DaVita (DVA) Q3 2025 earnings summary

Executive summary

• Third quarter performance met expectations, supporting full-year guidance and ongoing investments in patient care, workforce, and innovation.

• Revenue for the nine months ended September 30, 2025, increased 5.3% year-over-year to $10.0 billion, driven by growth in both U.S. dialysis and international operations.

• Net income attributable to shareholders for the nine months was $513 million, down from $677 million in the prior year period.

• The quarter was impacted by a significant cybersecurity incident, which disrupted operations, increased costs, and negatively affected revenue and treatment volumes.

• The company completed the acquisition of Fresenius Medical Care's dialysis operations in Brazil, expanding its international footprint.

Financial highlights

• Q3 2025 revenue was $3.42 billion, up 4.8% year-over-year; adjusted operating income was $517 million; adjusted EPS was $2.51; free cash flow was $604 million.

• Q3 2025 net income attributable to shareholders was $150 million, with adjusted net income at $185 million.

• Diluted EPS for Q3 2025 was $2.04; adjusted diluted EPS was $2.51.

• Operating income for the nine months was $1.48 billion, a 2.8% decrease year-over-year.

• Free cash flow for the nine months was $716 million, down 18.8% year-over-year.

Outlook and guidance

• Full-year adjusted operating income expected between $2.035 billion and $2.135 billion; adjusted EPS of $10.35–$11.15; free cash flow guidance for 2025: $1.0–$1.25 billion.

• Midpoint guidance for Q4 implies a $60 million sequential increase in operating income, driven by better day mix, higher RPT, and IKC timing.

• The company expects continued adverse impacts from the cybersecurity incident on revenue and treatment volumes for the full year.

• 2026 outlook influenced by volume recovery, payer mix, Medicare Advantage dynamics, and timing of IKC revenue.

• Premium tax credits remain a key variable, with a potential $120 million headwind over three years if not extended.