A month has gone by since the last earnings report for DaVita HealthCare (DVA Quick QuoteDVA - Free Report) . Shares have added about 0.6% in that time frame, underperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is DaVita HealthCare due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important drivers.

DaVita Q1 Earnings & Revenue Beat Estimates, Margins Expand

DaVita delivered adjusted earnings per share 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 earnings per share 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%.

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.

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’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 earnings per share 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.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a upward trend in fresh estimates.

The consensus estimate has shifted 5.58% due to these changes.

VGM Scores

At this time, DaVita HealthCare has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. However, the stock has a grade of A on the value side, putting it in the top 20% for value investors.

Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been trending upward for the stock, and the magnitude of this revision looks promising. It comes with little surprise DaVita HealthCare has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.

Performance of an Industry Player

DaVita HealthCare is part of the Zacks Medical - Outpatient and Home Healthcare industry. Over the past month, Quest Diagnostics (DGX Quick QuoteDGX - Free Report) , a stock from the same industry, has gained 2.4%. The company reported its results for the quarter ended March 2026 more than a month ago.

Quest Diagnostics reported revenues of $2.9 billion in the last reported quarter, representing a year-over-year change of +9.2%. EPS of $2.50 for the same period compares with $2.21 a year ago.

Quest Diagnostics is expected to post earnings of $2.81 per share for the current quarter, representing a year-over-year change of +7.3%. Over the last 30 days, the Zacks Consensus Estimate has changed -0.4%.

Quest Diagnostics has a Zacks Rank #2 (Buy) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of B.