• Jefferies upgraded Quest Diagnostics (NYSE: DGX) to "Buy" with a price target increase from $215 to $220.
• Projected 2026 profit and revenue to exceed Wall Street estimates, driven by strong demand for diagnostic tests.
• Announced a 7.5% increase in its quarterly dividend and a $1 billion increase in its share repurchase program.

Quest Diagnostics (NYSE: DGX), a leading provider of diagnostic information services, received a stock upgrade from Jefferies to "Buy" on February 10, 2026, with a price target increase from $215 to $220. At the time, DGX was priced at $204.64. This upgrade reflects confidence in the company's financial health and growth prospects.

Quest Diagnostics has projected its 2026 profit and revenue to exceed Wall Street estimates, driven by strong demand for its diagnostic tests. This follows a successful fourth quarter, where revenues reached $2.81 billion, a 7.1% increase from the previous year. The company's diluted EPS for the quarter rose by 11.8% to $2.18, with an adjusted EPS of $2.42.

For the full year 2025, Quest Diagnostics reported revenues of $11.04 billion, an 11.8% increase from 2024. The full-year diluted EPS was $8.75, up 13.8%, and the adjusted EPS was $9.85, reflecting a 10.3% increase. The company generated $1.89 billion in cash from operations, highlighting its strong financial position.

Looking ahead, Quest Diagnostics projects 2026 revenues between $11.70 billion and $11.82 billion. The expected diluted EPS is between $9.45 and $9.65, with adjusted EPS ranging from $10.50 to $10.70. This optimistic outlook is supported by the company's strategic focus on clinical innovations and collaborations.

In addition to financial growth, Quest Diagnostics announced a 7.5% increase in its quarterly dividend, raising it to $0.86 per share. This marks the 15th consecutive year of dividend increases. The company also authorized a $1 billion increase in its share repurchase program, further demonstrating its commitment to returning value to shareholders.