Revenue growth has accelerated to 9.2% in 2026Q1, though structural constraints keep gross margins tightly range-bound between 32% and 34%.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Sales/Revenue | 11.28B | 11.04B | 9.87B | 9.25B | 9.88B | 10.79B | 9.44B | 7.73B | 7.53B | 7.71B | 7.51B | 7.49B | 7.43B | 7.15B | 7.38B | 7.51B | 7.37B | 7.46B | 7.25B | 6.7B | 6.27B | 5.5B | 5.13B | 4.74B | 4.11B | 3.63B | 3.42B | 2.21B | 1.46B | 1.53B | 1.62B |
| Revenue Growth % | 11.03% | 11.78% | 6.7% | -6.38% | -8.39% | 14.32% | 22.15% | 2.59% | -2.31% | 2.58% | 0.29% | 0.78% | 4.04% | -3.2% | -1.7% | 1.92% | -1.16% | 2.84% | 8.12% | 6.96% | 13.9% | 7.36% | 8.2% | 15.33% | 13.24% | 6.04% | 55.14% | 51.19% | -4.59% | -5.42% | - |
| Cost of Goods Sold | 7.53B | 7.51B | 6.63B | 6.2B | 6.45B | 6.58B | 5.8B | 5.04B | 4.93B | 4.72B | 4.62B | 4.66B | 4.64B | 4.33B | 4.36B | 4.4B | 4.32B | 4.32B | 4.26B | 3.97B | 3.7B | 3.26B | 2.99B | 2.77B | 2.43B | 2.15B | 1.97B | 1.32B | 813.9M | 875.5M | 1.01B |
| COGS % of Revenue | - | 68.07% | 67.14% | 67% | 65.26% | 60.98% | 61.5% | 65.2% | 65.41% | 61.21% | 61.42% | 62.15% | 62.37% | 60.54% | 59.12% | 58.52% | 58.59% | 57.97% | 58.71% | 59.21% | 58.96% | 59.18% | 58.34% | 58.43% | 59.21% | 59.31% | 57.51% | 59.81% | 55.8% | 57.27% | 62.54% |
| Gross Profit | 3.75B | 3.52B | 3.24B | 3.07B | 3.43B | 4.21B | 3.63B | 2.69B | 2.6B | 2.99B | 2.9B | 2.84B | 2.8B | 2.82B | 3.02B | 3.12B | 3.05B | 3.13B | 2.99B | 2.74B | 2.57B | 2.25B | 2.14B | 1.97B | 1.68B | 1.48B | 1.45B | 886.2M | 644.7M | 653.2M | 605.42M |
| Gross Margin % | 33.23% | 31.93% | 32.86% | 33.17% | 34.74% | 39.02% | 38.5% | 34.8% | 34.59% | 38.79% | 38.58% | 37.85% | 37.63% | 39.46% | 40.88% | 41.48% | 41.41% | 42.03% | 41.29% | 40.79% | 41.04% | 40.82% | 41.66% | 41.57% | 40.79% | 40.69% | 42.49% | 40.19% | 44.2% | 42.73% | 37.46% |
| Gross Profit Growth % | - | 8.6% | 5.7% | -10.6% | -18.44% | 15.85% | 35.11% | 3.22% | -12.88% | 3.14% | 2.22% | 1.36% | -0.78% | -6.56% | -3.12% | 2.08% | -2.62% | 4.69% | 9.44% | 6.31% | 14.52% | 5.17% | 8.46% | 17.53% | 13.51% | 1.56% | 64.02% | 37.46% | -1.3% | 7.89% | - |
| Operating Expenses | 2.13B | 1.92B | 1.9B | 1.81B | 2B | 1.83B | 1.66B | 1.46B | 1.5B | 1.82B | 1.74B | 1.77B | 1.81B | 1.82B | 1.82B | 2.12B | 1.76B | 1.77B | 1.77B | 1.64B | 1.44B | 1.28B | 1.23B | 1.17B | 1.08B | 1.06B | 1.14B | 734.2M | 550.4M | 578.5M | 1.21B |
| OpEx % of Revenue | - | 17.4% | 19.23% | 19.53% | 20.29% | 16.94% | 17.61% | 18.87% | 19.92% | 23.67% | 23.15% | 23.64% | 24.41% | 25.45% | 24.61% | 28.23% | 23.83% | 23.8% | 24.43% | 24.52% | 23.05% | 23.23% | 24.08% | 24.78% | 26.37% | 29.35% | 33.2% | 33.29% | 37.73% | 37.84% | 74.66% |
