NYSE: DGX · Health Care Services
Quest Diagnostics
Quest Diagnostics is a leading U.S. provider of diagnostic information services, and it also owns LifeLabs in Canada. Its Diagnostic Information Services business runs testing for physicians, hospitals, health plans, employers and consumers, with about 2,400 patient service centers. It processed about 244 million test requisitions in 2025. 2025 revenue was $11.0 billion (+11.8%), helped by acquisitions, and net income was $992 million. Its largest commercial lab competitor is Labcorp. Quest is expanding through hospital lab outreach deals and joint ventures, such as the 51/49 venture with Corewell Health in Michigan. It raised its quarterly dividend to $0.86 in 2026.
Last updated
Analysis last edited: November 6, 2026 · Financial data fetched: October 17, 2026 10:21 (SEC EDGAR) · Source 10-K filed: February 26, 2026
Built on10-K FY2025 · filed 2026-02-2610-Q (quarter ended 2026-09-30) · filed 2026-10-23
Next update expectedAfter FY2026’s 10-K is filed (roughly 60–90 days after fiscal year end (sooner for larger filers)), financials and analysis will be refreshed.
01
At a glanceFrom SEC data
Eight headline measures, each placed among the companies covered on this site.
- Revenue growthCAGRSmooths out year-to-year swings into "grew X% a year on average." Makes growth pace comparable across companies of very different sizes.
- 3.2%
- Operating marginOperating marginHow many cents of operating profit are left per dollar of revenue. Reflects pricing power and cost structure.
- 14.1%
- ROIC minus WACCROIC − WACC spreadThe difference between ROIC and WACC. Consistently positive implies value creation; consistently negative implies value destruction.
- +3.1 pts
- Net debt ÷ EBITDAEBITDAOperating income with D&A added back. A rough proxy for cash-generating power that’s less distorted by capital intensity, depreciation method, or financing/tax differences than net income.
- 2.5x
- Cash conversionOperating CF ÷ net income (cash conversion)How much of reported profit shows up as actual cash. 1x or higher means profit is backed by cash.
- 1.90x
- Dividend raisesDividend per shareTotal annual dividend paid per share (sum of all declared payments for the year).
- 5 of 5
- P/E todayP/EShare price ÷ EPS — how many years of current earnings the stock price represents. This site uses the period-end figure as reported in the filing.
- 24.3x
- Betaβ (beta)How much a stock moves, on average, for a 1% move in the overall market. Above 1 means more volatile than the market, which raises the return shareholders require. This site computes it from about 2.5 years (roughly 130 weeks) of weekly returns, built from Yahoo Finance daily prices, regressed against an S&P 500 ETF (SPY) as the market proxy, then applies the well-known long-run mean-reversion adjustment (0.67 × β + 0.33) as the WACC default.
- 0.35
Higher than 14% of 372 non-financial companies
Average yearly growth over the years shown
Higher than 35% of 311 non-financial companies
Latest fiscal year (FY2025)
Higher than 49% of 311 non-financial companies
Return on capital above (or below) its estimated cost
Higher than 65% of 304 non-financial companies
Below 0 means more cash than debt
Higher than 69% of 349 non-financial companies
Operating cash flow ÷ net income
Years the dividend per share rose, of the last 5
Latest close 2026-11-04; trailing 12 months to 2026-09-30
Above 1 = moves more than the market
Each marker shows where this company sits among the non-financial companies covered on this site, not all listed companies (left = lowest, right = highest). A high position is not automatically good — for net debt ÷ EBITDA, higher means more debt. Details and formulas are in the sections below and in How to read this.
02
Valuation todayFrom SEC data
Price-based measures at the latest close, next to the same measures at the last fiscal year-end.
Share price$249.46close on 2026-11-04
Market cap$27.44B
- P/EP/EShare price ÷ EPS — how many years of current earnings the stock price represents. This site uses the period-end figure as reported in the filing. today
- 24.3x
- P/BP/BShare price ÷ book value per share. Below 1x means the market values the company below its accounting net worth. This site uses the closing price nearest the fiscal year-end and highlights sub-1x readings. today
- 3.8x
- EV/EBITDAEV/EBITDAEnterprise value (≈ market cap + interest-bearing debt − cash) as a multiple of EBITDA — roughly, "how many years of EBITDA to buy the whole company." Lower is generally viewed as cheaper, and it’s more comparable than P/E across companies with different debt loads or depreciation policies. This site excludes noncontrolling interests from the EV calculation. today
- 15.4x
- FCF yieldFree cash flow (FCF)Operating CF minus capital expenditures — cash generated by the business after funding its own investment, available for dividends, buybacks, acquisitions, or debt paydown. Acquisitions and securities purchases (also in investing CF) are not subtracted, so FCF can be positive in a year when total investing CF exceeds operating CF. today
- 5.0%
- Dividend yieldDividend per shareTotal annual dividend paid per share (sum of all declared payments for the year). today
- 1.3%
At FY2025 year-end: 19.8x
Earnings: trailing 12 months to 2026-09-30
At FY2025 year-end: 2.7x
Book value at FY2025 year-end
At FY2025 year-end: 11.4x
EBITDA for FY2025
At FY2025 year-end: 7.1%
Free cash flow for FY2025
Dividends per share for FY2025
“Today” uses the latest closing price (2026-11-04, Yahoo Finance daily closing prices) and shares outstanding at the last fiscal year-end. The rest of this page — including the financial table and ROIC vs. WACC — uses fiscal year-end prices. These are reference figures, not a judgment of whether the stock is cheap or expensive.
03
What changed since last earningsFrom SEC data
The latest reported quarter against the same quarter a year earlier, the balance sheet against the previous quarter-end, and what management said in its latest earnings release.
Quarter ended Sep 30, 2026.
