$29.2%
Revenue Growth Momentum
DGX grew total revenue to $2,895M in Q1 FY2026, up 9.2% from $2,652M in the prior-year period, reflecting continued demand for diagnostic and laboratory services.
Source: Source: 10-Q Income Statement
AI Takeaway
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%.
Revenue
$2.9B
++9.16% YoY
EPS (Basic)
$2.27
++15.23% YoY
Operating Income
$399M
++15.32% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-Q filing
DGX grew total revenue to $2,895M in Q1 FY2026, up 9.2% from $2,652M in the prior-year period, reflecting continued demand for diagnostic and laboratory services.
Source: Source: 10-Q Income Statement
Operating income rose 15.3% YoY to $399M, outpacing revenue growth and expanding operating margin by approximately 73 basis points to 13.8%, suggesting cost discipline relative to top-line growth.
Source: Source: 10-Q Income Statement
Net income increased 14.5% YoY to $252M, with diluted EPS rising 15.5% to $2.24 from $1.94, reflecting both earnings growth and the benefit of share count management.
Source: Source: 10-Q Income Statement
2 more insights available
Upgrade to unlockCurrent liabilities jumped 51.1% YoY to $2,177M, significantly outpacing the 23.7% growth in current assets. This compressed the current ratio to 1.18x, leaving limited liquidity headroom and raising the risk of near-term cash flow pressure if operating conditions deteriorate.
Source: Source: 10-Q Balance Sheet
Unlock 4 more detailed risk analysis
Upgrade to unlockReported EPS of $2.50 versus the $2.37 analyst consensus — a +5.5% beat for Q1 FY2026.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $2.9B | $2.65B | +9.16% |
Cost of Revenue | $1.95B | $1.79B | +9.17% |
Operating Income | $399M | $346M | +15.32% |
Net Income | $252M | $220M | +14.55% |
EPS (Basic) | $2.27 | $1.97 | +15.23% |
EPS (Diluted) | $2.24 | $1.94 | +15.46% |
SG&A Expense | $504M | $476M | +5.88% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $16.67B | $15.8B | +5.55% |
Current Assets | $2.57B | $2.08B | +23.66% |
Current Liabilities | $2.18B | $1.44B | +51.08% |
Stockholders' Equity | $7.37B | $6.93B | +6.31% |
Cash & Equivalents | $393M | $188M | +109.04% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $278M | $314M | -11.46% |
Investing Cash Flow | $-152M | $-115M | -32.17% |
Financing Cash Flow | $-152M | $-561M | +72.91% |
D&A | $147M | $140M | +5.00% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Margin | 13.8% | 13.0% | +0.74% |
Net Margin | 8.7% | — | — |
ROE | 3.4% | — | — |
ROA | 1.5% | — | — |
Current Ratio | $1.179 | — | — |
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DGX reported Q1 FY2026 revenue of $2,895M, up 9.2% YoY, and net income of $252M, up 14.5% YoY. Diluted EPS came in at $2.24, a 15.5% increase from $1.94 in the prior-year quarter, reflecting solid earnings growth driven by operating leverage.
Yes, DGX grew revenue by 9.2% YoY to $2,895M in Q1 FY2026, compared to $2,652M in Q1 FY2025. The growth reflects continued demand for diagnostic laboratory services across its customer base.
The key takeaways are strong revenue and earnings growth, with operating margin expanding to 13.8% from 13.0%, and diluted EPS rising 15.5% to $2.24. However, operating cash flow declined 11.5% to $278M and current liabilities surged 51.1%, which investors should monitor for liquidity implications.
Based on the financial data, key risks include a sharp 51.1% increase in current liabilities compressing the current ratio to 1.18x, a decline in operating cash flow despite earnings growth, and cost of revenue scaling exactly in line with revenue leaving no gross margin improvement. Full risk factor disclosures would be available in the 10-Q filing text.
DGX's financial health appears stable but with some areas to watch: the company holds $393M in cash (up 109% YoY), has a current ratio of 1.18x, and generated $278M in operating cash flow. However, the surge in current liabilities and decline in free cash flow to approximately $126M suggest tighter near-term liquidity compared to the prior year.