Davita Healthcare Partners Stock Earnings Reports

DaVita reported a strong start to 2026 driven by balanced outperformance across treatment volume, revenue per treatment (RPT) and cost per treatment. The company delivered Q1 adjusted operating income of $482M, adjusted EPS of $2.87 and free cash flow of $140M—approximately $50M ahead of plan (half from operational outperformance, half timing). Key clinical progress came from Integrated Kidney Care (IKC), where DaVita generated the highest aggregate savings in CMS' CKCC program and improved quality metrics. Management is investing in data infrastructure and scaled AI deployments (e.g., ScheduleHub for scheduling) to improve clinical and operational performance. Volume was slightly ahead of forecast with quarter-end census benefiting from better-than-expected mortality and some patient transfers related to Fresenius clinic closures; full-year treatment volume guidance was raised from flat to +25–50 basis points (implying +50–75 bps in normalized treatments per day). RPT was up ~4% YoY in Q1 but the company maintains full-year RPT guidance of +1–2%, citing mix shifts and timing. Patient care costs were lower than expected due to productivity gains; G&A rose due to continued technology investments. Capital allocation included 3M shares repurchased in Q1 and an additional 2M since quarter-end (including shares from Berkshire Hathaway); leverage ended the quarter at 3.34x consolidated EBITDA within target. Guidance was raised and narrowed: adjusted operating income to $2.15B–$2.25B and adjusted EPS to $14.10–$15.20. Management emphasized a long-term view on tech investments and maintained a cautious stance on ACA enrollment impacts until effectuation and mix are clearer.