Quest Diagnostics (NYSE: DGX) lifts guidance after revenue jumps 10%

What happened

Quest Diagnostics Incorporated (NYSE: DGX) reported third-quarter revenue of $3.10 billion and raised full-year 2026 guidance on October 22. Reported diluted EPS was $2.78, up 28.7% from 2025, and adjusted diluted EPS was $3.00, up 15.4% from 2025.

The company said full-year 2026 revenue is now expected to be between $12.06 billion and $12.11 billion. Reported diluted EPS is now expected to be $10.21 to $10.31, and adjusted diluted EPS is expected to be $11.25 to $11.35. Quest also said it finalized a definitive agreement to acquire select outreach lab assets from a leading health system and long-time Co-Lab Solutions customer in the Northeastern U.S.

Key numbers

Metric	Latest	Change	Source
Third-quarter revenues	$3.10 billion	from $2.82 billion, +10.0%	Quest Diagnostics earnings release
Third-quarter reported diluted EPS	$2.78	from $2.16, +28.7%	Quest Diagnostics earnings release
Third-quarter adjusted diluted EPS	$3.00	from $2.60, +15.4%	Quest Diagnostics earnings release
Full year 2026 revenues	between $12.06 billion and $12.11 billion		Quest Diagnostics earnings release
Full year 2026 reported diluted EPS	between $10.21 and $10.31		Quest Diagnostics earnings release

Read more: Quest Diagnostics (DGX) stock analysis and investment case

Why it matters

The quarter shows Quest turning strong organic revenue growth into higher profit, with operating income up 24.2% to $479 million and net income attributable to Quest up 27.6% to $312 million. Cash provided by operations increased to $611 million from $563 million, while capital expenditures rose to $166 million from $144 million in the period.

Operating margin widened to 15.5% from 13.7%, while adjusted operating margin rose to 16.7% from 16.3%, suggesting the revenue gain reached the bottom line. The base comparison is straightforward: third-quarter net revenues rose $281 million from $2.82 billion a year earlier, matching the reported 10.0% increase. Revenue per requisition still fell 4.2%, and the adjusted figures exclude items such as contingent-consideration losses, amortization, restructuring charges and insurance recoveries.

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What's next

Quest said iPhone and iPad users in the United States will be able to buy a tailored Quest test panel with over 50 biomarkers through the Apple Health app later this year. Quest will hold its 2027 Investor Day on March 25, 2027, at the New York Stock Exchange. It expects to deploy Epic solutions in its first lab in the fall of 2027.

If revenue growth and guidance hold while revenue per requisition stabilizes, that would support the case. Another step down there would weaken it.

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