A Look at Quest Diagnostics (DGX) Valuation Following Strong Q3 2025 Results and Upgraded Outlook

Quest Diagnostics (DGX) caught investors’ attention after it reported third-quarter 2025 results that beat expectations, showing a year-over-year jump in both earnings and revenue. The company also raised its full-year revenue outlook, which signals ongoing growth.

See our latest analysis for Quest Diagnostics.

Quest Diagnostics’ upbeat quarterly results and a new dividend affirmation have helped sustain momentum in the stock, with a 5.56% share price return over the past month and an impressive 26.7% gain year-to-date. Over the past year, long-term holders have also benefited from a 19.1% total shareholder return, highlighting solid multi-year performance as growth prospects and confidence in the business continue to build.

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With Quest Diagnostics delivering strong results and revising its outlook upward, investors may be wondering if the recent momentum leaves room for further upside or if these gains mean future growth is already reflected in the share price.

Most Popular Narrative: 3% Undervalued

With Quest Diagnostics shares last closing at $191.25 and the narrative’s fair value set at $197.25, the most-watched valuation view finds the stock trading at a modest discount and highlights ongoing optimism about future performance.

Ongoing growth in advanced and preventive testing, including cardiometabolic, autoimmune, brain health, oncology, and women's/reproductive diagnostics, as well as robust demand from functional medicine and wellness-focused consumers, are driving higher test volumes and increasing test-per-requisition. This supports both revenue growth and margin expansion.

Read the complete narrative.

Want to know why analysts believe this growth wave could persist? The valuation relies on expectations for margin expansion and a unique profit forecast not seen in past years. Curious what projections must prove true to keep that valuation intact? Click through to see the financial logic powering this narrative.

Result: Fair Value of $197.25 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, rising reimbursement headwinds and slower healthcare utilization could weigh on revenue growth. This may present challenges to the upbeat outlook for Quest Diagnostics.

Find out about the key risks to this Quest Diagnostics narrative.

Build Your Own Quest Diagnostics Narrative

If you’re looking to go beyond consensus or want to dive into the numbers firsthand, you can shape your own perspective in just a few minutes. Do it your way.

A great starting point for your Quest Diagnostics research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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