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DaVita Stock Up Following Q1 Earnings & Revenue Beat, Margins Expand
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Key Takeaways
DVA delivered Q1 adjusted EPS of $2.87 and revenue of $3.42 billion, both above consensus estimates.
DaVita expanded gross margin to 31.4% and adjusted operating margin to 19.1% in the quarter.
DVA lifted 2026 adjusted EPS view in the range of $14.10 to $15.20 and kept buying back shares.
DaVita Inc. (DVA - Free Report) delivered adjusted earnings per share (EPS) from continuing operations of $2.87 in the first quarter of 2026, up 43.5% year over year. The figure surpassed the Zacks Consensus Estimate by 19.1%.
GAAP EPS from continuing operations for the quarter was also $2.87, reflecting an uptick of 43.5% year over year.
DaVita’s Revenues in Detail
Revenues of $3.42 billion in the first quarter increased 5.9% year over year. The figure topped the Zacks Consensus Estimate by 3.5%.
Revenue per treatment (RPT) in the first quarter of 2026 was $417.6 million, up 4.4% year over year, but down 1.2% sequentially. Per management, the sequential decline was primarily the result of the typical first-quarter headwind from patient-pay responsibility.
Shares of this company gained nearly 6.1% in today’s pre-market trading.
DVA’s Segment Details
DaVita generates revenues via two sources — Dialysis patient service revenues and Other revenues.
The dialysis patient service revenues were $3.27 billion, up 5.5% year over year.
Other revenues were $142.8 million, up 18.4% from the year-ago quarter’s figure.
Per management, the total U.S. dialysis treatments for the first quarter were 7,029,525 or 91,650 per day, on average. This represents a per-day increase of 0.05% on a sequential basis. Normalized non-acquired treatment increased 0.1% year over year in the first quarter of 2026.
As of March 31, 2026, DaVita provided dialysis services to around 296,300 patients at 3,262 outpatient dialysis centers, of which 2,666 were U.S. centers while 596 were located across 14 other countries.
As of March 31, 2026, DVA had approximately 62,600 patients in risk-based integrated care arrangements in its Integrated Kidney Care business, representing $5.4 billion in annualized medical spend. The company also had an additional 6,300 patients in other integrated care arrangements.
In the quarter under review, DaVita’s gross profit increased 9.1% year over year to $1.07 billion. The gross margin expanded 90 basis points (bps) to 31.4%.
General & administrative expenses climbed 12.8% year over year to $421.9 million.
Adjusted operating profit totaled $651.4 million, reflecting a 6.8% increase from the prior-year quarter’s level. Adjusted operating margin in the first quarter expanded 15 bps to 19.1%.
DVA’s Financial Position
DaVita exited first-quarter 2026 with cash and cash equivalents and short-term investments of $666.5 million compared with $700.7 million at the fourth quarter of 2025-end. Total debt (including the current portion) at the end of first-quarter 2026 was $10.63 billion compared with $10.27 billion at the end of the fourth quarter of 2025.
Net cash provided by operating activities at the end of first-quarter 2026 was $320.8 million compared with $180 million a year ago.
During the three months ended March 31, 2026, DVA repurchased 3 million shares for $403 million. Subsequent to March 31, 2026, through May 5, 2026, the company has repurchased 2 million shares of its common stock for $302 million.
DaVita’s Guidance
DaVita has revised its outlook for 2026.
For 2026, DVA continues to expect RPT to reflect growth of 1%-2%, while treatment volume is expected to be higher compared with 2025.
Adjusted EPS from continuing operations for the full year is now projected to be in the range of $14.10-$15.20, up from the prior outlook of $13.60-$15.00. The Zacks Consensus Estimate currently stands at $14.16.
Our Take on DVA
DaVita ended the first quarter of 2026 with better-than-expected results. The uptick in the company’s top and bottom lines and RPT was encouraging. Solid revenues from both sources and a per-day increase in total U.S. dialysis treatments on a sequential basis were promising. An uptick in normalized non-acquired treatment was also recorded. The expansion of both margins bodes well for the stock.
