Quest Diagnostics (NYSE:DGX) Reaches New 1-Year High After Better-Than-Expected Earnings

Quest Diagnostics Incorporated (NYSE:DGX)’s share price hit a new 52-week high during mid-day trading on Tuesday following a stronger than expected earnings report. The stock traded as high as $204.71 and last traded at $204.73, with a volume of 471005 shares. The stock had previously closed at $191.25.

The medical research company reported $2.42 earnings per share for the quarter, beating the consensus estimate of $2.35 by $0.07. Quest Diagnostics had a return on equity of 15.47% and a net margin of 8.91%.The business had revenue of $2.81 billion for the quarter, compared to analysts’ expectations of $2.75 billion. During the same quarter in the previous year, the business posted $2.23 EPS. Quest Diagnostics’s revenue for the quarter was up 7.1% on a year-over-year basis. Quest Diagnostics has set its FY 2026 guidance at 9.45-9.650 EPS.

Quest Diagnostics Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Monday, April 20th. Investors of record on Monday, April 6th will be issued a dividend of $0.86 per share. The ex-dividend date is Monday, April 6th. This is a positive change from Quest Diagnostics’s previous quarterly dividend of $0.80. This represents a $3.44 dividend on an annualized basis and a dividend yield of 1.7%. Quest Diagnostics’s dividend payout ratio (DPR) is 37.56%.

Quest Diagnostics announced that its board has approved a stock repurchase plan on Tuesday, February 10th that authorizes the company to repurchase $1.00 billion in outstanding shares. This repurchase authorization authorizes the medical research company to purchase up to 4.7% of its shares through open market purchases. Shares repurchase plans are generally a sign that the company’s management believes its stock is undervalued.

Quest Diagnostics News Roundup

Here are the key news stories impacting Quest Diagnostics this week:

• Positive Sentiment: Q4 results beat consensus: adjusted EPS of $2.42 topped estimates and revenue of $2.81B was up 7.1% year-over-year, driven by stronger test volumes and price/mix. This is the core catalyst cited by multiple outlets. Yahoo Finance: Q4 Highlights
• Positive Sentiment: Shareholder-return boost: board raised the quarterly dividend 7.5% to $0.86 and authorized an additional $1.0B in share repurchases — a clear positive for income and buyback-driven EPS support. PR Newswire: Dividend & Repurchase
• Positive Sentiment: Analyst/market reaction: shares hit a 52‑week high and Citigroup raised its price target to $215 (neutral rating), reflecting positive reception to the quarter and capital return actions. MSN: 52-week high Benzinga: Citi PT raise
• Positive Sentiment: Longer-term growth potential: CEO comments on developing blood-based Alzheimer’s diagnostics highlight a potential new growth avenue if tests gain clinical adoption and reimbursement. YouTube: CEO on Alzheimer’s testing
• Neutral Sentiment: Investor materials and call: company released the earnings press release, slide deck and full transcript; management reiterated drivers (volume growth, pricing, cost control) that investors will parse for sustainability. Press Release / Slide Deck
• Negative Sentiment: Guidance is mixed: FY2026 reported diluted EPS guidance of $9.45–$9.65 (and adjusted EPS ranges detailed in the release) may sit below some street estimates, creating a risk that analysts trim expectations despite the quarter. PR Newswire: Q4 Results & Guidance

Wall Street Analyst Weigh In

DGX has been the topic of several recent research reports. Citigroup lifted their price target on Quest Diagnostics from $190.00 to $215.00 and gave the company a “neutral” rating in a research note on Tuesday. Morgan Stanley set a $207.00 price objective on Quest Diagnostics and gave the stock an “overweight” rating in a report on Wednesday, October 22nd. UBS Group boosted their target price on Quest Diagnostics from $180.00 to $190.00 and gave the company a “neutral” rating in a research note on Friday, October 17th. Jefferies Financial Group reaffirmed a “buy” rating and set a $220.00 price target on shares of Quest Diagnostics in a research report on Tuesday. Finally, Mizuho lifted their price objective on shares of Quest Diagnostics from $190.00 to $210.00 and gave the company an “outperform” rating in a report on Friday, October 17th. Eight research analysts have rated the stock with a Buy rating and eight have given a Hold rating to the stock. According to MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average price target of $201.00.

Insiders Place Their Bets

In related news, Director Vicky B. Gregg sold 1,250 shares of the business’s stock in a transaction on Tuesday, November 25th. The shares were sold at an average price of $191.76, for a total transaction of $239,700.00. Following the transaction, the director directly owned 17,037 shares in the company, valued at approximately $3,267,015.12. The trade was a 6.84% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CEO J. E. Davis sold 55,093 shares of the stock in a transaction on Tuesday, November 25th. The shares were sold at an average price of $192.22, for a total transaction of $10,589,976.46. Following the completion of the sale, the chief executive officer owned 120,480 shares of the company’s stock, valued at approximately $23,158,665.60. This represents a 31.38% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 64,289 shares of company stock valued at $12,318,360 in the last 90 days. 8.16% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently modified their holdings of the company. Perigon Wealth Management LLC lifted its stake in Quest Diagnostics by 4.5% in the 3rd quarter. Perigon Wealth Management LLC now owns 1,275 shares of the medical research company’s stock valued at $243,000 after purchasing an additional 55 shares during the last quarter. HB Wealth Management LLC increased its position in Quest Diagnostics by 0.5% during the fourth quarter. HB Wealth Management LLC now owns 11,292 shares of the medical research company’s stock worth $1,960,000 after buying an additional 58 shares during the last quarter. Independent Advisor Alliance raised its stake in Quest Diagnostics by 1.4% in the third quarter. Independent Advisor Alliance now owns 4,232 shares of the medical research company’s stock valued at $807,000 after buying an additional 59 shares during the period. True North Advisors LLC lifted its position in shares of Quest Diagnostics by 4.1% in the third quarter. True North Advisors LLC now owns 1,554 shares of the medical research company’s stock valued at $296,000 after buying an additional 61 shares during the last quarter. Finally, Ossiam boosted its stake in shares of Quest Diagnostics by 6.1% during the 3rd quarter. Ossiam now owns 1,059 shares of the medical research company’s stock worth $202,000 after acquiring an additional 61 shares during the period. Institutional investors own 88.06% of the company’s stock.

Quest Diagnostics Price Performance

The business has a fifty day moving average of $181.77 and a two-hundred day moving average of $181.77. The company has a debt-to-equity ratio of 0.71, a quick ratio of 1.04 and a current ratio of 1.13. The firm has a market capitalization of $22.80 billion, a price-to-earnings ratio of 24.06, a price-to-earnings-growth ratio of 2.42 and a beta of 0.66.

About Quest Diagnostics

Quest Diagnostics (NYSE: DGX) is a leading provider of diagnostic information services that supports clinical decision-making for patients, physicians and healthcare organizations. The company operates a network of clinical laboratories and patient service centers that perform a broad range of laboratory tests and diagnostic assays used in routine care, disease diagnosis, monitoring and screening.

Its services span core clinical laboratory testing, anatomic pathology, molecular and genomic diagnostics, infectious disease testing and toxicology.