DGXNEUTRAL

Gross Margin

32.5%

Higher than 10% of Healthcare sector peers

Updated 320h ago

Sector Performance

10th percentile

DGX

32.5%

Sector Median

69.8%

Sector Avg

-24.1%

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Deep Analysis

Gross margin measures the percentage of revenue left after subtracting the direct costs of producing services, so Quest Diagnostics retains 32.5 cents per dollar of sales.

That 32.5% sits far below the healthcare sector median of 69.4%, placing the company at the 10th percentile among peers. No year-over-year change, quarter-over-quarter change, or eight-quarter trend data are available, and only one historical value of 32.5% is provided. This combination of a very low margin relative to the sector with no trend history means there is no basis to assess improvement or deterioration, introducing uncertainty about future profitability. The lack of data and the weak level do not point to a clear opportunity, but also do not confirm a heightened risk on their own. This metric neither supports nor contradicts the overall NEUTRAL verdict, as it highlights a structural disadvantage without enough trend information to adjust the view.

Frequently Asked Questions

What does the Gross Margin tell investors about DGX?

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.

How is the Gross Margin calculated?

Gross Margin is calculated as: Gross Profit / Revenue.

How does DGX's Gross Margin compare to its sector?

DGX's Gross Margin of 32.5% compares to a Healthcare sector median of 69.8%, placing it in the 10th percentile.

Who are DGX's closest peers by Gross Margin?

The closest Healthcare peers by Gross Margin include: BMY (70.2%), AMGN (68.2%), TDOC (67.8%), TECH (66.9%), RMD (62.2%).

The Formula

Gross Profit / Revenue

Why It Matters

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.