Dialysis provider DaVita's Q2 results beat estimates, aided by higher average rates

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 5 "hold" and 1 "sell" or "strong sell".

The average consensus recommendation for the healthcare facilities & services peer group is "buy."

Wall Street's median 12-month price target for DaVita Inc is $218.00, about 6.7% below its August 3 closing price of $233.68.

The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 10 three months ago.

DaVita sees 2026 adjusted operating income between $2.15 bln and $2.25 bln.

The company expects 2026 adjusted diluted EPS of $14.10 to $15.20.

DaVita forecasts 2026 free cash flow of $1.0 bln to $1.25 bln.

• Payor mix and rates - Revenue growth was primarily driven by changes in payor mix and higher average rates.
• Cost management - The decrease in patient care costs per treatment was mainly due to lower payroll taxes and pharmaceutical costs, partially offset by higher health benefits expenses.
• Integrated care growth - Growth in integrated kidney care arrangements increased patient count and annualized medical spend.