It has been about a month since the last earnings report for DaVita HealthCare (DVA Quick QuoteDVA - Free Report) . Shares have lost about 4.9% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is DaVita HealthCare due for a breakout? 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 Q2 Earnings Beat Estimates, Margins Down

DaVita Inc. (DVA Quick QuoteDVA - Free Report) delivered adjusted earnings per share from continuing operations of $4.02 in the second quarter of 2026, up 36.3% year over year. The figure surpassed the Zacks Consensus Estimate by 0.3%.

GAAP earnings per share from continuing operations for the quarter was also $4.02, reflecting an uptick of 55.8% year over year.

DaVita’s Revenues in Detail

Revenues of $3.55 billion in the second quarter increased 5.2% year over year. The figure topped the Zacks Consensus Estimate by 0.6%.

RPT in the second quarter of 2026 was $415.9, up 2.8% year over year, but down 0.4% sequentially. Per management, the sequential decline reflected a lower commercial mix from declining Affordable Care Act enrollment and lower sequential revenue contribution from phosphate binders.

DVA’s Segment Details

DaVita generates revenues via two sources — Dialysis patient service revenues and Other revenues.

The dialysis patient service revenues were $3.37 billion, up 4.9% year over year.

Other revenues were $187.7 million, up 8.7% from the year-ago quarter’s figure.

Per management, the total U.S. dialysis treatments for the second quarter were 7,226,600 or 92,649 per day, on average. This represents a per-day increase of 1.09% on a sequential basis. Normalized non-acquired treatment increased 0.3% year over year in the second quarter of 2026.

As of June 30, 2026, DaVita provided dialysis services to around 298,500 patients at 3,266 outpatient dialysis centers, of which 2,671 were U.S. centers while 595 were located across 14 other countries.

As of June 30, 2026, DVA had approximately 64,900 patients in risk-based integrated care arrangements in its Integrated Kidney Care business, representing $5.8 billion in annualized medical spend. The company also had an additional 5,700 patients in other integrated care arrangements.

DaVita’s Margin Details

In the quarter under review, DaVita’s gross profit increased 3.9% year over year to $1.16 billion. However, the gross margin contracted 38 basis points (bps) to 32.7%.

General & administrative expenses climbed 2.6% year over year to $423.5 million.

Adjusted operating profit totaled $738.6 million, reflecting a 4.7% increase from the prior-year quarter’s level. Adjusted operating margin in the second quarter contracted 8 bps to 20.8%.

DVA’s Financial Position

DaVita exited second-quarter 2026 with cash and cash equivalents and short-term investments of $688.9 million compared with $666.5 million at the end of the first quarter of 2026. Total debt (including the current portion) at the end of second-quarter 2026 was $10.78 billion compared with $10.63 billion at the end of the first quarter of 2026.

Cumulative net cash provided by operating activities at the end of second-quarter 2026 was $810.9 million compared with $504.2 million a year ago.
During the three months ended June 30, 2026, DVA repurchased 2.2 million shares for $348 million. Subsequent to June 30, through Aug. 4, 2026, the company has repurchased 0.2 million shares of its common stock for $37 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 near the top end of the company’s previous guidance range of 25 to 50 bps.

Adjusted earnings per share from continuing operations for the full year remains expected in the range of $14.10-$15.20. The Zacks Consensus Estimate is currently pegged at $15.07.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a downward trend in estimates revision.

The consensus estimate has shifted -12.69% due to these changes.

VGM Scores

Currently, DaVita HealthCare has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a score of A on the value side, putting it in the top quintile 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 broadly trending downward for the stock, and the magnitude of this revision indicates a downward shift. Notably, DaVita HealthCare has a Zacks Rank #3 (Hold). We expect an in-line 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 2.1%. The company reported its results for the quarter ended June 2026 more than a month ago.

Quest Diagnostics reported revenues of $3.04 billion in the last reported quarter, representing a year-over-year change of +10.2%. EPS of $3.12 for the same period compares with $2.62 a year ago.

Quest Diagnostics is expected to post earnings of $2.85 per share for the current quarter, representing a year-over-year change of +9.6%. Over the last 30 days, the Zacks Consensus Estimate has changed +0.1%.

Quest Diagnostics has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of B.