DGXNEUTRAL

DGX Gross Margin Analysis

33.7%

Higher than 14% of Healthcare sector peers

Updated 581h ago·SEC filings & market data

Key Takeaway

Gross margin measures the percentage of revenue a company keeps after paying the direct costs of producing its services.

Sector Performance

14th percentile

DGX

33.7%

Sector Median

68.4%

Sector Avg

-59.4%

Prior Period

32.5%(Jul 2026)

↑ Improving

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Deep Analysis

Gross margin measures the percentage of revenue a company keeps after paying the direct costs of producing its services.

Quest Diagnostics currently retains 33.7% of each sales dollar at this stage, with the sector median at 68.9%, placing the company in the 11th percentile among Healthcare peers—meaning most competitors keep a far larger share. The year-over-year change is not available, but the quarter-over-quarter change is +3.7%, improving from 32.5% in the prior quarter; an eight-quarter trend direction is also not available. The combination of a low margin relative to peers with a recent +3.7% quarter-over-quarter increase points to a possible stabilization, though the level itself remains a structural disadvantage. This mixed picture—weak level but positive short-term momentum—creates moderate risk that is partially offset by the quarterly improvement. The metric supports the overall NEUTRAL verdict, as the low margin does not signal strength, but the recent uptick prevents a bearish conclusion.

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 33.7% compares to a Healthcare sector median of 68.4%, placing it in the 14th percentile.

Who are DGX's closest peers by Gross Margin?

The closest Healthcare peers by Gross Margin include: BLUE (68.4%), AMGN (68.2%), BSX (69.4%), TECH (66.9%), EXAS (70.1%).

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Learn More About Gross Margin

Gross Margin vs Net Margin: Why the Gap Between Them Tells You Everything

Gross margin vs net margin: learn what the spread between them reveals about operating leverage, cost structure, and early warning signs in any stock.

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.