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Here's How Quest Diagnostics Is Placed Ahead of Q3 Earnings
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Key Takeaways
Quest Diagnostics will release its Q3 2025 results on Oct. 21, before the market opens.
DGX's Q3 revenues are estimated at $2.72B, up 9.3% year over year, with EPS projected to rise 9.1%.
Expanded test offerings, AI-driven operations and new consumer health services may fuel DGX's results.
Quest Diagnostics (DGX - Free Report) is set to release its third-quarter 2025 results on Oct. 21, before the market opens.
The renowned diagnostics provider posted adjusted earnings per share (EPS) of $2.62 in the last reported quarter, which surpassed the Zacks Consensus Estimate by 1.95%. The company topped earnings estimates in each of the trailing four quarters, the average surprise being 2.09%.
DGX’s Q3 Estimates
For the third quarter of 2025, the Zacks Consensus Estimate for Quest Diagnostics’ revenues is pegged at $2.72 billion, indicating an increase of 9.3% from the year-ago reported figure.
The Zacks Consensus Estimate for the company’s third-quarter 2025 EPS suggests a 9.1% rise to $2.51.
Estimate Revision Trend Ahead of DGX’s Q3 Earnings
Estimates for Quest Diagnostics’ Q3 earnings have remained stable in the past 30 days.
Here’s a brief review of the company’s performance leading up to this announcement.
Factors Likely to Influence DGX’s Q3 Results
Quest Diagnostics’ core Diagnostics Information Services (“DIS”) business is expected to have delivered strong revenues in the third quarter of 2025, driven by its physician and hospital channels. The company’s solid commercial execution is likely to have led physicians to order more tests per requisition, sustaining the demand momentum for its clinical solutions. Similar to the past quarters, DGX is expected to have benefited from large enterprise accounts, mainly in functional medicine — a rapidly growing, preventative health care segment.
Quest Diagnostics is also likely to have begun providing laboratory services under its partnership with Fresenius Medical Care, supporting more than 200,000 kidney dialysis patients nationwide. Together, these developments may have favored physician channel revenues in the third quarter.
Quest Diagnostics Incorporated Price and EPS Surprise
In the second quarter, M&A contributed 10% growth, with 8% coming from LifeLabs, a 2024 addition that expanded its foothold in Canada. We expect the positive momentum from acquisitions to have extended into the third quarter as well. In August, DGX completed the acquisition of select clinical testing assets of Fresenius Medical Care's wholly owned Spectra Laboratories. Our model assumes a 7.1% acquired contribution to DIS revenues in the to-be-reported quarter.
Meanwhile, Collaborative Lab Solutions may have driven growth in the hospital channel. Together with reference testing and Outreach Lab acquisitions, Quest Diagnostics is likely to have continued to offer hospitals strategic ways to access top-tier diagnostic innovations without having to maintain an in-house lab.
An enhanced questhealth.com platform is likely to have contributed to strong third-quarter revenues, thanks to its wider range of offerings. Further, partnerships with major consumer and wellness brands, which rely on the company’s high-quality lab testing, broad access and flexible technology integrations, are expected to have complemented growth.
In Advanced Diagnostics, DGX is expected to have generated robust revenues across several clinical areas, including Advanced Cardiometabolic. Growth in Brain Health may have been led by AD-detect blood tests for assessing Alzheimer's disease risk. In oncology, Quest Diagnostics is likely to have continued to ramp up the commercial outreach to drive the market adoption of the Haystack MRD test. In the third quarter, the company also launched a molecular test for diagnosing Oropouche virus, developed under a CDC contract and available with a prescription from a provider for clinical purposes. This is expected to have positively impacted DGX’s revenues.
Going by our model, the company’s DIS revenues are likely to increase 8.8% year over year in the third quarter of 2025.
In terms of operational excellence, Quest Diagnostics may have continued to expand the use of automation, robotics, and AI to improve quality, customer and employee experiences and productivity. Building on trends in recent quarters, employee retention across the company’s operations and service lines may have further improved. Our model projects the company’s operating income (non-GAAP basis) to increase 21.4% year over year in the third 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 +0.49%. 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:
Exact Sciences (EXAS - Free Report) has an Earnings ESP of +32.65% and a Zacks Rank #1. The company is slated to release third-quarter 2025 results on Nov. 3.
EXAS’ earnings surpassed estimates in three of the trailing four quarters and missed on one occasion, the average surprise being 329.87%. The Zacks Consensus Estimate for the company’s third-quarter EPS is expected to increase 147.6% from the year-ago quarter figure.
ANI Pharmaceuticals (ANIP - Free Report) has an Earnings ESP of +1.15% and a Zacks Rank #2. The company is expected to release third-quarter 2025 results soon.
ANIP’s earnings beat estimates in each of the trailing four quarters, the average surprise being 22.66%. The Zacks Consensus Estimate for ANIP’s third-quarter EPS is expected to surge 29.9% from the year-ago reported figure.
IDEXX Laboratories (IDXX - Free Report) has an Earnings ESP of +0.23% and a Zacks Rank #2. The company is slated to release third-quarter 2025 results on Nov. 3.
IDXX’s earnings topped estimates in each of the trailing four quarters, the average surprise being 6.08%. The Zacks Consensus Estimate for the company’s third-quarter EPS is anticipated to increase 12.1% from the year-ago quarter figure.