- Revenue$2.82B → $3.1B (vs. a year earlier)↑ +10.0%$2.82B → $3.1B (vs. a year earlier)
- Operating margin13.7% → 15.5% (vs. a year earlier)↑ +1.8 pts13.7% → 15.5% (vs. a year earlier)
- Net income$245M → $312M (vs. a year earlier)↑ +27.3%$245M → $312M (vs. a year earlier)
- Diluted EPS$2.16 → $2.78 (vs. a year earlier)↑ +28.7%$2.16 → $2.78 (vs. a year earlier)
- Cash$626M → $797M (vs. previous quarter-end)↑ +27.3%$626M → $797M (vs. previous quarter-end)
- Long-term debt$5.64B → $5.55B (vs. previous quarter-end)↓ −1.6%$5.64B → $5.55B (vs. previous quarter-end)
Source: Form 10-Q ↗ (SEC XBRL). Long-term debt is the tagged long-term debt figure and leaves out short-term borrowings.
From the earnings release of Oct 22, 2026.
Management outlook ↑ Raised
Raised full-year 2026 revenue and EPS guidance. Source sentence
Raises Revenue and EPS Guidance for Full Year 2026
Key changes
2026 revenues now expected at $12.065B–$12.105B. Source sentence
Full year 2026 revenues now expected to be between $12.065 billion and $12.105 billion
Written by AI. A line appears only if its figures and direction match the quoted sentence, which an automatic check confirms. Companies' outlooks are their own and may not be met. Read the release ↗
04
Company profileFrom SEC dataShow
- Legal name
- QUEST DIAGNOSTICS INC
- Headquarters
- SECAUCUS, NJ
- Incorporated in
- Delaware
- Fiscal year end
- 12/31
- Exchange & ticker
- NYSE: DGX
- Industry
- Health Care Services
- CIK
- 1022079
Workforce (as of FY2025 year-end)
Employees
57,000
Source: Form 10-K (FY2025) cover page and business description
05
Earnings calendarFrom SEC dataShow
When the company reports each quarter: the quarter-end date, the day results were released, and when the 10-Q or 10-K was filed.
Next report
Q4 FY2026
Quarter end: December 2026. In past years, Q4 results were released 30–41 days after quarter end (Feb 10, 2026; Jan 30, 2025; Feb 1, 2024). No date has been announced in the sources this site uses.
Reporting pattern
- Fiscal year ends around December 31.
- Reports four times a year: three quarterly reports (10-Q) and an annual report (10-K) for Q4.
- Earnings releases came 21–41 days after quarter end over the last 12 quarters.
| Quarter | Quarter ended | Earnings release (8-K) | Report filed (10-Q / 10-K) |
|---|---|---|---|
| Q3 FY2026 | Sep 30, 2026 | Oct 22, 2026 (+22 days) | Oct 23, 2026 10-Q (+23 days) |
| Q2 FY2026 | Jun 30, 2026 | Jul 23, 2026 (+23 days) | Jul 23, 2026 10-Q (+23 days) |
| Q1 FY2026 | Mar 31, 2026 | Apr 21, 2026 (+21 days) | Apr 22, 2026 10-Q (+22 days) |
| Q4 FY2025 | Dec 31, 2025 | Feb 10, 2026 (+41 days) | Feb 26, 2026 10-K (+57 days) |
| Q3 FY2025 | Sep 30, 2025 | Oct 21, 2025 (+21 days) | Oct 21, 2025 10-Q (+21 days) |
| Q2 FY2025 | Jun 30, 2025 | Jul 22, 2025 (+22 days) | Jul 23, 2025 10-Q (+23 days) |
| Q1 FY2025 | Mar 31, 2025 | Apr 22, 2025 (+22 days) | Apr 23, 2025 10-Q (+23 days) |
| Q4 FY2024 | Dec 31, 2024 | Jan 30, 2025 (+30 days) | Feb 20, 2025 10-K (+51 days) |
| Q3 FY2024 | Sep 30, 2024 | Oct 22, 2024 (+22 days) | Oct 23, 2024 10-Q (+23 days) |
| Q2 FY2024 | Jun 30, 2024 | Jul 23, 2024 (+23 days) | Jul 24, 2024 10-Q (+24 days) |
| Q1 FY2024 | Mar 31, 2024 | Apr 23, 2024 (+23 days) | Apr 24, 2024 10-Q (+24 days) |
| Q4 FY2023 | Dec 31, 2023 | Feb 1, 2024 (+32 days) | Feb 22, 2024 10-K (+53 days) |
Source: SEC EDGAR filing history. Release dates are the dates the earnings release was furnished to the SEC on Form 8-K (Item 2.02), which is normally the day results are announced. For a quarter whose 10-Q or 10-K isn’t filed yet, the date is the latest Item 2.02 8-K since the previous report, which may be a preliminary or other results-related update. Fiscal years are labeled by the calendar year in which they end.
06
Flagship products & servicesSite analysis
DIS
Routine and advanced testing
Examples: Oncology MRD (Haystack Oncology), anatomic pathology
DIS
Consumer-initiated testing
Canada
LifeLabs
About 23M requisitions in 2025.
From the FY2025 Form 10-K.
U.S., worldwide and country/regional share of flagship products/services
Only shares the company itself states (in its filings or press releases, sometimes citing a research firm) are shown. Scope and timing vary by figure — treat these as approximate.
Diagnostic information services
United States
U.S. share
A leading provider
Company-disclosedPer the 10-K; no percentage is given.
Worldwide share
—
Not disclosedExamOne risk assessment services
Life insurance industry, North America
U.S. share
—
Not disclosedWorldwide share
—
Not disclosedNorth America
Largest provider
Company-disclosedPer the 10-K.
Sources:
07
Recent strategic focusSite analysis
2026 developments.
Q3 2026
Revenue $3.10B (+10.0%); reported EPS $2.78 (+28.7%) and adjusted EPS $3.00 (+15.4%). 2026 guidance raised to revenue of $12.065–12.105B and adjusted EPS of $11.25–11.35. Quest test panels will be sold through the Apple Health app.
Source: Q3 2026 press release
Cyber incident
On October 21, 2026 Quest learned of unauthorized access to its Quanum LSM ordering and results system and believes certain patient records were accessed; it says operations were not materially disrupted.
