DaVita beats, raises guidance

 

DaVita beats Q1 2026 estimates with EPS $2.87, revenue $3.416B and raises 2026 earnings outlook on better volume, labor productivity

• Q1 2026 revenue grew 6% YoY to $3.416B, while non-GAAP EPS increased 44% YoY.
• Q1 adjusted operating income was $482 million, about $50 million above internal forecast.
• Q1 adjusted EPS from continuing operations was $2.87; free cash flow was $140 million.
• Full-year 2026 adjusted operating income guidance raised to $2.15–$2.25 billion, with midpoint up $40 million.
• Full-year adjusted EPS guidance raised to $14.10–$15.20, driven by higher volume and lower care costs.
• U.S. treatments per normalized day grew ~40 bps YoY, about 20 bps above expectations.
• Full-year treatment growth outlook increased from flat to +25–50 bps, including Fresenius clinic closures benefit.
• Q1 revenue per treatment grew ~4% YoY; full-year RPT growth guidance maintained at 1–2% amid expected mix pressure.
• ACA enrollment trends slightly better than prior ~$40 million 2026 headwind estimate, but mix and affordability remain uncertain.
• G&A rose 13% YoY on technology investments, but total cost per treatment CAGR remains ~2.6% over five years.
• Integrated Kidney Care delivered top CKCC savings and quality scores but still posted a $19 million operating loss.
• Main concern: Payer mix and ACA dynamics could pressure revenue per treatment and offset operating gains.
• Strong quarter, driven by better-than-expected treatment volumes, labor productivity, and lower patient care costs.
• Repurchased 5.0M shares for about $705M through May 5 as part of capital return program.

https://finviz.com/quote?t=DVA&p=d