Quest Diagnostics Incorporated
DGX - NYSE - $187.39 ▼ -%1.81
-
Earnings Tue 28 Jul

Quest opens the
books on Tuesday evening.

9 analysts' median target is $220[FMP target], stock is $187, +17.4% upside potential. After Q1 +5.5% EPS beat[FMP earnings], the stock moved -0.5%.

↓ summary below
Quick Take - in 40 seconds
A-
BUY Council 2/6 - Moonshot 40

A- = MoonshotScore 40[9-pillar formula] + Council 2/6[6-lens rule]. Form 4: 0 transactions[FMP Form 4].

Q4 consensus: revenue $3.0B[FMP est], EPS $2.83[FMP est]. 8 consecutive quarters of beat[FMP earnings].

Detailed analysis below ↓
$2.83 EPS Estimate Last year $2.42 - +8% YoY YoY
8 Beat Streak Expectations beaten consecutively for the last 8 quarters

Q1 EPS +5.5% beat[FMP] but the stock -0.5% D+1[FMP D+1]. Sam Samad promised $114.0M CapEx + a sequential decline in Q4 during the Q1 earnings call[Sam Samad capex transcript].

Watchlist

4 metrics stand out this quarter.

9% Investor Focus

Revenue Growth

revenue_growth

Quest Diagnostics achieved revenue growth of over 9%, driven by clinical innovations, expansion into new clinical areas, and collaborations.

"During the first quarter, we grew revenues over 9%, almost entirely from organic revenue growth on broad-based demand for our clinical innovations, expansion into new clinical areas and collaborations with elite health care and consumer health organizations."

- James Davis, Chairman, Chief Executive Officer and President - Q1 FY26 Earnings Call - April 21, 2026
13% Investor Focus

Eps Growth

eps_growth

Quest Diagnostics grew adjusted diluted earnings per share by approximately 13%, supported by productivity gains from the deployment of automation and AI across its operations.

"In addition, we grew adjusted diluted earnings per share by approximately 13%, supported by productivity gains from our deployment of automation and AI across our operations both in and outside our labs."

- James Davis, Chairman, Chief Executive Officer and President - Q1 FY26 Earnings Call - April 21, 2026
40% Investor Focus

Ai Customer Service

ai_customer_service

Quest Diagnostics boosted productivity by 40% in the first quarter among customer service agents that used AI to triage and route customer emails to speed responses.

"As one example, we boosted productivity by 40% in the first quarter among customer service agents that used AI to triage and route customer emails to speed responses."

- James Davis, Chairman, Chief Executive Officer and President - Q1 FY26 Earnings Call - April 21, 2026
350,000 Investor Focus

Ai Companion Engagement

ai_companion_engagement

Patients have engaged Quest AI Companion approximately 350,000 times since Quest Diagnostics rolled it out to users of its MyQuest app in the first quarter.

"Patients have engaged Quest AI Companion approximately 350,000 times since we rolled it out to users of our MyQuest app in the first quarter."

- James Davis, Chairman, Chief Executive Officer and President - Q1 FY26 Earnings Call - April 21, 2026

Stock Expert AI - Methodology

Do our 9 pillars, 7 perspectives, and Munger lens point in the same direction?

MoonshotScore 40 / 100

9-pillar methodology. Cash Runway strong. Revenue Growth weak.

How is it calculated? ->
Revenue Growth2.0Q1 vs Q2: moderate growth (+4.9%)
Gross Margin3.0Q1: average margin (32.5%)
Operating Leverage1.0op margin average (13.8%)
Cash Runway10.0FCF strong ($0.2B FCF, covers CapEx)
R&D Intensity3.0low R&D investment (0.0%, weak innovation)
Price Momentum4.0RSI 38.8 weak momentum, 50d below
News Sentiment5.0majority buy (50%)
Council Score 2 / 6 Bullish

6 investor frameworks. 2 bullish (Ray Dalio, Buffett), 1 bearish (Ken Griffin), 3 neutral (Jim Simons, Klarman, Munger).

How is it calculated? ->
Ray Dalio macro - target upside +17.4%
Ken Griffin flow - 50d MA below
Jim Simons quant - RSI 39
Klarman value - target upside +17.4%
Buffett quality - ROE score 4/5
Munger valuation - target upside +17.4%
Munger's Mindset character & balance sheet lens
Fairly Valued

Quality business, trading at fair value.

How is it calculated? ->
Financial HealthStrong
Margin of SafetyModerate
Interest CoverageAdequate
ROIC vs WACCHealthy
Technical Levels - Pre-earnings positioning

What levels is the stock being tested at?

