Upside case
Bull case
$444+134.7%
DGX would need investors to value it at roughly 41x earnings — about 24x more generous than today's 18x forward P/E. That requires meaningful multiple expansion on top of continued earnings growth.
Analysis OverviewHoldUpdated May 1, 2026
Quest Diagnostics Incorporated (DGX) Stock Analysis
Wall Street verdict, consensus price target, and analyst rating breakdown — everything needed to frame the risk/reward at today's price.
Analyst consensus
Hold
Covering
34
analysts
13 bullish · 3 bearish · 34 covering DGX
Strong Buy
0
Buy
13
Hold
18
Sell
3
Strong Sell
0
Consensus Target
$221
+16.6% vs today
Scenario Range
$169 – $444
Model bear to bull value window
Coverage
34
Published analyst ratings
Valuation Context
17.6x
Forward P/E · Market cap $20.9B
DGX price targets
Three scenarios for where DGX stock could go
Current
~$189
Confidence
66 / 100
Updated
May 1, 2026
Where we are now
Current · $189
Bear
$169
Base
$238
Bull
$444
Market caseClosest to today
Base case
$238+25.8%
At 22x on FY1 earnings, the base case reflects a reasonable but not stretched valuation. It prices in continued growth without assuming an exceptional setup.
Stress case
Bear case
$169-10.9%
If investor confidence fades or macro conditions deteriorate, a 2x multiple contraction could push DGX down roughly 11% from where it trades now.
Not financial advice. Model confidence reflects internal scenario assumptions, not a guarantee of returns. Past performance does not predict future results.
Quest Diagnostics Incorporated
DGX · NYSEHealthcareMedical - Diagnostics & ResearchDecember year-end
Quest Diagnostics is a leading provider of diagnostic testing and clinical laboratory services in the United States. It generates revenue primarily from diagnostic testing services — including routine testing, advanced clinical testing, and anatomic pathology — which account for the vast majority of its business, supplemented by risk assessment services for life insurers and healthcare IT solutions. The company's competitive advantage lies in its extensive national network of laboratories and patient service centers, established brand recognition, and economies of scale that create significant barriers to entry.
Market Cap
$20.9B
Revenue TTM
$11.3B
Net Income TTM
$1.0B
Net Margin
9.1%
DGX Revenue and Earnings Performance
Quarterly beat-or-miss track record against analyst estimates, plus forward revenue and EPS outlook for the next two fiscal years.
EPS Beat Rate
100%Exceptional
12 quarters tracked
Revenue Beat Rate
100%Exceptional
vs consensus estimates
Avg EPS Surprise
+2.9%
above Street consensus
Beat / Miss Record
BeatMissLeft = EPS · Right = Revenue
Q3 2025
Q4 2025
Q1 2026
Q2 2026
Last 4 Quarters
EPS beats: 4 of 4Q3 2025
EPS
$2.62/$2.57
Revenue
$2.8B/$2.7B
Q4 2025
EPS
$2.60/$2.50
Revenue
$2.8B/$2.7B
Q1 2026
EPS
$2.42/$2.36
Revenue
$2.8B/$2.8B
Q2 2026
EPS
$2.50/$2.37
Revenue
$2.9B/$2.8B
| Quarter | EPS (Actual / Est) | EPS Surprise | Revenue (Actual / Est) | Rev Surprise |
|---|---|---|---|---|
| Q3 2025 | $2.62/$2.57 | +1.9% | $2.8B/$2.7B | +1.3% |
| Q4 2025 | $2.60/$2.50 | +4.0% | $2.8B/$2.7B | +2.9% |
| Q1 2026 | $2.42/$2.36 | +2.5% | $2.8B/$2.8B | +1.9% |
| Q2 2026 | $2.50/$2.37 | +5.5% | $2.9B/$2.8B | +2.3% |
FY1–FY2 Estimates
Revenue Outlook
FY1
$12.0B
+6.6% YoY
FY2
$12.8B
+6.9% YoY
EPS Outlook
FY1
$10.27
+12.3% YoY
FY2
$11.01
+7.2% YoY
Trailing FCF (TTM)$1.3B
FCF Margin: 11.8%
Next Earnings
—
Expected EPS
—
Expected Revenue
—
DGX beat EPS estimates in 4 of 4 tracked quarters. A perfect track record raises the bar for the upcoming report.
