Quest Diagnostics (NYSE:DGX) Hits New 12-Month High on Better-Than-Expected Earnings

Quest Diagnostics Incorporated (NYSE:DGX) hit a new 52-week high during trading on Tuesday after the company announced better than expected quarterly earnings. The stock traded as high as $204.71 and last traded at $204.73, with a volume of 471005 shares trading hands. The stock had previously closed at $191.25.

The medical research company reported $2.42 EPS for the quarter, beating analysts’ consensus estimates of $2.35 by $0.07. Quest Diagnostics had a net margin of 8.99% and a return on equity of 15.57%. The company had revenue of $2.81 billion for the quarter, compared to analysts’ expectations of $2.75 billion. During the same period in the prior year, the company posted $2.23 EPS. Quest Diagnostics’s revenue was up 7.1% compared to the same quarter last year. Quest Diagnostics has set its FY 2026 guidance at 9.45-9.650 EPS.

Quest Diagnostics Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Monday, April 20th. Stockholders of record on Monday, April 6th will be given a dividend of $0.86 per share. This is a boost from Quest Diagnostics’s previous quarterly dividend of $0.80. This represents a $3.44 annualized dividend and a dividend yield of 1.6%. The ex-dividend date is Monday, April 6th. Quest Diagnostics’s dividend payout ratio (DPR) is currently 39.31%.

Quest Diagnostics announced that its Board of Directors has authorized a stock buyback plan on Tuesday, February 10th that authorizes the company to buyback $1.00 billion in outstanding shares. This buyback authorization authorizes the medical research company to purchase up to 4.7% of its stock through open market purchases. Stock buyback plans are typically an indication that the company’s leadership believes its stock is undervalued.

Key Quest Diagnostics News

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

• Positive Sentiment: Q4 results beat expectations — adjusted EPS $2.42 vs. consensus ~$2.35 and revenue of $2.81B (up 7.1% YoY); management highlighted rising test volumes that drove the beat. Q4 Results Release
• Positive Sentiment: Board authorized a $1.0 billion share repurchase (up to ~4.7% of shares), which supports EPS and signals management confidence in the stock. Buyback Announcement
• Positive Sentiment: Quarterly dividend increased 7.5% to $0.86 (15th consecutive year of raises), improving yield and making the stock more attractive to income investors. Dividend Hike Release
• Positive Sentiment: Analysts showing bullish activity — Barclays raised its price target to $225 with an Overweight rating and Morgan Stanley reiterated a Buy, both supporting upward momentum. Analyst Coverage
• Neutral Sentiment: Stock is at a 52‑week high and momentum-oriented coverage is highlighting that trend; this can attract momentum funds but can also set higher expectations. 52-Week High Note
• Neutral Sentiment: Management commentary on longer‑term growth drivers (e.g., blood-based Alzheimer’s testing) was reiterated — bullish for long-term revenue mix but not an immediate earnings driver. CEO Alzheimer’s Comment
• Negative Sentiment: FY‑2026 reported EPS guidance (9.45–9.65) was below some prior consensus estimates (market consensus cited ~10.4), which could cap near-term multiple expansion despite an improved adjusted EPS range. Investors should watch how the market weighs reported vs. adjusted guidance. Guidance Details

Analyst Upgrades and Downgrades

Several research firms have issued reports on DGX. Barclays increased their target price on shares of Quest Diagnostics from $210.00 to $225.00 and gave the stock an “overweight” rating in a research note on Wednesday. Robert W. Baird set a $219.00 price objective on Quest Diagnostics in a research report on Wednesday. Truist Financial boosted their target price on Quest Diagnostics from $205.00 to $220.00 and gave the stock a “hold” rating in a research report on Wednesday. Weiss Ratings reaffirmed a “buy (b-)” rating on shares of Quest Diagnostics in a report on Monday, December 29th. Finally, Piper Sandler boosted their price objective on Quest Diagnostics from $190.00 to $200.00 and gave the stock a “neutral” rating in a report on Monday, October 27th. Eight research analysts have rated the stock with a Buy rating and eight have assigned a Hold rating to the company’s stock. According to data from MarketBeat, Quest Diagnostics has a consensus rating of “Moderate Buy” and a consensus price target of $207.27.

Insider Activity at Quest Diagnostics

In related news, SVP Mark E. Delaney sold 7,946 shares of the business’s stock in a transaction that occurred on Tuesday, November 18th. The shares were sold at an average price of $187.35, for a total transaction of $1,488,683.10. Following the completion of the transaction, the senior vice president owned 7,530 shares in the company, valued at $1,410,745.50. The trade was a 51.34% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, Director Vicky B. Gregg sold 1,250 shares of the firm’s stock in a transaction that occurred 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 completion of the sale, the director owned 17,037 shares of the company’s stock, valued at approximately $3,267,015.12. This trade represents a 6.84% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 64,289 shares of company stock valued at $12,318,360 over the last quarter. 8.16% of the stock is owned by corporate insiders.

Institutional Trading of Quest Diagnostics

Hedge funds and other institutional investors have recently made changes to their positions in the business. JFS Wealth Advisors LLC grew its stake in Quest Diagnostics by 114.3% during the 4th quarter. JFS Wealth Advisors LLC now owns 150 shares of the medical research company’s stock worth $26,000 after buying an additional 80 shares during the last quarter. Harbor Investment Advisory LLC boosted its holdings in Quest Diagnostics by 113.7% in the fourth quarter. Harbor Investment Advisory LLC now owns 156 shares of the medical research company’s stock worth $27,000 after acquiring an additional 83 shares in the last quarter. MTM Investment Management LLC purchased a new stake in shares of Quest Diagnostics during the second quarter worth about $29,000. Sittner & Nelson LLC purchased a new stake in shares of Quest Diagnostics during the fourth quarter worth about $29,000. Finally, True Wealth Design LLC increased its holdings in shares of Quest Diagnostics by 369.7% during the third quarter. True Wealth Design LLC now owns 155 shares of the medical research company’s stock valued at $30,000 after acquiring an additional 122 shares in the last quarter. Hedge funds and other institutional investors own 88.06% of the company’s stock.

Quest Diagnostics Stock Up 1.9%

The company’s 50-day moving average is $182.31 and its 200 day moving average is $181.96. The stock has a market capitalization of $23.28 billion, a PE ratio of 23.92, a price-to-earnings-growth ratio of 2.55 and a beta of 0.66. The company has a current ratio of 1.04, a quick ratio of 1.04 and a debt-to-equity ratio of 0.72.

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.