Quest Diagnostics Inc.’s DGX first-quarter 2026 adjusted earnings per share (EPS) of $2.50 beat the Zacks Consensus Estimate by 5.45%. The metric also exceeded the year-ago adjusted figure by 13.1%.
Certain one-time expenses, like the ones related to amortization expenses, certain restructuring and integration charges, other expenses and excess tax benefits associated with stock-based compensations, were excluded from the quarter’s adjusted figures. GAAP earnings came in at $2.24 per share, up 15.5% from last year’s comparable figure.
DGX’s Revenues in Detail
Revenues reported in the first quarter rose 9.2% year over year to $2.90 billion. The metric surpassed the Zacks Consensus Estimate by 3.14%.
Diagnostic Information Services revenues in the quarter were up 9.4% on a year-over-year basis to $2.83 billion. Our model forecast was $2.74 billion.
Quest Diagnostics Incorporated Price, Consensus and EPS Surprise
Quest Diagnostics Incorporated price-consensus-eps-surprise-chart | Quest Diagnostics Incorporated Quote
Volumes (measured by the number of requisitions) were up 10.9% year over year in the first quarter. Revenue per requisition dropped 1.3% year over year.
DGX shares have gained nearly 1.3% in pre-market trading following the earnings report.
DGX’s Q1 Margin Performance
The cost of services during the reported quarter was $1.95 billion, up 9.2% year over year. The gross profit came in at $942 million, rising 9.2% year over year. The gross margin of 32.5% was unchanged from the year-ago figure.
SG&A expenses were $504 million in the quarter under review, increasing 5.9% from the first quarter of 2025. The adjusted operating margin of 15.1% represented a 54 bps expansion year over year.
DGX’s Financial Position
Quest Diagnostics exited the first quarter of 2026 with cash and cash equivalents of $393 million compared with $420 million at the end of 2025.
The cumulative net cash provided by operating activities at the end of the first quarter of 2026 was $278 million compared with $314 million a year ago.
The company has a five-year annualized dividend growth rate of 6.33%.
DGX’s 2026 Guidance
Quest Diagnostics provided an updated full-year 2026 outlook. Revenues are now expected in the range of $11.78-$11.90 billion (earlier $11.70-$11.82 billion), which indicates a year-over-year increase of 6.8%-7.8%. The Zacks Consensus Estimate is pegged at $11.76 billion.
Adjusted EPS is expected between $10.63 and $10.83 (previously $10.50-$10.70). The Zacks Consensus Estimate for the metric is pegged at $10.60.
Our View on DGX Stock
Quest Diagnostics ended the first quarter of 2026 with earnings and revenues surpassing respective estimates. Performance reflects the company’s solid execution of strategy to deliver innovative diagnostic solutions for customers’ evolving needs. Several areas of Advanced Diagnostics, including Quest AD-Detect blood tests for Alzheimer's disease, and several clinical areas of advanced cardiometabolic and endocrine disease, posted double-digit growth. It also generated robust revenues through the questhealth.com consumer platform and collaborations with top consumer health companies. The raised full-year 2026 guidance is highly promising.
DGX’s Zacks Rank & Key Picks
Quest Diagnostics currently has a Zacks Rank #3 (Hold).
Some better-ranked stocks from the broader medical space are Globus Medical GMED, Tactile Systems Technology, Inc. TCMD and Phibro Animal Health PAHC.
Globus Medical, currently sporting a Zacks Rank #1 (Strong Buy), reported a fourth-quarter 2025 adjusted EPS of $1.28, which surpassed the Zacks Consensus Estimate by 20.8%. Revenues of $826.4 million beat the Zacks Consensus Estimate by 4.9%. You can see the complete list of today’s Zacks #1 Rank stocks here.
GMED has an earnings yield of 4.7% compared with the industry’s negative 1.4% yield. The company beat earnings estimates in three of the trailing four quarters and missed on one occasion, the average surprise being 18.79%.
Tactile Systems Technology, carrying a Zacks Rank #2 (Buy) at present, posted a fourth-quarter 2025 adjusted EPS of 46 cents, exceeding the Zacks Consensus Estimate by 3.77%. Revenues of $103.6 million topped the Zacks Consensus Estimate by 10.52%.
TCMD has an earnings yield of 4.4% compared with the industry’s negative 1.4% yield. The company’s earnings outpaced estimates in three of the trailing four quarters and missed on one occasion, the average surprise being 24.85%.
Phibro Animal Health, carrying a Zacks Rank #2 at present, posted a second-quarter fiscal 2026 adjusted EPS of 87 cents, exceeding the Zacks Consensus Estimate by 27.01%. Revenues of $373.9 million outperformed the Zacks Consensus Estimate by 4.72%.
PAHC has an estimated long-term earnings growth rate of 21.5% compared with the industry’s 12.1% growth. The company’s earnings outpaced estimates in each of the trailing four quarters, the average surprise being 20.15%.
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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).