TD Cowen maintains DaVita at Buy, raises price target to $228 from $220

Washington state sued DaVita and Fresenius Medical Care, alleging they suppress competition by requiring nephrologists to sign noncompete agreements, reducing patient treatment options. The state seeks to void these agreements and impose fines. DaVita denies wrongdoing; Fresenius did not comment. The FTC is also investigating. DaVita operates 51 centers in Washington, Fresenius 29, with some areas having only one provider.

DaVita (DVA) reported Q3 2026 adjusted operating income of $561M and EPS of $3.82. The company highlighted clinical advancements in fluid management and expanded HD dialyzers, expecting a national rollout by November. DaVita raised its Integrated Kidney Care (IKC) guidance to $65M for 2026, citing improved savings rates and partnerships. Full-year 2026 adjusted operating income is projected to be $2.175B-$2.25B, with EPS between $14.30-$15.20.

DaVita (DVA) reported Q3 earnings, highlighting a 20% year-over-year increase in technology spending and a national rollout of expanded hemodialysis dialyzers. The company expects technology investment growth to decelerate but not decline in 2027. DaVita raised its outlook for Integrated Kidney Care, projecting at least $65 million in adjusted operating income for 2026.

DaVita Inc (DVA) narrowed its 2026 adjusted operating income and EPS guidance due to higher US dialysis costs. Revenue per treatment grew 1.1% YoY, while patient care costs rose 2.4%. The new ESRD rule's 3.5% rate increase is expected to have a net impact of 1.5% to 2% for 2027. CEO Javier Rodriguez highlighted growth plans for the IKC business and the company's stance on the HHS Kidney Care National Plan.

DaVita reported Q3 2026 revenue of $3.58B, up 4.6% YoY, with net income rising 48.3% to $222.93M and EPS increasing 66.7% to $3.4. Nine-month revenue grew 5.2% to $10.55B, driven by U.S. and international dialysis operations. The company faced challenges from ACA premium tax credit expirations and China reimbursement pressures.

DaVita (DVA) reported Q3 2026 revenue of $3.58B, beating estimates by 1.7% YoY. Adjusted EPS of $3.82 exceeded expectations by 6.9%. Management raised full-year EPS guidance to $14.75. Operating margin remained steady at 14%, but free cash flow margin declined to 7.7% from 19.7% YoY. Sales volumes increased 1.2% YoY, reversing a prior decline.