On the earnings call, management stated that DVA is taking a disciplined approach to AI. The company has modernized its data infrastructure, thereby standardizing and integrating high-quality data across the enterprise through systems like its proprietary EMR platform. DaVita is also actively deploying AI solutions across clinical, operational and business use cases with a focus on supporting its caregivers, improving how it operates and driving measurable impact. Per management, ScheduleHub is one such example, which is a new tool that dynamically processes changes in each center's patient census, capacity and teammate availability to recommend optimal patient and staffing schedules in real time. This raises our optimism about the stock.
However, the sequential decline in RPT for the first quarter was disappointing.
DaVita’s Zacks Rank and Key Picks
DVA currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space that have announced quarterly results are Omnicell, Inc. (OMCL - Free Report) , West Pharmaceutical Services, Inc. (WST - Free Report) and Labcorp Holdings Inc. (LH - Free Report) .
Omnicell, sporting a Zacks Rank of 1 (Strong Buy), reported first-quarter 2026 adjusted EPS of 55 cents, beating the Zacks Consensus Estimate by 67.9%. Revenues of $309.9 million outpaced the consensus mark by 2.2%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Omnicell has a long-term estimated growth rate of 29.6%. OMCL’s earnings surpassed estimates in three of the trailing four quarters and missed once, the average surprise being 34.7%.
West Pharmaceutical reported first-quarter 2026 adjusted EPS of $2.13, beating the Zacks Consensus Estimate by 27%. Revenues of $844.9 million surpassed the Zacks Consensus Estimate by 8.6%. It currently sports a Zacks Rank #1.
West Pharmaceutical has a long-term estimated growth rate of 13.9%. WST’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 19.4%.
Labcorp reported first-quarter 2026 adjusted EPS of $4.25, beating the Zacks Consensus Estimate by 3.8%. Revenues of $3.54 billion surpassed the Zacks Consensus Estimate by 1%. It currently carries a Zacks Rank #2 (Buy).
Labcorp has a long-term estimated growth rate of 7.9%. LH’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 3.3%.
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DaVita Stock Up Following Q1 Earnings & Revenue Beat, Margins Expand
Key Takeaways
DaVita Inc. (DVA - Free Report) delivered adjusted earnings per share (EPS) from continuing operations of $2.87 in the first quarter of 2026, up 43.5% year over year. The figure surpassed the Zacks Consensus Estimate by 19.1%.
GAAP EPS from continuing operations for the quarter was also $2.87, reflecting an uptick of 43.5% year over year.
DaVita’s Revenues in Detail
Revenues of $3.42 billion in the first quarter increased 5.9% year over year. The figure topped the Zacks Consensus Estimate by 3.5%.
Revenue per treatment (RPT) in the first quarter of 2026 was $417.6 million, up 4.4% year over year, but down 1.2% sequentially. Per management, the sequential decline was primarily the result of the typical first-quarter headwind from patient-pay responsibility.
Shares of this company gained nearly 6.1% in today’s pre-market trading.
DVA’s Segment Details
DaVita generates revenues via two sources — Dialysis patient service revenues and Other revenues.
The dialysis patient service revenues were $3.27 billion, up 5.5% year over year.
Other revenues were $142.8 million, up 18.4% from the year-ago quarter’s figure.
Per management, the total U.S. dialysis treatments for the first quarter were 7,029,525 or 91,650 per day, on average. This represents a per-day increase of 0.05% on a sequential basis. Normalized non-acquired treatment increased 0.1% year over year in the first quarter of 2026.
As of March 31, 2026, DaVita provided dialysis services to around 296,300 patients at 3,262 outpatient dialysis centers, of which 2,666 were U.S. centers while 596 were located across 14 other countries.
As of March 31, 2026, DVA had approximately 62,600 patients in risk-based integrated care arrangements in its Integrated Kidney Care business, representing $5.4 billion in annualized medical spend. The company also had an additional 6,300 patients in other integrated care arrangements.
