A month has gone by since the last earnings report for Quest Diagnostics (DGX Quick QuoteDGX - Free Report) . Shares have added about 2.6% in that time frame, outperforming the S&P 500.

But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Quest Diagnostics due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.

Quest Diagnostics Q3 Earnings & Revenues Beat, Margins Rise

Quest Diagnostics Inc.’s third-quarter 2025 adjusted earnings per share (EPS) of $2.60 beat the Zacks Consensus Estimate by 3.59%. The metric also exceeded the year-ago adjusted figure by 13%.

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 were $2.16 per share, up 8.5% from last year’s comparable figure.

DGX’s Q3 Revenues in Detail

Revenues reported in the third quarter rose 15.2% year over year to $2.82 billion. The metric surpassed the Zacks Consensus Estimate by 3.45%.

Diagnostic Information Services revenues in the quarter were up 13.5% on a year-over-year basis to $2.76 billion. This figure surpassed our model’s projection of $2.64 billion for the third quarter.

Volumes (measured by the number of requisitions) were up 12.5% year over year in the third quarter. Revenue per requisition increased 0.8% year over year.

DGX’s Q3 Margin Performance

The cost of services during the reported quarter was $1.87 billion, up 11.3% year over year. The gross profit was $949 million, up 17% year over year. The gross margin was 33.7%, up 110 basis points (bps).

SG&A expenses totaled $501 million in the quarter under review, up 11.8% from the third quarter of 2024. The adjusted operating margin of 15.9% represented a 132-bps expansion year over year.

DGX’s Financial Position

Quest Diagnostics exited the third quarter of 2025 with cash and cash equivalents of $432 million compared with $319 million at the end of the second quarter.

The cumulative net cash provided by operating activities at the end of the third quarter of 2025 was $1.42 billion compared with $858 million a year ago.

The company has a five-year annualized dividend growth rate of 7.21%.

DGX’s 2025 Guidance

Quest Diagnostics updated its full-year 2025 outlook. Revenues are expected to be in the range of $10.96-$11.00 billion (previously $10.80-$10.92 billion), which indicates a year-over-year increase of 11-11.4%. The Zacks Consensus Estimate is pegged at $10.85 billion.

Adjusted EPS is expected to be in the range of $9.76-$9.84 (earlier $9.63-$9.83). The Zacks Consensus Estimate for the metric is pegged at $9.74.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a downward trend in estimates revision.

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 top 40% 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.