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DVA's Q3 adjusted EPS jumped 52.2% to $3.82, while revenues rose 4.6% to $3.58 billion, beating estimates.
Strong IKC and international growth lifted revenues, while U.S. dialysis treatments rose 1.2% yoy.
DaVita narrowed its 2026 EPS outlook to $14.30-$15.20 amid higher patient care costs and margin pressure.
DaVita Inc. (DVA - Free Report) delivered adjusted earnings per share (EPS) of $3.82 in the third quarter of 2026, up 52.2% year over year. The figure surpassed the Zacks Consensus Estimate by 1.1%.
The company reported GAAP EPS of $3.40, reflecting a 66.7% year-over-year increase.
Year to date, the company’s shares have climbed 70.1%, outperforming the industry’s 29.6% growth and the broader S&P 500 Index’s 11.2% gain.
Image Source: Zacks Investment Research
DaVita's Q3 Revenues in Detail
Revenues of $3.58 billion increased 4.6% year over year. The figure topped the Zacks Consensus Estimate by 1.34%. Strong performance in Integrated Kidney Care (IKC) and international operations supported results. Total U.S. dialysis treatments increased 1.2% year over year, while higher technology spending pressured operating costs.
Dialysis patient service revenues totaled $3.41 billion in the third quarter, reflecting a 3.3% increase from the year-ago period. Other revenues reached $169.9 million, up 39.1% year over year.
U.S. dialysis revenues totaled $3.03 billion compared with $2.97 billion in the prior-year quarter. Other ancillary services revenues increased to $549.7 million from $452.1 million a year ago, supported by growth in integrated care and international operations.
Revenue per treatment (RPT) was $415.25, down 0.1% sequentially. Per management, RPT increased approximately 1.1% year over year, reflecting normal rate increases, partially offset by unfavorable commercial payer mix and lower phosphate binder reimbursement.
DVA's U.S. Dialysis Performance
Total U.S. dialysis treatments reached 7,329,644, averaging 92,780 treatments per day. This represented a sequential per-day increase of 0.1%. Normalized non-acquired treatment growth was 0.4% year over year.
Management highlighted improving patient mortality as a key contributor to census growth. However, an uptick in missed treatments partially offset the improvement in treatment volumes.
U.S. dialysis operating income totaled $544 million, up from $538 million sequentially. Patient care costs per treatment reached $280.22, increasing 1.1% from the preceding quarter. Higher medical supplies expenses were the primary contributor, partially offset by lower pharmaceutical costs.
DaVita’s Q3 Margin Details
In the quarter under review, DaVita’s gross profit increased 3.6% year over year to $1.13 billion. However, the gross margin contracted approximately 30 basis points (bps) to 31.5%.
General & administrative expenses declined 1.4% year over year to $408.7 million.
Adjusted operating profit totaled $561 million, reflecting an 8.5% year-over-year increase. Adjusted operating margin expanded 56 bps year over year to 15.7%.
DVA’s Financial Position
DaVita exited third-quarter 2026 with cash and cash equivalents and short-term investments of $566.3 million compared with $688.9 million at the end of the second quarter of 2026. Total debt (including the current portion) at the end of third-quarter 2026 was $10.77 billion compared with $10.78 billion at the end of the second quarter of 2026.
Cumulative net cash provided by operating activities at the end of third-quarter 2026 was $1.33 billion compared with $1.35 billion a year ago.
During the three months ended Sept. 30, 2026, DVA repurchased approximately 0.6 million shares for $111 million. Subsequent to Sept. 30, through Oct. 27, 2026, the company repurchased an additional 0.5 million shares of its common stock for $87 million.
DVA's Updated 2026 Guidance
DaVita narrowed its adjusted operating income guidance for 2026 to $2.175-$2.25 billion from the previous range of $2.15-$2.35 billion. Adjusted EPS is now expected to be between $14.30 and $15.20 compared with the earlier projection of $14.10-$15.20.
Management raised its IKC-adjusted operating income expectation to at least $65 million, an improvement of at least $25 million over its previous guidance. International adjusted operating income is expected to be approximately $135 million.
The company maintained its full-year free cash flow outlook of $1-$1.25 billion.
DaVita ended the third quarter of 2026 with better-than-expected results. The uptick in the company’s top and bottom lines was encouraging. Solid revenues from both sources and year-over-year growth in total U.S. dialysis treatments were promising. An improvement in normalized non-acquired treatment growth was also recorded.