Source: 8-K filed 2026-10-22
Capital returns
Additional $1B buyback authorization and a 7.5% dividend increase to $0.86 per quarter in February 2026.
Source: 8-K filed 2026-02-10
Debt
$500M of 5.000% notes due 2036 issued in May 2026, partly to refinance notes maturing June 2026.
Source: 8-Ks filed 2026-05-01 and 2026-05-08
Capex ÷ D&A (FY2025)
0.92x
Roughly matches depreciation — mostly maintenance/replacement
formulacapital expenditures ÷ depreciation & amortization
e.g.$527M ÷ $570M = 0.92x
termsCapital expenditures (capex) · Depreciation & amortization (D&A)
M&A spend (6-year total)
$3.68B
Latest year: $101M
Cash-flow-statement spending on acquisitions, net of cash acquired
Where the money goes, over time
Unit: $M. Capex went from $418M in FY2020 to $527M in FY2025
- Capex
- M&A spend
formulacapital expenditures ÷ depreciation & amortization
termsCapital expenditures (capex) · Depreciation & amortization (D&A)
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-26
08
Key figures at a glanceFrom SEC data
FY2020–FY2025, 6 years.
Revenue (FY2025)
$11.04B
As reported in the 10-K
Revenue CAGR (5 years)
+3.2%
formula(last-period revenue ÷ first-period revenue) ^ (1 ÷ years) − 1
e.g.($11,035M ÷ $9,437M) ^ (1÷5) − 1 = 3.2%
termsCAGR · ^ (exponent) · Revenue (net sales)
Operating margin (FY2025)
14.1%▼caution
-6.8pt vs. 5 years ago
formulaoperating income ÷ revenue × 100
e.g.$1,556M ÷ $11,035M × 100 = 14.1%
ROE (FY2025)
14.2%▲favorable
6-year average: 18.0%
As reported in the 10-K
P/B (FY2025 end)
2.66x
formulafiscal year-end closing price ÷ book value per share
e.g.$173.53 ÷ $65.18 = 2.66x
Period-end (fiscal year-end) value, not today's P/B
EV/EBITDA (FY2025 end)
11.4x
formula(market cap + interest-bearing debt − cash and equivalents) ÷ (operating income + depreciation & amortization)
e.g.($19,088M + $5,671M − $420M) ÷ ($1,556M + $570M) = 11.4x
termsEV/EBITDA · Market capitalization · Interest-bearing debt · EBITDA · Depreciation & amortization (D&A)
Period-end (fiscal year-end) value, not today's multiple
- ―
Revenue grew +3.2% a year over 5 years (modest growth)
From $9.44B in FY2020 to $11.04B in FY2025. The annualized rate (CAGR) makes it possible to compare growth pace across companies of different sizes.
- ▼
Operating margin declined: 20.9% → 14.1%
How much operating profit is left per $100 of revenue. It moved -6.8 points over 5 years — pricing power, cost control, and product mix all show up here.
- ―
Equity ratio is 44.2% (a middling level)
The share of total assets funded by equity rather than debt. 50%+ is often read as low bankruptcy risk, though the right level varies by industry (real estate and leasing run lower, for instance).
- ▲
Free cash flow was positive in 6 of 6 years
Operating cash flow minus capital expenditures: the cash left over after funding the business’s own investment, available for dividends, buybacks, acquisitions, or debt paydown. A negative year can mean heavy investment, or weak core earnings — worth distinguishing.
- ▲
ROE averaged 18.0% over 6 years (latest: 14.2%)
How much profit was generated on shareholders’ equity. Roughly 10%+ is often cited as solid for a U.S. company, though this varies a lot by industry and capital intensity.
09
Business modelSite analysis
Business Model Canvas
The whole company in nine blocks. Left side: how it delivers (partners, activities, resources, costs). Right side: who it serves and how it earns. Every entry comes from the company’s filings shown on this page.
08 · who helps
Key partners
- Corewell Health
- Epic
07 · what it does
Key activities
- Specimen collection, testing, reporting
06 · what it draws on
Key resources
- Lab network, about 8,000 patient access points and about 2,400 patient service centers
02 · why customers buy
Value propositions
- A comprehensive test menu, innovative tests and convenient access, which Quest believes is the most attractive service offering in the industry.
04 · how it keeps them
Customer relationships
- Contracts with health plans and value-based arrangements with payers and ACOs.
03 · how it reaches them
Channels
- About 2,400 patient service centers (many inside retail stores), physicians' and hospitals' orders, and consumer-initiated testing.
01 · who it serves
Customer segments
- Physicians, hospitals, health plans, employers, consumers
09 · where money goes
Cost structure
FY2025, share of revenue ($11.04B)
- Cost of revenue66.8%
- Selling, general & administrative17.8%
- Other operating costs1.3%
Operating profit left: 14.1% of revenue. Depreciation & amortization (inside the costs above): $570M. Capital spending: $527M.
Source: Form 10-K income statement and cash-flow statement (SEC XBRL).
05 · how money comes in
Revenue streams
- Fees per requisition paid by health plans, Medicare/Medicaid and patients
Value propositions, channels and customer relationships: Form 10-K (FY2025)
Clinical and anatomic pathology testing, paid mainly by health plans and government payers; Quest reaches patients through physician offices and its patient service centers.
01 what it draws on
Inputs & resources
- Lab network, about 8,000 patient access points and about 2,400 patient service centers
02 what it does
Activities
- Specimen collection, testing, reporting
03 who it serves
Customers
- Physicians, hospitals, health plans, employers, consumers
04 how money comes in
How it earns
- Fees per requisition paid by health plans, Medicare/Medicaid and patients
How the business makes money
- DIS revenues $10.8B in 2025; requisition volume +12.3% (organic +3.4%).
- Medicare and Medicaid are about 11% of revenues.
Government & regulation around the business
Non-market factors from the company’s filings: what governments and regulators fund, buy, set, approve or restrict, and which part of the flow above each one touches.
Quest gets about 11% of revenue from Medicare and Medicaid, and lab reimbursement rules are in flux.