DGX Revenue Breakdown by Segment
Product and geographic revenue mix from the latest annual disclosure, with year-over-year growth by segment.
Latest disclosure
FY 2025
Total disclosed revenue $10.8B
Product Mix
Latest annual revenue by segment or product family
Diagnostic Information Services Business
100.0%
+12.2% YoY
Tap, hover, or focus a slice to inspect segment detail.
Geographic Mix
Latest annual revenue by reported region
Segment breakdown not available for this company.
Diagnostic Information Services Business is the largest disclosed segment at 100.0% of FY 2025 revenue, up 12.2% YoY.
DGX Valuation Snapshot
Current multiples compared to the S&P 500, the company's sector, and its own five-year average.
Relative Value Signal
Significantly Undervalued
Fair value est. $258 — implies +33.6% from today's price.
Upside to Fair Value
33.6%
potential upside
Deep DiscountFair ValueVery Expensive
vs S&P 500 Trailing P/E
DGX
21.6x
vs
S&P 500
25.2x
14% discount
vs Healthcare Trailing P/E
DGX
21.6x
vs
Healthcare
22.2x
In line with benchmark
vs DGX 5Y Avg P/E
Today
21.6x
vs
5Y Average
17.7x
+22% premium
Forward PE
17.6x
S&P 500
19.1x
-8%
Healthcare
19.0x
-7%
5Y Avg
—
—
Trailing PE
21.6x
S&P 500
25.2x
-14%
Healthcare
22.2x
-2%
5Y Avg
17.7x
+22%
PEG Ratio
—
S&P 500
1.74x
—
Healthcare
1.52x
—
5Y Avg
—
—
EV/EBITDA
12.6x
S&P 500
15.2x
-17%
Healthcare
14.1x
-10%
5Y Avg
11.7x
+8%
Price/FCF
15.4x
S&P 500
21.3x
-28%
Healthcare
18.6x
-17%
5Y Avg
15.5x
-0%
Price/Sales
1.9x
S&P 500
3.1x
-39%
Healthcare
2.8x
-33%
5Y Avg
1.8x
+4%
Dividend Yield
1.65%
S&P 500
1.87%
-12%
Healthcare
1.40%
+18%
5Y Avg
1.76%
-6%
| Metric | DGX | S&P 500 | Healthcare | 5Y Avg DGX |
|---|---|---|---|---|
| Forward PE | 17.6x | 19.1x | 19.0x | — |
| Trailing PE | 21.6x | 25.2x-14% | 22.2x | 17.7x+22% |
| PEG Ratio | — | 1.74x | 1.52x | — |
| EV/EBITDA | 12.6x | 15.2x-17% | 14.1x-10% | 11.7x |
| Price/FCF | 15.4x | 21.3x-28% | 18.6x-17% | 15.5x |
| Price/Sales | 1.9x | 3.1x-39% | 2.8x-33% | 1.8x |
| Dividend Yield | 1.65% | 1.87% | 1.40% | 1.76% |
DGX trades above S&P 500 benchmarks on 0 of 5 measured multiples — appears modestly priced relative to the S&P 500 on most measures.
Forward P/E and PEG reflect analyst consensus estimates. Historical averages use trailing ratios where forward data is unavailable.S&P 500 and sector benchmarks both use trailing median P/E — similar readings indicate the broader index and sector are priced alike.
