Quest Diagnostics Incorporated stock research
FY2026 Q1
Quest Diagnostics (DGX) Gross Margin — Quarter Ended Mar 31, 2026
Revenue increased compared to both the prior quarter and the same quarter last year. Gross profit and cost of revenue also rose, resulting in gross margin that was stable relative to the prior year and slightly improved from the prior quarter.
Gross margin takeaway
Quarter ended Mar 31, 2026 · FY2026 Q1
Revenue increased compared to both the prior quarter and the same quarter last year. Gross profit and cost of revenue also rose, resulting in gross margin that was stable relative to the prior year and slightly improved from the prior quarter.
- The gross margin remained essentially unchanged from the prior year quarter and showed a minor increase from the preceding quarter, indicating that the relationship between revenue and cost of revenue was consistent.
- Versus the prior quarter, revenue was higher, gross profit was higher, and cost of revenue was higher, with gross margin slightly higher. Versus the same quarter last year, revenue was higher, gross profit was higher, and cost of revenue was higher, with gross margin unchanged.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
32.5%
Gross profit
$942.0M
Revenue
$2.9B
Cost of revenue
$2.0B
Quarter-over-quarter change
+0.1 pts
Year-over-year change
-0.0 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 |
|---|---|---|---|---|
| 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% |
| Mar 31, 2026 | $2.9B | $942.0M | $2.0B | 32.5% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2025
+0.1 pts
Year-over-year change
Mar 31, 2025
-0.0 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin remained essentially unchanged from the prior year quarter and showed a minor increase from the preceding quarter, indicating that the relationship between revenue and cost of revenue was consistent.
Versus the prior quarter, revenue was higher, gross profit was higher, and cost of revenue was higher, with gross margin slightly higher. Versus the same quarter last year, revenue was higher, gross profit was higher, and cost of revenue was higher, with gross margin unchanged.
Operating cash flow decreased compared to the prior year period, as noted in the liquidity discussion, and this trend may be monitored for its effect on financial flexibility.
Peer context
Latest available gross margins for related public companies.
| Company | Gross margin |
|---|---|
| Quest Diagnostics Incorporated (DGX) | 32.5% |