Government as customer
Government programs and contracts
Medicare and Medicaid were about 11% of net revenues.
Supports and constrainsTouches: Customers · How it earnsSource: Form 10-K (FY2025)
Regulated prices & reimbursement
Government reimbursement
Medicare reimbursement rules for lab tests are in flux.
Constrains the businessTouches: How it earnsSource: Form 10-K (FY2025)
Government funding & tax credits
CARES Act payroll credit
Received $46M from a CARES Act payroll tax credit in 2025.
Supports the businessTouches: How it earnsSource: Form 10-K (FY2025)
Revenue by segment (FY2025)
Unit: $M — bar length = revenue, (%) = share of total company revenue
Diagnostic Information Services
10,785 (98%)Diagnostic Solutions
250 (2%)
Source: Form 10-K (FY2025) — 2025 highlights Diagnostic Solutions includes risk assessment services for insurers (ExamOne) and healthcare IT businesses.
10
Contract structureSite analysisShow
Short-term or spot sales carry different earnings quality than long-term or auto-renewing contracts — this shows how the company actually contracts with its customers.
11
Alliances & capital tiesSite analysisShow
Equity stakes, joint ventures, and strategic partnerships disclosed across the 10-K, 8-Ks, and proxy statement.
Joint venture
Corewell Health
Michigan joint venture (Quest 51%, Corewell 49%) to perform lab testing via a new facility; Quest also provides Collaborative Lab Solutions to Corewell.
Source: Form 10-K (FY2025) — Item 1
Business partnership
Epic
Partner for Project Nova, a multi-year modernization of Quest's order-to-cash processes.
Source: Form 10-K (FY2025) — Item 1
12
Customers & suppliersSite analysis
Who the company sells to and buys from. Companies rarely name either, so named counterparties come only from the company's own filings and press releases; otherwise this lists the concentration figures the 10-K discloses.
Customers
Physicians, hospitals, health plans, employers, government payers and consumers.
Named by the company
The 10-K reports no customer above a concentration threshold.
What the filings disclose
Suppliers
Diagnostic equipment and reagent suppliers.
Named by the company
No supplier is named.
13
Competitors & peersSite analysis
Competitors the 10-K names, and the peer group the company itself chose in its proxy statement. Nothing here is this site's own pick.
The 10-K names Labcorp as the largest commercial clinical laboratory competitor.
Competitors named in the 10-K
Peer group the company chose
2025 compensation peer group, from the proxy statement. Peers are companies the board considers comparable — for example when setting executive pay — not necessarily direct competitors.
14 healthcare services, equipment and distribution companies; unchanged in 2025.
- Agilent Technologiessite ↗
- Illuminasite ↗
- Baxter Internationalsite ↗
- Labcorpsite ↗
- Becton Dickinsonsite ↗
- Owens & Minorsite ↗
- Boston Scientificsite ↗
- Revvitysite ↗
- DaVitasite ↗
- Strykersite ↗
- Henry Scheinsite ↗
- Tenet Healthcaresite ↗
- Hologicsite ↗
- Zimmer Biometsite ↗
Company names link to this site’s analysis where one exists; “site ↗” opens the company’s own website.
14
M&A historySite analysisShow
Companies acquired over the last five years, plus older large acquisitions that still anchor a current business — what each was bought to do, and what happened afterward. From the 10-K, 8-Ks, and the company's press releases.
Quest regularly acquires lab outreach businesses and labs.
Cash spent on acquisitions, FY2020–FY2025: $3.68B
2024
LifeLabs
About CAN$1.35B (about US$1B) in cash
Canadian lab diagnostics and digital health provider.
- Stated purpose (company)
- Not stated.
Source: Form 10-K (FY2025)
2025
Select assets of Spectra Laboratories (Fresenius Medical Care)
Not stated
Renal-specific lab testing and dialysis-related water testing.
- Stated purpose (company)
- Not stated.
Source: Form 10-K (FY2025)
2023
Haystack Oncology
Not stated
ctDNA minimal residual disease testing.
- Stated purpose (company)
- Strengthens the oncology portfolio for ctDNA solid-tumor MRD testing.
Source: Form 10-K (FY2025)
15
Six years of financialsFrom SEC data
Each chart's axis holds a single unit (never mixing dollars, %, and $/share). The table's per-period header links to the filing the numbers came from.