| Selling, General & Admin | 1.98B | 1.97B | 1.77B | 1.61B | 1.87B | 1.73B | 1.55B | 1.46B | 1.42B | 1.75B | 1.68B | 1.68B | 1.73B | 1.7B | 1.75B | 1.81B | 1.71B | 1.75B | 1.74B | 1.61B | 1.43B | 1.26B | 1.23B | 1.17B | 1.07B | 1.02B | 1B | 643.4M | 481.6M | 502.1M | 495.32M |
| SG&A % of Revenue | - | 17.83% | 17.93% | 17.46% | 18.96% | 16.01% | 16.42% | 18.86% | 18.91% | 22.7% | 22.37% | 22.41% | 23.24% | 23.85% | 23.64% | 24.16% | 23.17% | 23.44% | 23.96% | 24.05% | 22.87% | 22.85% | 23.95% | 24.6% | 26.16% | 28.08% | 29.27% | 29.18% | 33.02% | 32.84% | 30.65% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 4M | -47M | 128M | 192M | 131M | 101M | 112M | 1M | -8M | 16M | -48M | -143M | 4M | 8M | 6.7M | 305.79M | 48.47M | 27.04M | 33.98M | 30.86M | 10.91M | 20.49M | 6.7M | 8.2M | 8.37M | 46.11M | 134.3M | 90.8M | 68.8M | 76.4M | 711.38M |
| Operating Income | 1.61B | 1.6B | 1.35B | 1.26B | 1.43B | 2.38B | 1.97B | 1.23B | 1.1B | 1.17B | 1.28B | 1.4B | 983M | 1.48B | 1.2B | 995M | 1.3B | 1.36B | 1.22B | 1.09B | 1.13B | 968.11M | 901.44M | 795.43M | 592.45M | 411.39M | 317.82M | 152M | 94.3M | 74.7M | -601.28M |
| Operating Margin % | 14.31% | 14.53% | 13.63% | 13.64% | 14.45% | 22.07% | 20.89% | 15.93% | 14.62% | 15.11% | 16.99% | 18.67% | 13.22% | 20.64% | 16.27% | 13.25% | 17.58% | 18.23% | 16.86% | 16.28% | 17.99% | 17.59% | 17.58% | 16.79% | 14.42% | 11.34% | 9.29% | 6.89% | 6.47% | 4.89% | -37.2% |
| Operating Income Growth % | - | 19.09% | 6.66% | -11.62% | -40.03% | 20.8% | 60.11% | 11.81% | -5.49% | -8.77% | -8.72% | 42.32% | -33.36% | 22.83% | 20.68% | -23.2% | -4.68% | 11.18% | 12.01% | -3.25% | 16.52% | 7.4% | 13.33% | 34.26% | 44.01% | 29.44% | 109.09% | 61.19% | 26.24% | 112.42% | - |
| EBITDA | 1.95B | 2.17B | 1.84B | 1.7B | 1.86B | 2.79B | 2.33B | 1.56B | 1.41B | 1.44B | 1.53B | 1.7B | 1.3B | 1.76B | 1.49B | 1.28B | 1.55B | 1.62B | 1.49B | 1.33B | 1.33B | 1.14B | 1.07B | 949.34M | 723.84M | 559.12M | 452.11M | 242.8M | 163.1M | 151.1M | -502.19M |
| EBITDA Margin % | 17.25% | 19.69% | 18.63% | 18.39% | 18.87% | 25.85% | 24.71% | 20.19% | 18.72% | 18.61% | 20.31% | 22.73% | 17.44% | 24.6% | 20.15% | 16.99% | 21.03% | 21.67% | 20.51% | 19.82% | 21.14% | 20.79% | 20.87% | 20.04% | 17.62% | 15.41% | 13.22% | 11.01% | 11.18% | 9.88% | -31.07% |
| EBITDA Growth % | 1.94% | 18.16% | 8.11% | -8.79% | -33.13% | 19.6% | 49.49% | 10.64% | -1.74% | -5.96% | -10.39% | 31.3% | -26.22% | 18.19% | 16.56% | -17.64% | -4.1% | 8.66% | 11.87% | 0.29% | 15.83% | 6.92% | 12.73% | 31.15% | 29.46% | 23.67% | 86.21% | 48.87% | 7.94% | 130.09% | - |
| D&A (Non-Cash Add-back) | 322M | 570M | 493M | 439M | 437M | 408M | 361M | 329M | 309M | 270M | 249M | 304M | 314M | 283M | 286.6M | 281.1M | 254M | 256.7M | 264.6M | 237.88M | 197.4M | 176.12M | 168.73M | 153.9M | 131.39M | 147.73M | 134.3M | 90.8M | 68.8M | 76.4M | 99.1M |