Open valuation toolDGX Financial Health
Verdict
Strong
DGX generates $1.3B in free cash flow at a 11.8% margin — returns 3.8% of market cap to shareholders annually.
Cash Engine
Revenue, margins, and cash generation
Revenue (TTM)
Trailing-twelve-month sales base
$11.3B
Revenue Growth
TTM vs prior year
+11.0%
Gross Margin
Gross profit as a share of revenue
33.2%
Operating Margin
Operating income divided by revenue
14.3%
Net Margin
Net income divided by revenue
9.1%
EPS (TTM)
Diluted earnings per share, trailing twelve months
$9.14
Free Cash Flow (TTM)
Cash generation after capex
$1.3B
FCF Margin
FCF as share of revenue — the primary cash quality signal
11.8%
Capital Quality
ROIC, leverage, and debt serviceability
ROIC
Return on invested capital — primary competitive quality signal
8.8%
ROA
Return on assets, trailing twelve months
6.3%
Cash & Equivalents
Liquid assets on the balance sheet
$420M
Net Debt
Total debt minus cash
$6.5B
Debt Serviceability
Net debt as a multiple of annual free cash flow
4.9× FCF
~4.9 years to full repayment at current FCF run-rate
ROE
Return on equity, trailing twelve months
13.8%
Shareholder Returns
How capital is returned to owners
Total shareholder yield
3.8%
Dividend
1.7%
Buyback
2.1%
Share Repurchases
Trailing buyback outflow — dollar magnitude of capital returned
$450M
Dividend / Share
Annualized trailing dividend per share
$3.12
Payout Ratio
Share of earnings distributed as dividends
35.6%
Shares Outstanding
Declining as buybacks retire shares
111M
All figures from the trailing twelve months. ROIC uses invested capital (equity + net debt).
Open full ratios pageDGX Stock Risk Factors
Key factors that could pressure the stock price, compress the multiple, or weigh on future results.
AI analysis · updated April 29, 2026
High Risk
Technological and Innovation Risks
The rapid evolution of diagnostic testing technology poses a significant risk to Quest Diagnostics (DGX). New, cost-effective solutions may emerge that allow customers to perform tests themselves, potentially leading to a decrease in DGX's testing volume and revenue.
High Risk
Competitive and Market Risks
Quest Diagnostics relies heavily on its clinical diagnostics business, which accounts for over 95% of its net revenues. Heightened competition from other clinical testing companies and increased pricing pressure from customers could adversely affect the company's performance.
High Risk
Economic and Regulatory Risks
Uncertain economic conditions, including inflation and changes in government policies, can negatively impact Quest Diagnostics' operating results. Additionally, changes in healthcare policies and regulations related to reimbursement and taxation pose significant risks.
Medium
Financial and Corporate Risks
Quest Diagnostics has a substantial amount of debt, which could impair its financial flexibility. Recent insider selling activity, with significant share sales and no reported insider purchases, may indicate a lack of confidence among insiders regarding the company's near-term prospects.
Medium
Legal and Operational Risks
Ongoing litigation, including lawsuits related to pap smear screening services in Ireland, poses risks to Quest Diagnostics' reputation and could lead to significant financial liabilities. The company also faces margin pressures due to rising operating expenses.
Lower
Technological and Innovation Risks
Competitors may introduce new testing services that can be performed outside of traditional clinical laboratories, such as point-of-care testing or home testing kits. This could further challenge DGX's market position.
Lower
Legal and Operational Risks
The company must adapt to changes in the healthcare system and healthcare delivery, including trends in utilization and increased patient financial responsibility. Failure to control data use and ensure compliance with privacy laws presents additional risks.
These are risk mechanisms, not predictions. The key question is which would force a cut to earnings estimates or a lower multiple than the market currently prices in.
Why DGX Stock Could Outperform
Structural drivers behind the upside case and why the stock could outperform over the next 12 months.
