Quest Diagnostics Incorporated stock research
FY2025 Q4
Quest Diagnostics (DGX) Gross Margin — Quarter Ended Dec 31, 2025
Revenue was stable compared to the prior quarter, while gross profit was lower, resulting in a weakened gross margin. Compared to the same quarter last year, revenue was higher and gross profit was higher, but gross margin was slightly lower.
Gross margin takeaway
Quarter ended Dec 31, 2025 · FY2025 Q4
Revenue was stable compared to the prior quarter, while gross profit was lower, resulting in a weakened gross margin. Compared to the same quarter last year, revenue was higher and gross profit was higher, but gross margin was slightly lower.
- The primary observable driver is the change in cost of revenue, which was higher relative to revenue in both sequential and year-over-year comparisons, leading to a lower gross margin.
- Gross margin weakened from the prior quarter and was also slightly lower than the same quarter last year, despite higher revenue and gross profit year over year.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
32.4%
Gross profit
$910.0M
Revenue
$2.8B
Cost of revenue
$1.9B
Quarter-over-quarter change
-1.3 pts
Year-over-year change
-0.3 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 |
|---|---|---|---|---|
| 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% |
| Dec 31, 2025 | $2.8B | $910.0M | $1.9B | 32.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2025
-1.3 pts
Year-over-year change
Dec 31, 2024
-0.3 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The primary observable driver is the change in cost of revenue, which was higher relative to revenue in both sequential and year-over-year comparisons, leading to a lower gross margin.
Gross margin weakened from the prior quarter and was also slightly lower than the same quarter last year, despite higher revenue and gross profit year over year.
Monitor the trajectory of cost of revenue, as it has been the main factor affecting gross margin.