third quarter 2026
Filed Oct 29, 2026DaVita reported $3.578 billion of consolidated revenues, $499 million of operating income and $3.40 of diluted earnings per share for the quarter ended September 30, 2026.
Revenue and U.S. dialysis treatment volume increased sequentially, while the quarter included a $62 million China goodwill and other asset impairment charge, operating income declined sequentially, and operating cash flow and free cash flow were below the prior-year quarter.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenues, three months ended September 30, 2026 (dollars in thousands)GAAP | $3.58B | – | – |
| Dialysis patient service revenues, three months ended September 30, 2026 (dollars in thousands)GAAP | $3.41B | – | – |
| Other revenues, three months ended September 30, 2026 (dollars in thousands)GAAP | $169.9M | – | – |
| Operating income, three months ended September 30, 2026 (dollars in thousands)GAAP | $499.3M | – | – |
| Operating margin, three months ended September 30, 2026GAAP | 14.0 % | – | – |
| Adjusted operating income, three months ended September 30, 2026non-GAAP | $561M | – | – |
| Adjusted operating margin excluding certain items, three months ended September 30, 2026non-GAAP | 15.7 % | – | – |
| Net income, three months ended September 30, 2026 (dollars in thousands)GAAP | $269.4M | – | – |
| Net income attributable to DaVita Inc., three months ended September 30, 2026 (dollars in thousands)GAAP | $222.9M | – | – |
| Diluted net income per share attributable to DaVita Inc., three months ended September 30, 2026GAAP | $ 3.40 | – | – |
| Adjusted net income attributable to DaVita Inc., three months ended September 30, 2026non-GAAP | $250M | – | – |
| Adjusted diluted net income per share attributable to DaVita Inc., three months ended September 30, 2026non-GAAP | $ 3.82 | – | – |
| Operating cash flow, three months ended September 30, 2026GAAP | $519M | – | – |
| Free cash flow, three months ended September 30, 2026non-GAAP | $276M | – | – |
| U.S. dialysis treatments, three months ended September 30, 2026other | 7,329,644 | – | – |
| Average treatments per day, three months ended September 30, 2026other | 92,780 | 0.1% | 1.2 % |
| Normalized non-acquired treatment growth, three months ended September 30, 2026other | 0.4% | – | 0.4% |
| Average patient service revenue per treatment, three months ended September 30, 2026other | $ 415.25 | $ (0.62) | – |
| Patient care costs per treatment, three months ended September 30, 2026other | $ 280.22 | $ 2.82 | – |
| General and administrative expenses per treatment, three months ended September 30, 2026other | $ 43.14 | – | – |
| Effective income tax rate on income, three months ended September 30, 2026GAAP | 24.9 % | – | – |
| Effective income tax rate on adjusted income attributable to DaVita Inc., three months ended September 30, 2026non-GAAP | 26.6 % | – | – |
| Total debt, September 30, 2026other | $10.83B | – | – |
| Net debt, net of cash and cash equivalents, September 30, 2026other | $10.34B | – | – |
| Leverage ratio, September 30, 2026non-GAAP | 3.38x | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| U.S. dialysisThe quarter change in revenue per treatment was primarily driven by normal fluctuations, partially offset by an increase in average reimbursement rates and improvements in payor mix. | $3.05B | – | – |
| Integrated kidney careNot separately stated. | $144M | – | – |
| Other U.S. ancillaryNot separately stated. | $ 10 | – | – |
| International dialysis patient service and otherNot separately stated. | $398M | – | – |
| EliminationsNot separately stated. | $ (24) | – | – |
Amounts quoted below without a unit are in millions, as in the filing’s tables. Per-share figures are as printed.
Current 2026 guidance outlook
- NoteAdjusted operating income: $2,175 to $2,250
- NoteAdjusted diluted net income per share attributable to DaVita Inc.: $14.30 to $15.20
- NoteFree cash flow: $1,000 to $1,250
Capital returns
- During the three months ended September 30, 2026, the Company repurchased 0.6 million shares for $111 million, at an average price paid of $186.21 per share.
- Subsequent to September 30, 2026 through October 27, 2026, the Company repurchased 0.5 million shares of common stock for $87 million at an average price paid of $180.57 per share.
- Amount spent on share repurchases for the nine months ended September 30, 2026: $ 863.
- Number of shares repurchased for the nine months ended September 30, 2026: 5,837.
What drove it
- Revenue per treatment quarter change was primarily driven by normal fluctuations, partially offset by an increase in average reimbursement rates and improvements in payor mix.
- Patient care costs per treatment quarter change was primarily due to increased medical supplies expenses.
- General and administrative quarter change was primarily due to decreased professional fees.
- The Company recognized non-cash goodwill and other asset impairment charges related to its business in China.
- As of September 30, 2026, DaVita had approximately 80,800 patients in risk-based integrated care arrangements representing approximately $6.4 billion in annualized medical spend.
