DaVita (NYSE:DVA) Posts Earnings Results

DaVita (NYSE:DVA) posted its quarterly earnings data on Monday. The company reported $3.40 EPS for the quarter, topping the consensus estimate of $3.24 by $0.16, FiscalAI reports. DaVita had a net margin of 5.80% and a negative return on equity of 13,370.89%. The business had revenue of $3.62 billion during the quarter, compared to the consensus estimate of $3.51 billion. During the same period in the previous year, the firm posted $2.24 earnings per share. The business’s revenue for the quarter was up 9.9% compared to the same quarter last year. DaVita updated its FY 2026 guidance to 13.600-15.00 EPS.

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

• IKC reached profitability in 2025 — DaVita reported its first profitable full year for Integrated Kidney Care, citing better patient outcomes (e.g., higher permanent vascular access rates, fewer infections) and expects an incremental $20 million of IKC operating income in 2026.
• 2026 guidance is constructive: adjusted operating income of $2.085B–$2.235B (midpoint ~3.2% growth), adjusted EPS guidance of $13.60–$15.00 (company cites ~33% growth at midpoint), and free cash flow of $1.0B–$1.25B.
• Near-term headwinds include elevated mortality pressuring treatment growth (U.S. treatments down ~1.1% for 2025), higher patient care costs per treatment (+5.9% YoY), and an estimated ~$40M 2026 RPT hit from the expiration of enhanced premium tax credits.
• Revenue per treatment accelerated in Q4 (≈+$12 sequential and full-year RPT ≈$410, +4.7%), driven by resolution of aged receivables, rate increases, slightly better private-pay mix and seasonal vaccine impacts; 2026 RPT is forecast at ~1%–2% growth with some timing quirks (Q1 seasonality/headwinds).
• Capital allocation remains shareholder-friendly: nearly 13M shares repurchased (~$1.8B) in 2025, leverage at a mid-target 3.26x, and a roughly $200M minority investment in Elara Caring to expand home-based ESKD services (expected to close mid-year and to contribute to other income).

DaVita Price Performance

NYSE:DVA opened at $111.21 on Tuesday. The company has a 50 day moving average price of $113.42 and a 200-day moving average price of $124.86. DaVita has a 1-year low of $101.00 and a 1-year high of $178.47. The firm has a market cap of $7.85 billion, a price-to-earnings ratio of 11.45, a price-to-earnings-growth ratio of 0.67 and a beta of 0.99.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. NewEdge Advisors LLC raised its holdings in DaVita by 20.8% in the first 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. Bank of Nova Scotia raised its stake in shares of DaVita by 2.5% in the 3rd 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. Daiwa Securities Group Inc. raised its stake in shares of 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 purchasing an additional 138 shares in the last quarter. State of Wyoming grew its stake in DaVita by 6.0% in the second quarter. State of Wyoming now owns 2,759 shares of the company’s stock worth $393,000 after purchasing an additional 156 shares in the last quarter. Finally, Cerity Partners LLC grew its stake in DaVita by 7.0% in the second quarter. Cerity Partners LLC now owns 2,638 shares of the company’s stock worth $376,000 after purchasing an additional 172 shares in the last quarter. Hedge funds and other institutional investors own 90.12% of the company’s stock.

Key Stories Impacting DaVita

Here are the key news stories impacting DaVita this week:

• Positive Sentiment: Q4 results beat expectations — DaVita reported EPS above estimates and revenue of $3.62B (≈+9.9% YoY), with operating profit expanding, signaling healthier margins versus year-ago levels. DaVita Inc. 4th Quarter 2025 Results
• Positive Sentiment: Management raised FY‑2026 EPS guidance to $13.60–$15.00 (above analyst consensus ~$12.80), giving investors forward visibility and justifying a higher valuation multiple. DaVita forecasts 2026 profit above estimates
• Positive Sentiment: Market reaction: shares jumped in extended trading after the print/guidance, with coverage and after‑hours movers highlighting DVA among top movers — supporting intraday price upside. Stocks making the biggest moves after hours
• Neutral Sentiment: Management commentary and the full earnings call transcript provide incremental detail on patient volumes, unit economics and capital allocation that investors will parse for sustainable margin trends. DaVita Inc. Q4 2025 Earnings Call Transcript
• Neutral Sentiment: Third‑party summaries confirm the beats (Zacks, MarketBeat) and provide consensus context; analysts will update models and targets, so near‑term revision activity could influence the stock. DaVita HealthCare Q4 Earnings and Revenues Surpass Estimates
• Negative Sentiment: Balance-sheet and cash-flow items bear watching: cash declined year‑over‑year, total liabilities rose, and net income attributable to common shareholders declined vs. the prior year — these could limit upside if margins or cash conversion weaken. DaVita Inc. Releases Q4 2025 Earnings (Quiver)

Wall Street Analysts Forecast Growth

Several analysts have weighed in on the company. Wall Street Zen downgraded DaVita from a “buy” rating to a “hold” rating in a research note on Saturday, October 11th. Weiss Ratings reiterated a “hold (c)” rating on shares of DaVita in a report on Monday, December 29th. Truist Financial reduced their price target on shares of DaVita from $140.00 to $128.00 and set a “hold” rating for the company in a research report on Monday, January 5th. UBS Group reaffirmed a “buy” rating on shares of DaVita in a report on Monday, December 15th. Finally, Barclays set a $158.00 price objective on shares of DaVita in a research note on Tuesday. One equities research analyst has rated the stock with a Buy rating, five have issued a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, DaVita has an average rating of “Hold” and an average price target of $148.60.

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.