DaVita Reports Q4 Revenue $3.62B, Adjusted EPS $3.40; Forecasts 2026 Profit Above Estimates, Partners to Co-Develop Kidney Home Care
DaVita reported Q4 revenue $3.62B, operating income $561M, adjusted EPS $3.40, and full-year adjusted EPS $10.78, and repurchased 12.7M shares for $1.78B in 2025. The company forecasts 2026 profit above estimates on stable dialysis demand and will co-develop a kidney-specific home care model with Elara Caring and Ares.
1. Fourth-Quarter 2025 Financial Performance
DaVita reported consolidated revenues of $3.62 billion for the quarter ended December 31, 2025, up from $3.55 billion in the prior-year period. Operating income reached $561 million, a 10.9% increase year-over-year, while adjusted operating income rose to $586 million. Diluted earnings per share from continuing operations were $2.94, exceeding consensus by $0.14, and adjusted diluted EPS was $3.40. Operating cash flow totaled $541 million, and free cash flow was $309 million for the quarter.
2. Full-Year 2025 Results and Share Repurchase Activity
For the full year, DaVita generated revenues of $13.643 billion and operating income of $2.044 billion, with adjusted operating income of $2.094 billion. Diluted EPS from continuing operations stood at $9.51, with adjusted diluted EPS of $10.78. The company repurchased 12.7 million shares at an average price of $140.09 during 2025, and in the period following year-end through early February 2026 repurchased an additional 1.7 million shares at an average price of $120.56, deploying $531 million in total capital toward buybacks.
3. Operational Trends and Dialysis Metrics
Total U.S. dialysis treatments in Q4 were 7,264,520, averaging 91,608 treatments per day, a 0.1% decline sequentially and 0.6% decline year-over-year on a normalized non-acquired basis. Revenue per treatment rose to $422.60, driven by higher reimbursement rates and seasonal service mix, while patient care costs per treatment increased to $279.60, reflecting higher pharmaceutical and benefits expenses. General and administrative expenses were $336 million, up by $14 million due to professional fees and IT investments.
4. 2026 Profit Outlook and Capital Structure Actions
DaVita forecasts full-year 2026 net income per share to exceed current analyst expectations, underpinned by stable dialysis service demand and ongoing process improvements. During Q4 2025, the company refinanced its Term Loan A-1 and revolving credit line, establishing a new $2.0 billion Term Loan A-2 and a $1.5 billion revolver. In late 2025, DaVita also issued 6.75% senior notes due 2033, enhancing liquidity for investment in technology, clinical innovation and further share repurchases.