Concerns
- The China impairment charge was $62 million within operating income and had a $27 million net income impact attributable to DaVita Inc.
- Operating cash flow was $519 million and free cash flow was $276 million, compared with $842 million and $604 million, respectively, in the prior-year quarter.
- Patient care costs per treatment increased to $280.22 from $277.40 in the second quarter of 2026 due primarily to increased medical supplies expenses.
- Net debt, net of cash and cash equivalents, was $10,337 and the leverage ratio was 3.38x as of September 30, 2026.
- The release identifies continued downward pressure on average realized payment rates for higher-paying commercial payor plans as a risk.
What to watch
- Progress toward current 2026 adjusted operating income guidance of $2,175 to $2,250.
- Progress toward current 2026 adjusted diluted net income per share guidance of $14.30 to $15.20.
- Progress toward current 2026 free cash flow guidance of $1,000 to $1,250.
- U.S. dialysis normalized non-acquired treatment growth, which was 0.4% in the third quarter of 2026.
- Medical supplies, compensation, insurance costs and health benefits expenses.
- Commercial payor mix, reimbursement rates, and developments in risk-based integrated care arrangements.
Balance sheet and cash flow
- Cash and cash equivalents as of September 30, 2026: $ 495,629 (dollars in thousands).
- Restricted cash and equivalents as of September 30, 2026: $ 83,631 (dollars in thousands).
- Short-term investments as of September 30, 2026: $ 70,673 (dollars in thousands).
- Long-term debt as of September 30, 2026: $ 10,656,624 (dollars in thousands).
- Current portion of long-term debt as of September 30, 2026: $ 112,491 (dollars in thousands).
- Net cash provided by operating activities for the nine months ended September 30, 2026: $ 1,329,730 (dollars in thousands).
- Additions of property and equipment for the nine months ended September 30, 2026: $ (431,323) (dollars in thousands).
- Net cash used in investing activities for the nine months ended September 30, 2026: $ (753,447) (dollars in thousands).
- Net cash used in financing activities for the nine months ended September 30, 2026: $ (754,661) (dollars in thousands).
Analysis
DaVita reported consolidated revenues of $3.578 billion for the third quarter of 2026, compared with $3,420,227 in the prior-year quarter and $3,554 in the second quarter of 2026. Dialysis patient service revenues were $3,408,266, while other revenues were $169,860. U.S. dialysis treatments were 7,329,644, or 92,780 treatments per day. Management reported a 0.1% per-day increase from the second quarter and normalized non-acquired treatment growth of 0.4% compared with the third quarter of 2025.
Reported profitability was affected by a $62 million non-cash goodwill and other asset impairment charge related to the China business. Operating income was $499,255 and operating margin was 14.0%, compared with $579 and 16.3% in the second quarter of 2026. Adjusted operating income was $561 and adjusted operating margin was 15.7%. Net income attributable to DaVita Inc. was $222,931 and diluted net income per share was $3.40. Adjusted net income attributable to DaVita Inc. was $250 and adjusted diluted net income per share was $3.82.
Within U.S. dialysis, average patient service revenue per treatment was $415.25, compared with $415.87 in the second quarter. The release attributes the sequential revenue-per-treatment movement primarily to normal fluctuations, partly offset by higher average reimbursement rates and better payor mix. Patient care costs per treatment rose to $280.22 from $277.40, primarily due to increased medical supplies expenses. General and administrative expenses were $316, compared with $331 in the second quarter, primarily due to decreased professional fees.
Cash generation was lower than the prior-year quarter, with operating cash flow of $519 million and free cash flow of $276 million, versus $842 million and $604 million, respectively. The Company repurchased 0.6 million shares for $111 million during the quarter and subsequently repurchased 0.5 million shares for $87 million through October 27, 2026. Total debt was $10,832 and net debt, net of cash and cash equivalents, was $10,337, with a leverage ratio of 3.38x.
Current 2026 guidance sets adjusted operating income at $2,175 to $2,250, adjusted diluted net income per share attributable to DaVita Inc. at $14.30 to $15.20, and free cash flow at $1,000 to $1,250. The current guidance raises the lower end of adjusted operating income from $2,150 and the lower end of adjusted diluted net income per share from $14.10, while retaining the upper ends and the free-cash-flow range. The guidance excludes certain items including goodwill impairment charges and foreign currency fluctuations.
Not in the filing
stated, not guessed- Gross margin
- Gross profit
- Dividend declaration or dividend payment
- Revenue guidance
- Gross-margin guidance
- Operating-expense guidance
- Tax-rate guidance
- Named executive quotes
- Third-quarter 2026 adjusted operating income prior-year-quarter amount
- Third-quarter 2026 adjusted diluted net income per share prior-year-quarter amount
- Third-quarter 2026 U.S. dialysis segment revenue prior-year-quarter amount
- Third-quarter 2026 International segment revenue prior-year-quarter amount
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.