Quest Diagnostics Incorporated stock research
FY2025 Q3
Quest Diagnostics (DGX) Gross Margin — Quarter Ended Sep 30, 2025
Revenue remained stable versus the prior quarter, while gross profit edged higher, but cost of revenue increased more, causing gross margin to decline. Compared to the same period one year earlier, revenue and gross profit both grew, and gross margin improved.
Gross margin takeaway
Quarter ended Sep 30, 2025 · FY2025 Q3
Revenue remained stable versus the prior quarter, while gross profit edged higher, but cost of revenue increased more, causing gross margin to decline. Compared to the same period one year earlier, revenue and gross profit both grew, and gross margin improved.
- The year-over-year increase in gross margin reflects a larger proportional increase in revenue compared to cost of revenue.
- Versus the prior quarter, gross margin was lower due to a larger increase in cost of revenue relative to revenue. Versus the same quarter last year, gross margin was higher, driven by revenue growth outpacing cost of revenue growth. The company's filing indicates no significant changes to its critical accounting policies.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
33.7%
Gross profit
$949.0M
Revenue
$2.8B
Cost of revenue
$1.9B
Quarter-over-quarter change
-0.5 pts
Year-over-year change
+1.1 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Dec 31, 2024 | $2.6B | $858.0M | $1.8B | 32.7% |
| Mar 31, 2025 | $2.7B | $863.0M | $1.8B | 32.5% |
| Jun 30, 2025 | $2.8B | $943.0M | $1.8B | 34.2% |
| Sep 30, 2025 | $2.8B | $949.0M | $1.9B | 33.7% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2025
-0.5 pts
Year-over-year change
Sep 30, 2024
+1.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The year-over-year increase in gross margin reflects a larger proportional increase in revenue compared to cost of revenue.
Versus the prior quarter, gross margin was lower due to a larger increase in cost of revenue relative to revenue. Versus the same quarter last year, gross margin was higher, driven by revenue growth outpacing cost of revenue growth. The company's filing indicates no significant changes to its critical accounting policies.
Monitor the sequential increase in cost of revenue relative to revenue, which pressured gross margin in the current quarter.