Abstract
Quest Diagnostics will report fiscal fourth-quarter and full-year results on February 10, 2026, Pre-Market. This preview synthesizes recent performance trends, company guidance proxies, and consensus-style forecasts to frame expectations for revenue, margins, net profit, and adjusted EPS, alongside segment dynamics and prevailing analyst views.
Market Forecast
For the current quarter, Quest Diagnostics’ revenue is projected at USD 2.75 billion, adjusted EPS at USD 2.36, and EBIT at USD 420.12 million; the year-over-year forecast growth rates are 6.79% for revenue, 8.00% for adjusted EPS, and 10.09% for EBIT. Based on last quarter’s mix, Diagnostic Information Services remains the primary driver, with a steady demand profile and expected volume stability; Diagnostic Solutions is smaller but strategically relevant for product and platform leverage. The most promising segment is Diagnostic Information Services, with last quarter’s revenue of USD 2.76 billion and a favorable year-over-year growth trajectory implied by the current-quarter forecast, positioning it to benefit from stable commercial volumes and payer mix normalization.
Last Quarter Review
Quest Diagnostics delivered last quarter revenue of USD 2.82 billion, a gross profit margin of 33.77%, GAAP net profit attributable to the parent company of USD 245.00 million, a net profit margin of 8.70%, and adjusted EPS of USD 2.60; adjusted EPS increased by 13.04% year-over-year while revenue rose by 13.18% year-over-year. A key highlight was operating performance exceeding internal estimates, with EBIT of USD 458.00 million, which topped pre-quarter projections, reflecting disciplined cost control and improved productivity. Main business highlights: Diagnostic Information Services contributed USD 2.76 billion and Diagnostic Solutions contributed USD 61.00 million, underscoring the company’s concentration in core patient testing and services.
Current Quarter Outlook
Diagnostic Information Services
The Diagnostic Information Services business is expected to anchor results again this quarter. The company’s volume trends, driven by commercial and Medicare patient testing, have been resilient, and payer mix remains a focal variable for realized pricing and margins. With the current quarter’s revenue forecast at USD 2.75 billion for the total company, the segment is positioned to sustain a broad contribution given its last quarter scale of USD 2.76 billion. Margin transmission from operational efficiencies, automation, and route optimization in logistics can support gross margin near last quarter’s 33.77%, although any seasonal utilization shifts may temper leverage. Reimbursement updates and contract renewals are likely to be key determinants of both net profit margin and adjusted EPS delivery relative to the EPS estimate of USD 2.36.
Diagnostic Solutions
Diagnostic Solutions, while smaller at USD 61.00 million last quarter, remains strategically useful for differentiating service offerings and expanding customer stickiness. Its contribution is expected to be measured, with product and solution uptake tied to institutional clients and healthcare systems. Although it does not materially shift headline revenue, it can contribute to EBIT stability through standardized platform revenues and potentially higher-margin services relative to broader testing. Execution on pipeline implementations in the quarter can create incremental revenue but is unlikely to move consolidated guidance-like figures; however, sustained performance may improve future cross-sell opportunities within Diagnostic Information Services.
Stock Price Drivers This Quarter
Three factors stand out for Quest Diagnostics’ stock performance around the print and ensuing commentary. First, adjusted EPS performance against the USD 2.36 estimate and color on the sustainability of margin mix will shape investor sentiment; any deviation against the implied gross margin and net margin trajectory could prompt re-rating. Second, revenue quality matters: investors will scrutinize volume trends, reimbursement dynamics, and any updated outlook for core testing categories, especially those with cyclical or seasonal exposure, in relation to the 6.79% year-over-year revenue growth expectation. Third, forward commentary around operational initiatives—labor efficiency, automation, IT modernization, and M&A pipeline—will influence expectations for EBIT margin trajectory and the translation to net profit and EPS over the next few quarters. The interaction of these elements with secular demand drivers in diagnostic testing will set the tone for the stock into guidance updates.
Analyst Opinions
Across recent institutional commentary and coverage notes, the balance of opinion is cautiously constructive, tilting bullish on execution and margin stability. Analysts with favorable views highlight consistency in adjusted EPS delivery—USD 2.60 last quarter versus estimates—and the implied 8.00% year-over-year growth embedded in the current-quarter EPS estimate as supportive of valuation resilience. The emphasis is on operational discipline, volume stability within commercial and government channels, and the potential for EBIT growth of 10.09% year-over-year to translate into improved cash generation. Several research desks also point to the predictable contribution from Diagnostic Information Services and the manageable scale of Diagnostic Solutions, which together provide enhanced visibility into quarterly outcomes. The consensus-style outlook leans toward a beat-or-meet scenario if margins hold near last quarter’s levels and volume patterns remain steady, with upside contingent on payer mix and incremental efficiency gains.Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
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