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The renowned diagnostics provider posted adjusted earnings per share (EPS) of $2.21 in the last reported quarter, which surpassed the Zacks Consensus Estimate by 2.79%. The company topped earnings estimates in each of the trailing four quarters, the average surprise being 2.03%. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
DGX’s Q2 Estimates
For the second quarter of 2025, the Zacks Consensus Estimate for Quest Diagnostics’ revenues is pegged at $2.72 billion, indicating an increase of 13.4% from the year-ago reported figure.
The Zacks Consensus Estimate for the company’s second-quarter 2025 EPS suggests a 9.4% rise to $2.57.
Estimate Revision Trend Ahead of DGX’s Q2 Earnings
Estimates for Quest Diagnostics’ Q2 earnings have increased by 1 cent to $2.57 in the past seven days.
Let’s briefly review the company’s performance leading up to this announcement.
Factors Likely to Influence DGX’s Q2 Results
Quest Diagnostics’ core Diagnostics Information Services (“DIS”) business, which generates the majority of its revenues, serves a wide range of customers across physicians, hospitals, patients and consumer channels. In the second quarter, growth across these groups is likely to have been driven by the company’s Advanced Diagnostics portfolio. Similar to the first quarter, all five key clinical areas — including advanced cardiometabolic and autoimmune testing — are expected to have delivered solid performance.
In women's and reproductive health, solid demand for prenatal and hereditary genetic testing sales is likely to have supported growth. Quest Diagnostics may have also benefited from rolling out its new HPV self-collection solution across all U.S. patient service centers, alongside the sustained adoption of its STI-related self-collect option. In brain health, the AD-Detect suite of tests for assessing Alzheimer's risk — now featuring a range of validated blood-based biomarkers — may have driven growth by enabling more personalized testing approaches for patients.
Quest Diagnostics Incorporated Price and EPS Surprise
Since the last quarter, Quest Diagnostics began receiving commercial orders for its Haystack minimal residual disease (MRD) blood test, which is likely to have continued through the second-quarter months. Further, Advanced Diagnostics’ growth may have been boosted by large enterprise accounts, which are often early adopters of these tests before they gain wider use.
In the second quarter of 2025, Quest Diagnostics’ revenues are likely to have been supported by an expanded health plan access with Elevance Health and Sentara Health Plans, both of which became effective on Jan. 1. The company is now part of the Optum Health preferred lab network, providing services to more than 85,000 Optum employed, contracted and affiliated physicians.
In the hospital channel, revenue growth may have been led by the Collaborative Lab Solutions (previously, Professional Lab Services) business. Quest Diagnostics’ ability to help hospitals access diagnostic innovations, without maintaining their labs, through its reference testing, Co-lab Solutions, and outreach lab acquisitions may have a positive impact on the performance.
Acquisitions are likely to have played a major role as well. This year, Quest Diagnostics has been focused on driving productivity gains from the eight acquisitions completed last year, including LifeLabs in Canada and four hospital outreach lab businesses in the United States.
Going by our model, the company’s DIS revenues are likely to increase 13.5% year over year in the to-be-reported quarter, with the acquired contribution being 5.8%.
Operationally, the company may have delivered solid improvements across the business by deploying automation, robotics and AI. Quest Diagnostics remains on track to achieve its 3% annual cost savings and productivity goals through its Invigorate program. Its collaboration with Google Cloud may have helped streamline data management and enabled personalized customer experiences using generative AI. Our model projects the company’s operating income (non-GAAP basis) to increase 13.6% year over year in the second quarter of 2025.
What Our Model Unveils for DGX
Per our proven model, a stock with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), along with a positive Earnings ESP, has a higher chance of beating estimates, which is the case here, as you can see.
Earnings ESP: Quest Diagnostics has an Earnings ESP of +0.67%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company currently carries a Zacks Rank #3.
Other Top MedTech Picks
Here are some other medical stocks worth considering, as these also have the right combination of elements to post an earnings beat this time:
GeneDx Holdings (WGS - Free Report) has an Earnings ESP of +5.26% and a Zacks Rank #2. The company is slated to release second-quarter 2025 results on July 29.
WGS’ earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 145.82%. The Zacks Consensus Estimate for the company’s second-quarter EPS is expected to increase 190.9% from the year-ago quarter figure.
Cencora (COR - Free Report) has an Earnings ESP of +1.49% and a Zacks Rank #2. The company is set to release third-quarter fiscal 2025 results on Aug. 6.
COR’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 6%. The Zacks Consensus Estimate for COR’s fiscal third-quarter EPS is expected to surge 13.2% from the year-ago reported figure.
Cardinal Health (CAH - Free Report) has an Earnings ESP of +0.81% and a Zacks Rank #2. The company is slated to release fourth-quarter fiscal 2025 results on Aug. 12.
CAH’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 10.3%. The Zacks Consensus Estimate for the company’s fiscal fourth-quarter EPS is expected to increase 10.3% from the year-ago quarter figure.
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DGX Q2 Earnings Preview: Will Advanced Diagnostics Lead Performance?
Key Takeaways
Quest Diagnostics (DGX - Free Report) is set to release its second-quarter 2025 results on July 22, before the market opens.
