$DVA · DAVITA INC.
DaVita Inc. filed its Q3 2026 10-Q, reporting diluted EPS of $3.40 on revenue of $3.578B (+4.6% YoY). Net income attributable to DaVita rose 48% to $222.9M. The quarter included a $62.2M goodwill and asset impairment charge. Aggressive share repurchases continued, with $862.5M in buybacks over nine months shrinking the basic share count from 72.1M to 63.8M.
- Diluted EPS of $3.40 rose 67% YoY from $2.04, driven by revenue growth and a 11.2% reduction in diluted share count.
- Total revenue reached $3.578B (+4.6% YoY), with U.S. dialysis patient service revenue at $3.043B.
- Net income attributable to DaVita Inc. was $222.9M, up 48% from $150.3M in Q3 2025.
- Goodwill and other asset impairment charges of $62.2M were recorded in the quarter, with no comparable charge in Q3 2025.
- DaVita repurchased $862.5M in treasury stock over nine months, reducing basic shares outstanding from 72.1M to 63.8M YoY.
Extended-hours trading shows DVA at $176.52, down 8.69% from the regular-session close of $193.31. The selloff likely reflects the $62.2M goodwill impairment charge and potential disappointment that the strong EPS beat was partly buyback-driven rather than purely operational.
The 67% EPS jump masks a $62.2M impairment and heavy buyback dependence — investors need to separate operational strength from financial engineering.
DaVita's 4.6% revenue growth and expanding operating margins reflect the durable demand in dialysis services, though the goodwill impairment and heavy reliance on buybacks to drive EPS growth are sector-wide concerns for capital-intensive healthcare providers.
The $62.2M goodwill and other asset impairment charge signals potential overpayment for prior acquisitions. Noncontrolling interests subject to put provisions total $1.48B, representing a significant off-balance-sheet obligation that could pressure future liquidity.