Quest Diagnostics DGX is set to release first-quarter 2026 results on April 21, before the market opens.
The renowned diagnostics provider posted adjusted earnings per share (EPS) of $2.42 in the last reported quarter, which surpassed the Zacks Consensus Estimate by 2.98%. The company topped earnings estimates in each of the trailing four quarters, the average surprise being 2.83%.
Q1 Estimates for DGX
The Zacks Consensus Estimate for revenues is pegged at $2.81 billion, indicating an increase of 6% from the year-ago reported figure.
The Zacks Consensus Estimate for the company’s EPS suggests a 5.9% rise to $2.34.
Estimate Revision Trend Ahead of DGX’s Q1 Earnings
Estimates for Quest Diagnostics’ Q1 earnings have dropped 1.7% 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 Q1 Results
Similar to the past quarters, revenues in the core Diagnostics Information Services (“DIS”) business are expected to have been driven by organic growth in the physician, hospital and consumer channels. In the physician channel, a key driver has likely been broader health plan access, expanding the reach of Quest Diagnostics’ lab services. Enterprise accounts may have contributed additional revenues from new customer wins and expanded business.
In the first 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.
Quest Diagnostics Incorporated Price and EPS Surprise
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Recent acquisitions are likely to have provided a lift to first-quarter revenues. Quest Diagnostics’ purchase of select clinical testing assets from Fresenius Medical Care may have broadened its lab testing capabilities across more U.S. dialysis centers.
Growth in the hospital channel may have been led by Co-Lab solutions, which leverage 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 positively impacted revenues as well.
Quest Diagnostics may have generated robust growth from its consumer-initiated test platform, questhealth.com, which now offers more than 150 tests, including the new 85-biomarker Elite Health profile. Partnerships forged with WHOOP, Oura, Function Health and several other types of wellness companies are also expected to have positively impacted performance.
Going by our model, the company’s DIS revenues are likely to increase 5.8% year over year in the first quarter of 2026.
Synergies from the Invigorate initiative may have favored Quest Diagnostics’ operational metrics, with ongoing investments in automation and AI to improve productivity as well as service levels and quality. Efforts such as deploying automated sample processing across the network and collaborative accessioning at multiple sites, implementation of the Hologic Genius Digital Diagnostic System and a new virtual agent outside the lab may have aided.
Our model expects the company’s operating income (non-GAAP basis) to edge up 0.2% year over year in the first quarter of 2026.
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 -12.93%. 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 #3.
Top MedTech Picks
Here are some other medical stocks worth considering, as these have the right combination of elements to post an earnings beat this time:
Agenus AGEN has an Earnings ESP of +7.69% and a Zacks Rank #1. The company is expected to release first-quarter 2026 results soon.
In the trailing four quarters, AGEN delivered an average surprise of 31.42%. The Zacks Consensus Estimate predicts the company’s first-quarter EPS will increase 289.3% from the year-ago quarter’s figure.
The Ensign Group ENSG has an Earnings ESP of +2.38% and a Zacks Rank #1. The company is expected to release first-quarter 2026 results soon.
ENSG’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 2.93%. The Zacks Consensus Estimate for the company’s first-quarter EPS calls for an increase of 17.8% from the year-ago quarter’s figure.
West Pharmaceutical Services WST has an Earnings ESP of +0.17% and a Zacks Rank #2. The company is slated to release first-quarter 2026 results on April 23.
WST’s earnings beat estimates in each of the trailing four quarters, the average surprise being 17.39%. The Zacks Consensus Estimate suggests that WST’s first-quarter EPS will rise 15.9% from the year-ago reported figure.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in the coming year. While not all picks can be winners, previous recommendations have soared +112%, +171%, +209% and +232%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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Quest Diagnostics Incorporated (DGX): Free Stock Analysis Report
West Pharmaceutical Services, Inc. (WST): Free Stock Analysis Report
Agenus Inc. (AGEN): Free Stock Analysis Report
The Ensign Group, Inc. (ENSG): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).