On the earnings call, management highlighted strong performance in its IKC business, supported by higher shared savings from value-based care arrangements. The company also announced the nationwide rollout of expanded hemodialysis dialyzers following successful pilot programs across 150 centers involving more than 10,000 patients. Management expects the technology to improve clinical outcomes, with mortality-related volume benefits beginning in the second half of 2028. These developments align with DVA’s focus on improving patient care and operational efficiency and raise our optimism about the stock.
However, the sequential decline in RPT and higher patient care costs per treatment were disappointing.
DVA’s Zacks Rank & Stocks to Consider
Currently, DaVita carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the broader medical space are OPKO Health (OPK - Free Report) , Intuitive Surgical (ISRG - Free Report) and Globus Medical (GMED - Free Report) .
OPKO Health, currently flaunting a Zacks Rank #1 (Strong Buy), reported a second-quarter 2026 adjusted loss of 1 cent per share, which surpassed the Zacks Consensus Estimate by 87.5%. Revenues of $163.6 million beat the Zacks Consensus Estimate by 24.7%. You can see the complete list of today’s Zacks #1 Rank stocks here.
OPK has an estimated earnings growth rate of 23.3% for 2026. The company’s earnings beat estimates in each of the trailing four quarters, the average surprise being 95.1%.
Intuitive Surgical, currently carrying a Zacks Rank #2 (Buy), reported third-quarter 2026 adjusted EPS of $3.00, which beat the Zacks Consensus Estimate by 13.6%. Revenues of $3.05 billion surpassed the Zacks Consensus Estimate by 4.9%.
Intuitive Surgical has a long-term estimated growth rate of 14.9%. ISRG’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 15.1%.
Globus Medical, currently carrying a Zacks Rank #2, reported a second-quarter 2026 adjusted EPS of $1.34, which surpassed the Zacks Consensus Estimate by 19.6%. Revenues of $789.6 million beat the Zacks Consensus Estimate by 0.4%.
GMED has an estimated long-term earnings growth rate of 12.4%. The company’s earnings beat estimates in each of the trailing four quarters, the average surprise being 27.9%.
View the Zacks #1 Rank List
Image: Bigstock
DaVita Q3 Earnings Beat Estimates on IKC Strength, Revenues Rise Y/Y
Key Takeaways
DaVita Inc. (DVA - Free Report) delivered adjusted earnings per share (EPS) of $3.82 in the third quarter of 2026, up 52.2% year over year. The figure surpassed the Zacks Consensus Estimate by 1.1%.
The company reported GAAP EPS of $3.40, reflecting a 66.7% year-over-year increase.
Year to date, the company’s shares have climbed 70.1%, outperforming the industry’s 29.6% growth and the broader S&P 500 Index’s 11.2% gain.
Image Source: Zacks Investment Research
DaVita's Q3 Revenues in Detail
Revenues of $3.58 billion increased 4.6% year over year. The figure topped the Zacks Consensus Estimate by 1.34%. Strong performance in Integrated Kidney Care (IKC) and international operations supported results. Total U.S. dialysis treatments increased 1.2% year over year, while higher technology spending pressured operating costs.
Dialysis patient service revenues totaled $3.41 billion in the third quarter, reflecting a 3.3% increase from the year-ago period. Other revenues reached $169.9 million, up 39.1% year over year.
U.S. dialysis revenues totaled $3.03 billion compared with $2.97 billion in the prior-year quarter. Other ancillary services revenues increased to $549.7 million from $452.1 million a year ago, supported by growth in integrated care and international operations.
Revenue per treatment (RPT) was $415.25, down 0.1% sequentially. Per management, RPT increased approximately 1.1% year over year, reflecting normal rate increases, partially offset by unfavorable commercial payer mix and lower phosphate binder reimbursement.
DVA's U.S. Dialysis Performance
Total U.S. dialysis treatments reached 7,329,644, averaging 92,780 treatments per day. This represented a sequential per-day increase of 0.1%. Normalized non-acquired treatment growth was 0.4% year over year.
Management highlighted improving patient mortality as a key contributor to census growth. However, an uptick in missed treatments partially offset the improvement in treatment volumes.
