DaVita Raises Annual Profit Forecast After Q1 Earnings Beat Wall Street Estimates

Key Facts

1DaVita raised its forecast for annual adjusted profit after beating Wall Street estimates for first-quarter results.

2The company is betting on steady demand for its kidney dialysis services to drive growth.

DaVita (DVA) shares surged 20% to a new all-time high after reporting a non-GAAP EPS of $2.87, significantly beating consensus estimates. The company's operational strength was highlighted by a first-quarter revenue of $3.5 billion and an expanded adjusted operating margin of 19.1%. Following these results, Barclays analyst Andrew Mok raised the price target for DVA to $194.00 from $158.00. Furthermore, DaVita raised its full-year 2026 adjusted EPS forecast to a specific range of $14.10 to $15.20, reinforcing its mid-teens growth trajectory. This outlook is underpinned by a robust free cash flow yield exceeding 10%, signaling strong capital efficiency. Analysts believe these updated metrics and specific long-term targets underscore the company's strategic resilience and dominant position in the healthcare sector.

5 months ago

Version History

Version 45 months ago

What changed: Updated the story with the new Barclays price target ($194), the specific 2026 EPS guidance range ($14.10-$15.20), and the adjusted operating margin data.

Version 35 months ago

What changed: Updated to include the 'Buy' rating upgrade, specific EPS of $2.87, mid-teens EPS growth targets through 2026, and the free cash flow yield metric.

Version 25 months ago

What changed: Added specific stock price reaction (20% jump to all-time high) and concrete revenue figures ($3.5 billion, 6% growth).

Version 15 months ago

What changed: Updated the story to include specific details regarding the revenue beat and profit margin expansion in Q1 2026.