Davita Healthcare Partners Stock Earnings Reports

DaVita reported third quarter results roughly in line with internal expectations: adjusted operating income of $517 million, adjusted EPS of $2.51, and free cash flow of $604 million. U.S. treatments per day declined ~1.5% year-over-year driven primarily by a mix of calendar days, higher mortality from a severe flu season, Hurricane Helene and a cyber incident; the company estimates those discrete events created a ~75–100 basis point headwind to 2025 volume. Revenue per treatment improved sequentially (driven by rate increases, phosphate binder revenue and Q2 cyber-related effects) while patient care costs per treatment rose modestly (wage inflation and higher binder dispensing). Management reaffirmed full-year guidance (CFO emphasized a midpoint for adjusted operating income and EPS consistent with prior guidance) and narrowed ranges. Capital allocation remained active: ~10 million shares repurchased year-to-date (~$1.5 billion), including purchases under an agreement with Berkshire Hathaway; leverage finished the quarter at ~3.37x consolidated EBITDA. Key 2026 swing factors include treatment volume normalization (benefit from non-recurrence of 2025 discrete headwinds), payer mix dynamics (Medicare Advantage and potential changes to enhanced premium tax credits), timing/recognition of IKC (value-based care) results, and continued investments in IT/AI and revenue operations that elevate near-term G&A but aim to improve long-term clinical outcomes, efficiency and revenue cycle performance.