DaVita’s fourth quarter results drew a positive market response, as the company outpaced Wall Street expectations on both revenue and non-GAAP profit. Management identified revenue per treatment growth and disciplined execution in its Integrated Kidney Care (IKC) segment as the main contributors to performance, despite a year-over-year decline in operating margin. CEO Javier Rodriguez highlighted the company’s progress in patient outcomes within IKC programs, citing better treatment adherence and reduced hospitalizations. The quarter also saw the impact of higher health benefit costs, which partially offset operational gains.
Is now the time to buy DVA? Find out in our full research report (it’s free for active Edge members).
DaVita (DVA) Q4 CY2025 Highlights:
- Revenue: $3.62 billion vs analyst estimates of $3.51 billion (9.9% year-on-year growth, 3.2% beat)
- Adjusted EPS: $3.40 vs analyst estimates of $3.19 (6.5% beat)
- Adjusted EBITDA: $772.8 million vs analyst estimates of $742 million (21.4% margin, 4.2% beat)
- Adjusted EPS guidance for the upcoming financial year 2026 is $14.30 at the midpoint, beating analyst estimates by 12.1%
- Operating Margin: 15.5%, down from 17.2% in the same quarter last year
- Sales Volumes were flat year on year, in line with the same quarter last year
- Market Capitalization: $9.65 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From DaVita’s Q4 Earnings Call
- Kevin Fischbeck (Bank of America) pressed for specifics on the timeline to achieve 2% treatment volume growth. CEO Javier Rodriguez explained that clinical initiatives are expected to show benefits over about two years, with full effects by 2029.
- Andrew Mok (Barclays) asked about trends in missed treatments and mortality. CFO Joel Ackerman stated that missed treatments were up in Q4 as expected seasonally, and clinical staff see a lagged correlation between missed treatments and mortality.
- Justin Lake (Wolfe Research) questioned the offset of ACA premium tax credit and cyber incident headwinds. Ackerman clarified that the $40 million ACA impact in 2026 is offset by the absence of 2025’s cyber incident costs, with no unusual claim resolutions expected.
- Pito Chickering (Deutsche Bank) sought more detail on the pace of IKC profit improvement. Ackerman responded that as the business matures, annual profit growth is expected to slow, with $20 million in incremental contribution modeled for 2026.
- Ryan Langston (TD Cowen) inquired about flu vaccination rate changes. Rodriguez said the rate was 80% in Q4, down from historical highs, and DaVita aims to return to over 90%.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will monitor (1) progress in restoring flu vaccination rates and expanding adoption of new clinical protocols, (2) the pace of profit growth in the IKC segment as it matures, and (3) the impact of the Elara Caring partnership on reducing missed treatments and hospitalizations. We are also watching for further policy changes and enrollment trends affecting reimbursement.
DaVita currently trades at $138.80, up from $111.19 just before the earnings. At this price, is it a buy or sell? Find out in our full research report (it’s free).
High-Quality Stocks for All Market Conditions
If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.
Don’t wait for the next volatility shock. Check out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).
Stocks that have made our list include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.
