DaVita Forecasts 2026 Profit Above Estimates, Q4 EPS of $3.40 and Shares Jump 13%
DaVita reported Q4 revenue of $3.62 billion and adjusted EPS of $3.40, and repurchased 2.7 million shares for $331 million. The company forecasted 2026 profit above estimates, driving a 13% after-hours rally, and joined Elara Caring in a strategic partnership to expand home-based kidney care.
1. Q4 Earnings and Revenue Performance
DaVita reported fourth-quarter revenues of $3.620 billion, up 2.4% year-over-year, driven by average reimbursement rate increases and favorable mix effects. Diluted earnings per share from continuing operations were $2.94, with adjusted EPS at $3.40—both exceeding analyst expectations. On a full-year basis, consolidated revenues reached $13.643 billion, while adjusted diluted EPS from continuing operations totaled $10.78, reflecting resilient demand for kidney dialysis services against a challenging reimbursement environment.
2. Operating Income and Cash Flow Strength
Operating income for Q4 stood at $561 million, with an adjusted operating income of $586 million, representing margins of 15.5% and 16.2%, respectively. For the full year, operating income was $2.044 billion and adjusted operating income was $2.094 billion. The company generated $541 million in operating cash flow during the quarter and free cash flow of $309 million, bringing full-year operating cash flow to $1.887 billion and free cash flow to $1.024 billion. These results reflect disciplined cost management and continued efficiency improvements.
3. Dialysis Service Trends and Strategic Investments
In Q4, DaVita delivered 7.26 million U.S. dialysis treatments, averaging 91,608 treatments per day, a 0.1% sequential decline. Normalized treatment growth was down 0.6% year-over-year, reflecting slower non-acquired patient volumes. Patient care costs per treatment rose due to higher pharmaceutical expense and health benefit costs, while revenue per treatment increased by $12.01 sequentially. During the quarter, DaVita completed the refinancing of its Term Loan A-1 and revolving credit facility, strengthening liquidity, and repurchased 2.7 million shares of common stock.
4. 2026 Outlook and Capital Allocation
Management reaffirmed guidance for fiscal 2026 profit above consensus, driven by steady dialysis demand and ongoing process improvements. The company plans to continue investments in integrated care, including risk-based kidney programs covering approximately 66,000 patients with $5.6 billion in annualized medical spend. Capital priorities include funding clinical innovations, maintaining strong liquidity through committed credit facilities, and opportunistic share repurchases to enhance long-term shareholder value.