We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
In the last reported quarter, the company’s earnings per share (EPS) of $2.51 lagged the Zacks Consensus Estimate by 23.7%. Over the trailing four quarters, its earnings outperformed the Zacks Consensus Estimate on three occasions and missed once, delivering an earnings surprise of 0.3%, on average.
Let’s check out the factors that have shaped DVA’s performance prior to this announcement.
Factors Likely to Affect DaVita
DaVita’s fourth-quarter 2025 performance is likely to have reflected a combination of seasonal normalization and the company’s ongoing execution on operational priorities. Treatment volumes could see a sequential improvement, supported by a more favorable treatment-day mix and the absence of certain disruptions that affected earlier quarters. On the third-quarter earnings call in October 2025, management indicated expectations for higher revenue per treatment in the quarter, driven by routine rate adjustments, vaccine-related revenues and the timing of collections tied to the resolution of aged claims. Together, these factors will likely drive the top-line performance and help support earnings momentum in the to-be-reported quarter.
Cost discipline is also expected to remain a key support in aiding fourth-quarter 2025 results. While patient care costs and general and administrative expenses typically rise seasonally in the fourth quarter, DaVita’s continued focus on operational efficiency and labor management is expected to offset part of this pressure. Ongoing investments in technology and revenue cycle infrastructure, although contributing to higher near-term expenses, are designed to enhance productivity and collections, which could aid quarterly results. In addition, the timing of integrated kidney care (IKC) revenue recognition may provide incremental support, given the inherent variability in quarterly phasing for this business.
However, some headwinds are likely to persist. Elevated mortality rates and higher missed treatment frequencies remain near-term challenges and could continue to weigh on volume growth. Pressure from payer mix variability and lingering impacts from higher pharmaceutical usage may also temper margin expansion.
Although the operating environment remains mixed, we expect a combination of seasonal tailwinds, disciplined execution and favorable timing factors to aid DaVita in delivering a steadier performance in the fourth quarter of 2025 despite the ongoing challenges.
DVA’s Estimate Picture
For fourth-quarter 2025, the Zacks Consensus Estimate for revenues is pegged at $3.53 billion, implying an improvement of 6.9% from the prior-year quarter’s reported figure.
The consensus estimate for EPS is pegged at $3.24, indicating an uptick of 44.6% from the prior-year period’s reported number.
What Our Model Suggests About DaVita
Per our proven model, a stock with a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold), along with a positive Earnings ESP, has higher chances of beating estimates. This is not the case here, as you can see below.
Earnings ESP: DVA has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Over the past three months, DaVita’s shares have lost 9.6%, underperforming Medical - Outpatient and Home Healthcare’s 0.3% loss. DVA’s shares also underperformed the Zacks Medical sector’s increase of 5.3% and the S&P 500’s growth of 2.8%.
Three Months Price Comparison
Image Source: Zacks Investment Research
DaVita’s peers like Aveanna Healthcare Holdings Inc. (AVAH - Free Report) , Option Care Health, Inc. (OPCH - Free Report) and Elanco Animal Health Incorporated (ELAN - Free Report) have outperformed it. AVAH’s shares have lost 7.6%, while OPCH and ELAN’s shares have gained 31.2% and 9.1%, respectively, in the same time frame.
DaVita’s Key Valuation Metric
From a valuation standpoint, DVA’s forward 12-month price-to-sales (P/S) is 0.5X, a discount to the industry's average of 2.6X.
Image Source: Zacks Investment Research
The company is trading at a discount to its peers, Aveanna Healthcare, Option Care Health and Elanco Animal Health. Aveanna Healthcare, Option Care Health and Elanco Animal Health’s P/S currently stand at 0.7X, 0.9X and 2.4X, respectively.
This suggests that investors may be paying a lower price relative to the company's expected sales growth.
DVA’s Long-Term Investment Visibility
DaVita’s management has provided a clear long-term strategy focused on advancing clinical care, leveraging technology and maintaining disciplined execution. Leadership continues to emphasize that improving patient outcomes is central to restoring sustainable growth over time. Efforts to enhance clinical protocols, increase time on therapy and adopt newer dialysis technologies — including advanced dialyzers and middle-molecule clearance solutions — are aimed at gradually reducing elevated mortality levels that remain above pre-pandemic norms. While these initiatives are expected to take time to translate into measurable volume benefits, they underpin management’s longer-term growth outlook.
Technology investments represent another key pillar of long-term visibility. DaVita is continuing to enhance its next-generation clinical platform while upgrading scheduling and revenue operations systems. The expanding use of data analytics and AI across clinical and administrative functions is intended to improve care coordination, reduce hospitalizations and support operating efficiency over time, even as these investments weigh on near-term expenses.
In addition, DaVita’s IKC and value-based care initiatives provide structural earnings visibility. Management remains confident in its ability to expand risk-based arrangements and manage medical costs over time, despite variability in quarterly performance. Combined with sustained cost discipline and capital management, these priorities support durable long-term performance visibility.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Can Operational Execution Support DaVita's Q4 Performance?
Key Takeaways
DaVita Inc. (DVA - Free Report) is scheduled to report fourth-quarter 2025 results on Feb. 2, 2026, after the closing bell.