| EBIT | 1.66B | 1.62B | 1.4B | 1.29B | 1.38B | 2.75B | 2.05B | 1.26B | 1.09B | 1.18B | 1.23B | 1.26B | 990M | 1.49B | 1.24B | 1.02B | 1.32B | 1.37B | 1.2B | 1.09B | 1.13B | 1.01B | 880.85M | 796.45M | 592.45M | 411.39M | 317.82M | 152M | 94.3M | 74.7M | -601.28M |
| Net Interest Income | -260M | -264M | -201M | -152M | -138M | -151M | -163M | -175M | -167M | -151M | -143M | -153M | -164M | -159M | -165M | -170M | -143.47M | -144.07M | -179.76M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 5M | 0 | 25M | 11M | 10M | 1M | 3M | 5M | 2M | 2M | 0 | 0 | 3M | 3M | 3M | 2.77M | 1.41M | 2.52M | 5.71M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 265M | 264M | 226M | 163M | 148M | 152M | 166M | 180M | 169M | 153M | 143M | 153M | 167M | 162M | 168M | 170.6M | 146.1M | 144.1M | 185.48M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | -214M | -243M | -152M | -106M | -149M | 296M | -12M | -98M | -175M | -135M | -142M | -101M | -134M | 192M | -133M | -130.77M | -99.28M | -131.18M | -203.42M | -178.93M | -94.73M | -57.66M | -76.55M | -58.66M | -50.07M | -114.8M | -116.84M | -137.6M | -40.4M | -93.8M | -74.92M |
| Pretax Income | 1.4B | 1.36B | 1.19B | 1.16B | 1.28B | 2.68B | 1.96B | 1.13B | 926M | 1.03B | 1.09B | 1.1B | 849M | 1.35B | 1.07B | 856.3M | 1.18B | 1.23B | 1.02B | 912.4M | 1.03B | 910.45M | 835.13M | 737.8M | 542.38M | 332.6M | 200.98M | 14.4M | 53.9M | -19.1M | -676.2M |
| Pretax Margin % | 12.41% | 12.32% | 12.09% | 12.49% | 12.94% | 24.81% | 20.76% | 14.66% | 12.3% | 13.36% | 14.45% | 14.72% | 11.42% | 18.86% | 14.47% | 11.4% | 16.07% | 16.47% | 14.06% | 13.61% | 16.48% | 16.54% | 16.29% | 15.57% | 13.2% | 9.17% | 5.87% | 0.65% | 3.7% | -1.25% | -41.84% |
| Income Tax | 329M | 314M | 273M | 248M | 264M | 597M | 460M | 247M | 182M | 241M | 429M | 373M | 262M | 500M | 401.9M | 349M | 425.5M | 460.4M | 386.8M | 358.57M | 407.58M | 364.18M | 335.93M | 301.08M | 220.22M | 148.69M | 96.03M | 15.7M | 27M | 3.2M | -50.24M |
| Effective Tax Rate % | 23.5% | 23.09% | 22.86% | 21.45% | 20.64% | 22.3% | 23.48% | 21.8% | 19.65% | 23.4% | 39.5% | 33.82% | 30.86% | 37.09% | 37.62% | 40.76% | 35.93% | 37.49% | 37.96% | 39.3% | 39.45% | 40% | 40.23% | 40.81% | 40.6% | 44.71% | 47.78% | 109.03% | 50.09% | -16.75% | 7.43% |
| Net Income | 1.02B | 992M | 871M | 854M | 946M | 2B | 1.43B | 858M | 736M | 772M | 645M | 709M | 556M | 849M | 555.7M | 470.6M | 720.9M | 729.1M | 581.5M | 339.94M | 586.42M | 546.28M | 499.19M | 436.72M | 322.15M | 162.3M | 102.05M | -3.4M | 26.9M | -22.3M | -625.96M |
| Net Margin % | 9.08% | 8.99% | 8.82% | 9.23% | 9.57% | 18.49% | 15.16% | 11.11% | 9.77% | 10.01% | 8.58% | 9.46% | 7.48% | 11.88% | 7.53% | 6.27% | 9.78% | 9.78% | 8.02% | 5.07% | 9.35% | 9.93% | 9.74% | 9.22% | 7.84% | 4.47% | 2.98% | -0.15% | 1.84% | -1.46% | -38.73% |
