Quest Diagnostics Incorporated (DGX) AI Stock Analysis

Quest Diagnostics Incorporated specializes in providing comprehensive diagnostic testing, information, and services both domestically and globally. The company operates a network of laboratories, patient service centers, and mobile health professionals, offering routine and advanced clinical testing, anatomic pathology, and specialized diagnostic testing. It delivers services under brands including Quest Diagnostics, AmeriPath, Dermpath Diagnostics, ExamOne, and Quanum. Quest Diagnostics serves patients, healthcare providers, hospitals, independent delivery networks, health plans, employers, and accountable care organizations, while also providing risk assessment services to the life insurance industry and healthcare information technology solutions.

Following pandemic-period revenue of $10.79B in FY2021, Quest Diagnostics experienced revenue declines of 8.4% in FY2022 to $9.88B and 6.4% in FY2023 to $9.25B. Growth rebounded in FY2024 with revenue rising 6.7% to $9.87B, and accelerated in FY2025 by 11.8% to $11.04B. Net income was $2.00B in FY2021, $946.0M in FY2022, $854.0M in FY2023, $871.0M in FY2024, and $992.0M in FY2025. Operating margin was 14.5% in FY2025 compared to 22.1% in FY2021. For the trailing twelve months, revenue reached $11.56B with an operating margin of 15.2% and EPS of $9.54. In the latest quarter ended June 30, 2026, revenue increased 10.2% and earnings rose 15.0%.

As of June 30, 2026, Quest Diagnostics held $626.0M in cash and short-term investments against total debt of $6.38B, resulting in net debt of $5.76B. Shareholders' equity was $7.52B, corresponding to a debt-to-equity ratio of 0.85 and a current ratio of 1.59. In FY2025, operating cash flow reached $1.89B and free cash flow stood at $1.36B. Capital deployment in FY2025 included $527.0M in capital expenditures, $450.0M in share buybacks, and $353.0M in dividends paid, contributing to a -10.4% change in share count over 5 years.

At a market cap of $25.94B and enterprise value of $31.47B, Quest Diagnostics trades at a trailing P/E of 24.6x and a forward P/E of 19.5x. Its trailing P/E sits below the 28.9x median of its S&P 500 Healthcare peers, while its forward P/E is above the peer median of 16.5x. Enterprise value-to-EBITDA is 14.0x compared to 15.7x for peers, and price-to-sales is 2.2x versus 3.4x. Over the past year, the stock gained 27.9%, outperforming the S&P 500 return of 16.8%, while its 5-year return of 82.5% closely tracked the index's 83.0%.

Quest Diagnostics pays a quarterly dividend with an annualized forward rate of $3.44, representing a dividend yield of 1.46%. The company has paid dividends for 23 consecutive years, delivering a 5-year annualized dividend growth rate of 7.3%. Its payout ratio is 31.8%, supported by $353.0M in dividends paid in FY2025. The last ex-dividend date was October 6, 2026.

Wall Street analyst coverage includes 7 Strong Buy, 2 Buy, and 8 Hold ratings, with 0 Sell and 0 Strong Sell ratings. The mean price target is $251.40, representing 7.0% upside compared to the last close of $235.00. For the fiscal year ending December 31, 2026, consensus estimates project EPS of $11.20 and revenue of $12.01B. Quest Diagnostics beat EPS estimates in each of the last 4 quarters, with its next earnings date scheduled for October 22, 2026.

This page is an AI-written research summary of Quest Diagnostics Incorporated (DGX). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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