DaVita (NYSE:DVA) Posts Earnings Results, Beats Estimates By $0.54 EPS

Key Points

• DaVita reported Q1 adjusted EPS of $2.87, beating estimates by $0.54 with revenue of $3.42 billion, and raised FY2026 guidance to $14.10–$15.20 EPS (adjusted operating income guidance of $2.15B–$2.25B).
• Management lifted treatment-volume guidance to +25–50 bps (≈+50–75 bps normalized) driven by better-than-forecast mortality and patient transfers from Fresenius clinic closures, while investing in a proprietary EMR and AI tools that increased G&A by about 13%.
• DaVita posted adjusted operating income of $482M, free cash flow of $140M, repurchased roughly 5M shares, and finished the quarter with leverage at 3.34x EBITDA.

DaVita (NYSE:DVA - Get Free Report) posted its earnings results on Tuesday. The company reported $2.87 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $2.33 by $0.54, Zacks reports. DaVita had a net margin of 5.47% and a negative return on equity of 413.18%. The business had revenue of $3.42 billion for the quarter, compared to analyst estimates of $3.36 billion. DaVita updated its FY 2026 guidance to 14.100-15.200 EPS.

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

• DaVita raised and narrowed its 2026 guidance — adjusted operating income to $2.15B–$2.25B and adjusted EPS to $14.10–$15.20 — attributing the increase mainly to higher volume and lower patient-care costs.
• Treatment volume guidance was lifted to +25–50 bps (≈+50–75 bps normalized treatments per day) driven by better-than-forecast mortality and patient transfers from Fresenius clinic closures.
• Q1 results beat expectations with adjusted operating income of $482M, adjusted EPS of $2.87, and free cash flow of $140M; the company repurchased ~5M shares and ended the quarter with leverage at 3.34x EBITDA.
• Management is investing in data, a proprietary EMR, and AI applications (e.g., Schedule Hub) to boost productivity and clinical outcomes, but benefits are early and contributed to a ~13% increase in G&A versus prior year.
• ACA open-enrollment is trending slightly more favorable than the prior ~$40M headwind estimate, but a shift toward lower-tier bronze plans could raise patient out-of-pocket costs and modestly pressure revenue per treatment.

DaVita Stock Up 1.9%

NYSE DVA traded up $2.90 during midday trading on Tuesday, hitting $156.98. The company had a trading volume of 1,992,540 shares, compared to its average volume of 984,691. The stock has a market cap of $10.49 billion, a price-to-earnings ratio of 15.84, a P/E/G ratio of 0.53 and a beta of 0.84. The firm has a fifty day simple moving average of $151.18 and a two-hundred day simple moving average of $131.51. DaVita has a fifty-two week low of $101.00 and a fifty-two week high of $159.42.

Institutional Trading of DaVita

Several hedge funds and other institutional investors have recently bought and sold shares of DVA. Caitlin John LLC acquired a new stake in shares of DaVita during the 4th quarter worth approximately $34,000. Canada Pension Plan Investment Board acquired a new stake in shares of DaVita during the 2nd quarter worth approximately $43,000. Kestra Advisory Services LLC acquired a new stake in shares of DaVita during the 4th quarter worth approximately $45,000. iSAM Funds UK Ltd acquired a new stake in shares of DaVita during the 3rd quarter worth approximately $46,000. Finally, AlphaCentric Advisors LLC acquired a new stake in shares of DaVita during the 4th quarter worth approximately $50,000. 90.12% of the stock is currently owned by institutional investors and hedge funds.

Analyst Ratings Changes

A number of research analysts recently issued reports on the stock. TD Cowen reiterated a "hold" rating on shares of DaVita in a research note on Tuesday, February 3rd. Wall Street Zen upgraded shares of DaVita from a "hold" rating to a "buy" rating in a research note on Saturday, February 21st. UBS Group raised their target price on DaVita from $186.00 to $190.00 and gave the company a "buy" rating in a report on Wednesday, February 4th. Truist Financial set a $158.00 target price on DaVita in a report on Thursday, February 5th. Finally, Zacks Research lowered DaVita from a "strong-buy" rating to a "hold" rating in a report on Monday, April 6th. One analyst has rated the stock with a Buy rating, five have assigned a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of "Hold" and an average price target of $155.80.

DaVita Company Profile

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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