business involves providing diagnostic laboratory testing and insights derived from one of the world's largest databases of de-identifiable clinical lab results; the company earns revenue through reference testing (approximately $1.2 billion in 2025), hospital collaborative lab solutions (approximately $800 million in 2025), and consumer-initiated testing through platforms like QuestHealth.com. The company differentiates itself through an industry-leading test menu, innovative Advanced Diagnostics offerings in oncology, neurology, cardiometabolic, autoimmune, and women's health (generating over $1 billion in revenues in 2025 with double-digit growth), and a network of approximately 2,400 conveniently located patient service centers, many in retail settings. Quest's competitive moat is built on scale, extensive geographic reach across the United States and selected international locations, deep medical and scientific expertise, data-driven IT solutions, and continuous operational improvements through its Invigorate program targeting 3% annual cost savings and productivity gains. The company serves a broad customer base ranging from individual physicians to large health systems, employers, and government agencies, positioning it as a critical infrastructure provider in the healthcare ecosystem.
【Organic growth momentum sustained】 Management expects continued strong organic revenue growth driven by robust demand for Advanced Diagnostics, particularly in blood-based testing for Alzheimer's disease and cardiometabolic conditions, alongside favorable demographic trends and increasing consumer interest in preventative health and wellness. Operating margins are expected to expand in 2026 as the company continues to deploy automation and artificial intelligence technologies through its Invigorate program while managing investments in Project Nova, its multi-year order-to-cash modernization initiative. The company is advancing strategic collaborations, including a joint venture with Corewell Health expected to contribute approximately $250 million in organic revenue at low single-digit margins in 2026, and expects consumer-initiated testing to maintain growth momentum exceeding 20% on a long-term basis. Management remains confident in business fundamentals despite near-term headwinds from weather impacts and potential regulatory changes, with pricing expected to remain relatively flat and unit volumes continuing to benefit from increased utilization of blood-based diagnostics across primary and specialty care settings.
| Metric | Target | Period |
|---|---|---|
| Revenue | $11.78 billion–$11.9 billion | FY2026 |
| Reported EPS | $9.58–$9.78 | FY2026 |
| Adjusted EPS | $10.63–$10.83 | FY2026 |
| Cash from operations | approximately $1.75 billion | FY2026 |
| Capital expenditures | approximately $550 million | FY2026 |
| Collaborative Lab Solutions revenue | approximately $1 billion | FY2026 |
Revenue (FY2026): “We now expect revenues to be between $11.78 billion and $11.9 billion, a growth rate of 6.8%-7.8%.”
Reported EPS (FY2026): “Reported EPS to be in a range of $9.58-$9.78”
Adjusted EPS (FY2026): “adjusted EPS in a range of $10.63-$10.83”
Cash from operations (FY2026): “Cash from operations to be approximately $1.75 billion”
Capital expenditures (FY2026): “capital expenditures to be approximately $550 million”
