Quest Diagnostics (DGX)
NYSEHealth CareDiagnostics & ResearchSnapshot 2026-07-07
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Track DGX free→Quest Diagnostics keeps growing revenue about 7% a year. Profit per share is rising toward $9.68 in 2026. Free cash flow is strong at $1.75 billion. The company buys back stock and gains new test approvals to boost growth.
Revenue and EPS recently fell sharply in late 2025. Management has struggled to improve growth and earnings. Rising competition or regulatory issues could hurt results.
The price is about 4% above our fair value near $202 but 10% below the Street median near $225. Analysts expect a large revenue decline of about -60%, which we view as unjustified given recent growth and guidance.
Breaks if: no buyback authorization or buybacks halted
Breaks if: EPS falls below $9.0 in FY26
Commitment to enhancing EPS growth as a key financial objective.
Stated in 4 of last 4 quarters. EPS decreased from $2.47 in 2025-Q2 to $1.72 in 2025-Q4, showing limited progress in enhancing EPS growth. Despite management's focus, the financial results have not yet aligned with this priority.
Breaks if: free cash flow falls below $1.5 billion in FY26
Breaks if: revenue falls below $11.0 billion in FY26
Focus on increasing revenue growth as a strategic priority.
Stated in 4 of last 4 quarters. Revenue declined from $2.81B in 2025-Q3 to $1.93B in 2025-Q4, indicating limited progress in achieving the revenue growth priority. Management's focus on this priority has not yet translated into tangible growth.
Standing thesis, reviewed periodically — not a price target or advice.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
“EPS growth remains a critical focus.”
“We are focused on enhancing EPS growth.”
“EPS growth is a key financial objective.”
“Enhancing EPS growth is a priority.”
“Management reiterated the focus on revenue growth.”
“Revenue growth remains a key priority.”
“We are committed to driving revenue growth.”
“Increasing revenue growth is a strategic focus.”