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Here's How Quest Diagnostics Is Placed Ahead of Q3 Earnings
Key Takeaways
Quest Diagnostics (DGX - Free Report) is set to release its third-quarter 2025 results on Oct. 21, before the market opens.
The renowned diagnostics provider posted adjusted earnings per share (EPS) of $2.62 in the last reported quarter, which surpassed the Zacks Consensus Estimate by 1.95%. The company topped earnings estimates in each of the trailing four quarters, the average surprise being 2.09%.
DGX’s Q3 Estimates
For the third quarter of 2025, the Zacks Consensus Estimate for Quest Diagnostics’ revenues is pegged at $2.72 billion, indicating an increase of 9.3% from the year-ago reported figure.
The Zacks Consensus Estimate for the company’s third-quarter 2025 EPS suggests a 9.1% rise to $2.51.
Estimate Revision Trend Ahead of DGX’s Q3 Earnings
Estimates for Quest Diagnostics’ Q3 earnings have remained stable in the past 30 days.
Here’s a brief review of the company’s performance leading up to this announcement.
Factors Likely to Influence DGX’s Q3 Results
Quest Diagnostics’ core Diagnostics Information Services (“DIS”) business is expected to have delivered strong revenues in the third quarter of 2025, driven by its physician and hospital channels. The company’s solid commercial execution is likely to have led physicians to order more tests per requisition, sustaining the demand momentum for its clinical solutions. Similar to the past quarters, DGX is expected to have benefited from large enterprise accounts, mainly in functional medicine — a rapidly growing, preventative health care segment.
Quest Diagnostics is also likely to have begun providing laboratory services under its partnership with Fresenius Medical Care, supporting more than 200,000 kidney dialysis patients nationwide. Together, these developments may have favored physician channel revenues in the third quarter.
Quest Diagnostics Incorporated Price and EPS Surprise
Quest Diagnostics Incorporated price-eps-surprise | Quest Diagnostics Incorporated Quote
In the second quarter, M&A contributed 10% growth, with 8% coming from LifeLabs, a 2024 addition that expanded its foothold in Canada. We expect the positive momentum from acquisitions to have extended into the third quarter as well. In August, DGX completed the acquisition of select clinical testing assets of Fresenius Medical Care's wholly owned Spectra Laboratories. Our model assumes a 7.1% acquired contribution to DIS revenues in the to-be-reported quarter.
Meanwhile, Collaborative Lab Solutions may have driven growth in the hospital channel. Together with reference testing and Outreach Lab acquisitions, Quest Diagnostics is likely to have continued to offer hospitals strategic ways to access top-tier diagnostic innovations without having to maintain an in-house lab.
An enhanced questhealth.com platform is likely to have contributed to strong third-quarter revenues, thanks to its wider range of offerings. Further, partnerships with major consumer and wellness brands, which rely on the company’s high-quality lab testing, broad access and flexible technology integrations, are expected to have complemented growth.
In Advanced Diagnostics, DGX is expected to have generated robust revenues across several clinical areas, including Advanced Cardiometabolic. Growth in Brain Health may have been led by AD-detect blood tests for assessing Alzheimer's disease risk. In oncology, Quest Diagnostics is likely to have continued to ramp up the commercial outreach to drive the market adoption of the Haystack MRD test. In the third quarter, the company also launched a molecular test for diagnosing Oropouche virus, developed under a CDC contract and available with a prescription from a provider for clinical purposes. This is expected to have positively impacted DGX’s revenues.
Going by our model, the company’s DIS revenues are likely to increase 8.8% year over year in the third quarter of 2025.
In terms of operational excellence, Quest Diagnostics may have continued to expand the use of automation, robotics, and AI to improve quality, customer and employee experiences and productivity. Building on trends in recent quarters, employee retention across the company’s operations and service lines may have further improved. Our model projects the company’s operating income (non-GAAP basis) to increase 21.4% year over year in the third 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 +0.49%. 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:
Exact Sciences (EXAS - Free Report) has an Earnings ESP of +32.65% and a Zacks Rank #1. The company is slated to release third-quarter 2025 results on Nov. 3.
EXAS’ earnings surpassed estimates in three of the trailing four quarters and missed on one occasion, the average surprise being 329.87%. The Zacks Consensus Estimate for the company’s third-quarter EPS is expected to increase 147.6% from the year-ago quarter figure.
ANI Pharmaceuticals (ANIP - Free Report) has an Earnings ESP of +1.15% and a Zacks Rank #2. The company is expected to release third-quarter 2025 results soon.
ANIP’s earnings beat estimates in each of the trailing four quarters, the average surprise being 22.66%. The Zacks Consensus Estimate for ANIP’s third-quarter EPS is expected to surge 29.9% from the year-ago reported figure.
IDEXX Laboratories (IDXX - Free Report) has an Earnings ESP of +0.23% and a Zacks Rank #2. The company is slated to release third-quarter 2025 results on Nov. 3.
IDXX’s earnings topped estimates in each of the trailing four quarters, the average surprise being 6.08%. The Zacks Consensus Estimate for the company’s third-quarter EPS is anticipated to increase 12.1% from the year-ago quarter figure.