DaVita lifts 2026 adjusted EPS outlook

Davita

05/05/2026 21:21

Overview

U.S. dialysis provider's Q1 revenue rose, beating analyst expectations

Adjusted EPS for Q1 beat analyst expectations

Company repurchased 3.0 mln shares during the quarter

Outlook

DaVita raises 2026 adjusted operating income guidance to $2.15 bln-$2.25 bln from $2.085 bln-$2.235 bln

Company lifts 2026 adjusted diluted EPS outlook to $14.10-$15.20 from $13.60-$15.00

DaVita maintains 2026 free cash flow guidance at $1.0 bln-$1.25 bln

Result Drivers

REIMBURSEMENT RATES - Revenue growth was driven by increases in average reimbursement rates, including Medicare base rate and other annual rate increases

HIGHER PATIENT CARE COSTS - Patient care costs per treatment increased over last quarter due to higher compensation and insurance costs, partially offset by lower health benefits and pharmaceutical expenses

INCREASED ADMINISTRATIVE EXPENSES - General and administrative costs rose year-over-year, mainly due to higher IT-related and compensation expenses

Company press release: ID:nPnbd6KrNa

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Beat
$3.42 bln
$3.36 bln (5 Analysts)
Q1 Adjusted EPS
Beat
$2.87
$2.32 (5 Analysts)

Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 6 "hold" and 1 "sell" or "strong sell"

The average consensus recommendation for the healthcare facilities & services peer group is "buy."

Wall Street's median 12-month price target for DaVita Inc is $153.06, about 0.7% below its May 4 closing price of $154.08

The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 9 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)