# Quest Diagnostics Inc. (DGX) — Financial Analysis

**Exchange:** NYSE  
**Coverage as of:** 2026-Q2  
**Updated:** 2026-05-13  
**Tier:** Free primer (step 2 of 19)  
**Sibling pages:** /stocks/DGX/thesis · /stocks/DGX/memo

## Financial Snapshot

---
ticker: DGX
step: 04
generated: 2026-05-13
source: quick-research
---

### Quest Diagnostics Inc. (DGX) — Financial Snapshot

#### Income Statement Summary

| Metric | FY2022 | FY2023 | FY2024 | YoY |
|--------|--------|--------|--------|-----|
| Revenue | $9.88B | $9.25B | $9.87B | +6.7% |
| Gross Margin | ~33% | ~33% | ~33% | |
| Operating Margin | ~16% | ~14% | ~14% | |
| Net Income | ~$970M | ~$730M | ~$750M | +2.7% |
| EPS (adjusted diluted) | ~$10.00 | ~$8.71 | ~$8.93 | +2.5% |

*FY2022 elevated by residual COVID testing revenue. FY2023 decline reflects COVID normalization (~$500M+ revenue loss). FY2024 recovered on organic base growth (+3-4% ex-acquisitions) + acquisition contributions. FY2025: $11.04B revenue (+11.8%), adjusted EPS $9.85 — strong Q4 beat driven by LifeLabs + hospital outreach acquisitions.*

#### Cash Flow & Balance Sheet (FY2024)

| Metric | Value |
|--------|-------|
| Operating Cash Flow | $1.33B |
| Free Cash Flow | ~$879M ($1.33B OCF − $454M capex) |
| Capital Expenditures | $454M |
| Cash & Equivalents | ~$600M |
| Total Debt | ~$5.0B |
| Adjusted EBITDA | ~$1.8B (~18% margin) |

#### Key Ratios (approximate)
- P/E: ~18x (adjusted) | EV/EBITDA: ~13x | FCF Yield: ~5%
- Revenue Growth (FY2025): +11.8% (acquisitions + organic) | Organic growth: ~4-5%
- Gross Margin: ~33% (consistent) | EBITDA Margin: ~18%
- Net Debt / EBITDA: ~2.5x — manageable for stable cash flow business

#### Growth Profile
Quest's "true" organic growth rate is mid-single digits — the COVID boom/bust created a distorted 2022-2023 comparison. Excluding COVID revenue, the core diagnostic testing business grows at ~4-5% annually through a combination of volume growth and mix shift toward higher-value advanced testing (oncology, genomics, brain health). Acquisition strategy is consistent: buying hospital outreach lab operations that bring captive volumes into Quest's lower-cost network. LifeLabs ($1.35B, closed 2024) added Canadian scale. FY2025 Q1 showed 11% volume growth YoY — among the highest organic volume quarters in years.

#### Forward Estimates
- FY2026 guidance: $11.70-$11.82B revenue (+6-7%); diluted EPS $9.45-$9.65
- FY2025 adjusted EPS: $9.85 (beat consensus $9.72)
- Analyst consensus FY2026 adj. EPS: ~$9.55
- Dividend: $0.86/quarter ($3.44 annualized); 6.7% increase in 2025, 7.5% increase for 2026
- Mean analyst price target: ~$197 (12 analysts covering; consensus Hold)

## Deeper Financial Analysis

The fundamental tier ($1.00) adds 8 dimensions not included here:

- Revenue Breakdown — segment revenue, geographic mix, product-line margins
- Financial Trends — QoQ momentum, leading indicators, inflection points
- Balance Sheet — debt structure, dilution risk, working capital dynamics
- Capital Allocation — ROIC, buyback cadence, reinvestment efficiency
- Earnings Analysis — beats/misses, guidance vs actuals, transcript highlights
- Competitive Positioning — market share, pricing power, peer benchmarks
- Industry Context — TAM, sector tailwinds/headwinds, regulatory backdrop

**API endpoint:** GET /api/v1/research/DGX/fundamental

## Navigation

- Overview: /stocks/DGX
- Financials (this page): /stocks/DGX/financials
- Thesis: /stocks/DGX/thesis
- Investment Memo: /stocks/DGX/memo
- Coverage universe: /stocks