Collaborative Lab Solutions revenue (FY2026): “We expect co-lab solutions to generate approximately $1 billion in annual revenues in 2026.”
Generated solely from the company's own reports listed below — not from third-party data. Hallucination risk is low. · Sources: 10-K, Q4 FY2025 Earnings Call, Q3 FY2025 Earnings Call, Q2 FY2025 Earnings Call, Q1 FY2025 Earnings Call
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 11.3B | 11.0B | 9.9B | 9.3B | 9.9B | 10.8B |
| Net Income | 1.0B | 992M | 871M | 854M | 946M | 2.0B |
| EPS | $6.32 | $8.75 | $7.69 | $7.49 | $7.97 | $15.55 |
| Free Cash Flow | 1.3B | 1.4B | 909M | 864M | 1.3B | 1.8B |
| ROIC | 9.6% | 9.2% | 8.9% | 9.8% | 11.6% | 17.7% |
| Gross Margin | - | 33.2% | 32.9% | 33.0% | 34.7% | 39.0% |
| Debt/Equity | 0.77 | 0.79 | 0.92 | 0.75 | 0.68 | 0.62 |
| Dividends/Share | $2.20 | $3.11 | $2.92 | $2.75 | $2.57 | $2.41 |
| Operating Income | 1.6B | 1.6B | 1.3B | 1.3B | 1.4B | 2.4B |
| Operating Margin | 14.3% | 14.1% | 13.6% | 13.6% | 14.4% | 22.1% |
| ROE | 13.9% | 14.2% | 13.3% | 14.0% | 15.3% | 30.2% |
| Shares Outstanding | 162M | 113M | 113M | 114M | 119M | 128M |
| Metric | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Income Statement | |||||||||||||
| Revenue | 7.4B | 7.5B | 7.2B | 7.4B | 7.5B | 7.7B | 9.4B | 10.8B | 9.9B | 9.3B | 9.9B | 11.0B | 11.3B |
| Gross Margin | 37.6% | 37.8% | 40.2% | 36.2% | 34.6% | 34.8% | 38.5% | 39.0% | 34.7% | 33.0% | 32.9% | 33.2% | N/A |
| R&D | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| SG&A | 1.7B | 1.7B | 1.4B | 1.4B | 1.4B | 1.5B | 1.6B | 1.7B | 1.9B | 1.6B | 1.8B | 2.0B | 2.0B |
| EBIT | 983M | 1.4B | 1.3B | 1.2B | 1.1B | 1.2B | 2.0B | 2.4B | 1.4B | 1.3B | 1.3B | 1.6B | 1.6B |
| Op. Margin | 13.2% | 18.7% | 17.7% | 15.7% | 14.6% | 15.9% | 20.9% | 22.1% | 14.4% | 13.6% | 13.6% | 14.1% | 14.3% |
| Net Income | 549M | 706M | 642M | 769M | 733M | 858M | 1.4B | 2.0B | 946M | 854M | 871M | 992M | 1.0B |
| Net Margin | 7.4% | 9.4% | 8.9% | 10.4% | 9.7% | 11.1% | 15.2% | 18.5% | 9.6% | 9.2% | 8.8% | 9.0% | 9.1% |
| Non-Recurring | 43M | 389M | 136M | 30M | 45M | 73M | 11M | 4.0M | 55M | 0 | 0 | 0 | 0 |
| Returns on Capital | |||||||||||||
| ROIC | 8.9% | 11.5% | 9.6% | 10.7% | 10.0% | 10.5% | 14.9% | 17.7% | 11.6% | 9.8% | 8.9% | 9.2% | 9.6% |
| ROE | 13.3% | 15.7% | 13.8% | 16.1% | 14.5% | 15.8% | 23.1% | 30.2% | 15.3% | 14.0% | 13.3% | 14.2% | 13.9% |
| ROA | 5.8% | 7.1% | 6.4% | 7.5% | 6.8% | 7.2% | 10.7% | 14.4% | 7.2% | 6.4% | 5.8% | 6.1% | 6.1% |
| Cash Flow | |||||||||||||
| Op. Cash Flow | 944M | 821M | 1.1B | 1.2B | 1.2B | 1.2B | 2.0B | 2.2B | 1.7B | 1.3B | 1.3B | 1.9B | 1.9B |
| Free Cash Flow | 636M | 558M | 823M | 923M | 817M | 843M | 1.6B | 1.8B | 1.3B | 864M | 909M | 1.4B | 1.3B |
| Owner Earnings | 579M | 465M | 798M | 826M | 830M | 858M | 1.5B | 1.7B | 1.2B | 756M | 753M | 1.2B | 1.2B |
| CapEx | 308M | 263M | 293M | 252M | 383M | 400M | 418M | 403M | 404M | 408M | 425M | 527M | 524M |
| Maint. CapEx | 314M | 304M | 249M | 270M | 309M | 329M | 361M | 408M | 437M | 439M | 493M | 570M | 577M |
| Growth CapEx | 0 | 0 | 44M | 0 | 74M | 71M | 57M | 0 | 0 | 0 | 0 | 0 | 0 |
| D&A | 314M | 304M | 249M | 270M | 309M | 329M | 361M | 408M | 437M | 439M | 493M | 570M | 577M |
| CapEx/OCF | 32.8% | 32.0% | 27.4% | 21.4% | 31.9% | 32.2% | 20.8% | 18.0% | 23.5% | 32.1% | 31.9% | 27.9% | 28.3% |
| Capital Allocation | |||||||||||||
| Dividends Paid | 187M | 212M | 223M | 247M | 266M | 286M | 297M | 309M | 305M | 314M | 331M | 353M | 357M |