Revenue over time
Unit: $M
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-26
Profit over time (operating → net)
Unit: $M
- Operating income
- Pretax income
- Net income
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-26
Margins over time
Unit: %
- Operating margin
- Net margin
formulaoperating income ÷ revenue × 100
formulanet income attributable to the company ÷ revenue × 100
Cash flow over time
Unit: $M (below zero = cash went out)
- Operating CF
- Investing CF
- Free CF
formulacash flow from operations − capital expenditures
termsFree cash flow (FCF) · Cash flow from operations (operating CF) · Capital expenditures (capex)
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-26
Financial stability & capital efficiency
Unit: %
- Equity ratio
- ROE
formulatotal equity ÷ total assets × 100 (as reported in the 10-K)
termsStockholders’ equity · Total assets
formulanet income ÷ average equity (beginning + ending, ÷2) × 100 (as reported in the 10-K)
termsNet income (attributable to the company) · Stockholders’ equity
Earnings per share (EPS) and dividend per share
Unit: $
- EPS
- Dividend per share
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-26
| Line item | FY202010-K on EDGAR ↗ | FY202110-K on EDGAR ↗ | FY202210-K on EDGAR ↗ | FY202310-K on EDGAR ↗ | FY202410-K on EDGAR ↗ | FY202510-K on EDGAR ↗ |
|---|---|---|---|---|---|---|
| Income statement ($M) | ||||||
| Revenue | 9,437 | 10,788 | 9,883 | 9,252 | 9,872 | 11,035 |
| Operating income | 1,971 | 2,381 | 1,428 | 1,262 | 1,346 | 1,556 |
| Pretax income | 1,884 | 2,599 | 1,235 | 1,130 | 1,175 | 1,318 |
| Net income (attributable) | 1,431 | 1,995 | 946 | 854 | 871 | 992 |
| Revenue growthcalc(this year’s revenue − last year’s revenue) ÷ last year’s revenue × 100 | — | 14.3% | -8.4% | -6.4% | 6.7% | 11.8% |
| Operating margincalcoperating income ÷ revenue × 100 | 20.9% | 22.1% | 14.4% | 13.6% | 13.6% | 14.1% |
| Net margincalcnet income attributable to the company ÷ revenue × 100 | 15.2% | 18.5% | 9.6% | 9.2% | 8.8% | 9.0% |
| Balance sheet ($M) | ||||||
| Total assets | 14,026 | 13,611 | 12,837 | 14,022 | 16,153 | 16,225 |
| Total equity | 6,809 | 6,483 | 5,930 | 6,342 | 6,813 | 7,206 |
| Interest-bearing debtSum of short- and long-term borrowings, notes/bonds payable | 4,015 | 4,012 | 3,980 | 4,713 | 6,217 | 5,671 |
| Equity ratio | 48.2% | 47.3% | 45.9% | 45.0% | 42.0% | 44.2% |
| ROE | 21.2% | 30.2% | 15.3% | 14.0% | 13.3% | 14.2% |
| Cash flow ($M) | ||||||
| Operating CF | 2,005 | 2,233 | 1,718 | 1,272 | 1,334 | 1,886 |
| Investing CF | -772 | 21 | -543 | -1,061 | -2,548 | -631 |
| Financing CF | -1,267 | -2,540 | -1,732 | 160 | 1,084 | -1,388 |
| Free cash flowcalccash flow from operations − capital expenditures | 1,587 | 1,830 | 1,314 | 864 | 909 | 1,359 |
| Cash and equivalents | 1,158 | 872 | 315 | 686 | 549 | 420 |
| Per share & other | ||||||
| EPS ($) | 10.47 | 15.55 | 7.97 | 7.49 | 7.69 | 8.75 |
| BVPS ($) | 50.82 | 54.15 | 53.09 | 56.82 | 61.06 | 65.18 |
| Dividend per share ($) | 2.24 | 2.48 | 2.64 | 2.84 | 3.00 | 3.20 |
| Payout ratiocalcdividend per share ÷ diluted EPS × 100 | 21.4% | 15.9% | 33.1% | 37.9% | 39.0% | 36.6% |
| P/E (x) | 11.4 | 11.1 | 19.6 | 18.4 | 19.6 | 19.8 |
| EV/EBITDA (x)calc(market cap + interest-bearing debt − cash and equivalents) ÷ (operating income + depreciation & amortization) | 8.0 | 8.5 | 11.3 | 11.4 | 12.2 | 11.4 |
| P/B (x)calcfiscal year-end closing price ÷ book value per share | 2.34 | 3.19 | 2.95 | 2.43 | 2.47 | 2.66 |
P/B and EV/EBITDA use each period’s period-end (fiscal year-end) figures, not the current share price. Figures without a "calc" tag are as reported in the Form 10-K (the consolidated financial statements and, for older years, earlier 10-Ks), pulled automatically from SEC EDGAR. Where a later filing restated a prior period, the restated figure is used.
Last 8 quarters
Three-month figures from 10-Q filings. Change is versus the same quarter a year earlier. Newest quarter on top.
| Quarter ended | Revenue | Operating income | Net income | Diluted EPS |
|---|---|---|---|---|
| 2026-09-30 | $3.1B+10.0% | $479M+24.1% | $312M+27.3% | $2.78 |
| 2026-06-30 | $3.04B+10.2% | $459M+4.8% | $320M+13.5% | $2.84 |
| 2026-03-31 | $2.9B+9.2% | $399M+15.3% | $252M+14.5% | $2.24 |
| 2025-12-31 † | $2.81B+7.1% | $386M+6.9% | $245M+10.4% | — |
| 2025-09-30 | $2.82B | $386M | $245M | $2.16 |
| 2025-06-30 | $2.76B | $438M | $282M | $2.47 |
| 2025-03-31 | $2.65B | $346M | $220M | $1.94 |
| 2024-12-31 † | $2.62B | $361M | $222M | — |
† Fourth quarter = the 10-K’s annual figure minus the first three quarters; quarterly EPS isn’t derived this way because share counts change during the year.
16
Is ROIC above WACC?From SEC data
ROIC (the return on money invested in the business) above WACC (the cost of raising that money) means the company is creating value. WACC is an estimate, so its assumptions can be adjusted below.
ROIC (FY2025)
9.2%
formulaoperating income × (1 − tax rate) ÷ invested capital × 100 *invested capital = interest-bearing debt + total equity (average of beginning/ending)
e.g.$1,556M × (1 − 23%) ÷ $12,954M × 100 = 9.2%
termsOperating income · Effective tax rate · Invested capital · Interest-bearing debt · Total equity
WACC (this site’s estimate)
6.16%
formulacost of equity × equity weight + cost of debt × (1 − tax rate) × debt weight
e.g.Equity weight: $19.09B ÷ ($19.09B + $5.67B) = 77.1%
e.g.Debt weight: $5.67B ÷ ($19.09B + $5.67B) = 22.9%
e.g.WACC: 6.9% × 77.1% + 4.9% × (1 − 23%) × 22.9% = 6.16%
termsCost of equity · Equity weight (E/(D+E)) · Cost of debt · (1 − tax rate) · Debt weight (D/(D+E)) · Market capitalization
How firm is this? With the equity risk premium ±1 point and beta ±0.2, WACC runs 5.2%–7.4% and ROIC − WACC runs +1.8 to +4.1 points. The sign holds across this range. This describes the latest year and does not predict future value creation.
