A month has gone by since the last earnings report for Quest Diagnostics (DGX Quick QuoteDGX - Free Report) . Shares have added about 8.2% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Quest Diagnostics due for a pullback? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent drivers for Quest Diagnostics Incorporated before we dive into how investors and analysts have reacted as of late.

Quest Diagnostics Tops Q2 Earnings and Revenue Estimates

Quest Diagnostics Inc.’s second-quarter 2025 adjusted earnings per share  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.

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.

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.

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.

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%.

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 earnings per share 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.

How Have Estimates Been Moving Since Then?

It turns out, estimates revision have trended downward during the past month.

VGM Scores

At this time, Quest Diagnostics has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. However, the stock has a score of B on the value side, putting it in the second quintile for value investors.

Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, Quest Diagnostics has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.