DaVita HealthCare (DVA) Up 13% Since Last Earnings Report: Can It Continue?

It has been about a month since the last earnings report for DaVita HealthCare (DVA). Shares have added about 13% in that time frame, outperforming the S&P 500.

But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is DaVita HealthCare due for a pullback? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent catalysts for DaVita Inc. before we dive into how investors and analysts have reacted as of late.

DaVita Q4 Earnings & Revenue Beat Estimates, Margins Expand

DaVita delivered adjusted earnings per share from continuing operations of $3.40 in the fourth quarter of 2025, up 51.8% year over year. The figure surpassed the Zacks Consensus Estimate by 5.1%.

GAAP earnings per share from continuing operations for the quarter was $2.94, reflecting a decline of 4.9% year over year.

Full-year adjusted earnings per share was $10.78, reflecting a 11.4% increase from the year-ago period. The figure beat the Zacks Consensus Estimate by 0.7%.

DaVita’s Revenues in Detail

Revenues of $3.62 billion in the fourth quarter increased 9.9% year over year. The figure topped the Zacks Consensus Estimate by 2.7%.

RPT in the fourth quarter of 2025 was $422.6 million, up 6.8% year over year and 2.9% sequentially. Per management, this was primarily driven by the resolution of aged receivables, normal rate increases and improved yield, a slight improvement in private pay mix after a dip in the third quarter and the typical seasonal impact of flu vaccines.

Full-year revenues were $13.64 billion, reflecting a 6.5% improvement from the year-ago period. The metric topped the Zacks Consensus Estimate by 0.7%.

DVA’s Segment Details

DaVita generates revenues via two sources — Dialysis patient service revenues and Other revenues.

The dialysis patient service revenues were $3.39 billion, up 8.9% year over year.

Other revenues were $220.6 million, up 25.7% from the year-ago quarter’s figure.

Per management, the total U.S. dialysis treatments for the fourth quarter were 7,264,520 or 91,608 per day, on average. This represents a per-day decrease of 0.1% on a sequential basis. Normalized non-acquired treatment declined 0.6% year over year in the fourth quarter of 2025.

As of Dec. 31, 2025, DaVita provided dialysis services to around 295,000 patients at 3,242 outpatient dialysis centers, of which 2,657 were U.S. centers while 585 were located across 14 other countries.

During the fourth quarter of 2025, the company acquired one and closed six dialysis centers in the United States. It also acquired three, opened one and closed five dialysis centers outside the United States in the same period.

As of Dec. 31, 2025, DaVita had approximately 66,000 patients in risk-based integrated care arrangements in its Integrated Kidney Care business, representing $5.6 billion in annualized medical spend. The company also had an additional 9,400 patients in other integrated care arrangements.

DaVita’s Margin Details

In the quarter under review, DaVita’s gross profit increased 13.2% year over year to $1.21 billion. The gross margin expanded 98 basis points (bps) to 33.4%.

General & administrative expenses climbed 13.9% year over year to $472.4 million.

Adjusted operating profit totaled $737.9 million, reflecting a 12.7% increase from the prior-year quarter’s level. Adjusted operating margin in the fourth quarter expanded 51 bps to 20.4%.

DVA’s Financial Position

DaVita exited fourth-quarter 2025 with cash and cash equivalents and short-term investments of $700.7 million compared with $736.5 million at the third-quarter end. Total debt (including the current portion) at the end of fourth-quarter 2025 was $10.27 billion compared with $10.25 billion at the third-quarter end.

Cumulative net cash provided by operating activities at the end of fourth-quarter 2025 was $1.89 billion compared with $2.02 billion a year ago.

During the three months ended Dec. 31, 2025, DVA repurchased 2.7 million shares for $331 million. Subsequent to Dec. 31, 2025, through Feb. 2, 2026, the company has repurchased 1.7 million shares of its common stock for $200 million.

DaVita’s Guidance

DaVita has initiated its outlook for 2026.

For 2026, DVA expects RPT to reflect growth of 1%-2%, while treatment volume is expected to be flat compared to 2025.

Adjusted earnings per share from continuing operations for the full year is projected to be in the range of $13.60-$15.00. The Zacks Consensus Estimate currently stands at $12.89.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a upward trend in estimates revision.

VGM Scores

Currently, DaVita HealthCare has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. However, the stock has a score of A on the value side, putting it in the top quintile for value investors.

Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been trending upward for the stock, and the magnitude of this revision looks promising. It comes with little surprise DaVita HealthCare has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.

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This article originally published on Zacks Investment Research (zacks.com).

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