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Quest Diagnostics posted Q2 EPS of $2.62, beating estimates and rising 11.5% year over year.
DGX's Q2 revenues rose 15.2% to $2.76B, driven by 16.3% volume growth and strength in clinical solutions.
DGX raised its 2025 revenue outlook to $10.80B-$10.92B and EPS to $9.63-$9.83 on continued momentum.
Quest Diagnostics Inc.’s (DGX - Free Report) second-quarter 2025 adjusted earnings per share (EPS) of $2.62 beat the Zacks Consensus Estimate by 1.9%. The metric also exceeded the year-ago adjusted figure by 11.5%.
Certain one-time expenses, like the ones related to amortization expenses, certain restructuring and integration charges, other expenses and excess tax benefits associated with stock-based compensations, were excluded from the quarter’s adjusted figures. GAAP earnings came in at $2.47 per share, up 21.7% from last year’s comparable figure.
DGX shares have gained nearly 3.2% in pre-market trading following the earnings report.
DGX’s Q2 Revenues in Detail
Revenues reported in the second quarter rose 15.2% year over year to $2.76 billion. The metric surpassed the Zacks Consensus Estimate by 1.5%.
Diagnostic Information Services revenues in the quarter were up 15.7% on a year-over-year basis to $2.70 billion. This figure also surpassed our model’s projection of $2.65 billion for the second quarter.
Quest Diagnostics Incorporated Price, Consensus and EPS Surprise
Volumes (measured by the number of requisitions) were up 16.3% year over year in the second quarter. Revenue per requisition decreased 0.4% year over year.
DGX’s Q2 Margin Performance
The cost of services during the reported quarter was $1.82 billion, up 14.1% year over year. The gross profit came in at $943 million, up 17.3% year over year. The gross margin was 34.2%, up 61 basis points (bps).
SG&A expenses were $486 million in the quarter under review, up 16.8% from the second quarter of 2024. The adjusted operating margin of 14.6% represented a 37 bps expansion year over year.
DGX’s Financial Position
Quest Diagnostics exited the second quarter of 2025 with cash and cash equivalents of $319 million compared with $188 million at the end of the first quarter. The cumulative net cash provided by operating activities at the end of the second quarter of 2025 was $858 million compared with $514 million at the end of the same period last year.
Quest Diagnostics updated its full-year 2025 outlook. Revenues are expected in the range of $10.80 billion-$10.92 billion (previously $10.70-$10.85 billion), which indicates a year-over-year increase of 9.4%-10.6%. The Zacks Consensus Estimate is pegged at $10.79 billion.
Adjusted EPS is expected in the range of $9.63-$9.83 (earlier $9.55-$9.80). The Zacks Consensus Estimate for the metric is pegged at $9.70.
Our View on DGX Stock
Quest Diagnostics ended the second quarter of 2025 with both earnings and revenues beating estimates. The company’s ongoing strategic execution drove the solid performance. Strong demand for DGX’s clinical solutions and expanded business from enterprise accounts supported growth from acquisitions. Quest Diagnostics also realized productivity gains from continuing to deploy automation and digital technologies across its businesses. The expansion of both margins is highly encouraging. The revised upbeat outlook for the year further adds to the stock’s appeal.
DGX’s Zacks Rank & Key Picks
Quest Diagnostics currently carries a Zacks Rank #3 (Hold).
Cencora, carrying a Zacks Rank #2 (Buy), reported second-quarter fiscal 2025 adjusted EPS of $4.42, which beat the Zacks Consensus Estimate by 8.3%. Revenues of $75.45 billion surpassed the consensus mark by 0.8%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
COR has a historical average earnings growth rate of 13.8% compared with the industry’s 1% growth. The company surpassed earnings estimates in each of the trailing four quarters, with the average surprise being 6%.
Veeva Systems, carrying a Zacks Rank #2 at present, posted first-quarter fiscal 2026 adjusted EPS of $1.97, exceeding the Zacks Consensus Estimate by 13.2%. Revenues of $759 million surpassed the Zacks Consensus Estimate by 4.3%.
VEEV has an estimated long-term earnings growth rate of 23.3% compared with the industry’s 17.9% growth. The company’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 10%.
Resmed, currently carrying a Zacks Rank #2, reported third-quarter fiscal 2025 adjusted EPS of $2.30, which surpassed the Zacks Consensus Estimate by 0.4%. Revenues of $1.29 billion topped the Zacks Consensus Estimate by 0.5%.
RMD has an estimated long-term earnings growth rate of 15.3% compared with the industry’s 14% growth. The company’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 4.2%.
