$DVA · DAVITA INC.
DaVita reported Q3 2026 results with consolidated revenue of $3.578B, GAAP diluted EPS of $3.40, and adjusted diluted EPS of $3.82. Results included a $62M non-cash goodwill and asset impairment charge tied to the China business. Operating cash flow was $519M and free cash flow was $276M. The company maintained its full-year 2026 adjusted operating income guidance of $2.175B–$2.250B and adjusted diluted EPS guidance of $14.30–$15.20.
- Adjusted diluted EPS of $3.82 vs. $4.02 in Q2 2026, a sequential decline of 5%.
- GAAP diluted EPS of $3.40 includes a $62M non-cash goodwill and asset impairment charge for the China business.
- Consolidated revenue of $3.578B, up 4.6% YoY from $3.420B in Q3 2025.
- Operating cash flow fell to $519M from $842M in Q3 2025; free cash flow dropped to $276M from $604M.
- Repurchased 0.6M shares at $186.21 avg; post-quarter through Oct 27 bought another 0.5M shares at $180.57 avg.
Extended-hours trading shows DVA at $180.00, down 6.89% from the regular-session close of $193.31. The sequential EPS decline, sharp YoY free cash flow drop ($276M vs. $604M), and the China impairment charge are likely weighing on sentiment despite the in-line full-year guidance.
The combination of a sequential earnings decline, a $62M China impairment, and free cash flow halving year-over-year raises questions about capital allocation sustainability despite maintained guidance.
DaVita's treatment volume growth remains anemic at 0.4% normalized non-acquired growth, consistent with the mature U.S. dialysis market. IKC risk-based patients grew to 80,800 with $6.4B in annualized medical spend, reflecting the industry's shift toward value-based care.
The $62M non-cash goodwill and asset impairment charge on the China business signals deteriorating international operations. Free cash flow halved YoY ($276M vs. $604M), and the effective tax rate on adjusted income rose to 26.6% from 25.8% YTD.