DaVita Raises 2026 Adjusted Operating Income Guidance Floor to $2.175 Billion
Key Facts
DaVita raised the floor of its annual adjusted operating income guidance to $2.175 billion from $2.150 billion, and lifted the floor of its adjusted diluted earnings-per-share guidance to $14.30 from $14.10. The company kept the top end of both ranges at $2.250 billion and $15.20 per share, according to its third-quarter results statement. The revision followed adjusted operating income of $561 million for the quarter, with a 15.7% margin. Operating income, by comparison, was $499 million, with a 14.0% margin. For the second quarter, the company reported operating income of $579 million and diluted earnings per share of $4.02.
For estimates ahead of the quarter, Investing.com, citing Reuters, projected earnings per share of $3.55 and revenue of $3.51 billion. Second-quarter results included consolidated revenue of $3.554 billion, compared with an estimate of $3.55 billion before the results were announced, and diluted earnings per share of $4.02. These figures place the third quarter in a trajectory of lower earnings per share than the second quarter, based on the published figures for both periods. The company’s statement did not say how much, if at all, results exceeded analysts’ estimates. The reported operating results focus on income, margins and treatment volume, alongside the updated annual guidance.
The quarterly results included a noncash impairment charge for goodwill and other assets related to DaVita’s business in China. The charge was $62 million and reduced net income attributable to the company by $27 million. The disclosed impact on net income is therefore tied to the impairment charge, while the company also reported adjusted operating income of $561 million. Operating cash flow during the quarter was $519 million, while free cash flow reached $276 million. These metrics distinguish cash flows and reported operating results from the impact of the China charge on net income.
U.S. dialysis treatments totaled 7,329,644 in the third quarter, averaging 92,780 treatments per day. Average daily treatments increased 0.1% from the previous quarter, while non-acquisition adjusted treatment growth was 0.4% year over year. The company serves approximately 298,100 patients through 3,269 outpatient centers as of September 30, 2026. Of those, 2,671 centers are in the United States and 598 are in 14 other countries. The figures for patients, centers and treatments show the scale of the operating network tied to the company’s revenue and costs.
On treatment economics, revenue per treatment fell to $415.25 in the third quarter from $415.87 in the second quarter. In the opposite direction, patient care cost per treatment rose to $280.22 from $277.40 in the previous period. The company said the change in revenue per treatment was primarily due to normal fluctuations during the quarter. It added that higher average reimbursement rates and an improved payer mix offset part of that impact. DaVita attributed the increase in patient care costs primarily to higher medical supply expenses.
The new annual guidance raises the floor while keeping the top end unchanged, leaving the 2026 adjusted operating income range at $2.175 billion to $2.250 billion. The adjusted diluted earnings-per-share range is now $14.30 to $15.20. Before the update, the floor for the two guidance ranges was $2.150 billion and $14.10 per share, respectively. The floor increase comes alongside higher patient care cost per treatment and lower revenue per treatment than in the previous quarter. The statement did not change the top end of either range.
In the sector backdrop, an earlier Investing.com report citing Reuters said the U.S. national kidney care plan, unveiled on October 20, targets the dominance of DaVita and Fresenius Medical Care in the dialysis market. The report said the two companies control about 74% of the sector. It also reported that DaVita announced a partnership with Humana in August to expand care to more than 10,000 members with chronic kidney disease. According to the report, the partnership aims to delay or avoid dialysis by expanding care for these members. The initiative places part of the company’s activity in the context of care before patients reach dialysis treatment.
DaVita shares closed at $183.93 on October 28, 2026, according to EL7 data. The company said a call to discuss third-quarter results, for the period ended September 30, 2026, was held on October 29 at 5 p.m. Eastern Time. The call took place the day after the date on which EL7 data recorded the stock’s closing price. The company’s disclosure focuses on quarterly results and its revised annual guidance. The guidance update gives investors the performance range set by the company for the final quarter of 2026.