Key Highlights

  • Total revenues were $3,578 million in the third quarter, up from $3,420 million a year earlier.
  • Diluted EPS attributable to the company was $3.40, versus $2.04 in the third quarter of 2025.
  • Operating income was $499 million after a $62 million Goodwill and asset Impairment tied to China.
  • Diluted shares fell to 65.5 million from 73.8 million a year earlier.
  • Nine-month free Cash Flow was $672 million, compared with $716 million a year earlier.

Revenue growth of about 4.6% and a sharp rise in per-share profit

DaVita (NYSE:DVA) provides kidney dialysis and related lab services to patients in the United States and also runs integrated kidney care and international dialysis operations. It filed its Quarterly Report for the period ended September 30, 2026 on October 29, 2026.

Total revenues were $3,578.1 million, up from $3,420.2 million in the third quarter of 2025, an increase of about 4.6% on a calculated basis. Net Income attributable to the company was $222.9 million, against $150.3 million, and diluted EPS rose to $3.40 from $2.04.

Fewer shares and lower minority share of profit lift EPS

Part of the EPS gain came from the share count. Diluted weighted average shares were 65.5 million, down about 11.2% from 73.8 million on a calculated basis. Net income attributable to noncontrolling interests also fell to $46.5 million from $89.9 million.

Operating income was $499.3 million, slightly below $505.8 million a year earlier, so the profit growth came from below the operating line. Other income was $9.5 million, compared with a $41.3 million loss in the prior year quarter.

Dialysis volumes steady, with a China impairment in ancillary services

U.S. dialysis revenues were $3,050 million, with 7.33 million treatments in the quarter and average patient service Revenue per treatment of $415.25. U.S. dialysis Operating Income was $544 million. Management said treatments per day rose from a year earlier on higher patient census, partly offset by a slight increase in missed treatment rates.

Ancillary services posted an operating loss of $19 million after a $62 million goodwill and other asset impairment tied to the China business, attributed to adverse reimbursement rate changes and developments in non-renal hospital services. Adjusted ancillary operating income was $44 million. On July 20, 2026, the company also paid $200 million in cash for a noncontrolling minority interest in Elara Caring, a home health and hospice provider.

Cash flow, Debt and repurchases

For the nine months, net cash from Operating Activities was $1,329.7 million, against $1,345.8 million a year earlier, and free cash flow was $672 million, down from $716 million. The company repurchased 5.8 million shares in that period, compared with 10.0 million a year earlier.

At September 30, 2026, cash and cash equivalents were $495.6 million, and total debt principal outstanding was $10,832 million. In the third quarter the company bought back 594 thousand shares at an average of $186.21, and about $1,212 million remained available under repurchase authorizations as of October 27, 2026.

Policy items and what to watch next

On October 28, 2026, the federal payment agency issued a final rule for the 2027 end stage renal disease payment system, estimating a 2.7% increase in average reimbursement for freestanding facilities. Management also flagged that expiry of enhanced premium tax credits has weighed on commercial mix and revenue per treatment.

The company expects to offer expanded hemodialysis to the vast majority of eligible patients in November, with supplier transition costs likely. Commercial mix, labor costs and the pace of repurchases are the items to follow.