DaVita Posts $3.40 Q3 EPS and Raises 2026 Guidance Low End

DaVita Inc. (DVA ) reported consolidated revenues of $3.578 billion and net income attributable to the company of $223 million, or $3.40 per diluted share, for the third quarter ended September 30, 2026, according to the third-quarter 2026 results release the Denver-based company published on October 29, 2026. The dialysis provider also raised the low ends of its full-year 2026 guidance ranges for adjusted operating income and adjusted diluted earnings per share. All currency figures are in U.S. dollars.

Operating income was $499 million, a 14.0% operating margin, compared with $579 million and a 16.3% margin in the second quarter of 2026. Adjusted operating income, a non-GAAP measure the company defines as excluding certain items such as impairment charges, was $561 million, or a 15.7% margin. Adjusted net income attributable to DaVita was $250 million, or $3.82 per adjusted diluted share, compared with $265 million and $4.02 in the prior quarter. In the third quarter of 2025, the company reported net income attributable to DaVita of $150.3 million and diluted earnings per share of $2.04, on total revenues of $3.420 billion.

For the nine months ended September 30, 2026, total revenues were $10.548 billion, operating income was $1,560 million, and adjusted operating income was $1,622 million. Net income attributable to DaVita for the nine-month period was $686 million, or $10.27 per diluted share, and adjusted net income was $713 million, or $10.67 per adjusted diluted share.

U.S. Dialysis Volume and the China Impairment

Total U.S. dialysis treatments were 7,329,644 in the quarter, an average of 92,780 treatments per day, representing a 0.1% per-day increase from the second quarter of 2026; the per-day year-over-year change was 1.2%. Normalized non-acquired treatment growth versus the third quarter of 2025 was 0.4%. The quarter contained 79.2 normalized treatment days, compared with 78.8 in the same period of 2025.

Average patient service revenue per U.S. treatment was $415.25, versus $415.87 in the second quarter of 2026. DaVita attributed the quarter change primarily to normal fluctuations, partially offset by an increase in average reimbursement rates and improvements in payor mix. Patient care costs per treatment were $280.22, versus $277.40, a change the company said was primarily due to increased medical supplies expenses. Segment general and administrative expense fell to $316 million from $331 million, primarily because of decreased professional fees, according to the release. U.S. dialysis segment operating income was $544 million, versus $538 million in the second quarter of 2026.

During the quarter, DaVita recognized non-cash goodwill and other asset impairment charges related to its business in China. The company reported a $62 million impairment charge within operating income, offset by a $1 million tax benefit and a $34 million noncontrolling interest credit, resulting in a $27 million net income impact attributable to DaVita. The international segment posted an operating loss of $16 million in the quarter; the company’s reconciliation shows adjusted international operating income of $46 million after adding back the impairment. International dialysis patient service and other revenue was $398 million.

As of September 30, 2026, DaVita provided dialysis services to approximately 298,100 patients at 3,269 outpatient dialysis centers, of which 2,671 were located in the United States and 598 were located in 14 other countries. Approximately 80,800 patients were in risk-based integrated kidney care arrangements representing approximately $6.4 billion in annualized medical spend, versus 64,900 patients and $5.8 billion at June 30, 2026; an additional 3,100 patients were in other integrated care arrangements.

Buybacks, Debt and 2026 Guidance

DaVita repurchased 0.6 million shares of its common stock during the third quarter for $111 million, at an average price paid of $186.21 per share. From after September 30 through October 27, 2026, the company repurchased an additional 0.5 million shares for $87 million at an average price paid of $180.57 per share. For the first nine months of 2026, it spent $863 million repurchasing 5.837 million shares.

Total debt was $10,832 million at quarter end, excluding approximately $63.1 million of debt discount, premium and other deferred financing costs, and net debt was $10,337 million. The company’s leverage ratio was 3.38x, compared with 3.37x at June 30, 2026 and a 5.00x maximum permitted under its Amended Credit Agreement dated June 8, 2026. The weighted average effective interest rate was 5.54% at the end of the quarter, and 6.02% on the senior secured credit facilities. Last-twelve-months Consolidated EBITDA used in the covenant calculation was $3,042 million.

Third-quarter operating cash flow was $519 million and free cash flow was $276 million, versus $842 million and $604 million in the third quarter of 2025. Free cash flow is a company-defined non-GAAP measure that deducts distributions to noncontrolling interests and maintenance and development capital expenditures from operating cash flow, among other adjustments. Third-quarter capital expenditures included $112 million of maintenance spending and $47 million of development spending. The effective income tax rate on adjusted income attributable to DaVita was 26.6% in the quarter.

DaVita raised the low end of its 2026 adjusted operating income guidance to $2,175 million from $2,150 million, with the high end unchanged at $2,250 million, and raised the low end of its adjusted diluted net income per share guidance to $14.30 from $14.10, with the high end unchanged at $15.20. Free cash flow guidance was unchanged at $1,000 million to $1,250 million. The company stated that these forward-looking measures exclude certain items, including goodwill impairment charges and foreign currency fluctuations, and that actual results may vary materially.

DaVita scheduled its earnings conference call for 5:00 p.m. Eastern Time on October 29, 2026. The company noted that the financial information in the release is unaudited and subject to change prior to the filing of its Quarterly Report on Form 10-Q for the quarter ended September 30, 2026.