Quest Diagnostics' Q4 revenue beats estimates, raises dividend

Overview

• Diagnostic services provider's Q4 revenue rose 7.1%, beating analyst expectations

• Adjusted EPS for Q4 beat analyst expectations

• Company increased quarterly dividend by 7.5% to $0.86 per share

Outlook

• Quest Diagnostics expects 2026 revenue between $11.70 bln and $11.82 bln

• Company forecasts 2026 adjusted diluted EPS between $10.50 and $10.70

• Quest Diagnostics anticipates 2026 cash from operations around $1.75 bln

Result Drivers

• STRATEGIC COLLABORATIONS - Quest Diagnostics highlighted strategic collaborations, including a joint venture with Corewell Health and partnerships with Epic and Fresenius Medical Care, as key drivers of growth

• CONSUMER TESTING EXPANSION - The company expanded its consumer-initiated test platform, questhealth.com, adding new tests and collaborations with wellness companies

• CLINICAL INNOVATIONS - Quest Diagnostics introduced new diagnostic tests, including the Quest AD-Detect blood test for Alzheimer's and the Haystack MRD test for cancer monitoring

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 10 "strong buy" or "buy", 10 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the healthcare facilities & services peer group is "buy"

• Wall Street's median 12-month price target for Quest Diagnostics Inc is $203.00, about 6.1% above its February 9 closing price of $191.25

• The stock recently traded at 18 times the next 12-month earnings vs. a P/E of 17 three months ago

Press Release: ID:nPn22Smbsa

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.