| Net Income Growth % | 14.16% | 13.89% | 1.99% | -9.73% | -52.58% | 39.41% | 66.78% | 16.58% | -4.66% | 19.69% | -9.03% | 27.52% | -34.51% | 52.78% | 18.08% | -34.72% | -1.12% | 25.38% | 71.06% | -42.03% | 7.35% | 9.43% | 14.31% | 35.56% | 98.49% | 59.04% | 3101.53% | -112.64% | 220.63% | 96.44% | - |
| Net Income (Continuing) | 1.07B | 1.05B | 921M | 908M | 1.01B | 2.08B | 1.5B | 886M | 788M | 824M | 696M | 753M | 587M | 848M | 666M | 494M | 744.86M | 767.46M | 632.18M | 553.83M | 649.59M | 592.69M | 497.5M | 436.72M | 322.15M | 162.3M | 104.95M | -1.3M | 26.9M | -22.3M | -625.96M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 300M | 116M | 118M | 111M | 114M | 118M | 132M | 122M | 128M | 114M | 109M | 99M | 29M | 25M | 22.7M | 22.1M | 20.6M | 21.8M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 9.14 | 8.75 | 7.69 | 7.52 | 7.98 | 15.53 | 10.52 | 6.29 | 5.29 | 5.50 | 4.51 | 4.87 | 3.81 | 5.54 | 3.46 | 2.92 | 4.05 | 3.87 | 2.97 | 1.74 | 2.94 | 2.66 | 2.35 | 2.02 | 1.62 | 0.83 | 0.54 | -0.03 | 0.22 | -0.19 | -5.33 |
| EPS Growth % | 14.27% | 13.78% | 2.26% | -5.76% | -48.62% | 47.62% | 67.25% | 18.9% | -3.82% | 21.95% | -7.39% | 27.82% | -31.23% | 60.12% | 18.49% | -27.9% | 4.65% | 30.3% | 70.69% | -40.82% | 10.53% | 13.19% | 16.34% | 24.69% | 95.18% | 53.7% | 2260% | -111.36% | 215.79% | 96.44% | - |
| EPS (Basic) | - | 8.87 | 7.80 | 7.59 | 8.12 | 15.90 | 10.68 | 6.38 | 5.41 | 5.63 | 4.58 | 4.92 | 3.83 | 5.58 | 3.49 | 2.95 | 4.08 | 3.91 | 2.99 | 1.76 | 2.98 | 2.71 | 2.45 | 2.11 | 1.67 | 0.87 | 0.57 | -0.03 | 0.23 | -0.19 | -5.33 |
| Diluted Shares Outstanding | 112M | 113M | 113M | 113M | 118M | 128M | 136M | 136M | 139M | 140M | 142M | 145M | 145M | 153M | 160.1M | 160.2M | 177.3M | 187.8M | 196M | 195.26M | 199.54M | 205.53M | 212.42M | 216.2M | 199.48M | 195.55M | 188.99M | 136M | 120.9M | 116.15M | 117.45M |
| Basic Shares Outstanding | 110M | 111M | 111M | 112M | 116M | 125M | 134M | 134M | 136M | 137M | 140M | 144M | 145M | 152M | 158.6M | 158.7M | 175.7M | 185.9M | 194.3M | 193.24M | 196.99M | 201.83M | 203.75M | 206.97M | 192.91M | 186.56M | 179.04M | 136M | 119.56M | 115.84M | 117.45M |
| Dividend Payout Ratio | - | 35.58% | 38% | 36.77% | 32.24% | 15.49% | 20.75% | 33.33% | 36.14% | 31.99% | 34.57% | 29.9% | 33.63% | 21.79% | 19.43% | 13.81% | 9.89% | 15.12% | 13.41% | 22.75% | 13.15% | 12.75% | 12.3% | - | - | 5.52% | 6.76% | - | 0.37% | - | - |
Reimbursement and PAMA pressure
According to the latest quarterly filings, Quest Diagnostics achieved a 9.2% year-over-year revenue increase in 2026Q1, signaling a sustained recovery from the stagnant growth levels observed in early 2024, when top-line expansion hovered near 1.5% as the company navigated a challenging post-pandemic diagnostic volume environment.
