DaVita (DVA) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenues reached $3.554 billion, up 5.2% year-over-year, with operating income of $579 million and diluted EPS of $4.02, driven by growth in U.S. dialysis and ancillary services.

• Net income attributable to shareholders was $265 million for Q2 2026, up from $199 million in Q2 2025.

• Results aligned with expectations, supported by improved patient outcomes, operational execution, and clinical innovation such as expanded HD dialyzers.

• Share repurchases totaled 2.2 million shares in Q2, with additional post-quarter repurchases, maintaining Berkshire Hathaway's ownership near 45%.

• Full-year 2026 guidance reaffirmed, with continued focus on clinical, operational, and financial momentum.

Financial highlights

• Six-month revenues ended June 30, 2026 were $6.97 billion, up 5.6% year-over-year; six-month net income was $463 million.

• Free cash flow for Q2 was $256 million and $396 million for the first half; operating cash flow for Q2 was $490 million.

• Patient care costs per treatment were $277.40 in Q2 2026, up 3.2% year-over-year; revenue per treatment was $415.87.

• Operating margin improved to 16.3% in Q2 2026.

• 5.2 million shares repurchased in the first half of 2026; $1.37 billion remains authorized for future repurchases.

Outlook and guidance

• 2026 guidance: Adjusted operating income between $2.15 billion and $2.25 billion, adjusted diluted EPS between $14.10 and $15.20, and free cash flow between $1.0 billion and $1.25 billion.

• Full-year 2026 guidance maintained, with anticipated RPT growth of 1–2% and cost per treatment growth of 1.25%–2.25%.

• Sequential increase in adjusted operating income of $50–$100 million expected from Q3 to Q4, driven by IKC.

• Productivity improvements expected to offset some inflationary pressures; CMS proposed a 1.1% Medicare ESRD reimbursement increase for 2027.

• Volume growth expected near top end of 25–50 basis points guidance.