DaVita Raises Low End of 2026 Adjusted EPS Guidance After Third-Quarter EPS Climbs to $3.40

DaVita raised the low end of its 2026 profit outlook after third-quarter diluted earnings climbed to $3.40 a share from $2.04 a year earlier, despite a $62 million impairment charge tied to its business in China, according to the earnings release it filed with an 8-K on Thursday after the market close.

The kidney dialysis provider now expects 2026 adjusted diluted EPS of $14.30 to $15.20, up from a prior range of $14.10 to $15.20. It raised the bottom of its adjusted operating income outlook to $2.175 billion from $2.150 billion, keeping the top at $2.250 billion. Free cash flow guidance was unchanged at $1.000 billion to $1.250 billion.

Third-quarter revenue rose to $3.578 billion from $3.420 billion a year earlier. Net income attributable to DaVita was $223 million, compared with $150 million. Adjusted diluted EPS was $3.82.

China charge weighs on operating income

Operating income was $499 million, a 14.0% margin, compared with $506 million a year earlier. Adjusted operating income, which excludes the impairment, was $561 million, a 15.7% margin.

DaVita said it recognized non-cash goodwill and other asset impairment charges related to its business in China. After a $1 million tax benefit and a $34 million noncontrolling interest credit, the charge reduced net income attributable to DaVita by $27 million.

Compared with the second quarter, results softened. Adjusted diluted EPS was down from $4.02, and the adjusted operating margin narrowed from 16.3%.

Treatment volumes and costs

U.S. dialysis treatments totaled 7,329,644 in the quarter, or an average of 92,780 a day, up 0.1% per day from the second quarter. Normalized non-acquired treatment growth versus a year earlier was 0.4%.

Revenue per treatment was $415.25, down 62 cents from the second quarter, while patient care costs per treatment rose $2.82 to $280.22, which the company attributed primarily to higher medical supplies expenses. General and administrative expense fell to $316 million from $331 million in the second quarter on lower professional fees.

As of Sept. 30, DaVita served about 298,100 patients at 3,269 outpatient dialysis centers, including 2,671 in the U.S. and 598 in 14 other countries. It had about 80,800 patients in risk-based integrated kidney care arrangements, representing roughly $6.4 billion in annualized medical spend.

Buybacks and cash flow

DaVita repurchased 0.6 million shares for $111 million in the quarter at an average price of $186.21. From Oct. 1 through Oct. 27, it bought back another 0.5 million shares for $87 million at an average of $180.57.

Operating cash flow was $519 million, down from $842 million a year earlier, and free cash flow was $276 million, compared with $604 million.

By the numbers

• $3.578 billion: third-quarter revenue, up from $3.420 billion
• $3.40: diluted EPS, up from $2.04; $3.82 adjusted
• $14.30 to $15.20: raised 2026 adjusted EPS guidance
• $62 million: China-related impairment charge
• 0.4%: normalized non-acquired U.S. treatment growth

Sources

1. DaVita Form 8-K with third-quarter 2026 earnings release (Exhibit 99.1), filed Oct. 29, 2026 (accession 0000927066-26-000132)

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