I'll research DGX (Quest Diagnostics) before writing the preview. Let me gather recent earnings materials, guidance, and news.I'll read the most recent earnings materials and gather more context.Let me gather stock performance and analyst expectations for context.I have enough to write a thorough preview. Let me compile the key stock stats.# Quest Diagnostics (DGX) — Q2 2026 Earnings Preview Report date: Wednesday, July 23, 2026 (before market open) · Event: 2026 Q2 Earnings Call
Quest heads into Q2 with strong momentum and a stock trading near all-time highs (~$210, up roughly 18% over the past year and ~8% off its mid-June dip). Expectations have been rebuilt after a very strong Q1, so the bar is higher than it was three months ago.
What the Street is looking for: - Adjusted EPS: ~$2.81–$2.82 (consensus of ~15 analysts; range $2.75–$2.91), implying ~7% YoY growth - Revenue: ~$2.97B (range $2.94B–$3.00B), implying ~7–8% YoY growth - Prior-year comp: Q2 2025 revenue was $2.76B (+15.2% YoY) with adjusted EPS ~$2.62
Q2 is seasonally the volume-heavy quarter for Quest, so it is the single most important read on organic demand for the year.
Q1 2026 was a clean beat-and-raise: - Revenue $2.90B, +9.2% (9.0% organic) — nearly all growth was organic - Adjusted EPS $2.50, +13.1%; reported EPS $2.24, +15.5% - Requisition volume +10.9% (organic +10.8%); revenue per requisition −1.3% on mix - Adjusted operating margin 15.4%, up slightly YoY
Management raised full-year 2026 guidance to: - Revenue $11.78B–$11.90B (+6.8% to +7.8%) - Reported EPS $9.58–$9.78; adjusted EPS $10.63–$10.83 - Operating cash flow ~$1.75B; capex ~$550M; operating margin expansion expected
The stock rose ~4% on the Q1 print. With Q1 adjusted EPS of $2.50 already booked and the full-year adjusted range at $10.63–$10.83, another guidance raise is plausible if Q2 comes in ahead — watch whether they take up the range again or simply reaffirm.
The key nuance in Quest's numbers is the Fresenius Medical Care (dialysis lab/water-purity testing) and Corewell Health (Co-Lab) relationships. In Q1 these two added ~7 points to organic volume growth, meaning underlying organic volume ex-those deals was ~3.8%. Management guided that this pattern should persist through the year, with a combined revenue contribution of ~3.3% (Corewell ~$250M for the year; Fresenius an incremental ~$80M–$100M).
Watch: the ~3.8% "core" organic volume figure — is base demand holding up against a tougher comp? And confirmation that Fresenius/Corewell are ramping on schedule.
Reported revenue per req fell 1.3% in Q1 because Fresenius/Corewell skew toward routine tests — but ex those two, rev/req rose ~2.5%, driven by higher tests-per-requisition (advanced diagnostics, screening, consumer). Unit reimbursement was roughly flat. Watch for the same "two-track" story and whether test-per-req mix keeps lifting the underlying number.
Management framed 2026 as ~49%+ of revenue/EPS in the first half, ~50%+ in the second half, with several cost items building through the year: - Project Nova (order-to-cash transformation, ~$0.25 EPS dilution for the year; >60% of spend in 2H, stepping up in Q2) - Fuel costs ($7M–$10M, ~$0.05–$0.07 EPS, starting now on the truck/plane fleet) - Fresenius margin ramp improving notably in 2H as start-up costs fade toward enterprise-average margins
The takeaway: Q2 may not show dramatic margin expansion given Nova step-up and fuel, with more of the leverage back-half loaded. Any margin surprise vs. this cadence will move the stock.
These are the mix-enrichers investors are paying up for: - Consumer: questhealth.com grew in the high-20s% in Q1, and the wearable/wellness partnership channel grew even faster. Management notes this business carries margins at or slightly above the enterprise average (cash-pay, no denials). Watch for new partnerships and commentary on Function Health/Getlabs (home-draw) dynamics. - Advanced diagnostics: AD-Detect (Alzheimer's blood testing) more than doubled YoY in Q1 and is the standout. Also cardiometabolic (Lp(a), ApoB — newly in AHA guidelines), autoimmune, hormones. Haystack MRD (oncology) progress on reimbursement (PLA codes at $3,900 baseline / $800 monitoring; MolDX submission) and the new City of Hope collaboration. Guardant Shield CRC blood-draw partnership just launched — early volume color would be a plus.
The PAMA data-collection window runs through end of July, so timing is topical. Management is submitting as required and continues to push the SALSA/RESULTS Act to keep Medicare rates flat for 2027 (needs a CMS tech assessment + CBO scoring; 80+ cosponsors). If broad hospital-lab participation actually happens this cycle, Quest argues the skewed data could even support a rate increase. Also monitor: - ACA disenrollment: 30bps revenue headwind still baked into guidance; no visible impact in Q1 - CRUSH / fraud-waste-abuse RFI: management views DGX exposure as de minimis (the flagged high-growth tests are largely PLA/proprietary codes Quest doesn't run)
| Metric | Consensus / Guide | Why it matters |
|---|---|---|
| Adj. EPS | ~$2.81–$2.82 | Beat magnitude vs. a raised bar |
| Revenue | ~$2.97B | Q2 is the volume-heavy quarter |
| Core organic volume (ex-Fresenius/Corewell) | ~3.8% run-rate | Read on underlying demand |
| Rev/req ex big-two | ~+2.5% | Mix/advanced-dx health |
| FY guide | $10.63–$10.83 adj. EPS | Raise vs. reaffirm |
Net: Quest has been executing well, with broad-based organic growth, an enriching consumer + advanced-diagnostics mix, and AI/automation-driven productivity. With the stock near highs, the debate is less about whether the quarter is "good" and more about (a) whether core organic demand is decelerating under tougher comps, (b) whether they raise guidance again, and (c) how the 2H-weighted cost cadence (Nova, fuel) frames margin expectations. Policy (PAMA/RESULTS Act, ACA) is a slow-burn swing factor rather than a Q2 event, but any commentary given the late-July data window will draw attention.
Note: Figures reflect company filings/transcripts and publicly reported consensus estimates ahead of the report; consensus figures should be treated as approximate.