DaVita (NYSE:DVA) Releases Earnings Results, Beats Expectations By $0.14 EPS

DaVita (NYSE:DVA) released its quarterly earnings data on Tuesday. The company reported $4.02 earnings per share for the quarter, topping the consensus estimate of $3.88 by $0.14, FiscalAI reports. The business had revenue of $3.55 billion during the quarter, compared to analyst estimates of $3.50 billion. DaVita had a negative return on equity of 270.37% and a net margin of 5.65%.The company’s revenue was up 5.2% compared to the same quarter last year. During the same period last year, the company posted $2.95 EPS. 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 Stock Down 2.4%

Shares of DVA traded down $5.51 during midday trading on Tuesday, reaching $228.17. 2,604,633 shares of the stock were exchanged, compared to its average volume of 677,821. The company has a market cap of $14.65 billion, a price-to-earnings ratio of 19.92, a P/E/G ratio of 0.77 and a beta of 0.88. DaVita has a 12-month low of $101.00 and a 12-month high of $247.49. The firm has a 50 day simple moving average of $218.46 and a 200-day simple moving average of $174.48.

Analysts Set New Price Targets

Several research analysts have recently weighed in on the stock. TD Cowen lifted their target price on shares of DaVita from $144.00 to $201.00 and gave the stock a “hold” rating in a research report on Monday, May 11th. Zacks Research downgraded shares of DaVita from a “strong-buy” rating to a “hold” rating in a research report on Monday, July 6th. UBS Group lifted their price objective on shares of DaVita from $235.00 to $270.00 and gave the stock a “buy” rating in a research report on Friday, July 10th. Truist Financial boosted their target price on shares of DaVita from $205.00 to $250.00 and gave the company a “hold” rating in a research note on Tuesday, July 14th. Finally, Weiss Ratings reaffirmed a “hold (c+)” rating on shares of DaVita in a research report on Monday, June 8th. Two analysts have rated the stock with a Buy rating, five have given a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, DaVita currently has a consensus rating of “Hold” and an average target price of $216.50.

Insider Buying and Selling

In other news, insider Kathleen Alyce Waters sold 15,405 shares of the stock in a transaction on Monday, June 15th. The shares were 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. This represents a 12.36% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CFO Joel Ackerman sold 51,471 shares of the firm’s stock in a transaction on 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 owned 132,434 shares in the company, valued at $25,440,571.40. This represents a 27.99% decrease in their position. The SEC filing for this sale provides additional information. Corporate insiders own 1.90% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the stock. Caitlin John LLC bought a new position in shares of DaVita in the fourth quarter valued at approximately $34,000. Canada Pension Plan Investment Board bought a new position in DaVita in the 2nd quarter worth $43,000. Kestra Advisory Services LLC acquired a new position in DaVita during the 4th quarter worth $45,000. iSAM Funds UK Ltd bought a new stake in DaVita during the third quarter valued at about $46,000. Finally, AlphaCentric Advisors LLC bought a new stake in DaVita during the fourth quarter valued at about $50,000. Institutional investors and hedge funds own 90.12% of the company’s stock.

Key Stories Impacting DaVita

Here are the key news stories impacting DaVita this week:

• Positive Sentiment: DaVita reported second-quarter revenue of $3.554 billion and adjusted diluted earnings of $4.02 per share, exceeding consensus estimates of approximately $3.50 billion and $3.88–$4.01 per share, respectively. Earnings increased from $2.95 per share a year earlier. DaVita earnings report
• Positive Sentiment: Operating income reached $579 million, while management cited continued financial progress, patient-outcome improvements and ongoing investment in dialysis innovation. The company also continued aggressive share repurchases, which could support per-share results. DaVita second-quarter 2026 results
• Neutral Sentiment: DaVita maintained its 2026 adjusted EPS guidance of $14.10 to $15.20, adjusted operating income guidance of $2.15 billion to $2.25 billion and free-cash-flow outlook of $1.0 billion to $1.25 billion. While the range remains above some analyst targets, the lack of an upward revision was viewed as insufficient by investors. DaVita outlook analysis
• Negative Sentiment: U.S. dialysis revenue per treatment declined to $415.87 from $417.59 in the prior quarter because of payer-mix changes and normal fluctuations. General and administrative expense also increased to $331 million from $320 million, raising concerns about near-term margin pressure. DaVita quarterly analysis
• Negative Sentiment: Recent trading data showed no insider purchases and several insider sales, including sales by CEO Javier Rodriguez, while Berkshire Hathaway reduced its position. These transactions may have added to investor caution, although they are not necessarily tied to the quarterly results.

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.