10-Q · August 4, 2026
DaVita delivered a strong Q2, with revenue of $3.554 billion rising 4.0% sequentially and operating income increasing 20.1% to $579 million, producing a 16.3% operating margin. U.S. dialysis volume and lower…
Earnings analysis · 10-Q
DVA earnings analysis
Filed October 29, 2026 · Our reading of the company's report
The latest report
DaVita delivered $3.578 billion of Q3 revenue and adjusted diluted EPS of $3.82, beating consensus estimates of $3.5197 billion and $3.62, respectively. Revenue increased year over year, but adjusted EPS declined…
Read full summary
DaVita delivered $3.578 billion of Q3 revenue and adjusted diluted EPS of $3.82, beating consensus estimates of $3.5197 billion and $3.62, respectively. Revenue increased year over year, but adjusted EPS declined sequentially from $4.02, and a $62 million China impairment charge pressured GAAP earnings. Management improved the low ends of its 2026 adjusted EPS and operating income outlook while maintaining $1.000 billion-$1.250 billion of free cash flow guidance; leverage of 3.38x remains a material risk.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $3.82
What stood out
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Revenue grew and beat consensus
Third-quarter revenue was $3.578 billion, up approximately 6.2% from $3.37 billion in Q2 2026 and approximately 4.6% from $3.42 billion in Q3 2025. Revenue exceeded the $3.5197 billion consensus estimate by approximately $58.3 million.
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Adjusted EPS beat estimates
Adjusted diluted EPS was $3.82, $0.20 above the $3.62 consensus estimate. EPS declined from $4.02 in Q2 2026 but increased from $2.04 in Q3 2025.
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Full-year EPS outlook improved
Management raised the low end of 2026 adjusted diluted EPS guidance by $0.20, from $14.10 to $14.30, while maintaining the high end at $15.20.
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Operating income outlook improved
The company raised the low end of 2026 adjusted operating income guidance by $25 million, from $2.150 billion to $2.175 billion, while maintaining the high end at $2.250 billion.
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Cash deployment remained active
Free cash flow guidance was maintained at $1.000 billion-$1.250 billion. The filing also disclosed $594 million of Q3 share repurchases at an average price of $186.21 per share.
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Repurchase capacity remains substantial
As of October 27, 2026, approximately $1.212 billion remained available under current repurchase authorizations, although repurchases remain subject to limitations under the company’s senior secured credit facilities.
What to watch
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China impairment weighed on GAAP earnings
A $62 million China impairment charge reduced GAAP earnings in the quarter and highlights ongoing execution and asset-value risk in the China business.
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Leverage and financing exposure
Leverage was 3.38x, increasing financing sensitivity and potentially constraining capital allocation; the company also stated that repurchases remain subject to limitations under its senior secured credit facilities.
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Sequential earnings momentum weakened
Q3 adjusted EPS of $3.82 was down $0.20, or approximately 5.0%, from $4.02 in Q2 2026, indicating sequential earnings pressure despite the year-over-year increase from $2.04.
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Planned insider share sales
The CEO adopted a Rule 10b5-1 sale arrangement covering up to 115,810 shares, with transactions scheduled from December 8, 2026 through August 26, 2027, or earlier completion or expiration.
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Capital allocation tradeoffs
The company repurchased 594 shares in Q3 at an average price of $186.21 per share, while approximately $1.212 billion remained authorized as of October 27, 2026; continued buybacks could compete with debt reduction or other liquidity needs.
Management's outlook
2026 adjusted diluted EPS guidance was raised at the low end from $14.10-$15.20 to $14.30-$15.20. Adjusted operating income guidance was raised at the low end from $2.150 billion-$2.250 billion to $2.175 billion-$2.250 billion, while free cash flow guidance was maintained at $1.000 billion-$1.250 billion. Revenue guidance was not provided.
Earlier filings 4
10-Q · May 5, 2026
DaVita Inc. reported strong Q1 2026 results with revenues of $3.416 billion and EPS of $2.87, both exceeding analyst expectations. The company also improved its guidance for adjusted operating income, indicating…
10-K · February 11, 2026
DaVita emphasizes its position as a leading, vertically integrated kidney care provider: U.S. dialysis represented approximately 86% of consolidated revenues for the year ended December 31, 2025, delivered through a…
10-Q · May 12, 2025
DaVita reported Q1 revenue of $3,223,529,000, up $152,974,000 (≈5.0%) vs. Q1 2024, driven by gains in both U.S. dialysis and Other — ancillary services. Operating income fell to $438,937,000 (13.6% operating margin) and…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.