DaVita Beats Q4 Revenue and EPS Estimates; 2026 EPS Guidance at $14.30
DaVita Q4 revenue was $3.62B and adjusted EPS $3.40, beating estimates by 3.2% and 6.5% as EBITDA margin hit 21.4%. Management highlighted revenue per treatment growth and IKC segment execution, projected $14.30 EPS midpoint for 2026 and reported operating margin fell to 15.5%.
1. Q4 Financial Outperformance
DaVita delivered $3.62 billion in Q4 revenue and $3.40 in adjusted EPS, surpassing analyst estimates by 3.2% and 6.5%, respectively. Adjusted EBITDA margin rose to 21.4% while operating margin declined to 15.5%, reflecting higher health benefit costs.
2. IKC Segment and Patient Outcomes
The Integrated Kidney Care segment drove performance through revenue-per-treatment growth and disciplined execution, with management noting improved patient adherence and reduced hospitalizations in its clinical programs.
3. 2026 EPS Guidance
DaVita set fiscal 2026 adjusted EPS guidance at a $14.30 midpoint—12.1% above consensus—anticipating continued IKC contribution, offset by elevated benefit costs and margin pressures.
4. Key Analyst Inquiries
Analysts questioned management on timelines for achieving 2% treatment volume growth, drivers of margin compression, impacts of ACA premium credits versus cyber incident costs, and strategies to restore flu vaccination rates above 90%.