The renowned diagnostics provider posted adjusted earnings per share (EPS) of $2.21 in the last reported quarter, which surpassed the Zacks Consensus Estimate by 2.79%. The company topped earnings estimates in each of the trailing four quarters, the average surprise being 2.03%. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
DGX’s Q2 Estimates
For the second quarter of 2025, the Zacks Consensus Estimate for Quest Diagnostics’ revenues is pegged at $2.72 billion, indicating an increase of 13.4% from the year-ago reported figure.
The Zacks Consensus Estimate for the company’s second-quarter 2025 EPS suggests a 9.4% rise to $2.57.
Estimate Revision Trend Ahead of DGX’s Q2 Earnings
Estimates for Quest Diagnostics’ Q2 earnings have increased by 1 cent to $2.57 in the past seven days.
Let’s briefly review the company’s performance leading up to this announcement.
Factors Likely to Influence DGX’s Q2 Results
Quest Diagnostics’ core Diagnostics Information Services (“DIS”) business, which generates the majority of its revenues, serves a wide range of customers across physicians, hospitals, patients and consumer channels. In the second quarter, growth across these groups is likely to have been driven by the company’s Advanced Diagnostics portfolio. Similar to the first quarter, all five key clinical areas — including advanced cardiometabolic and autoimmune testing — are expected to have delivered solid performance.
In women's and reproductive health, solid demand for prenatal and hereditary genetic testing sales is likely to have supported growth. Quest Diagnostics may have also benefited from rolling out its new HPV self-collection solution across all U.S. patient service centers, alongside the sustained adoption of its STI-related self-collect option. In brain health, the AD-Detect suite of tests for assessing Alzheimer's risk — now featuring a range of validated blood-based biomarkers — may have driven growth by enabling more personalized testing approaches for patients.
Quest Diagnostics Incorporated Price and EPS Surprise
Quest Diagnostics Incorporated price-eps-surprise | Quest Diagnostics Incorporated Quote
Since the last quarter, Quest Diagnostics began receiving commercial orders for its Haystack minimal residual disease (MRD) blood test, which is likely to have continued through the second-quarter months. Further, Advanced Diagnostics’ growth may have been boosted by large enterprise accounts, which are often early adopters of these tests before they gain wider use.
In the second quarter of 2025, Quest Diagnostics’ revenues are likely to have been supported by an expanded health plan access with Elevance Health and Sentara Health Plans, both of which became effective on Jan. 1. The company is now part of the Optum Health preferred lab network, providing services to more than 85,000 Optum employed, contracted and affiliated physicians.
In the hospital channel, revenue growth may have been led by the Collaborative Lab Solutions (previously, Professional Lab Services) business. Quest Diagnostics’ ability to help hospitals access diagnostic innovations, without maintaining their labs, through its reference testing, Co-lab Solutions, and outreach lab acquisitions may have a positive impact on the performance.
Acquisitions are likely to have played a major role as well. This year, Quest Diagnostics has been focused on driving productivity gains from the eight acquisitions completed last year, including LifeLabs in Canada and four hospital outreach lab businesses in the United States.
Going by our model, the company’s DIS revenues are likely to increase 13.5% year over year in the to-be-reported quarter, with the acquired contribution being 5.8%.
Operationally, the company may have delivered solid improvements across the business by deploying automation, robotics and AI. Quest Diagnostics remains on track to achieve its 3% annual cost savings and productivity goals through its Invigorate program. Its collaboration with Google Cloud may have helped streamline data management and enabled personalized customer experiences using generative AI. Our model projects the company’s operating income (non-GAAP basis) to increase 13.6% year over year in the second quarter of 2025.
What Our Model Unveils for DGX
Per our proven model, a stock with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), along with a positive Earnings ESP, has a higher chance of beating estimates, which is the case here, as you can see.
Earnings ESP: Quest Diagnostics has an Earnings ESP of +0.67%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company currently carries a Zacks Rank #3.
Other Top MedTech Picks
Here are some other medical stocks worth considering, as these also have the right combination of elements to post an earnings beat this time:
GeneDx Holdings (WGS - Free Report) has an Earnings ESP of +5.26% and a Zacks Rank #2. The company is slated to release second-quarter 2025 results on July 29.
WGS’ earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 145.82%. The Zacks Consensus Estimate for the company’s second-quarter EPS is expected to increase 190.9% from the year-ago quarter figure.
Cencora (COR - Free Report) has an Earnings ESP of +1.49% and a Zacks Rank #2. The company is set to release third-quarter fiscal 2025 results on Aug. 6.
COR’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 6%. The Zacks Consensus Estimate for COR’s fiscal third-quarter EPS is expected to surge 13.2% from the year-ago reported figure.
Cardinal Health (CAH - Free Report) has an Earnings ESP of +0.81% and a Zacks Rank #2. The company is slated to release fourth-quarter fiscal 2025 results on Aug. 12.
CAH’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 10.3%. The Zacks Consensus Estimate for the company’s fiscal fourth-quarter EPS is expected to increase 10.3% from the year-ago quarter figure.