Quest Diagnostics DGX is set to release second-quarter 2026 results on July 23, before the market opens.
In the last reported quarter, the renowned diagnostics provider posted adjusted earnings per share (EPS) of $2.50, which surpassed the Zacks Consensus Estimate by 5.49%. The company beat on earnings in each of the trailing four quarters, the average surprise being 3.50%.
Q2 Estimates for DGX
The Zacks Consensus Estimate for revenues is pegged at $2.98 billion, indicating an increase of 7.9% from the year-ago reported figure.
The Zacks Consensus Estimate for the company’s EPS suggests a 7.3% rise to $2.81.
Estimate Revision Trend Ahead of DGX’s Q2 Earnings
Estimates for Quest Diagnostics’ Q2 earnings have remained unchanged in the past 30 days.
Here’s a brief review of the company’s performance leading up to the announcement.
Factors Likely to Influence DGX’s Q2 Results
As in the previous quarter, second-quarter 2026 revenues are expected to have been supported by broad-based demand for its clinical innovations, expansion into new clinical areas, and partnerships with leading healthcare and consumer health organizations.
In the physician channel, a key driver has likely been geographic expansion from greater health plan access, expanding the reach of Quest Diagnostics’ lab services. Enterprise accounts might have contributed additional revenues from new customer wins and expanded business. The company's entry into end-stage renal disease (ESRD), a new clinical area, is expected to have boosted revenues in the to-be-reported quarter.
Growth in the hospital channel may have been driven by Co-Lab solutions, which leverages the company’s lab and process management expertise to optimize quality and drive cost efficiencies. Early in 2026, DGX began scaling its Co-Lab solutions across all 21 hospitals of Corewell Health, its largest implementation to date. This is expected to have had a positive impact on revenues.
Quest Diagnostics Incorporated Price and EPS Surprise
Quest Diagnostics Incorporated price-eps-surprise | Quest Diagnostics Incorporated Quote
In the consumer channel, as in recent quarters, the company is likely to have generated strong revenue growth from both questhealth.com and its portfolio of leading consumer health collaborations. This growth is expected to have been driven by notable demand for its new solutions such as the Elite health profile and autoimmune and hormone tests.
In the second quarter of 2026, the company is likely to have maintained momentum in Advanced Diagnostics, which includes non-routine and specialized tests across advanced cardiometabolic, autoimmune, brain health, oncology, and women's and reproductive health areas. Offerings such as the Quest AD-Detect blood test portfolio for Alzheimer's disease, the ANAlyzeR autoimmune solution and the new Flow Cytometry measurable residual disease (MRD) for Myeloma are expected to have supported growth.
The company is also leveraging artificial intelligence through the newly launched Quest AI Companion, which transforms complex biomarker data and reference ranges in test reports into clear, easy-to-understand language. Patients have engaged with Quest AI Companion approximately 350,000 times since its first-quarter launch, and we expect this momentum to have continued in the to-be-reported quarter. Additionally, operational efficiencies and cost synergies from the Invigorate initiative are likely to have supported Quest Diagnostics' operating performance.
What Our Model Unveils for DGX
Per our proven model, a stock with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), along with a positive Earnings ESP, has a higher chance of beating estimates, which is not the case here, as you can see below.
Earnings ESP: Quest Diagnostics has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company currently carries a Zacks Rank #2.
Top MedTech Picks
Here are some medical stocks worth considering, as these have the right combination of elements to post an earnings beat this time around:
Hinge Health Inc. HNGE has an Earnings ESP of +4.24% and a Zacks Rank #1. The company is expected to release second-quarter 2026 results soon.
In the trailing four quarters, HINGE delivered an average surprise of 179.54%. The Zacks Consensus Estimate for second-quarter EPS implies a decrease 11.9% from the year-ago quarter’s figure.
Neurocrine Biosciences NBIX has an Earnings ESP of +40.60% and a Zacks Rank #1 at present. The company is expected to release second-quarter 2026 results soon.
NBIX’s earnings surpassed estimates in three of the trailing four quarters and missed in one, the average surprise being 9.08%. The Zacks Consensus Estimate for the company’s second-quarter EPS calls for an increase of 112.3% from the year-ago quarter’s figure.
West Pharmaceutical Services WST has an Earnings ESP of +1.09% and a Zacks Rank #2 at present. The company is slated to release second-quarter 2026 results on July 23.
WST’s earnings beat estimates in each of the trailing four quarters, the average surprise being 19.37%. The Zacks Consensus Estimate for WST’s second-quarter EPS implies a rise of 13% from the year-ago reported figure.
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Quest Diagnostics Incorporated (DGX): Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).