DaVita (NYSE:DVA) Reaches New 12-Month High on Better-Than-Expected Earnings

Key Points

• DaVita shares hit a new 52-week high after Q1 results: EPS $2.87 vs. $2.33 consensus and revenue $3.42B (+6% YoY), and management raised FY‑2026 adjusted EPS guidance to $14.10–$15.20.
• Profitability and capital‑structure flags: the company reported a modest net margin (~5.5%) and an unusual negative return on equity (~-413%), which may reflect heavy buybacks or other balance‑sheet effects that worry some investors.
• Wall Street view remains mixed: several analysts have raised targets (as high as $220), but the MarketBeat consensus is a "Hold" with an average target of $166.50, below the stock's recent trading level.

DaVita Inc. (NYSE:DVA - Get Free Report)'s share price hit a new 52-week high during mid-day trading on Wednesday after the company announced better than expected quarterly earnings. The stock traded as high as $188.99 and last traded at $184.4430, with a volume of 623786 shares changing hands. The stock had previously closed at $157.04.

The company reported $2.87 earnings per share for the quarter, beating analysts' consensus estimates of $2.33 by $0.54. 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 during the quarter, compared to analysts' expectations of $3.36 billion. During the same period last year, the business earned $2.00 earnings per share. The business's revenue for the quarter was up 6.0% on a year-over-year basis. DaVita has set its FY 2026 guidance at 14.100-15.200 EPS.

Key Stories Impacting DaVita

Here are the key news stories impacting DaVita this week:

• Positive Sentiment: Q1 beat on both EPS and revenue — DaVita reported $2.87 EPS vs. ~ $2.33 consensus and revenue of $3.42B (+6% YoY), topping estimates and signaling healthy top-line momentum. Read More.
• Positive Sentiment: Company raised annual profit guidance — Management lifted FY-2026 adjusted profit forecast after the quarter, citing steady/strong demand for dialysis services, which supports forward earnings visibility. Read More.
• Positive Sentiment: Formal guidance range provided — DaVita set FY-2026 EPS guidance of $14.10–$15.20, which overlaps consensus and gives investors a clearer line of sight to full-year profits. Read More.
• Neutral Sentiment: Earnings-call detail and strategy color — The Q1 earnings call transcript outlines drivers (patient volumes, pricing, clinical execution) and puts detail around capital allocation and growth initiatives; useful for modeling but few immediate surprises. Read More.
• Neutral Sentiment: Analyst/earnings snapshots reinforce beat — Multiple outlets (Zacks, Yahoo, MSN) confirm the beat and summarize results and guidance; these help consolidate the street view but add limited new information. Read More.
• Negative Sentiment: Balance-sheet/metric flags — Reports note an unusual negative return on equity (-413%) and a modest net margin (~5.5%), metrics that may reflect heavy share repurchases or other capital-structure effects and could concern some investors focused on returns and profitability quality. Read More.

Wall Street Analyst Weigh In

Several research firms have recently commented on DVA. UBS Group raised their price objective on shares of DaVita from $186.00 to $190.00 and gave the company a "buy" rating in a research note on Wednesday, February 4th. Deutsche Bank Aktiengesellschaft raised shares of DaVita from a "hold" rating to a "buy" rating and raised their price objective for the company from $126.00 to $220.00 in a research note on Wednesday. TD Cowen reissued a "hold" rating on shares of DaVita in a research note on Tuesday, February 3rd. Wall Street Zen raised shares of DaVita from a "hold" rating to a "buy" rating in a research note on Saturday, February 21st. Finally, Barclays raised their price objective on shares of DaVita from $143.00 to $158.00 and gave the company an "equal weight" rating in a research note on Tuesday, February 3rd. Two equities research analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of "Hold" and an average target price of $166.50.

Institutional Trading of DaVita

Institutional investors have recently modified their holdings of the stock. Root Financial Partners LLC lifted its position in shares of DaVita by 128.0% during the 1st quarter. Root Financial Partners LLC now owns 187 shares of the company's stock worth $29,000 after buying an additional 105 shares during the last quarter. Elevation Wealth Partners LLC lifted its position in shares of DaVita by 147.3% during the 4th quarter. Elevation Wealth Partners LLC now owns 277 shares of the company's stock worth $31,000 after buying an additional 165 shares during the last quarter. Caitlin John LLC purchased a new stake in shares of DaVita during the 4th quarter worth approximately $34,000. Sankala Group LLC purchased a new stake in DaVita in the 4th quarter valued at $39,000. Finally, Canada Pension Plan Investment Board purchased a new stake in DaVita in the 2nd quarter valued at $43,000. Hedge funds and other institutional investors own 90.12% of the company's stock.

DaVita Stock Performance

The firm's 50-day moving average is $151.30 and its 200 day moving average is $131.73. The stock has a market cap of $12.49 billion, a PE ratio of 18.90, a P/E/G ratio of 0.54 and a beta of 0.84.

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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