DaVita Inc. 3rd Quarter 2026 Results

DaVita posted solid Q3 results with strong cash flow and continued share buybacks.

What the company is saying

DaVita Inc. is presenting its Q3 2026 financial and operating results, emphasizing robust revenue of $3.578 billion, operating income of $499 million, and adjusted operating income of $561 million. The company highlights a diluted EPS of $3.40 and adjusted EPS of $3.82, along with significant operating cash flow of $519 million and free cash flow of $276 million. Management draws attention to ongoing share repurchases, with 0.6 million shares bought in the quarter for $111 million at $186.21 per share, and an additional 0.5 million shares repurchased after quarter-end for $87 million at $180.57 per share. The narrative acknowledges a $62 million non-cash goodwill and asset impairment charge tied to China operations, with a $27 million net income impact, but frames this as a contained event. Operationally, DaVita reports serving 298,100 patients across 3,269 centers, with 2,671 in the U.S. and 598 in 14 other countries. The company also spotlights its integrated kidney care business, with 80,800 patients in risk-based arrangements representing $6.4 billion in annualized medical spend. Updated 2026 guidance is provided, targeting adjusted operating income of $2.175–$2.25 billion, adjusted diluted EPS of $14.30–$15.20, and free cash flow of $1–$1.25 billion. The tone is factual, with explanations for revenue and cost changes attributed to reimbursement rates, payor mix, and increased medical supply and compensation expenses.

What the data suggests

The numbers show DaVita generated $3.578 billion in revenue and $499 million in operating income for Q3 2026, with adjusted operating income at $561 million and margins of 14.0% (GAAP) and 15.7% (adjusted). Diluted EPS was $3.40, and adjusted EPS was $3.82. Operating cash flow of $519 million and free cash flow of $276 million indicate strong liquidity. Net income attributable to DaVita was $223 million, with adjusted net income at $250 million. The company repurchased 0.6 million shares for $111 million during the quarter and another 0.5 million shares for $87 million after quarter-end. U.S. dialysis treatments reached 7,329,644 for the quarter, averaging 92,780 per day, with normalized non-acquired treatment growth of 0.4% year-over-year. Revenue per treatment was $415.25, while patient care costs per treatment were $280.22. The $62 million impairment charge in China reduced net income by $27 million. DaVita served 298,100 patients at 3,269 centers, with 80,800 patients in risk-based integrated care arrangements totaling $6.4 billion in annualized medical spend. The company’s updated 2026 guidance projects continued strength, but these are forward-looking targets rather than realised results. Management attributes revenue changes to reimbursement rates and payor mix, and cost increases to medical supplies and compensation.

Analysis

The announcement is a standard quarterly financial results release, presenting detailed realised financial and operational metrics for Q3 2026. Nearly all key claims are supported by hard numbers, including revenue, operating income, net income, cash flow, margins, patient and center counts, and share repurchases. Only a small portion of the disclosure is forward-looking (2026 guidance), and this is clearly separated from realised results. The tone is factual and avoids promotional or exaggerated language. There is no evidence of narrative inflation or overstatement; the company also transparently discloses a significant impairment charge related to its China business. The capital outlays (share repurchases) are matched by immediate financial results, and there are no long-dated, uncertain return claims. The gap between narrative and evidence is minimal.

Risk flags

• ●The $62 million impairment charge related to China operations signals ongoing risk in international markets, particularly in regions where DaVita may face regulatory, operational, or market-entry challenges. This charge directly reduced net income by $27 million, highlighting the potential for further write-downs if international operations underperform.
• ●Patient care costs per treatment increased to $280.22, up $2.82 from the previous quarter, driven by higher medical supplies expenses. Rising costs in supplies, compensation, and insurance could pressure margins if not offset by revenue growth or operational efficiencies.
• ●Revenue per treatment fell slightly by $0.62 quarter-over-quarter, and the company notes that unfavorable changes in payor mix partially offset annual rate increases. Continued downward pressure on reimbursement rates or adverse shifts in payor mix could negatively impact revenue and profitability.
• ●The company’s guidance for adjusted operating income, EPS, and free cash flow excludes certain items such as goodwill impairment and foreign currency fluctuations, which may be significant. This limits the comparability of forward-looking metrics to GAAP results and introduces forecasting risk.
• ●DaVita’s business is exposed to policy, reimbursement, and labor market risks, including potential impacts from U.S. government policy changes, supply chain disruptions, and increased competition from new entrants or alternative therapies. These factors could materially affect future results.

Bottom line

DaVita’s Q3 2026 results demonstrate solid operational and financial performance, with $3.578 billion in revenue, $499 million in operating income, and strong cash generation. The company continues to return capital to shareholders through substantial share buybacks, signaling management’s confidence in the business. While the $62 million impairment in China is a negative, it is contained relative to overall profitability. Patient and treatment volumes are stable, and the integrated kidney care segment is growing, now representing $6.4 billion in annualized medical spend. Updated 2026 guidance is credible given the short time left in the year, but investors should be aware that these targets exclude certain risks and non-GAAP items. The most important takeaway is that DaVita remains a cash-generative business with stable core operations, but faces ongoing risks from international exposure, cost inflation, and reimbursement headwinds.

Announcement summary

(NYSE:DVA) DaVita Inc. reported consolidated revenues of $3.578 billion for the quarter ended September 30, 2026. Operating income for the quarter was $499 million, with adjusted operating income at $561 million. Diluted earnings per share for the quarter were $3.40, and adjusted diluted earnings per share were $3.82. Operating cash flow for the quarter was $519 million, and free cash flow was $276 million. The company repurchased 0.6 million shares of its common stock at an average price of $186.21 per share during the quarter, totaling $111 million. Subsequent to September 30, 2026, through October 27, 2026, DaVita repurchased an additional 0.5 million shares for $87 million at an average price of $180.57 per share. Net income attributable to DaVita Inc. for the quarter was $223 million, with adjusted net income at $250 million. For the nine months ended September 30, 2026, net income was $686 million and adjusted net income was $713 million. Operating income margin for the quarter was 14.0%, and adjusted operating income margin was 15.7%. Total U.S. dialysis treatments for the third quarter of 2026 were 7,329,644, averaging 92,780 treatments per day, a 0.1% per day increase compared to the second quarter of 2026. Normalized non-acquired treatment growth in the third quarter of 2026 compared to the third quarter of 2025 was 0.4%. Revenue per treatment for the quarter was $415.25, while patient care costs per treatment were $280.22. General and administrative expenses for the quarter were $316 million. The company recognized a $62 million non-cash goodwill and other asset impairment charge related to its business in China, resulting in a $27 million net income impact attributable to DaVita Inc. As of September 30, 2026, DaVita provided dialysis services to approximately 298,100 patients at 3,269 outpatient dialysis centers, with 2,671 centers in the United States and 598 centers in 14 countries outside the United States. As of the same date, DaVita had approximately 80,800 patients in risk-based integrated care arrangements, representing approximately $6.4 billion in annualized medical spend, and an additional 3,100 patients in other integrated care arrangements. The effective income tax rate on income for the quarter was 24.9%, and on income attributable to DaVita Inc. was 28.7%. For the nine months ended September 30, 2026, the effective income tax rate on income was 21.8%, and on income attributable to DaVita Inc. was 26.5%. The company issued updated 2026 guidance, with adjusted operating income expected to be between $2,175 million and $2,250 million, adjusted diluted net income per share attributable to DaVita Inc. between $14.30 and $15.20, and free cash flow between $1,000 million and $1,250 million. The company will hold a conference call to discuss these results on October 29, 2026, at 5:00 p.m. Eastern Time.

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