DaVita (NYSE:DVA) Announces Earnings Results, Beats Estimates By $0.14 EPS

Key Points

• DaVita beat quarterly expectations, reporting EPS of $4.02 versus the $3.88 consensus and revenue of $3.55 billion versus $3.50 billion expected.
• Management reaffirmed 2026 guidance, including adjusted EPS of $14.65, while treatment-volume growth is expected near the upper end of its prior range. The company also plans broader deployment of expanded hemodialysis technology in coming quarters.
• Revenue per treatment declined because of a lower commercial-insurance mix and reduced phosphate-binder revenue. Shares fell 2.4% to $228.17, while analysts maintained a consensus “Hold” rating with a $216.50 target price.

DaVita (NYSE:DVA - Get Free Report) posted its quarterly earnings data on Tuesday. The company reported $4.02 earnings per share (EPS) for the quarter, topping the consensus estimate of $3.88 by $0.14, FiscalAI reports. DaVita had a negative return on equity of 270.37% and a net margin of 5.65%.The company had revenue of $3.55 billion for the quarter, compared to analysts' expectations of $3.50 billion. DaVita updated its FY 2026 guidance to 14.100-15.200 EPS.

Here are the key takeaways from DaVita's conference call:

• DaVita reaffirmed its 2026 guidance, including adjusted operating income of $2.2 billion at the midpoint and adjusted EPS of $14.65. Management expects fourth-quarter adjusted operating income to exceed third-quarter results by $50 million to $100 million, primarily due to IKC timing.
• Treatment-volume growth accelerated, supported by sustained improvements in patient mortality. DaVita now expects 2026 treatment growth near the top of its prior 25–50 basis-point range, or roughly 50–75 basis points after normalizing for calendar effects.
• DaVita plans to broadly deploy expanded hemodialysis using Nipro’s newly approved medium cut-off dialyzer in the coming quarters. The technology is compatible with existing machines, supply has been secured, and management believes any meaningful financial upside from lower mortality would begin around 2028.
• Revenue per treatment declined sequentially because of lower commercial insurance mix following the expiration of ACA subsidies and reduced phosphate-binder revenue. Management continues to estimate a roughly $40 million 2026 headwind from commercial-mix changes, potentially increasing to $70 million in 2027.
• The transition of phosphate binders into the Medicare bundle has reduced reliance on less-effective over-the-counter treatments by more than 50%, while lowering DaVita’s related revenue and costs. Management supports the policy and expects the final 2027 ESRD payment rule to determine the ultimate financial impact.

DaVita Trading Down 2.4%

NYSE DVA traded down $5.51 on Tuesday, reaching $228.17. 2,604,633 shares of the company were exchanged, compared to its average volume of 941,680. The business's fifty day moving average price is $218.46 and its 200 day moving average price is $174.48. The stock has a market capitalization of $14.65 billion, a P/E ratio of 21.17, a price-to-earnings-growth ratio of 0.79 and a beta of 0.88. DaVita has a fifty-two week low of $101.00 and a fifty-two week high of $247.49.

Analyst Ratings Changes

Several research analysts recently commented on the company. Deutsche Bank Aktiengesellschaft raised DaVita from a "hold" rating to a "buy" rating and increased their price objective for the company from $126.00 to $220.00 in a research note on Wednesday, May 6th. TD Cowen increased their target price on shares of DaVita from $144.00 to $201.00 and gave the company a "hold" rating in a research report on Monday, May 11th. UBS Group raised their price target on shares of DaVita from $235.00 to $270.00 and gave the stock a "buy" rating in a research note on Friday, July 10th. Barclays boosted their price target on shares of DaVita from $194.00 to $218.00 and gave the stock an "equal weight" rating in a research report on Wednesday, July 8th. Finally, Weiss Ratings reiterated a "hold (c+)" rating on shares of DaVita in a report on Monday, June 8th. Two analysts have rated the stock with a Buy rating, five have issued a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat.com, the company presently has an average rating of "Hold" and a consensus target price of $216.50.

Insiders Place Their Bets

In other news, insider Kathleen Alyce Waters sold 15,405 shares of DaVita stock in a transaction on Monday, June 15th. The stock was sold at an average price of $208.40, for a total transaction of $3,210,402.00. Following the transaction, the insider owned 109,194 shares in the company, valued at $22,756,029.60. The trade was a 12.36% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CFO Joel Ackerman sold 51,471 shares of the business's stock in a transaction dated Thursday, May 7th. The shares were sold at an average price of $192.10, for a total transaction of $9,887,579.10. Following the transaction, the chief financial officer directly owned 132,434 shares in the company, valued at approximately $25,440,571.40. The trade was a 27.99% decrease in their position. The SEC filing for this sale provides additional information. 1.90% of the stock is owned by company insiders.

Hedge Funds Weigh In On DaVita

Several institutional investors and hedge funds have recently bought and sold shares of the company. Gen Wealth Partners Inc boosted its position in shares of DaVita by 10.0% during the fourth quarter. Gen Wealth Partners Inc now owns 880 shares of the company's stock worth $100,000 after buying an additional 80 shares during the period. NewEdge Advisors LLC raised its stake in DaVita by 20.8% during the 1st quarter. NewEdge Advisors LLC now owns 511 shares of the company's stock valued at $78,000 after acquiring an additional 88 shares in the last quarter. Orion Porfolio Solutions LLC increased its holdings in shares of DaVita by 4.4% during the fourth quarter. Orion Porfolio Solutions LLC now owns 2,360 shares of the company's stock valued at $268,000 after purchasing an additional 99 shares during the period. Bank of Nova Scotia raised its stake in shares of DaVita by 2.5% during the third quarter. Bank of Nova Scotia now owns 4,933 shares of the company's stock valued at $655,000 after purchasing an additional 120 shares in the last quarter. Finally, Daiwa Securities Group Inc. grew its position in DaVita by 2.2% in the 2nd quarter. Daiwa Securities Group Inc. now owns 6,502 shares of the company's stock valued at $926,000 after buying an additional 138 shares in the last quarter. 90.12% of the stock is currently owned by institutional investors and hedge funds.

About DaVita

DaVita Inc NYSE: DVA is a leading provider of kidney care services, specializing in the management and operation of outpatient dialysis centers for patients with chronic kidney failure and end-stage renal disease. Headquartered in Denver, Colorado, the company offers a comprehensive suite of treatment modalities, including in-center hemodialysis, peritoneal dialysis, and home dialysis therapies. In addition to its core dialysis services, DaVita provides patient education, nutritional counseling, vascular access management and related laboratory services to support kidney health and overall patient well-being.

Since its formation in the mid-1990s through a clinical management services spin-off, DaVita has expanded both organically and through strategic partnerships and acquisitions.

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