In the last reported quarter, the company’s earnings per share (EPS) of $2.51 lagged the Zacks Consensus Estimate by 23.7%. Over the trailing four quarters, its earnings outperformed the Zacks Consensus Estimate on three occasions and missed once, delivering an earnings surprise of 0.3%, on average.
Let’s check out the factors that have shaped DVA’s performance prior to this announcement.
Factors Likely to Affect DaVita
DaVita’s fourth-quarter 2025 performance is likely to have reflected a combination of seasonal normalization and the company’s ongoing execution on operational priorities. Treatment volumes could see a sequential improvement, supported by a more favorable treatment-day mix and the absence of certain disruptions that affected earlier quarters. On the third-quarter earnings call in October 2025, management indicated expectations for higher revenue per treatment in the quarter, driven by routine rate adjustments, vaccine-related revenues and the timing of collections tied to the resolution of aged claims. Together, these factors will likely drive the top-line performance and help support earnings momentum in the to-be-reported quarter.
Cost discipline is also expected to remain a key support in aiding fourth-quarter 2025 results. While patient care costs and general and administrative expenses typically rise seasonally in the fourth quarter, DaVita’s continued focus on operational efficiency and labor management is expected to offset part of this pressure. Ongoing investments in technology and revenue cycle infrastructure, although contributing to higher near-term expenses, are designed to enhance productivity and collections, which could aid quarterly results. In addition, the timing of integrated kidney care (IKC) revenue recognition may provide incremental support, given the inherent variability in quarterly phasing for this business.
However, some headwinds are likely to persist. Elevated mortality rates and higher missed treatment frequencies remain near-term challenges and could continue to weigh on volume growth. Pressure from payer mix variability and lingering impacts from higher pharmaceutical usage may also temper margin expansion.
Although the operating environment remains mixed, we expect a combination of seasonal tailwinds, disciplined execution and favorable timing factors to aid DaVita in delivering a steadier performance in the fourth quarter of 2025 despite the ongoing challenges.
DVA’s Estimate Picture
For fourth-quarter 2025, the Zacks Consensus Estimate for revenues is pegged at $3.53 billion, implying an improvement of 6.9% from the prior-year quarter’s reported figure.
The consensus estimate for EPS is pegged at $3.24, indicating an uptick of 44.6% from the prior-year period’s reported number.
What Our Model Suggests About DaVita
Per our proven model, a stock with a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold), along with a positive Earnings ESP, has higher chances of beating estimates. This is not the case here, as you can see below.
Earnings ESP: DVA has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Zacks Rank: The company currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
DaVita Inc. Price and EPS Surprise
DaVita Inc. price-eps-surprise | DaVita Inc. Quote
DVA’s Share Price Performance
Over the past three months, DaVita’s shares have lost 9.6%, underperforming Medical - Outpatient and Home Healthcare’s 0.3% loss. DVA’s shares also underperformed the Zacks Medical sector’s increase of 5.3% and the S&P 500’s growth of 2.8%.
Three Months Price Comparison
Image Source: Zacks Investment Research
DaVita’s peers like Aveanna Healthcare Holdings Inc. (AVAH - Free Report) , Option Care Health, Inc. (OPCH - Free Report) and Elanco Animal Health Incorporated (ELAN - Free Report) have outperformed it. AVAH’s shares have lost 7.6%, while OPCH and ELAN’s shares have gained 31.2% and 9.1%, respectively, in the same time frame.
DaVita’s Key Valuation Metric
From a valuation standpoint, DVA’s forward 12-month price-to-sales (P/S) is 0.5X, a discount to the industry's average of 2.6X.
Image Source: Zacks Investment Research
The company is trading at a discount to its peers, Aveanna Healthcare, Option Care Health and Elanco Animal Health. Aveanna Healthcare, Option Care Health and Elanco Animal Health’s P/S currently stand at 0.7X, 0.9X and 2.4X, respectively.
This suggests that investors may be paying a lower price relative to the company's expected sales growth.
DVA’s Long-Term Investment Visibility
DaVita’s management has provided a clear long-term strategy focused on advancing clinical care, leveraging technology and maintaining disciplined execution. Leadership continues to emphasize that improving patient outcomes is central to restoring sustainable growth over time. Efforts to enhance clinical protocols, increase time on therapy and adopt newer dialysis technologies — including advanced dialyzers and middle-molecule clearance solutions — are aimed at gradually reducing elevated mortality levels that remain above pre-pandemic norms. While these initiatives are expected to take time to translate into measurable volume benefits, they underpin management’s longer-term growth outlook.
Technology investments represent another key pillar of long-term visibility. DaVita is continuing to enhance its next-generation clinical platform while upgrading scheduling and revenue operations systems. The expanding use of data analytics and AI across clinical and administrative functions is intended to improve care coordination, reduce hospitalizations and support operating efficiency over time, even as these investments weigh on near-term expenses.
In addition, DaVita’s IKC and value-based care initiatives provide structural earnings visibility. Management remains confident in its ability to expand risk-based arrangements and manage medical costs over time, despite variability in quarterly performance. Combined with sustained cost discipline and capital management, these priorities support durable long-term performance visibility.