Quest Diagnostics Rated Buy as Price Target Rises to $220 on 7.1% Q4 Growth
Quest Diagnostics was upgraded to Buy with its price target lifted to $220 after Q4 revenue rose 7.1% and adjusted EPS to $2.42. The company raised its dividend 7.5% to $0.86, added $1B to buybacks, and forecasts 2026 revenue of $11.7B-$11.82B and adjusted EPS of $10.50-$10.70.
1. Rating Upgrade and Price Target
The stock was upgraded to Buy with the price target increased from $215 to $220, reflecting confidence in sustained diagnostic testing demand and margin expansion.
2. Q4 and Full-Year 2025 Results
In the fourth quarter, Quest Diagnostics reported revenue of $2.81 billion, up 7.1% year-over-year, with adjusted EPS rising 11.8% to $2.42. Full-year 2025 revenue reached $11.04 billion (up 11.8%) and adjusted EPS climbed 10.3% to $9.85.
3. 2026 Financial Guidance
Quest Diagnostics projects 2026 revenue between $11.70 billion and $11.82 billion, diluted EPS of $9.45-$9.65 and adjusted EPS of $10.50-$10.70, supported by clinical innovations and diagnostic volume growth.
4. Shareholder Returns Initiatives
The quarterly dividend was raised 7.5% to $0.86 per share, marking 15 consecutive annual increases, and the share repurchase program was expanded by $1 billion to enhance shareholder value.