WACC 6.16% is this site’s estimate under the assumptions below (not a figure the company has published)
- Risk-free rate
- 4.95% (10-year Treasury, 2026-11-03)
- β
- 0.35 (price-derived adjusted beta, but correlation with the market is low (R² 0.00), so reliability is limited)
- Equity risk premium
- 5.5%
- Cost of equity
- 6.88%
- Cost of debt
- 4.88%
- Tax rate
- 23% (effective rate, FY2023–FY2025)
- Capital structure (equity : debt)
- 77% : 23%
ROIC over time, vs. WACC
Unit: % — bars = each period's ROIC, horizontal line = latest WACC. Bars above the line are green, below are red
- ROIC (above WACC)
- ROIC (below WACC)
- WACC 6.16%
formulaoperating income × (1 − tax rate) ÷ invested capital × 100 *invested capital = interest-bearing debt + total equity (average of beginning/ending)
termsOperating income · Effective tax rate · Invested capital · Interest-bearing debt · Total equity
formulacost of equity × equity weight + cost of debt × (1 − tax rate) × debt weight
termsCost of equity · Equity weight (E/(D+E)) · Cost of debt · (1 − tax rate) · Debt weight (D/(D+E)) · Market capitalization
Try different WACC assumptions
β and the equity risk premium are estimates with a real range of plausible values — move the sliders to check whether ROIC > WACC still holds. The risk-free rate starts at the 10-year Treasury yield on 2026-11-03 (U.S. Treasury).
Initial β: 0.35 (price-derived adjusted beta. Raw β 0.03, R² 0.00, 130 weeks)
formula0.67 × β + 0.33 (β = the slope of weekly stock returns regressed on weekly market returns)
e.g.0.67 × 0.033 + 0.33 = 0.352
termsβ (beta)
Period 2024-05-10–2026-11-04, using S&P 500 ETF (SPY) as the market proxy. Source: Yahoo Finance price history.
formularisk-free rate + β × equity risk premium
e.g.5.0% + 0.35 × 5.5% = 6.9%
termsCAPM · Risk-free rate · β (beta) · Equity risk premium (market risk premium)
formulafiscal year-end closing price × shares outstanding (= market cap)
formulainterest expense ÷ interest-bearing debt × 100 (clamped to 0–10%; falls back to the risk-free rate if there’s no debt)
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What the price implies (DCF)From SEC data
A company's value can be written as its free cash flow divided by (cost of capital − perpetual growth). Working that backwards from the market's valuation shows how much growth the share price assumed — compared here with the company's actual past growth.
Growth the price implies (price on 2026-11-04)
2.0%
Perpetual FCF growth: g = r − FCF ÷ EV = 6.2% − 4.2%
Past FCF growth (FY2020–FY2025)
-3.1%
Compound annual rate, 5 years
Past revenue growth (FY2020–FY2025)
+3.2%
Compound annual rate, 5 years
Inputs (FY2025): free cash flow $1.36B (operating CF − capex); enterprise value $32.69B = market cap $27.44B (latest close, 2026-11-04) + debt $5.67B − cash and short-term investments $420M; r = WACC of 6.2% using this page’s default assumptions (β 0.35, risk-free 5.0%, market premium 5.5%).
Three WACC scenarios
The same calculation under cautious, base and optimistic cost-of-capital assumptions (risk-free rate fixed at the 10-year Treasury yield). Pick one to load it into the sliders below.
Try your own assumptions
V = FCF ÷ (r − g). It starts at the implied growth rate, where the theoretical value equals today’s enterprise value.
Theoretical enterprise value
$32.36B
FCF $1.36B ÷ (6.2% − 2.0%)
Theoretical ÷ actual enterprise value
0.99x
Below 1x: these assumptions value the business below the market did
How sensitive the answer is
Theoretical ÷ actual enterprise value for each combination of r and g.
| g \ r | 4.2% | 5.2% | 6.2% | 7.2% | 8.2% |
|---|---|---|---|---|---|
| 0% | 0.99x | 0.80x | 0.67x | 0.58x | 0.51x |
| 2% | 1.89x | 1.30x | 0.99x | 0.80x | 0.67x |
| 4% | 20.79x | 3.46x | 1.89x | 1.30x | 0.99x |
| 6% | — | — | 20.79x | 3.46x | 1.89x |
| 8% | — | — | — | — | 20.79x |
A simplified model for seeing what the market price assumes, not a forecast or a target price. It treats free cash flow as growing at one constant rate forever; the result swings widely with small changes in r and g, and is undefined when g reaches r. Free cash flow here is operating cash flow minus capex, which is after interest — a full DCF of enterprise value would use cash flow before interest. Market cap uses the latest close (2026-11-04) × shares at fiscal year-end; free cash flow and WACC inputs are from the latest fiscal year.
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Earnings qualityFrom SEC dataShow
The same reported profit can mean different things depending on whether it's backed by cash, driven by the core business, or the result of a one-off item. Four checks below.
- ✓
Operating CF ÷ net income: averages 1.54x
Profit is backed by cash coming in.
- ✓
Accrual ratio (latest): -5.5%
A small share of profit rests on accounting estimates.
- ✓
Core-earnings share (operating income ÷ pretax income): 118%
Most profit comes from core operations.
- ✓
Days sales outstanding: 59 → 45 days
No major slowdown in collecting on sales.
Operating CF vs. net income
Unit: $M — operating CF above net income means profit is backed by cash
- Operating CF
- Net income
formulacash flow from operations ÷ net income attributable to the company
termsCash flow from operations (operating CF) · Net income (attributable to the company)
formula(net income − operating CF) ÷ average total assets × 100
termsNet income (attributable to the company) · Cash flow from operations (operating CF) · Total assets
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-26
Profit bridge (FY2025)
Unit: $M — what moved profit from operating income to net income
- Profit (each stage)
- Pushed profit up
- Pushed profit down
formulaoperating income ÷ income before income taxes × 100
termsOperating income · Income before income taxes (pretax income)
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-26
Receivables & inventory days
Unit: days — days grow when receivables or inventory build up faster than sales
- Days sales outstanding
- Days inventory outstanding
formulaaverage receivables (opening + closing ÷ 2) ÷ revenue × 365
formulaaverage inventory (opening + closing ÷ 2) ÷ cost of revenue × 365
termsInventory · Cost of revenue (COGS)
Worked examples (latest period)
formulacash flow from operations ÷ net income attributable to the company
e.g.$1,886M ÷ $992M = 1.90x
termsCash flow from operations (operating CF) · Net income (attributable to the company)
formulaoperating income ÷ income before income taxes × 100
e.g.$1,556M ÷ $1,318M × 100 = 118%
termsOperating income · Income before income taxes (pretax income)
formulaaverage receivables (opening + closing ÷ 2) ÷ revenue × 365
e.g.($1,304M + $1,408M) ÷ 2 ÷ $11,035M × 365 = 45 days
formulaaverage inventory (opening + closing ÷ 2) ÷ cost of revenue × 365
e.g.($188M + $189M) ÷ 2 ÷ $7,370M × 365 = 9 days
termsInventory · Cost of revenue (COGS)
19
Who holds the sharesFrom SEC dataShow
How much of the stock large institutional investors report owning on SEC Form 13F, how much the directors and executive officers hold (and how much of the vote they control), and roughly how much is left for individual investors. Shown next to beta so the holder mix can be read alongside how much the stock swings.