AI analysis · updated April 29, 2026
Upbeat Guidance and Revenue Growth
Quest Diagnostics has reported strong third-quarter results, raising its full-year 2025 guidance for net revenues. Projections indicate revenue could reach $11.9 billion by 2028, with an expected annual growth rate of 4.1%. The company has seen revenue increase to $2.81 billion, a 7.1% year-over-year growth, driven by strong demand in advanced diagnostics and expansion in the physician channel.
Earnings Improvement
Trailing twelve-month earnings growth of 14.3% in Q1 2026, with net income reaching $252 million, aligns with expectations for profit improvement. Earnings per share (EPS) are projected at $10.50+ in 2026 and $11.50+ in 2027.
Joint Venture with Corewell Health
A new joint venture with Corewell Health is expected to generate roughly $1 billion annually and has the potential to accelerate patient volume growth and strengthen health system partnerships.
Automation and AI Enhancements
Bulls point to automation, AI, and cost efficiencies as drivers for profit improvement. These technological advancements are expected to streamline operations and enhance overall profitability.
Consumer-Initiated Testing Growth
The company's consumer-initiated testing platform has experienced remarkable growth, contributing significantly to revenue. This trend reflects a shift towards more accessible testing options for consumers.
A real bull case compounds — each driver matters most when it strengthens margins, supports capital returns, and keeps the company above the market's minimum growth bar simultaneously.
DGX Stock Price Performance
52-week range context and price returns across multiple time horizons. Dividend contribution is shown separately in the Capital Return section.
Current Price
$189.13
52W Range Position
50%
52-Week Range
Current price plotted between the 52-week low and high.
52-Week Low
$164.65
+14.9% from the low
52-Week High
$213.50
-11.4% from the high
1 Month
-4.94%
3 Month
-0.83%
YTD
+8.8%
1 Year
+7.4%
3Y CAGR
+12.0%
5Y CAGR
+6.4%
10Y CAGR
+9.6%
Range context matters because valuation compression and earnings misses rarely hit from the same starting point. A stock already far below its high can still fall, but it is no longer carrying the same embedded optimism as one pressing a fresh peak.
DGX vs Peers
Valuation, growth, and margin comparison against the closest publicly traded peers for this company.
Peer Set
Accurate peer set
Forward PE
17.6x
vs 25.2x median
-30% below peer median
Revenue Growth
+6.6%
vs +6.0% median
+11% above peer median
Net Margin
9.1%
vs 6.5% median
+39% above peer median
| Company | Mkt Cap | Fwd PE | Rev Grw | Margin | Rating | Upside |
|---|---|---|---|---|---|---|
DGX DGX Quest Diagnostics Incorporated | $20.9B | 17.6x | +6.6% | 9.1% | Hold | +16.6% |
LH LH Labcorp Holdings Inc. | $21.1B | 14.4x | +4.7% | 6.7% | Buy | +21.2% |
SLN SLNO Soleno Therapeutics, Inc. | $2.9B | 13.4x | +81.8% | 11.0% | Buy | +51.1% |
EXA EXAS Exact Sciences Corporation | $20.0B | 582.8x | +16.5% | -6.4% | Buy | -1.6% |
BIO BIO Bio-Rad Laboratories, Inc. | $7.0B | 25.2x | -0.1% | 6.5% | Buy | +20.6% |
NEO NEOG Neogen Corporation | $2.0B | 25.7x | +6.0% | -68.5% | Hold | +19.8% |
This peer comparison reflects companies with similar business models, product lines, or market positioning, supplemented by industry grouping when direct matches are limited.
DGX Dividend and Capital Return
DGX returns 3.8% annually — 1.65% through dividends and 2.1% through buybacks.
