Revenue Growth Across the Business
Total revenue increased 11.8% year-over-year to $11.04B in FY2025 (from $9.87B in FY2024), reflecting broad-based volume and pricing gains in diagnostic testing services.
Source: 10-K Income Statement
Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
DGX (Quest Diagnostics) delivered solid FY2025 results with revenue growing 11.8% to $11.0B and net income rising 13.9% to $992M, driven by strong operating cash flow of $1.9B and continued debt reduction.
Revenue
$11.04B
+11.78% YoY
EPS (Diluted)
$8.75
+13.78% YoY
Operating Income
$1.56B
+15.60% YoY
Source: SEC XBRL
Quest Diagnostics (DGX) reported FY2025 revenue of $11.04B, up 11.8% year over year. Operating margin was 14.1%, up 0.5 points from 13.6% a year earlier. Operating cash flow was $1.89B, up 41.4% year over year.
Last 4 quarters: 4 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026 | 3.12 | 2.85 | Beat +9.3% |
| Mar 2026 | 2.50 | 2.37 | Beat +5.5% |
| Dec 2025This filing | 2.42 | 2.38 | Beat +1.5% |
| Sep 2025 | 2.60 | 2.53 | Beat +2.8% |
Reported EPS of $2.42 versus the $2.38 analyst consensus — a +1.5% beat for Dec 2025.
Compiled by AI from this SEC filing
Total revenue increased 11.8% year-over-year to $11.04B in FY2025 (from $9.87B in FY2024), reflecting broad-based volume and pricing gains in diagnostic testing services.
Source: 10-K Income Statement
Operating income grew 15.6% to $1.56B, outpacing revenue growth of 11.8%, which expanded the operating margin by approximately 47 basis points to 14.1%, indicating improving cost efficiency relative to revenue.
Source: 10-K Income Statement & Key Ratios
Operating cash flow surged 41.4% to $1.89B in FY2025 from $1.33B in FY2024, significantly exceeding net income of $992M, reflecting strong working capital management and non-cash D&A of $570M.
Source: 10-K Cash Flow Statement
Long-term debt declined 8.8% to $5.67B from $6.22B, while share buybacks tripled to $450M (from $151M), signaling management's confidence in the business and commitment to returning capital to shareholders.
Source: 10-K Balance Sheet & Cash Flow Statement
SG&A expenses grew 11.1% to $1.97B, roughly in line with revenue growth of 11.8%, suggesting the company is maintaining cost discipline while investing in sales and administrative infrastructure to support growth.
Source: 10-K Income Statement
Compiled by AI from this SEC filing · 1 high, 3 medium, 1 low
DGX carries $5.67B in long-term debt, which, while declining, represents a significant financial obligation relative to its $7.17B in stockholders' equity (debt-to-equity ratio of approximately 0.79x). Elevated interest costs could pressure net income if operating performance weakens or interest rates rise.
Source: 10-K Balance Sheet
The current ratio stands at just 1.04x, with current assets of $2.38B barely covering current liabilities of $2.28B. Cash and equivalents declined 23.5% to $420M, leaving limited buffer for unexpected short-term obligations or economic disruptions.
Source: 10-K Balance Sheet & Key Ratios
Cost of revenue grew 11.2% to $7.37B, consuming approximately 66.8% of total revenue. Sustained cost inflation in labor, supplies, and logistics could compress gross margins if the company is unable to pass through price increases.
Source: 10-K Income Statement
As a diagnostic laboratory services company, DGX is heavily dependent on reimbursement rates from Medicare, Medicaid, and private insurers. Any regulatory changes reducing reimbursement rates could materially impact revenue and profitability given the high fixed-cost nature of laboratory operations.
Source: 10-K Income Statement (inferred from business model)
Investing cash outflows, while significantly reduced to -$631M from -$2.55B in the prior year, still reflect ongoing capital deployment, likely including acquisitions. Failure to successfully integrate acquired businesses could result in goodwill impairment and dilution of returns.
Source: 10-K Cash Flow Statement
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 11.04 $B | 9.87 $B | +11.78% |
Cost of Revenue $B | 7.37 $B | 6.63 $B | +11.19% |
Operating Income $B | 1.56 $B | 1.35 $B | +15.60% |
Net Income $M | 992.00 $M | 871.00 $M | +13.89% |
EPS (Basic) $ | 8.87 $ | 7.78 $ | +14.01% |
EPS (Diluted) $ | 8.75 $ | 7.69 $ | +13.78% |
SG&A Expense $B | 1.97 $B | 1.77 $B | +11.13% |
Answers draw on this SEC filing and the data on this page
Quest Diagnostics delivered 10.2% revenue growth and 13.5% net-income growth in Q2 FY2026, led by higher Diagnostic Information Services testing volume, although lower revenue per requisition and higher service costs reduced operating margin to 15.1%.
DGX delivered solid Q1 FY2026 results with revenue of $2.90B (+9.2% YoY) and net income of $252M (+14.5% YoY), driven by operating leverage that expanded operating margin to 13.8%.
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