| Dividend Yield | 2.8% | 2.6% | 2.4% | 2.1% | 2.2% | 2.5% | 2.2% | 1.9% | 2.0% | 2.1% | 2.1% | 1.8% | 1.0% |
| Share Buybacks | 132M | 224M | 590M | 465M | 322M | 353M | 325M | 2.2B | 1.4B | 275M | 151M | 450M | 450M |
| Buyback Yield | 1.7% | 2.6% | 5.4% | 3.9% | 3.3% | 2.7% | 2.2% | 11.0% | 8.1% | 1.8% | 0.9% | 2.3% | 1.2% |
| Stock-Based Comp | 51M | 52M | 69M | 79M | 61M | 56M | 97M | 79M | 77M | 77M | 88M | 88M | 86M |
| Debt Repayment | 1.6B | 2.5B | 1.7B | 182M | 2.0B | 1.4B | 1.6B | 2.0M | 2.0M | 1.8B | 303M | 1.0B | 1.0B |
| Balance Sheet | |||||||||||||
| Net Debt | 3.5B | 3.5B | 3.4B | 3.6B | 3.8B | 3.6B | 4.1B | 3.1B | 3.7B | 4.0B | 5.7B | 5.3B | 5.3B |
| Cash & Equiv. | 192M | 133M | 359M | 137M | 135M | 1.2B | 1.2B | 872M | 315M | 686M | 549M | 420M | 393M |
| Long-Term Debt | 3.2B | 3.5B | 3.7B | 3.7B | 3.4B | 4.0B | 4.0B | 4.0B | 4.0B | 4.4B | 5.6B | 5.2B | 5.2B |
| Debt/Equity | 0.87 | 0.78 | 0.81 | 0.77 | 0.75 | 0.85 | 0.79 | 0.62 | 0.68 | 0.75 | 0.92 | 0.79 | 0.77 |
| Interest Coverage | 5.9 | 9.1 | 8.9 | 7.6 | 6.5 | 6.8 | 11.9 | 15.7 | 9.6 | 7.7 | 6.0 | 5.6 | 5.6 |
| Equity | 4.3B | 4.7B | 4.6B | 4.9B | 5.2B | 5.6B | 6.8B | 6.4B | 5.9B | 6.3B | 6.8B | 7.2B | 7.4B |
| Total Assets | 9.9B | 10.0B | 10.1B | 10.5B | 11.0B | 12.8B | 14.0B | 13.6B | 12.8B | 14.0B | 16.2B | 16.2B | 16.7B |
| Total Liabilities | 5.5B | 5.2B | 5.4B | 5.5B | 5.7B | 7.2B | 7.2B | 7.1B | 6.9B | 7.7B | 9.3B | 9.0B | -12M |
| Intangibles | 1.1B | 984M | 949M | 1.1B | 1.2B | 1.1B | 1.2B | 1.2B | 1.1B | 1.2B | 1.8B | 1.6B | 1.7B |
| Retained Earnings | 5.7B | 6.2B | 6.6B | 7.1B | 7.6B | 8.2B | 9.3B | 7.6B | 8.3B | 8.8B | 9.4B | 10.0B | 10.2B |
| Working Capital | -106M | 328M | 550M | 249M | -95M | 500M | 1.3B | 988M | 347M | 557M | 223M | 100M | 389M |
| Current Assets | 1.6B | 1.5B | 1.5B | 1.3B | 1.4B | 2.5B | 3.1B | 2.7B | 1.9B | 2.4B | 2.4B | 2.4B | 2.6B |
| Current Liabilities | 1.7B | 1.2B | 981M | 1.1B | 1.5B | 2.0B | 1.8B | 1.8B | 1.6B | 1.8B | 2.2B | 2.3B | 2.2B |
| Per Share Data | |||||||||||||
| EPS | 3.81 | 4.87 | 4.51 | 5.50 | 5.29 | 6.28 | 10.47 | 15.55 | 7.97 | 7.49 | 7.69 | 8.75 | 6.32 |
| Owner EPS | 4.02 | 3.21 | 5.61 | 5.91 | 5.99 | 6.28 | 11.32 | 13.61 | 10.14 | 6.63 | 6.65 | 10.83 | 7.33 |
| Book Value | 29.85 | 32.31 | 32.51 | 35.20 | 37.64 | 41.29 | 49.45 | 50.23 | 49.65 | 55.32 | 59.84 | 63.24 | 45.47 |
| Cash Flow/Share | 6.55 | 5.66 | 7.84 | 8.40 | 8.66 | 9.10 | 14.67 | 17.41 | 14.47 | 11.16 | 11.78 | 16.64 | 9.88 |
| Dividends/Share | 1.32 | 1.52 | 1.65 | 1.80 | 1.92 | 2.09 | 2.17 | 2.41 | 2.57 | 2.75 | 2.92 | 3.11 | 2.20 |
| Shares Out. | 144.1M | 145.0M | 142.4M | 139.8M | 138.6M | 136.6M | 136.7M | 128.3M | 118.7M | 114.0M | 113.3M | 113.4M | 162.0M |
| Valuation | |||||||||||||
| P/E Ratio | 14.2 | 12.0 | 16.9 | 15.3 | 13.4 | 15.0 | 10.2 | 10.0 | 18.4 | 17.6 | 19.4 | 20.0 | 36.0 |
| P/FCF | 12.2 | 15.1 | 13.2 | 12.7 | 12.0 | 15.3 | 9.2 | 10.9 | 13.2 | 17.4 | 18.6 | 14.6 | 27.8 |
| EV/EBIT | 12.0 | 8.6 | 10.9 | 13.2 | 12.7 | 13.1 | 8.3 | 9.3 | 14.5 | 14.8 | 16.8 | 16.2 | 26.2 |
| Price/Book | 1.8 | 1.8 | 2.4 | 2.4 | 1.9 | 2.3 | 2.2 | 3.1 | 3.0 | 2.4 | 2.5 | 2.8 | 5.0 |
| Price/Sales | 0.9 | 1.1 | 1.2 | 1.6 | 1.6 | 1.5 | 1.5 | 1.5 | 1.5 | 1.6 | 1.6 | 1.8 | 3.3 |
| FCF Yield | 8.1% | 6.6% | 7.5% | 7.8% | 8.3% | 6.5% | 10.9% | 9.2% | 7.5% | 5.8% | 5.4% | 6.8% | 3.6% |