DaVita Inc. Price, Consensus and EPS Surprise
DaVita Inc. price-consensus-eps-surprise-chart | DaVita Inc. Quote
DaVita’s Margin Details
In the quarter under review, DaVita’s gross profit increased 9.1% year over year to $1.07 billion. The gross margin expanded 90 basis points (bps) to 31.4%.
General & administrative expenses climbed 12.8% year over year to $421.9 million.
Adjusted operating profit totaled $651.4 million, reflecting a 6.8% increase from the prior-year quarter’s level. Adjusted operating margin in the first quarter expanded 15 bps to 19.1%.
DVA’s Financial Position
DaVita exited first-quarter 2026 with cash and cash equivalents and short-term investments of $666.5 million compared with $700.7 million at the fourth quarter of 2025-end. Total debt (including the current portion) at the end of first-quarter 2026 was $10.63 billion compared with $10.27 billion at the end of the fourth quarter of 2025.
Net cash provided by operating activities at the end of first-quarter 2026 was $320.8 million compared with $180 million a year ago.
During the three months ended March 31, 2026, DVA repurchased 3 million shares for $403 million. Subsequent to March 31, 2026, through May 5, 2026, the company has repurchased 2 million shares of its common stock for $302 million.
DaVita’s Guidance
DaVita has revised its outlook for 2026.
For 2026, DVA continues to expect RPT to reflect growth of 1%-2%, while treatment volume is expected to be higher compared with 2025.
Adjusted EPS from continuing operations for the full year is now projected to be in the range of $14.10-$15.20, up from the prior outlook of $13.60-$15.00. The Zacks Consensus Estimate currently stands at $14.16.
Our Take on DVA
DaVita ended the first quarter of 2026 with better-than-expected results. The uptick in the company’s top and bottom lines and RPT was encouraging. Solid revenues from both sources and a per-day increase in total U.S. dialysis treatments on a sequential basis were promising. An uptick in normalized non-acquired treatment was also recorded. The expansion of both margins bodes well for the stock.
On the earnings call, management stated that DVA is taking a disciplined approach to AI. The company has modernized its data infrastructure, thereby standardizing and integrating high-quality data across the enterprise through systems like its proprietary EMR platform. DaVita is also actively deploying AI solutions across clinical, operational and business use cases with a focus on supporting its caregivers, improving how it operates and driving measurable impact. Per management, ScheduleHub is one such example, which is a new tool that dynamically processes changes in each center's patient census, capacity and teammate availability to recommend optimal patient and staffing schedules in real time. This raises our optimism about the stock.
However, the sequential decline in RPT for the first quarter was disappointing.
DaVita’s Zacks Rank and Key Picks
DVA currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space that have announced quarterly results are Omnicell, Inc. (OMCL - Free Report) , West Pharmaceutical Services, Inc. (WST - Free Report) and Labcorp Holdings Inc. (LH - Free Report) .
Omnicell, sporting a Zacks Rank of 1 (Strong Buy), reported first-quarter 2026 adjusted EPS of 55 cents, beating the Zacks Consensus Estimate by 67.9%. Revenues of $309.9 million outpaced the consensus mark by 2.2%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Omnicell has a long-term estimated growth rate of 29.6%. OMCL’s earnings surpassed estimates in three of the trailing four quarters and missed once, the average surprise being 34.7%.
West Pharmaceutical reported first-quarter 2026 adjusted EPS of $2.13, beating the Zacks Consensus Estimate by 27%. Revenues of $844.9 million surpassed the Zacks Consensus Estimate by 8.6%. It currently sports a Zacks Rank #1.
West Pharmaceutical has a long-term estimated growth rate of 13.9%. WST’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 19.4%.
Labcorp reported first-quarter 2026 adjusted EPS of $4.25, beating the Zacks Consensus Estimate by 3.8%. Revenues of $3.54 billion surpassed the Zacks Consensus Estimate by 1%. It currently carries a Zacks Rank #2 (Buy).
Labcorp has a long-term estimated growth rate of 7.9%. LH’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 3.3%.