What Happened?
Shares of healthcare diagnostics company Quest Diagnostics (NYSE: DGX) jumped 6.8% in the afternoon session after the company reported strong fourth-quarter financial results and offered an upbeat forecast for 2026. For the fourth quarter, Quest's revenue grew 7.1% year-on-year to $2.81 billion, surpassing analyst estimates. Its adjusted earnings of $2.42 per share also came in ahead of expectations. Looking forward, the company's full-year 2026 revenue guidance was a notable highlight, coming in 3.3% above consensus estimates. The earnings guidance for the upcoming year also topped forecasts, signaling management's confidence in sustained performance.
Is now the time to buy Quest? Access our full analysis report here, it’s free.
What Is The Market Telling Us
Quest’s shares are not very volatile and have only had 2 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was 7 months ago when the stock gained 6.4% on the news that the company reported strong second-quarter financial results that beat Wall Street expectations and raised its full-year guidance. The medical laboratory operator announced second-quarter revenues of $2.76 billion, a 15.2% increase from the same period last year. This figure surpassed analysts' forecasts of $2.72 billion. Earnings also came in ahead of expectations, with adjusted earnings per share (EPS) of $2.62, beating the average analyst estimate of $2.57. The strong performance was driven by a 16.3% increase in testing volume, which included a 2.1% rise in organic volume, indicating solid underlying demand for its services. The company also highlighted growth from acquisitions and expanded business from enterprise accounts. Buoyed by these results, Quest Diagnostics raised its full-year 2025 forecast. It now expected revenues to be between $10.80 billion and $10.92 billion, and adjusted EPS to be in the range of $9.63 to $9.83.
Quest is up 17.5% since the beginning of the year, and at $204.15 per share, has set a new 52-week high. Investors who bought $1,000 worth of Quest’s shares 5 years ago would now be looking at an investment worth $1,652.
The 1999 book Gorilla Game predicted Microsoft and Apple would dominate tech before it happened. Its thesis? Identify the platform winners early. Today, enterprise software companies embedding generative AI are becoming the new gorillas. Click here for access to our special report that reveals one profitable leader already riding this wave, it’s free.