| Market Cap | 7.9B | 8.5B | 10.9B | 11.8B | 9.8B | 12.9B | 14.6B | 20.0B | 17.4B | 15.0B | 16.9B | 19.9B | 36.9B |
| Avg. Price | 46.77 | 56.95 | 64.61 | 84.46 | 87.86 | 85.25 | 100.61 | 125.66 | 128.38 | 129.50 | 138.61 | 172.36 | 227.86 |
| Year-End Price | 54.03 | 58.31 | 76.30 | 83.95 | 70.78 | 94.29 | 106.93 | 155.63 | 146.67 | 131.66 | 149.12 | 175.14 | 227.86 |
QUEST DIAGNOSTICS INC passes 4 of 9 quality checks, suggesting mixed fundamentals.
QUEST DIAGNOSTICS INC trades at 26.0x trailing earnings, compared to its 15-year median P/E of 16.1x, suggesting it is currently Expensive relative to its historical range. On a free-cash-flow basis, the stock trades at 18.4x vs a median of 13.2x. The company's 5-year average ROIC is 11.5% with a gross margin of 34.6%. Total shareholder yield (dividends + buybacks) is 2.2%. At current prices, the estimated annualized return to fair value is +2.4%.
QUEST DIAGNOSTICS INC (DGX) has a net profit margin of 9.0%. This is a modest margin.
QUEST DIAGNOSTICS INC (DGX) generated $1.4 billion in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
QUEST DIAGNOSTICS INC (DGX) has a debt-to-equity ratio of 0.79. This indicates moderate leverage.
QUEST DIAGNOSTICS INC (DGX) reported earnings per share (EPS) of $8.75 in its most recent fiscal year.
QUEST DIAGNOSTICS INC (DGX) has a return on equity (ROE) of 14.2%. This indicates moderate shareholder returns.
QUEST DIAGNOSTICS INC (DGX) has a 5-year average gross margin of 34.6%. This indicates decent pricing power.
The Ledger Terminal provides 19 years of financial data for QUEST DIAGNOSTICS INC (DGX), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
QUEST DIAGNOSTICS INC (DGX) has a book value per share of $63.24, based on its most recent annual SEC filing.
Based on recent SEC filings and earnings disclosures, Management expects continued strong organic revenue growth driven by robust demand for Advanced Diagnostics, particularly in blood-based testing for Alzheimer's disease and cardiometabolic conditions, alongside favorable demographic trends and increasing consumer interest in preventative health and wellness. Operating margins are expected to expand in 2026 as the company continues to deploy automation and artificial intelligence technologies through its Invigorate program while managing investments in Project Nova, its multi-year order-to-cash modernization initiative. The company is advancing strategic collaborations, including a joint venture with Corewell Health expected to contribute approximately $250 million in organic revenue at low single-digit margins in 2026, and expects consumer-initiated testing to maintain growth momentum exceeding 20% on a long-term basis. Management remains confident in business fundamentals despite near-term headwinds from weather impacts and potential regulatory changes, with pricing expected to remain relatively flat and unit volumes continuing to benefit from increased utilization of blood-based diagnostics across primary and specialty care settings.
Based on recent SEC filings and earnings calls, QUEST DIAGNOSTICS INC (DGX) has provided the following forward guidance: Revenue: $11.78 billion–$11.9 billion (FY2026); Reported EPS: $9.58–$9.78 (FY2026); Adjusted EPS: $10.63–$10.83 (FY2026); Cash from operations: approximately $1.75 billion (FY2026); Capital expenditures: approximately $550 million (FY2026), plus 1 additional metric.
No recent press releases.