U.S. dialysis operating income totaled $544 million, up from $538 million sequentially. Patient care costs per treatment reached $280.22, increasing 1.1% from the preceding quarter. Higher medical supplies expenses were the primary contributor, partially offset by lower pharmaceutical costs.
DaVita’s Q3 Margin Details
In the quarter under review, DaVita’s gross profit increased 3.6% year over year to $1.13 billion. However, the gross margin contracted approximately 30 basis points (bps) to 31.5%.
General & administrative expenses declined 1.4% year over year to $408.7 million.
Adjusted operating profit totaled $561 million, reflecting an 8.5% year-over-year increase. Adjusted operating margin expanded 56 bps year over year to 15.7%.
DVA’s Financial Position
DaVita exited third-quarter 2026 with cash and cash equivalents and short-term investments of $566.3 million compared with $688.9 million at the end of the second quarter of 2026. Total debt (including the current portion) at the end of third-quarter 2026 was $10.77 billion compared with $10.78 billion at the end of the second quarter of 2026.
Cumulative net cash provided by operating activities at the end of third-quarter 2026 was $1.33 billion compared with $1.35 billion a year ago.
During the three months ended Sept. 30, 2026, DVA repurchased approximately 0.6 million shares for $111 million. Subsequent to Sept. 30, through Oct. 27, 2026, the company repurchased an additional 0.5 million shares of its common stock for $87 million.
DVA's Updated 2026 Guidance
DaVita narrowed its adjusted operating income guidance for 2026 to $2.175-$2.25 billion from the previous range of $2.15-$2.35 billion. Adjusted EPS is now expected to be between $14.30 and $15.20 compared with the earlier projection of $14.10-$15.20.
Management raised its IKC-adjusted operating income expectation to at least $65 million, an improvement of at least $25 million over its previous guidance. International adjusted operating income is expected to be approximately $135 million.
The company maintained its full-year free cash flow outlook of $1-$1.25 billion.
DaVita Inc. Price, Consensus and EPS Surprise
DaVita Inc. price-consensus-eps-surprise-chart | DaVita Inc. Quote
Our Take on DVA
DaVita ended the third quarter of 2026 with better-than-expected results. The uptick in the company’s top and bottom lines was encouraging. Solid revenues from both sources and year-over-year growth in total U.S. dialysis treatments were promising. An improvement in normalized non-acquired treatment growth was also recorded.
On the earnings call, management highlighted strong performance in its IKC business, supported by higher shared savings from value-based care arrangements. The company also announced the nationwide rollout of expanded hemodialysis dialyzers following successful pilot programs across 150 centers involving more than 10,000 patients. Management expects the technology to improve clinical outcomes, with mortality-related volume benefits beginning in the second half of 2028. These developments align with DVA’s focus on improving patient care and operational efficiency and raise our optimism about the stock.
However, the sequential decline in RPT and higher patient care costs per treatment were disappointing.
DVA’s Zacks Rank & Stocks to Consider
Currently, DaVita carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the broader medical space are OPKO Health (OPK - Free Report) , Intuitive Surgical (ISRG - Free Report) and Globus Medical (GMED - Free Report) .
OPKO Health, currently flaunting a Zacks Rank #1 (Strong Buy), reported a second-quarter 2026 adjusted loss of 1 cent per share, which surpassed the Zacks Consensus Estimate by 87.5%. Revenues of $163.6 million beat the Zacks Consensus Estimate by 24.7%. You can see the complete list of today’s Zacks #1 Rank stocks here.
OPK has an estimated earnings growth rate of 23.3% for 2026. The company’s earnings beat estimates in each of the trailing four quarters, the average surprise being 95.1%.
Intuitive Surgical, currently carrying a Zacks Rank #2 (Buy), reported third-quarter 2026 adjusted EPS of $3.00, which beat the Zacks Consensus Estimate by 13.6%. Revenues of $3.05 billion surpassed the Zacks Consensus Estimate by 4.9%.
Intuitive Surgical has a long-term estimated growth rate of 14.9%. ISRG’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 15.1%.
Globus Medical, currently carrying a Zacks Rank #2, reported a second-quarter 2026 adjusted EPS of $1.34, which surpassed the Zacks Consensus Estimate by 19.6%. Revenues of $789.6 million beat the Zacks Consensus Estimate by 0.4%.
GMED has an estimated long-term earnings growth rate of 12.4%. The company’s earnings beat estimates in each of the trailing four quarters, the average surprise being 27.9%.