Institutions, insiders and everyone else, 13F holdings as of 2026-06-30
“Everyone else” is what remains after shares reported on Form 13F and shares held by directors and executive officers: mostly individual investors, plus non-insider families or foundations and smaller or foreign institutions. The figures have different dates and 13F reports count some shares twice — read it as an approximate split.
- Held by 13F filers
- 95.1%
- Directors & officers (shares)
- <1%
- Everyone else (est.)
- 4.9%
- Directors & officers (voting power)
- <1%
- Institutional-ownership rank
- 122 of 416
- Beta (adjusted)
- 0.35
individuals and other non-13F holders
no separate voting figure; shown as shares
1 = most institutional; 29% of covered companies have more
above 1 = swings more than the market
- 105.0M shares reported by 1,107 13F filers ÷ 110.4M shares outstanding on 2026-07-15. Option positions are excluded.
- Directors and executive officers as a group, from the proxy statement’s beneficial-ownership table (percentage computed from the group’s share count ÷ shares outstanding); includes shares they can acquire within 60 days.
- A large “everyone else” share can still reflect a family, trust or foundation stake held outside the board; check the proxy statement’s 5% holders.
Sources: SEC Form 13F data set (holdings as of 2026-06-30) · Form DEF 14A filed 2026-04-06 (beneficial ownership table) · Form 10-Q cover page (shares outstanding as of 2026-07-15)
20
Strengths & weaknessesSite analysis
Strengths
1. Scale and access
About 244M requisitions a year and access to over 90% of U.S. insured lives.
Evidence: Form 10-K (FY2025)
2. Growth reacceleration
Revenue grew 10.2% in Q2 2026 (10.0% organic) and 10.0% in Q3 2026 on strong organic growth.
Evidence: Q2 and Q3 2026 press releases
3. Dividend growth
Annual dividends rose from $2.48 (2021) to $3.20 (2025); raised to $0.86 quarterly in 2026.
Evidence: SEC EDGAR XBRL; 8-K filed 2026-02-10
Weaknesses
1. Post-COVID earnings reset
Net income fell from $2.0B (2021) to about $0.9–1.0B since.
Evidence: SEC EDGAR XBRL
2. Higher debt
Debt rose to about $5.7B to fund acquisitions.
Evidence: SEC EDGAR XBRL
21
What draws investors to itSite analysis
Why the stock can look attractive to investors — each point paired with what has to hold for it to stay true, and the opposing view. This is this site's analysis, not a recommendation to buy or sell.
P/E (FY2025)
19.8x
Price at fiscal year-end ÷ diluted EPS
Dividend yield (FY2025)
1.84%
Dividends per share ÷ fiscal year-end price
Payout ratio (FY2025)
37%
Dividends per share ÷ diluted EPS
FCF yield (FY2025)
7.1%
(Operating CF − capex) ÷ market cap
1. Steady compounding
Revenue growth, dividends and buybacks.
- What has to hold
- Volumes keep growing.
- The other side
- Reimbursement pressure.
Evidence: Q3 2026 press release
Dividends per share use quarterly declarations from XBRL.
22
ResilienceSite analysisShow
How well the company could absorb a bad year: its financial buffer, how its revenue and profit held up in the worst year on record, and what the 10-K says about the business's exposure to shocks. Figures and filing statements only — no overall rating.
1. Financial buffer (FY2025)
Cash & short-term investments ÷ debt due within a year
0.8x
$420M vs. $504M
Interest coverage (operating income ÷ interest expense)
5.6x
$1.56B vs. $277M
Free cash flow ÷ dividends paid
3.8x
$1.36B vs. $353M (FCF = operating CF − capex)
2. Worst year in the record, and the recovery
| Figure | Worst year-over-year change | Back to the prior level? |
|---|---|---|
| Revenue | -8.4% in FY2022 ($10.79B → $9.88B) | Yes, by FY2025 |
| Operating income | -40.0% in FY2022 ($2.38B → $1.43B) | Not yet, as of FY2025 |
Covers only the 6 fiscal years on record (FY2020–FY2025), which may not include a full recession — the worst year here isn’t necessarily how the company would fare in a severe downturn.
3. Business resilience (from the 10-K)
Payer diversity
Mostly commercial health plans, with Medicare/Medicaid about 11%.
Source: Form 10-K (FY2025)
Cash flow
Operating cash flow was $1.9B in 2025.
Source: SEC EDGAR XBRL
23
Legal & regulatory mattersSite analysisShow
Lawsuits, government investigations, enforcement actions and settlements the company discloses — where each stands, what is at stake, and what comes next. From the 10-K's Legal Proceedings and contingencies note, the latest 10-Q, and 8-Ks.
Quest Diagnostics is still defending class actions over the 2019 AMCA data-security incident at a third-party collection agency. State attorneys general are investigating that incident, and New York and Texas are probing Medicaid billing.
