Here's How Quest Diagnostics Is Placed Ahead of Q4 Earnings

Quest Diagnostics DGX is set to release fourth-quarter 2025 results on Feb. 10, before the market opens.

The renowned diagnostics provider posted adjusted earnings per share (EPS) of $2.60 in the last reported quarter, which surpassed the Zacks Consensus Estimate by 3.59%. The company topped earnings estimates in each of the trailing four quarters, the average surprise being 2.54%.

DGX’s Q4 Estimates

The Zacks Consensus Estimate for revenues is pegged at $2.75 billion, indicating an increase of 4.8% from the year-ago reported figure.

The Zacks Consensus Estimate for EPS suggests a 5.4% rise to $2.35.

Estimate Revision Trend Ahead of DGX’s Q4 Earnings

Estimates for Quest Diagnostics’ Q4 earnings have remained stable in the past 30 days.

Here’s a brief review of the company’s performance leading up to the announcement.

Factors Likely to Influence DGX’s Q4 Results

Quest Diagnostics’ core Diagnostics Information Services (“DIS”) business is expected to have delivered strong revenues in the fourth quarter of 2025, driven by its organic growth in its physician, hospital and consumer channels. The company’s solid commercial execution is likely to have led physicians to order more tests per requisition, sustaining the demand momentum for its clinical solutions. 

Last quarter, DGX completed the acquisition of select clinical testing assets from Fresenius Medical Care. Under a separate enterprise agreement, Quest also began to roll out clinical lab testing to Fresenius Medical Care's dialysis centers, which serve about 200,000 dialysis patients annually in the United States. Together, these developments might have favored physician channel revenues in the fourth quarter. Our model assumes a 2.8% acquired contribution to DIS revenues in the to-be-reported quarter. 

In Advanced Diagnostics, DGX is expected to have generated robust revenues across several clinical areas, including advanced cardiometabolic, endocrine and autoimmune disease testing with its ANAlyzeR autoimmune solution. Growth in Brain Health might have been led by AD-detect blood tests for assessing Alzheimer's disease risk. In oncology, Quest Diagnostics is likely to have continued ramping up its commercial outreach to drive market adoption of the Haystack MRD test.

Collaborative Lab Solutions might have contributed to growth in the hospital channel. Alongside reference testing and outreach laboratory acquisitions, Quest Diagnostics continued to provide hospitals with strategic access to leading diagnostic innovations without the need to operate in-house laboratories. Last quarter, Quest Diagnostics and Corewell Health, a leading health system, announced plans to establish a laboratory services joint venture in Michigan, featuring a state-of-the-art facility designed to serve the entire state.

Quest Diagnostics Incorporated Price and EPS Surprise

Quest Diagnostics Incorporated price-eps-surprise | Quest Diagnostics Incorporated Quote

An enhanced questhealth.com platform is likely to have contributed to strong fourth-quarter revenues. Through partnerships with leading consumer health and wellness brands, Quest Diagnostics is delivering its broad test menu and advanced technology directly within established consumer platforms, which might have supported growth in the consumer-initiated testing channel in the fourth quarter. 

Going by our model, the company’s DIS revenues are likely to increase 4.7% year over year in the fourth quarter of 2025.

In terms of operational excellence, Quest Diagnostics must have continued to expand the use of automation, robotics, and AI to improve quality, customer and employee experiences and productivity. Last quarter, Quest announced Epic as the technology partner for Project Nova, a multiyear order-to-cash transformation. This development should have contributed to the company’s top-line growth. Our model expects the company’s operating income (non-GAAP basis) to increase 11.6% year over year in the fourth quarter of 2025. 

What Our Model Unveils for DGX

Per our proven model, a stock with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), along with a positive Earnings ESP, has a higher chance of beating estimates, which is not the case here, as you can see.

Earnings ESP: Quest Diagnostics has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: The company currently carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Top MedTech Picks

Here are some medical stocks worth considering, as these have the right combination of elements to post an earnings beat this time around:

Veracyte VCYT has an Earnings ESP of +7.98% and a Zacks Rank #2 at present. The company is expected to release fourth-quarter 2025 results soon. 

VCYT’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 45.12%. The Zacks Consensus Estimate for the company’s fourth-quarter EPS suggests a decline of 13.9% from the year-ago quarter’s figure.

Cardinal Health CAH has an Earnings ESP of +2.30% and a Zacks Rank #2 at present. The company is slated to release second-quarter fiscal 2026 results on Feb. 5. 

CAH’s earnings surpassed estimates in three of the trailing four quarters and missed in one, the average surprise being 9.36%. The Zacks Consensus Estimate for fiscal second-quarter EPS implies a year-over-year increase of 20.7%.

Merit Medical Systems MMSI currently has an Earnings ESP of +2.09% and a Zacks Rank #2. The company is expected to release fourth-quarter 2025 results soon.

MMSI’s earnings topped estimates in each of the trailing four quarters, the average surprise being 14.1%. The Zacks Consensus Estimate for fourth-quarter EPS implies an increase of 3.2% from the year-ago quarter’s figure.

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This article originally published on Zacks Investment Research (zacks.com).

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