Quest Diagnostics Stock Smashes 52-Week High On Strong Quarter, Dividend Hike

Quest Diagnostics Incorporated (NYSE:DGX) on Tuesday reported fourth-quarter adjusted earnings of $2.42 per share, beating the consensus of $2.36. The provider of diagnostic information services reported sales of $2.81 billion, up 7.1% year over year, beating the consensus of $2.75 billion. Consolidated organic revenues grew by 6.4%. “We closed 2025 with a strong fourth quarter, and delivered double-digit growth in revenues and earnings per share for the full year,” said Jim Davis, Chairman, CEO, and President. “Our robust performance demonstrates continued execution of our strategy to deliver category-defining clinical innovations that fulfill customers’ needs and to form strategic collaborations supporting growth.” Operating income increased 7% to $386 million. Adjusted operating income was $429 million, or a margin of 15.3% compared to $409 million, or 15.6% of revenues, last year. Total volume, measured by the number of requisitions, increased 8.5% versus the fourth quarter of 2024, with organic volume up 7.9%. Total revenue per requisition was down 0.1% versus the prior year. CFO Sam Samad on Tuesday commented, “Corewell Health and Fresenius Medical Care deliver significant volume growth at a lower revenue per requisition than our company average. Excluding these two relationships, our organic volume growth accelerated to 4.1% in the fourth quarter, while our revenue per requisition growth remained solid at approximately 3.0%. Unit price remained consistent with our expectations.” Dividend Increase Quest Diagnostics also authorized a 7.5% increase in its quarterly cash dividend to 86 cents per share from 80 cents per share. As a result, the annual cash dividend will be $3.44 per share. Share Buyback Additionally, the Board of Directors has increased the company’s share repurchase authorization by $1 billion. The increased authority is in addition to the approximately $0.4 billion that was available as of December 31, 2025. Guidance “As we look ahead to 2026, our guidance reflects our continued confidence in our business strengths and market fundamentals, which include favorable demographic trends, increasing use of blood-based lab diagnostics, and growing interest in preventive health and wellness,” Davis said on Tuesday. Quest Diagnostics expects fiscal 2026 adjusted earnings of $10.50-$10.70 per share versus the consensus of $10.43. The company expects 2026 sales between $11.7-$11.82 billion compared to the consensus of $11.39 billion. DGX Price Action: Quest Diagnostics shares were up 6.35% at $203.40 at the time of publication on Tuesday. The stock is trading at a new 52-week high, according to Benzinga Pro data. Photo via Shutterstock