Quest Diagnostics fell about 0.5 percent today, its second straight down day, and remains about 2 percent below its high from last week. We think this is mostly ordinary movement after a big run, as there was no new company news and the whole market was down slightly.
Our view
The business is seeing its best testing volume growth in years as it moves into more specialized medical screenings. If you already own it, there is nothing to do here but sit tight and let that growth compound.
Quest Diagnostics maintains quarterly dividend of $0.86 per share
Quest Diagnostics declared a quarterly dividend of $0.86 per share. A dividend is a portion of a company's profit paid out to its owners, and this payment will go to shareholders of record as of October 6. This move is routine for the company. It shows that Quest continues to generate enough steady cash from its lab testing business to maintain its regular payments to investors.
A cyclosporiasis outbreak has caused a sharp spike in demand for specific parasitic testing. Quest is currently handling more than 1,500 samples a day, a massive jump from its typical volume of about 40. While this highlights the company's role as a critical piece of public health infrastructure, it is a temporary volume surge. For a business that processes hundreds of millions of tests a year, this specific event is unlikely to change the long-term financial picture.
Management is focusing on using artificial intelligence to translate complex lab data into plain language for patients. The goal is to make medical reports more useful and easier to act on without needing a doctor to explain every line. This is part of a broader push to modernize the business through technology. While it improves the patient experience, the real value for owners will be whether these tools can also make the company's massive billing and logistics operations more efficient.
Company newsFor the record
Jul 30
Study shows link between common infections and STIs
Quest released a large-scale study showing that women with bacterial vaginosis often carry other infections like chlamydia or gonorrhea. The findings suggest that doctors should test for multiple conditions at once when one is present. This research helps Quest encourage more comprehensive testing bundles. By showing why testing for several things at once is better for patient health, the company can grow its volume of specialized, higher-value tests.
Analysts at Argus Research raised their price target to $260, which is about 10 percent higher than the current price. This move reflects confidence in the company's ability to grow earnings as it moves into more advanced medical testing.
The new target is higher than the average analyst estimate of $240. It suggests that some on Wall Street see more room for the stock to rise as the company wins more hospital contracts and improves its profit margins.
Analysts recently raised their price targets for Quest Diagnostics following the company's strong second-quarter earnings report. Most analysts are split, with 13 of 34 rating it a buy, and the average target price suggests a 4% gain ahead.
Average target$244.50+4%vs $234.87 today
TodayAvg price
Low $225High $260
Hold34 analysts
3Bearish
18Neutral
13Bullish
FirmRatingPrice TargetDate
Argus Research
—
$225→$260
7/29/2026
UBS
Neutral
$220→$232
7/24/2026
Robert W. Baird
Neutral
$236→$255
7/24/2026
Barclays
Overweight
$230→$250
7/23/2026
Jefferies
Buy
$225→$245
7/23/2026
Robert W. Baird
Neutral
$232→$236
7/13/2026
Evercore ISI
In Line
$210→$225
4/21/2026
Jefferies
Buy
$220→$225
4/21/2026
Evercore ISI
In Line
$210
4/8/2026
Mizuho Securities
Outperform
$210→$235
2/12/2026
UBS
Neutral
$190→$210
2/11/2026
Truist Financial
Hold
$205→$220
2/11/2026
Quest Diagnostics earnings
Management has beaten its own profit targets for eight straight quarters. This suggests they are conservative with their forecasts and have a very firm handle on their costs.
Earnings history
EstimateBeatMiss
Quest Diagnostics past earnings results
Expected
Actual
Surprise
EPS
$2.82
$3.12
+10.6%
Revenue
$2.97B
$3.04B
+2.4%
Key highlights
Testing volume surge: Organic requisition volume, which measures test orders from existing locations, jumped 13.0% compared to a year ago. This massive increase in demand for laboratory services was the primary driver behind the company reaching $3.04 billion in total quarterly revenue.
Advanced diagnostics momentum: Specialized testing revenues grew by double digits in key areas like Alzheimer's blood tests and cardiometabolic screenings. These high value tests are becoming a larger part of the mix as the company expands its oncology and neurology offerings.
Efficiency offset by mix: Adjusted operating margins, which show the profit left after running the business, dipped to 16.5% from 16.9% last year. While the company is using more automation, a 2.8% decline in revenue per test order put pressure on overall profitability.
Raised full year outlook: Management now expects full year revenue to reach between $11.95 billion and $12.05 billion, up from their previous high estimate of $11.90 billion. This higher target reflects sustained demand from physicians and hospitals through the end of 2026.
Our take: This was a very strong quarter where the sheer volume of tests more than made up for lower pricing per order. Quest is successfully shifting toward advanced tests for Alzheimer's and cancer, which strengthens its position as a vital partner for doctors and hospitals. The raised full year guidance shows high confidence in this growth continuing.
Quest Diagnostics’s next earnings date
Q3 2026
OCT
20
Expectation
EPS
$2.85
Revenue
$3.04B
Metrics we are tracking
Metric
Expectations
Status
Organic Requisition Volume
Staying above 2.0% annually on a trailing twelve-month basis
13.0% in Q2 2026
Revenue per Requisition
Stabilizing within a range of negative 1% to positive 1%
(2.8)% in Q2 2026
Advanced Diagnostics Growth
Sustaining double-digit revenue growth in specialized oncology and neurology tests
Double-digit growth in Q2 2026
Adjusted Operating Margin
Expanding toward 17% by FY2031 as guided in Project Nova
16.5% in Q2 2026
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