Quest Diagnostics (DGX)
NYSEHealth CareMedical - Diagnostics & ResearchSnapshot 2026-09-04
$237.14-0.94%
Close 2026-09-04 · 1-day change
NYSEHealth CareMedical - Diagnostics & ResearchSnapshot 2026-09-04
QuarterlyIQ Insights · DGX
How strong the business is — where it ranks within its sector on capital efficiency and cash generation, and how well management has been executing.
How this business ranks within health care on a research-validated quality screen. As of 2026-09-04.
The screen ranks DGX against its sector on four durable signals: share dilution, return on capital, free-cash-flow yield, and FCF margin. Historically the highest-quality names tended toward better typical outcomes and fewer bad years over multi-year holds (strongest at three years, modest at one), and that pattern showed up even before the price moved. It characterizes business quality, not price direction.
Each leg is a sector-relative percentile (higher is better); 4 of 4 legs were available for this name. The composite is built from these four; the raw value follows each percentile for context.
A forward quality tilt, not a price prediction, and context for your own research rather than a recommendation. Not investment advice.
How management runs the business: capital, margins, balance sheet, and how reliably they guide and deliver.
Each factor is a parallel diagnostic with a clear read of what it shows and how names like it have historically fared. Never aggregated into a single score.
Operating income rose in 2 of the last 3 quarter-over-quarter moves. Historically, Health Care names rated strong grew net income 53% of the time over the next year (vs 41% for the rest of the cohort, n=9986).
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
A guidance track record builds as the company issues and delivers on guidance.
Priorities management has stated in recent disclosures, with status and evidence drawn from earnings calls, filings, and press releases.
Drive organic and total revenue growth through clinical innovations, consumer channels, and strategic collaborations.
Stated as a priority in 7 of last 7 quarters. Revenue grew from $2.65 billion in 2025-Q1 to $3.04 billion in 2026-Q2, a 10.2% increase year-over-year in the latest quarter. Management has consistently raised revenue guidance reflecting organic growth and acquisitions. The trajectory is delivering with sustained double-digit revenue growth.
“Revenues increased by over 10%, almost all from organic revenue growth... raising full year guidance.”
“More than 9% revenue growth, almost entirely organic, raising revenue guidance.”
“Closed 2025 with strong fourth quarter and double-digit growth in revenues.”
“Revenues grew 13.1%, including 6.8% organic growth, driven by clinical innovations and acquisitions.”
“Revenues grew 15.2%, including 5.2% organic revenues, driven by innovative clinical solutions.”
“Strong revenue growth of approximately 12%, including nearly 2.5% organic growth.”
“Delivered impressive revenue growth of nearly 15%, including approximately 5% organic growth.”
Sustain and improve earnings per share growth through operational execution and strategic initiatives.
Stated as a priority in 7 of last 7 quarters. Adjusted diluted EPS grew from $2.21 in 2025-Q1 to $3.12 in 2026-Q2, a 19.1% increase year-over-year in the latest quarter. Management has consistently raised EPS guidance reflecting operational execution and strategic growth. The trajectory is delivering with sustained EPS growth.
“Adjusted diluted EPS grew over 19% from 2025; raising full year EPS guidance.”
Maintain disciplined capital expenditure levels to support growth and operational efficiency.
Stated as a priority in 6 of last 6 quarters. Capital expenditures increased modestly from $225 million in first half 2025 to $252 million in first half 2026. Full year guidance for 2026 is approximately $550 million, up from $500 million in 2025. Management is maintaining disciplined capex levels consistent with stated priorities.
“Capital expenditures Approximately $550 million for full year 2026.”
Grow business through partnerships such as Co-Lab Solutions and collaborations with health systems and consumer health companies.
Stated as a priority in 5 of last 5 quarters. Management has consistently highlighted progress on Co-Lab Solutions and joint ventures with Corewell Health, and growth in consumer and wearable health partnerships. While specific revenue contributions are not quantified, these collaborations are a recurring strategic focus.
“Advanced Co-Lab Solutions and joint venture with Corewell Health; grew consumer channel revenues.”
Implement automation, AI, and process improvements to enhance quality, productivity, and customer experience.
Stated as a priority in 5 of last 5 quarters. Management has consistently emphasized automation, AI deployment, and process improvements to enhance productivity and quality. While specific productivity metrics are not disclosed, these initiatives are a recurring operational focus.
“Deployed AI and automation across lab, customer and administrative systems to improve quality and productivity.”
Over the trailing year it converted 1.48x of net income into operating cash flow. Historically, Health Care names rated robust grew net income 55% of the time over the next year (vs 45% for the rest of the cohort, n=2490).
Not enough signal yet.
Not enough signal to read sensitivity to the US dollar, the broad stock market, real (inflation-adjusted) rates, long-term interest rates, Fed net liquidity (low R² over the window).
5 material management or governance events in the past 24 months, led by capital-allocation actions. Historically, Health Care names rated stable grew net income 46% of the time over the next year (vs 53% for the rest of the cohort, n=3872).
Not investment advice. As of 2026-09-04.
“Adjusted diluted EPS up 13.1% from 2025; raising EPS guidance.”
“Full year adjusted diluted EPS up 10.3% from 2024.”
“Adjusted diluted EPS up 13.0% from 2024; raising full year guidance.”
“Adjusted diluted EPS up 11.5% from 2024; raising full year guidance.”
“Adjusted diluted EPS up 8.3% from 2024; reaffirming full year guidance.”
“Adjusted diluted EPS up 3.7% from 2023; increasing quarterly dividend.”
“Capital expenditures Approximately $550 million for full year 2026.”
“Capital expenditures Approximately $500 million for full year 2025.”
“Capital expenditures Approximately $500 million for full year 2025.”
“Capital expenditures Approximately $500 million for full year 2025.”
“Capital expenditures Approximately $500 million for full year 2025.”
“Advanced Co-Lab Solutions and joint venture with Corewell Health; scaled lab and water purity testing.”
“Deployed largest Co-Lab Solutions implementation for Corewell Health; finalized joint venture lab.”
“Entered agreement with Corewell Health for lab services joint venture and Co-Lab Solutions deployment.”
“Scaled clinical lab testing for Fresenius Medical Care dialysis centers; formed consumer collaborations.”
“Launched AI Companion tool; advanced planning for Project Nova to transform order-to-cash processes.”
“Delivered 3% annual cost savings and productivity improvements through Invigorate program; deployed AI and automation.”
“Announced collaboration with Epic for Project Nova to streamline systems and improve customer experiences.”
“Realized productivity gains deploying automation and digital technologies across operations.”