The acceleration in revenue growth suggests that the company's strategy of integrating hospital outreach laboratories is successfully capturing market share. Investors should monitor whether this growth is driven by volume expansion or pricing adjustments, as the latter may be limited by ongoing managed care contract negotiations.
As reported in financial statements, Quest Diagnostics maintains a gross margin of 32.5% for 2026Q1, a figure that has remained remarkably consistent within the 32% to 34% range over the past ten quarters, reflecting the inherent difficulty of expanding profitability in a highly regulated, reimbursement-sensitive diagnostic market.
The stability of these margins suggests that the company's 'Invigorate' cost-savings initiatives are effectively offsetting inflationary pressures on labor and logistics. However, the lack of significant margin expansion indicates that the company remains a price-taker in the face of PAMA-related fee schedule adjustments.
Based on the provided income statement data, operating income reached $399 million in 2026Q1, representing an operating margin of 13.8%, which appears to be a recovery from the 12.7% margin reported in 2024Q1, suggesting that management is successfully scaling overhead costs relative to the company's growing revenue base.
This trend implies that the company is beginning to realize the benefits of its digital infrastructure investments and specimen processing automation. Analysts should watch for further operating margin expansion as a key indicator of whether the company can successfully leverage its fixed-cost base during periods of higher volume.
Analysis of recent financial disclosures reveals that Quest Diagnostics generated $252 million in net income for 2026Q1, with stock-based compensation remaining relatively contained at $20 million, suggesting that the company's earnings are primarily driven by core operational performance rather than significant non-cash accounting adjustments or excessive equity dilution.
The consistent relationship between net income and EPS growth suggests a high quality of earnings, though investors should remain cautious regarding the impact of potential restructuring charges. The absence of R&D expenses in the reported data highlights the company's focus on service delivery rather than internal drug discovery.
While recent growth figures appear positive, a critical review of the data suggests that the 9.2% revenue growth in 2026Q1 may be difficult to maintain if hospital outsourcing opportunities reach saturation, potentially exposing the company to the underlying volatility of routine testing volumes and persistent labor cost inflation.
Short-term investors should consider whether the current valuation adequately prices in the risk of future PAMA-related reimbursement cuts. The reliance on inorganic growth through acquisitions warrants further investigation into the long-term integration costs and the potential for diminishing returns on future capital deployment.
Quick answers to the most common questions about buying DGX stock.
For fiscal year 2025, Quest Diagnostics Incorporated (DGX) reported total revenue of $11.04B. This represents a 582.7% increase compared to $1.62B in 1996.
Quest Diagnostics Incorporated (DGX) is profitable, generating $992.0M in net income for the fiscal year ending 2025 with a net profit margin of 9.0%.
Quest Diagnostics Incorporated (DGX) reported an operating income of $1.60B, resulting in an operating profit margin of 14.5%. This margin reflects the operational efficiency of the business before interest and taxes.
Quest Diagnostics Incorporated (DGX) generated $3.52B in gross profit for the year, representing a gross profit margin of 31.9%. This demonstrates the company's core pricing power and production efficiency.