DaVita Inc. DVA used its second-quarter 2026 earnings call to emphasize improving mortality, stronger treatment volumes and expanded middle molecule clearance. Management kept its outlook intact while acknowledging commercial-mix and reimbursement pressure.
Reported earnings of $4.02 per share topped the Zacks Consensus Estimate of $4.01. Revenues of $3.55 billion exceeded the $3.53 billion estimate.
DVA Reaffirms Its Full-Year Outlook
CEO Javier Rodriguez said that management is reconfirming 2026 guidance as confidence improves in treatment volumes and exchange-plan effectuation rates. DaVita still expects adjusted operating income of $2.15-$2.25 billion.
CFO Joel Ackerman said that adjusted earnings guidance remains $14.10-$15.20 per share, with a midpoint of $14.65. Free cash flow guidance remains $1-$1.25 billion.
CFO Ackerman added that third-quarter adjusted operating income should be $50 million to $100 million below the fourth quarter, mainly because of integrated kidney care timing.
DaVita Sees Volume Momentum Strengthening
CFO Ackerman said U.S. dialysis treatments increased 56 basis points year over year, slightly above expectations because mortality was lower than anticipated. Higher missed treatments and fewer additions from closed Fresenius clinics partly offset the benefit.
CFO Ackerman now expects 2026 total treatment growth near the top of the prior 25-50-basis-point range. Normalized growth would equal roughly 50-75 basis points.
CEO Rodriguez tied the improvement to clinical outcomes that extend patients’ lives. Admissions were broadly in line with expectations, making mortality the main source of upside versus volume assumptions.
DVA Faces Pressure on Revenue per Treatment
CFO Ackerman said that revenue per treatment declined about $2 sequentially. The main factors were favorable first-quarter timing, lower phosphate-binder revenue and weaker commercial mix after ACA subsidies expired.
Although year-to-date revenue per treatment rose 3.6% from the first half of 2025, CFO Ackerman maintained the full-year growth forecast of 1-2%. The midpoint implies a slightly negative second-half comparison.
CFO Ackerman said that patient care cost per treatment fell about $3 sequentially as higher volume improved labor and fixed-cost absorption. U.S. dialysis general and administrative expense rose $11 million from the first quarter.
DaVita Expands Middle Molecule Access
CEO Rodriguez highlighted the MOTheR trial, which found expanded hemodialysis using a medium cutoff dialyzer non-inferior to hemodiafiltration on a combined endpoint of mortality and major cardiovascular events.
CEO Rodriguez said that expanded hemodialysis can run on existing machines, allowing faster deployment without significant capital investment. DaVita secured supply of newly approved NIPRO dialyzers and plans broad deployment in coming quarters.
In response to a UBS analyst, CFO Ackerman clarified that the financial impact should remain insignificant until a mortality benefit emerges. He said DaVita does not expect that effect before 2028.
DVA Addresses Cost Leverage Questions
A Barclays analyst asked why U.S. dialysis operating income showed limited year-over-year leverage despite treatment growth and lapping cybersecurity costs.
CFO Ackerman cited elevated cost-per-treatment growth and roughly 10% general and administrative expense growth as the main offsets. He said enterprise operating income still increased about 5%.
A Deutsche Bank analyst asked about center utilization. CFO Ackerman said that utilization remains in the high-50% range, versus about 65% at its pre-pandemic peak, while incremental profitability varies by payer mix and fixed-cost timing.
DaVita Maintains Capital Allocation Discipline
CFO Ackerman said that DaVita repurchased 2.2 million shares during the quarter and another 183,000 shares after quarter-end. CEO Rodriguez told a TD Cowen analyst that the higher stock price had not changed the buyback approach.
CFO Ackerman said that quarter-end leverage was 3.37 times consolidated EBITDA, within DaVita’s target range of 3 to 3.5 times.
CEO Rodriguez said that domestic acquisition opportunities remain limited to small clinics, with U.S. growth expected to rely more on new-center development.
DVA Keeps Clinical Strategy at the Center
CEO Rodriguez closed with a consistent message: clinical execution, mortality improvement and middle molecule clearance are central to DaVita’s plan for sustained volume growth.
Management’s tone was constructive but measured, balancing stronger clinical trends against commercial-mix pressure, reimbursement uncertainty and elevated cost growth.
What DaVita’s Zacks Signals Indicate
DVA carries a Zacks Rank #3 (Hold) at present. It has a Value Score of A, a Growth Score of A, a Momentum Score of B and a VGM Score of A, indicating favorable characteristics across the three investment styles. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Style Score complements the Zacks Rank, with A and B representing stronger grades. A Hold rank can pair with favorable Style Scores, but the Zacks Rank may change as analysts revise earnings estimates after the results.
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DaVita Inc. (DVA): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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