DaVita (DVA) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue was $3.42 billion, up 6% year-over-year, with operating income of $482 million and diluted EPS of $2.87; net income attributable to the company was $198 million, a 21% increase year-over-year.

• Delivered strong first quarter results, outperforming expectations across treatment volume, revenue per treatment, and cost per treatment.

• Continued momentum in Integrated Kidney Care (IKC) with year-over-year improvements in gross savings, quality, and high-performing status in CMS's CKCC program.

• Actively investing in IT and digital infrastructure, including AI-driven tools to enhance clinical and operational outcomes.

• 3.0 million shares were repurchased during the quarter at an average price of $133.70 per share, with an additional 2.0 million shares repurchased post-quarter.

Financial highlights

• U.S. dialysis segment revenue grew 4.2% year-over-year to $2.94 billion, with patient service revenue per treatment up 4.4%.

• Adjusted operating income was $482 million, about $50 million ahead of forecast, and adjusted EPS from continuing operations was $2.87.

• Free cash flow for Q1 2026 was $140 million, up from negative $45 million in Q1 2025, reflecting improved operating cash flow and lower capital expenditures.

• Patient care costs per treatment were $280.11, up 3.1% year-over-year due to higher compensation, insurance, and supply expenses.

• Operating margin for Q1 2026 was 14.1%, up from 13.6% in Q1 2025.

Outlook and guidance

• 2026 guidance for adjusted operating income is $2,150–$2,250 million, and adjusted diluted net income per share is $14.10–$15.20.

• Free cash flow guidance for 2026 remains $1,000–$1,250 million.

• Full-year volume growth expectations raised from flat to 25-50 basis points, with half from underlying performance and half from patient transfers due to competitor clinic closures.

• Management expects continued efficiency gains in labor costs and productivity throughout 2026.

• Guidance assumes continued labor efficiencies and higher treatment volume; operating income expected to be evenly split across remaining quarters.