DaVita (DVA) Q3 2026 earnings summary

Executive summary

• Q3 revenue was $3,578M, adjusted operating income was $561M and adjusted diluted EPS was $3.82; reported operating income of $499M included a $62M China impairment.

• Nine-month revenue rose 5.2% YoY to $10,548M and adjusted operating income increased 7.6% to $1,622M.

• Clinical advances and IKC outperformance supported results, while higher technology spending weighed on FY performance.

Financial highlights

• Q3 net income attributable was $222.931M vs. $150.332M YoY; diluted EPS was $3.40 vs. $2.04.

• Q3 treatment volume grew 1.2% YoY; treatments per normalized day rose ~65 bps, driven by census growth, primarily related to improving mortality.

• Revenue per treatment increased ~1.1% YoY and was flat QoQ; normal rate increases were offset by lower commercial mix and phosphate binder reimbursement.

• Patient care cost per treatment rose 2.4% YoY in Q3 and 3.0% YoY YTD; lower binder costs partly offset labor growth, while medical supply and professional liability costs were higher than expected.

• Q3 operating cash flow was $519M and free cash flow was $276M; FY2026 free cash flow guidance remains $1,000M-$1,250M.

Outlook and guidance

• FY2026 adjusted operating income guidance increased to $2,175M-$2,250M and adjusted diluted EPS to $14.30-$15.20; higher IKC expectations are offset by increased U.S. dialysis costs, especially technology.

• IKC is expected to deliver at least $65M of FY2026 adjusted operating income, $25M above prior guidance and $45M above 2025.

• Expanded HD is set to reach most eligible patients in November; anticipated mortality and volume benefits are expected to begin in H2 2028.

• For 2027, treatment volume growth is expected to exceed 2026; pharmaceutical costs, especially binders, should decline, while technology spending growth should decelerate but remain positive.

• 2027 dialysis rate impact is estimated at 1.5%-2% for the full year; the 3.5% Q1 headline rate includes a quarterly recalculated TDAPA component expected to fall materially after Q1.