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: 10-Q 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 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 (Diluted)
$2.24
+15.46% YoY
Operating Income
$399M
+15.32% YoY
Source: SEC XBRL
Quest Diagnostics (DGX) reported Q1 FY2026 revenue of $2.9B, up 9.2% year over year. Operating margin was 13.8%, up 0.8 points from 13.0% a year earlier. Operating cash flow was $278M, down 11.5% year over year. DGX's fiscal Q1 FY2026 corresponds to calendar Q1 2026.
Last 4 quarters: 4 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026 | 3.12 | 2.85 | Beat +9.3% |
| Mar 2026This filing | 2.50 | 2.37 | Beat +5.5% |
| Dec 2025 | 2.42 | 2.38 | Beat +1.5% |
| Sep 2025 | 2.60 | 2.53 | Beat +2.8% |
Adjusted (non-GAAP) EPS of $2.50 versus the $2.37 analyst consensus — a +5.5% beat for Mar 2026. Analyst consensus is quoted on the adjusted (non-GAAP) basis the street uses. GAAP diluted EPS for this quarter was $2.24.
Compiled by AI from this SEC 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: 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: 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: 10-Q Income Statement
Cash and equivalents more than doubled YoY to $393M (+109%), and current assets grew 23.7% to $2,566M, though current liabilities surged 51.1% to $2,177M, keeping the current ratio at a modest 1.18x.
Source: 10-Q Balance Sheet
Operating cash flow declined 11.5% YoY to $278M from $314M, while capital expenditures (implied by investing cash flow of -$152M) resulted in free cash flow of approximately $126M, a notable softening versus the prior year.
Source: 10-Q Cash Flow Statement
Compiled by AI from this SEC filing · 0 high, 3 medium, 2 low
Current 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: 10-Q Balance Sheet
Despite strong net income growth of 14.5%, operating cash flow fell 11.5% YoY to $278M, indicating a potential build-up in working capital or non-cash adjustments. Sustained divergence between earnings and cash generation could constrain capital allocation flexibility.
Source: 10-Q Cash Flow Statement
Cost of revenue grew 9.2% YoY to $1,953M, exactly matching the revenue growth rate, meaning gross profit improvement was driven entirely by volume rather than pricing power or cost efficiency. Any cost inflation could quickly erode gross margins.
Source: 10-Q Income Statement
ROA of 1.51% and ROE of 3.42% on a quarterly basis are relatively modest, suggesting the company's large asset base ($16.7B total assets) and equity base ($7.4B) are not generating outsized returns. This may reflect the capital-intensive nature of the diagnostic services business.
Source: 10-Q Balance Sheet & Income Statement
SG&A expenses rose 5.9% YoY to $504M, representing a meaningful absolute cost base relative to operating income of $399M. While growth was slower than revenue, any acceleration in SG&A spending could weigh on operating margin expansion.
Source: 10-Q Income Statement
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 2.90 $B | 2.65 $B | +9.16% |
Cost of Revenue $B | 1.95 $B | 1.79 $B | +9.17% |
Operating Income $M | 399.00 $M | 346.00 $M | +15.32% |
Net Income $M | 252.00 $M | 220.00 $M | +14.55% |
EPS (Basic) $ | 2.27 $ | 1.97 $ | +15.23% |
EPS (Diluted) $ | 2.24 $ | 1.94 $ | +15.46% |
SG&A Expense $M | 504.00 $M | 476.00 $M | +5.88% |
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 (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.
Other companies in Health Care Services