Dividend SustainableFCF Well Covered
Total Shareholder Yield
3.8%
Dividend + buyback return per year
Buyback Yield
2.1%
Dividend Yield
1.65%
Payout Ratio
35.6%
How DGX Splits Its Return
Div 1.65%
Buyback 2.1%
Dividend 1.65%Buybacks 2.1%
Dividend Profile
Yield, cadence, and growth quality
Dividend / Share
Trailing annualized cash dividend
$3.12
Growth Streak
Consecutive years of dividend increases
15Y
3Y Div CAGR
6.6%
5Y Div CAGR
7.3%
Ex-Dividend Date
—
Payment Cadence
Quarterly
4 payments over the last 12 months
Buyback Engine
How much per-share support comes from repurchases
Repurchases (TTM)
Cash used for buybacks in the latest trailing period
$450M
Estimated Shares Retired
2M
Approx. Share Reduction
2.1%
Shares Outstanding
Current diluted share count from the screening snapshot
111M
At 2.1%/year, buybacks mechanically lift EPS even with flat earnings — each remaining share represents a slightly larger piece of the company.
| Year | Div / Share | YoY Grw | BB Yield | Total Yield |
|---|---|---|---|---|
| 2026 | $1.66 | — | — | — |
| 2025 | $3.15 | +6.4% | 2.3% | 4.1% |
| 2024 | $2.96 | +6.1% | 0.9% | 2.8% |
| 2023 | $2.79 | +7.3% | 1.8% | 3.8% |
| 2022 | $2.60 | +7.4% | 7.6% | 9.3% |
FAQ
7 questionsDGX Investor Questions
Common questions answered from live analyst data and company financials.
01Is Quest Diagnostics Incorporated (DGX) stock a buy or sell in 2026?
Quest Diagnostics Incorporated (DGX) is rated Hold by Wall Street analysts as of 2026. Of 34 analysts covering the stock, 13 rate it Buy or Strong Buy, 18 rate it Hold, and 3 rate it Sell or Strong Sell. The consensus 12-month price target is $221, implying +16.6% from the current price of $189. The bear case scenario is $169 and the bull case is $444.
02What is the DGX stock price target for 2026?
The Wall Street consensus price target for DGX is $221 based on 34 analyst estimates. The high-end target is $235 (+24.3% from today), and the low-end target is $210 (+11.0%). The base case model target is $238.
03Is Quest Diagnostics Incorporated (DGX) stock overvalued in 2026?
DGX trades at 17.6x times forward earnings. The stock currently trades at a discount to the broader market. Based on current multiples versus the peer group, the relative model signals significantly undervalued. Whether the stock is over or undervalued ultimately depends on whether consensus earnings estimates are achievable.
04What are the main risks for Quest Diagnostics Incorporated (DGX) stock in 2026?
The primary risks for DGX in 2026 are: (1) Technological and Innovation Risks — The rapid evolution of diagnostic testing technology poses a significant risk to Quest Diagnostics (DGX). (2) Competitive and Market Risks — Quest Diagnostics relies heavily on its clinical diagnostics business, which accounts for over 95% of its net revenues. (3) Economic and Regulatory Risks — Uncertain economic conditions, including inflation and changes in government policies, can negatively impact Quest Diagnostics' operating results. Each factor has the potential to pressure earnings or compress the stock's valuation multiple.
05What is Quest Diagnostics Incorporated's revenue and earnings forecast?
Analyst consensus estimates DGX will report consensus revenue of $12.0B (+6.6% year-over-year) and EPS of $10.27 (+12.3% year-over-year) for the upcoming fiscal year. The following year, analysts project $12.8B in revenue.
06When does Quest Diagnostics Incorporated (DGX) report its next earnings?
A confirmed upcoming earnings date for DGX is not yet available. Check the Earnings section above for the most recent quarterly report dates and forward estimates.
07How much free cash flow does Quest Diagnostics Incorporated generate?
Quest Diagnostics Incorporated (DGX) generated $1.3B in free cash flow over the trailing twelve months — a free cash flow margin of 11.8%. DGX returns capital to shareholders through dividends (1.7% yield) and share repurchases ($450M TTM).