DG

Quest Diagnostics Incorporated stock research

Jun 30, 2025

FY2025 Q2

Quest Diagnostics (DGX) Gross Margin — Quarter Ended Jun 30, 2025

Revenue increased, and gross profit increased more than cost of revenue, resulting in an improved gross margin. Compared to the prior quarter and the same quarter last year, gross margin was higher.

Gross margin takeaway

Quarter ended Jun 30, 2025 · FY2025 Q2

Revenue increased, and gross profit increased more than cost of revenue, resulting in an improved gross margin. Compared to the prior quarter and the same quarter last year, gross margin was higher.

  • Gross profit rose while cost of revenue rose less, lifting the margin. This pattern was consistent across both the sequential and year-over-year comparisons.
  • Compared with the prior quarter, revenue and gross profit were higher, and gross margin improved. Versus the same quarter one year earlier, revenue, gross profit, and gross margin were all higher.

Gross margin snapshot

The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.

Gross margin

34.2%

Gross profit

$943.0M

Revenue

$2.8B

Cost of revenue

$1.8B

Quarter-over-quarter change

+1.6 pts

Year-over-year change

+0.6 pts

Quarterly gross margin trend

A four-quarter view of the revenue and direct-cost bridge behind gross margin.

PeriodRevenueGross profitCost of revenueGross margin
Sep 30, 2024$2.5B$811.0M$1.7B32.6%
Dec 31, 2024$2.6B$858.0M$1.8B32.7%
Mar 31, 2025$2.7B$863.0M$1.8B32.5%
Jun 30, 2025$2.8B$943.0M$1.8B34.2%

Quarterly comparisons

Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.

Previous-quarter change

Mar 31, 2025

+1.6 pts

Year-over-year change

Jun 30, 2024

+0.6 pts

What the margin says

Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.

Gross profit rose while cost of revenue rose less, lifting the margin. This pattern was consistent across both the sequential and year-over-year comparisons.

Compared with the prior quarter, revenue and gross profit were higher, and gross margin improved. Versus the same quarter one year earlier, revenue, gross profit, and gross margin were all higher.

Monitor the cost of revenue trend given its lower growth relative to revenue in both comparisons.

DGX Gross Margin — Quarter Ended Jun 30, 2025