RSI(14)
38.8 RSI 38.8 weak momentum, 50d below
MACD
-5.00 price below 50d - resistance dominant
50d MA
$197 stock 5.0% below - short-term resistance
200d MA
$187 stock 0.3% above - long-term support
Volume (10d)
-9% decrease - low participation
Resistance
$220
Analyst median target - upgrade trigger if broken
Current
$187
Pre-earnings position
Support
$159
Invalidation - close below this is a technical breakdown
Pattern
Range
$159-$220 band - earnings breakout/breakdown trigger

Past Performance

Quest beat expectations in the last 8 quarters.

BEAT
Q2 FY25
$2.62 vs $2.57 est - -4.4%
BEAT
Q3 FY25
$2.60 vs $2.50 est - -1.9%
BEAT
Q4 FY25
$2.42 vs $2.36 est - +1.9%
BEAT
Q1 FY26
$2.50 vs $2.37 est - -0.5%

Q1 (April 21, 2026): EPS $2.50 vs $2.37 est[FMP], +5.5% beat. D+1 movement: -0.5%[FMP D+1]. Decline despite beat - market reacted to guidance, not numbers.

Three scenarios: what could happen?

EPS < $2.75 (no guidance)

Q1: EPS $2.50 vs $2.37 beat[FMP], stock -0.5% D+1[FMP].

Backlog concentration

No RPO/backlog concentration disclosed in Q1 earnings call.

CapEx shock

Q1 CapEx $114.0M[FMP cashflow]. Q1 op margin 13.8%[FMP op margin] - this level in Q4 is sensitive to CapEx revision risk.

Framework - Position discipline

After the data arrives: 3 scenarios, 3 windows

Not advice - a structural framework for earnings night. Decision discipline is yours.

Scenario A - Beat
Q4 EPS > $2.83 + CapEx discipline
Threshold: EPS > $2.83[FMP est].
Target: Break above median target $220[FMP target]; high target $235[FMP] upper bound.
Scenario B - In-Line
EPS approx $2.83 + CapEx < $114.0M
Threshold: EPS approx $2.83[FMP est], Q4 CapEx < $114.0M[FMP].
Target: Consolidation in the band between current $187[FMP] and median $220[FMP].
Scenario C - Miss
EPS < $2.75 or CapEx >= $114.0M
Threshold: EPS < $2.75[FMP estx0.97].
Target: Current $187[FMP] below SMA200 $187, if rejection continues, $159[derived] support activates.
Sizing
Earnings volatility -> max portfolio 1-2%. Waiting for earnings is not a gamble, it's a position entrustment.
Timing
IV crush within 24 hours post-earnings. Waiting for premium decay makes options preferable to spot.
Staging
Don't go all-in at once, divide into 3: initial reaction, 24 hours later, after Friday's close.

Market Outlook

What do 9 analysts say?

Wall Street Consensus
$220
12-month median target price (+17.4% upside potential)
9
BUY
9
HOLD
0
SELL
Risk Management
$159
Invalidation level - critical support threshold
$197 - 50-day MA (below, -5.0%)
$187 - 200-day MA (above, +0.3%)
IV Crush risk (sudden drop in inflated option premiums before earnings): Option premiums are inflated before earnings.
Verdict - DGX Q4 FY26
A-

You read it in 5 minutes. When the numbers come out on Tuesday evening - you know what you're looking at.

Data arrives at night. The framework is ready now.

Data arrives on Tuesday evening. The framework is ready on this page: Q4 EPS threshold $2.83[FMP], CapEx threshold "below $114.0M"[Sam Samad]. Two anchors, three scenarios.

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Educational tool, not investment advice. Past performance does not guarantee future results.

Calendar

Catalyst Calendar - 90-day forward look

Jul 28, 2026EARNINGSQ4 FY26 results (after market close) + earnings call
Jul 29, 2026PRICEFirst trading day after earnings - 200dMA test + IV crush
Sep 11, 2026FILING10-Q deadline - segment breakdown + RPO detail (SEC rule: quarter-end + 45 days)
~Oct 28, 2026EARNINGSQ1 FY27 (next quarter, date not yet scheduled in FMP)

DATA GAP: Events not in the FMP /stable/calendar feed - Investor day, analyst day, product launches, regulatory dates. These require company IR page scraping or manual calendar entry.

Frequently Asked Questions

What does the DGX earnings preview cover?

This DGX (DGX) earnings preview covers the analyst consensus, key catalysts, and what to watch on the earnings call.

What should investors watch for in DGX earnings?

Consensus EPS, revenue guidance, segment growth rates, and the tone of management commentary — the full breakdown with sources is on this page.