Reading the tape
NYSE: DGX
Quest Diagnostics Incorporated
Healthcare · Medical - Diagnostics & Research
Market Cap
$20.74B
52w High
$213.50
52w Low
$164.65
P/E
20.13
Volume
589.25K
Outstanding Shares
110.70M
Price vs Fundamentals
Why The Stock Is Moving
Mixed / unclearLow confidence
1Y Price: 6.53%Revenue (TTM): 11.03%FCF (TTM): 25.57%P/FCF: 50th pct
What changed
The stock rose 6.53% over the last year. Revenue grew 11.03% over the trailing twelve months. Operating margin moved from 13.7% to 14.31%. Free cash flow grew 25.57% over the trailing twelve months.
What the market seems to be pricing
The stock has moved higher against modestly improving underlying metrics. The operating data does not yet tell a clear story — the move may reflect sentiment, sector rotation, or macro factors rather than company-specific earnings power.
What would invalidate this read
Operating margin currently stands at 14.31%. A decisive move in revenue — currently up 11.03% — would be the clearest signal to resolve the ambiguity.
Company profile
Quest Diagnostics Incorporated provides diagnostic testing, information, and services in the United States and internationally.
CEOJames E. Davis
SectorHealthcare
IndustryMedical - Diagnostics & Research
Employees55,000
IPO dateDec 17, 1996
Valuation
Forward P/E—
EV/EBITDA11.74
Enterprise value$25.76B
Stock splits
Jun 21, 2005↑ Forward
Every 1 shares became 2
Jun 1, 2001↑ Forward
Every 1 shares became 2
Profitability & growth
Revenue growth9.16%
Gross margin33.23%▼2.85%vs FY2024
Operating margin14.31%▲6.54%vs FY2024
ROE13.84%▲7.67%vs FY2024
Analyst consensus
RatingHold
Target price$220.57▲17.71%
13
Buy
18
Hold
3
Sell
Analyst ratings tend to be lagging indicators. Use as one signal among many.
Earnings
Full quarter-by-quarter history of actuals vs estimates. Switch into compare mode to inspect one metric year-over-year.
Next report
Jul 28, 2026
Q3 FY26 · EPS est $2.82 · Revenue est $2.98B
View
Dividends
$3.26/shareQuarterlyDividend Achiever · 21yrSafeDGX pays a dividend with a 1.74% dividend yield, 21 consecutive years of growth, growing at 7.23% annually, covered 3.8× by free cash flow.
Dividend Yield
1.74%
Annual Div / Share
$3.26
5yr CAGR
+7.23%
Doubles every ~9.9yr
Payout Ratio
34.86%
Safe
Dividend Growth Rate
3yr CAGR
+6.62%
5yr CAGR
+7.23%
10yr CAGR
+7.79%
Dividend Safety
10/10Safe
Dividend History
Annualized dividend cycles per share
YearAnnual DivYoY
2026$3.26+6.9%
2025$3.05+5.9%
2024$2.88+7.1%
2023$2.69+6.7%
2022$2.52+9.6%
2021$2.30+7.0%
2020$2.15+4.4%
Income Projection
Invest
$
Growth rate:
Reinvest dividends
Today
$17/yr
$1/mo
In 5 yrs
$25/yr+42%
$2/mo
In 10 yrs
$35/yr+101%
$3/mo
| Today | In 5 yrs | In 10 yrs |
|---|---|---|
$17/yr $1/mo | $25/yr+42% $2/mo | $35/yr+101% $3/mo |
Yield-on-cost grows from 1.74% → 3.5% over 10yr
Analysis
Dividend Strengths
Dividend Achiever
DGX has raised its dividend for 21 consecutive years — qualifying as a Dividend Achiever, demonstrating long-term commitment to shareholder income.
Well-covered by free cash flow
The dividend is covered 3.8× by free cash flow, indicating the company generates sufficient cash to sustain and potentially grow the payout without straining its finances.
Strong dividend growth rate
The 5-year CAGR of 7.23% meaningfully outpaces inflation, compounding real income growth for long-term holders.
Risks to Watch
No strong risk signal stands out from the latest period pair.