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Quest Diagnostics Beats Q2 Earnings & Revenue Estimates, Stock Rises
Key Takeaways
Quest Diagnostics Inc.’s (DGX - Free Report) second-quarter 2025 adjusted earnings per share (EPS) of $2.62 beat the Zacks Consensus Estimate by 1.9%. The metric also exceeded the year-ago adjusted figure by 11.5%.
Certain one-time expenses, like the ones related to amortization expenses, certain restructuring and integration charges, other expenses and excess tax benefits associated with stock-based compensations, were excluded from the quarter’s adjusted figures. GAAP earnings came in at $2.47 per share, up 21.7% from last year’s comparable figure.
DGX shares have gained nearly 3.2% in pre-market trading following the earnings report.
DGX’s Q2 Revenues in Detail
Revenues reported in the second quarter rose 15.2% year over year to $2.76 billion. The metric surpassed the Zacks Consensus Estimate by 1.5%.
Diagnostic Information Services revenues in the quarter were up 15.7% on a year-over-year basis to $2.70 billion. This figure also surpassed our model’s projection of $2.65 billion for the second quarter.
Quest Diagnostics Incorporated Price, Consensus and EPS Surprise
Quest Diagnostics Incorporated price-consensus-eps-surprise-chart | Quest Diagnostics Incorporated Quote
Volumes (measured by the number of requisitions) were up 16.3% year over year in the second quarter. Revenue per requisition decreased 0.4% year over year.
DGX’s Q2 Margin Performance
The cost of services during the reported quarter was $1.82 billion, up 14.1% year over year. The gross profit came in at $943 million, up 17.3% year over year. The gross margin was 34.2%, up 61 basis points (bps).
SG&A expenses were $486 million in the quarter under review, up 16.8% from the second quarter of 2024. The adjusted operating margin of 14.6% represented a 37 bps expansion year over year.
DGX’s Financial Position
Quest Diagnostics exited the second quarter of 2025 with cash and cash equivalents of $319 million compared with $188 million at the end of the first quarter. The cumulative net cash provided by operating activities at the end of the second quarter of 2025 was $858 million compared with $514 million at the end of the same period last year.
The company has a five-year annualized dividend growth rate of 7.31%.
DGX’s 2025 Guidance
Quest Diagnostics updated its full-year 2025 outlook. Revenues are expected in the range of $10.80 billion-$10.92 billion (previously $10.70-$10.85 billion), which indicates a year-over-year increase of 9.4%-10.6%. The Zacks Consensus Estimate is pegged at $10.79 billion.
Adjusted EPS is expected in the range of $9.63-$9.83 (earlier $9.55-$9.80). The Zacks Consensus Estimate for the metric is pegged at $9.70.
Our View on DGX Stock
Quest Diagnostics ended the second quarter of 2025 with both earnings and revenues beating estimates. The company’s ongoing strategic execution drove the solid performance. Strong demand for DGX’s clinical solutions and expanded business from enterprise accounts supported growth from acquisitions. Quest Diagnostics also realized productivity gains from continuing to deploy automation and digital technologies across its businesses. The expansion of both margins is highly encouraging. The revised upbeat outlook for the year further adds to the stock’s appeal.
DGX’s Zacks Rank & Key Picks
Quest Diagnostics currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the broader medical space are Cencora (COR - Free Report) , Veeva Systems (VEEV - Free Report) and Resmed (RMD - Free Report) .
Cencora, carrying a Zacks Rank #2 (Buy), reported second-quarter fiscal 2025 adjusted EPS of $4.42, which beat the Zacks Consensus Estimate by 8.3%. Revenues of $75.45 billion surpassed the consensus mark by 0.8%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
COR has a historical average earnings growth rate of 13.8% compared with the industry’s 1% growth. The company surpassed earnings estimates in each of the trailing four quarters, with the average surprise being 6%.
Veeva Systems, carrying a Zacks Rank #2 at present, posted first-quarter fiscal 2026 adjusted EPS of $1.97, exceeding the Zacks Consensus Estimate by 13.2%. Revenues of $759 million surpassed the Zacks Consensus Estimate by 4.3%.
VEEV has an estimated long-term earnings growth rate of 23.3% compared with the industry’s 17.9% growth. The company’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 10%.
Resmed, currently carrying a Zacks Rank #2, reported third-quarter fiscal 2025 adjusted EPS of $2.30, which surpassed the Zacks Consensus Estimate by 0.4%. Revenues of $1.29 billion topped the Zacks Consensus Estimate by 0.5%.
RMD has an estimated long-term earnings growth rate of 15.3% compared with the industry’s 14% growth. The company’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 4.2%.