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 (Basic)
$8.87
++14.01% YoY
Operating Income
$1.56B
++15.60% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-K 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: 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: 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: Source: 10-K Cash Flow Statement
2 more insights available
Upgrade to unlockDGX 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: Source: 10-K Balance Sheet
Unlock 4 more detailed risk analysis
Upgrade to unlockReported EPS of $2.42 versus the $2.38 analyst consensus — a +1.5% beat for FY2025.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $11.04B | $9.87B | +11.78% |
Cost of Revenue | $7.37B | $6.63B | +11.19% |
Operating Income | $1.56B | $1.35B | +15.60% |
Net Income | $992M | $871M | +13.89% |
EPS (Basic) | $8.87 | $7.78 | +14.01% |
EPS (Diluted) | $8.75 | $7.69 | +13.78% |
SG&A Expense | $1.97B | $1.77B | +11.13% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $16.23B | $16.15B | +0.45% |
Current Assets | $2.38B | $2.39B | -0.59% |
Current Liabilities | $2.28B | $2.17B | +5.03% |
Stockholders' Equity | $7.17B | $6.78B | +5.78% |
Cash & Equivalents | $420M | $549M | -23.50% |
Long-Term Debt | $5.67B | $6.22B | -8.78% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $1.89B | $1.33B | +41.38% |
Investing Cash Flow | $-631M | $-2.55B | +75.24% |
Financing Cash Flow | $-1.39B | $1.08B | -228.04% |
Share Buybacks | $450M | $151M | +198.01% |
D&A | $570M | $493M | +15.62% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Margin | 14.1% | 13.6% | +0.47% |
Net Margin | 9.0% | — | — |
ROE | 13.8% | — | — |
ROA | 6.1% | — | — |
Current Ratio | $1.044 | — | — |
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DGX grew revenue 11.8% year-over-year to $11.04B in FY2025, up from $9.87B in FY2024. This growth reflects strong demand for diagnostic laboratory services across the company's business segments.
DGX delivered broad-based growth in FY2025 with revenue of $11.0B (+11.8%), net income of $992M (+13.9%), and diluted EPS of $8.75 (+13.8%). Operating cash flow surged 41.4% to $1.89B, and the company accelerated share buybacks to $450M while reducing long-term debt by $546M.
DGX shows solid financial health with improving profitability and strong cash generation, though its current ratio of 1.04x and $5.67B in long-term debt warrant monitoring. The company is actively deleveraging and returning capital to shareholders, which are positive signals.
Key risks for DGX include dependence on government and private insurer reimbursement rates, a tight liquidity position with a current ratio of just 1.04x, and significant long-term debt of $5.67B. Cost inflation in labor and supplies also poses a risk to gross margins given that cost of revenue represents approximately 67% of total revenue.
Yes, DGX significantly accelerated share repurchases in FY2025, buying back $450M worth of stock compared to just $151M in FY2024, a 198% increase. This contributed to diluted EPS growth of 13.8% to $8.75, slightly outpacing net income growth of 13.9%.