2 open matters
AMCA data security incident litigation
PendingClass actionMDL plaintiffs (D.N.J.); group of state Attorneys General
An unauthorized user accessed the systems of AMCA, a collection agency used by Quest's billing vendor, from August 2018 to March 2019. Quest's own systems were not involved. The consolidated complaint was partly dismissed, and discovery and class certification proceedings are ongoing. The parties have reached an agreement in principle to settle and are drafting a definitive agreement.
Source: Form 10-Q (quarter ended 2026-09-30) — Legal Proceedings
State Medicaid billing investigations
PendingGovernment investigationNew York Attorney General; Texas Attorney General
New York subpoenas cover ordering and billing of certain test panels to Medicaid, and a Texas civil investigative demand covers Texas Medicaid billing. Quest is cooperating.
Source: Form 10-Q (quarter ended 2026-09-30) — Legal Proceedings
Company statement: Quest cannot estimate possible losses from these matters. It settled a New Jersey U.S. Attorney inquiry and entered a Corporate Integrity Agreement with HHS-OIG.
Based on Form 10-Q (quarter ended 2026-09-30) — Legal Proceedings, reviewed 2026-10-18. Routine ordinary-course claims are not listed. “Major” is this site’s judgment of which matters could materially affect results.
24
Risks (including geopolitical)Site analysis
Starting from the 10-K's Risk Factors section, organized by category — geopolitical, currency, raw materials, regulatory, disaster, and more — with impact and likelihood assessed by this site.
Risk map
Vertical = impact on results, horizontal = likelihood. Upper right = most severe. Numbers match the list below (placement is this site’s own assessment).
Likelihood →
"Company disclosure" vs. "this site’s assessment"
The description and mitigation for each risk are this site’s summary of the 10-K’s "Risk Factors" section. Impact and likelihood are this site’s own assessment, not the company’s — where the company discloses its own likelihood assessment, that is noted in the summary.
Impact is judged from how large the affected business is relative to total revenue/profit, and from the risk’s track record of moving results in the past. Likelihood is judged from the filing’s wording and the current business environment (already occurring, or recurring). See the rating criteria.
- 1Law & regulation
Reimbursement
- Company disclosure (summarized from the 10-K)
- Health plan and government payer policies (including Medicare) influence test utilization and pricing.
- Company’s stated mitigation
- Not stated in the filings.
- This site’s assessment
- Impact Med / Likelihood High
- 2Competition & technology shift
Competition
- Company disclosure (summarized from the 10-K)
- Competes with Labcorp, regional and specialized labs, hospital labs and physician-office labs.
- Company’s stated mitigation
- Not stated in the filings.
- This site’s assessment
- Impact Med / Likelihood High
- 3Information security
Data security
- Company disclosure (summarized from the 10-K)
- Quest handles large volumes of patient health data.
- Company’s stated mitigation
- The Cybersecurity Committee reviews the adequacy and effectiveness of our cybersecurity program and regularly receives reports from management on cybersecurity matters.
- This site’s assessment
- Impact Med / Likelihood Med
- 4M&A & integration
Acquisition integration
- Company disclosure (summarized from the 10-K)
- Quest acquires outreach businesses and labs (LifeLabs, Spectra assets).
- Company’s stated mitigation
- Disciplined capital deployment framework.
- This site’s assessment
- Impact Low / Likelihood Med
25
What changed in the risk factorsFrom SEC data
Paragraphs in the latest 10-K's Risk Factors that have little overlap with the year before, and paragraphs that were dropped.
New or substantially reworded (2)
threatened by the U.S. government, and the responses to those actions from other countries, may result in adverse impacts to the global economic environment, including the global financial and trading markets, which could have a negative impact on our results of operations and financial condition. These actions could also negatively impact our supply chain costs or availability of products we need to operate our business. The ongoing uncertainty with the current state of global trade policy magnifies these risks.
(p) Challenges, including the associated competitive pressures, with properly managing the development, implementation, oversight and use of AI.
No longer in the text (3)
From time to time, the federal government has considered whether competitive bidding could be used to provide clinical testing services for Medicare beneficiaries while maintaining quality and access to care. Read more
Congress also periodically considers cost-saving initiatives, which have included coinsurance for clinical testing services, co-payments for clinical testing and further laboratory physician fee schedule reductions.
operating results. The potential impact of new policies that may be implemented as a result of the new administration is currently uncertain.
The FDA's regulation of clinical laboratory testing is expected to impact industry practices and participants, new competitors may enter the industry, and competition may come in new forms. Read more
As of May 6, 2024, the FDA announced it was phasing out its general enforcement discretion approach so that LDTs manufactured by a laboratory will generally fall under the same enforcement approach as medical devices. A number of advanced tests we develop internally are offered as LDTs. Pursuant to the FDA’s decision to remove enforcement discretion with regard to most LDTs performed by high complexity CLIA-certified laboratories like ours, all new and significantly modified previously offered laboratory tests that do not benefit from continued enforcement discretion will have to comply with the FDCA over a four-year, five-stage process. Compliance with the FDCA includes, among other things, new…
Matched automatically, quoted as filed, and may include rewording of an existing risk. Compares Item 1A of the 10-K filed Feb 26, 2026 ↗ with the 10-K filed Feb 20, 2025 ↗.
26
What to watch going forwardSite analysis
- Organic volume growth.
- Project Nova implementation.
- Medicare lab fee changes.
- Leadership transition (Catherine Doherty retiring in 2027).
27
Source documentsShow
This page's financial figures come from the Form 10-Ks listed below. Check the original filings for full detail.
Last updated
Analysis last edited: November 6, 2026 · Financial data fetched: October 17, 2026 10:21 (SEC EDGAR) · Source 10-K filed: February 26, 2026
Built on10-K FY2025 · filed 2026-02-26
Next update expectedAfter FY2026’s 10-K is filed (roughly 60–90 days after fiscal year end (sooner for larger filers)), financials and analysis will be refreshed.
This page is this site’s own analysis based on public information, and does not represent Quest Diagnostics’s views. It is not a recommendation to buy or sell any security, and this site does not guarantee the accuracy of any figure or statement here. Always verify against the original source documents before making an investment decision.