How Much Should This Move Change Your View Of DaVita Stock

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DaVita (DVA) stock rose 71.6% from January 29 to October 26, 2026, while the S&P 500 returned 11.1%. The climb followed the dialysis company's quarterly reports in February and May, and the stock gave back part of the gain after its August report. What did DaVita tell investors in those reports?

DaVita Forecast Higher 2026 Profit In February And May

In both reports, DaVita pointed to more profit in 2026. On February 2, the company issued a 2026 profit forecast above estimates, according to news reports, and the shares closed 21.2% higher on February 3. On May 5, first-quarter results beat Wall Street estimates. The company then raised its forecast for annual adjusted profit, and the stock gained 23.5% on May 6, marking its biggest one-day gain in the past year. DaVita's peers did not come close. Encompass Health, the strongest of three peers that include HCA Healthcare and Community Health Systems, rose 31.9% over the same nine months.

The August 4 report was different. DaVita said revenue per treatment fell from the first quarter, partly because patients left Obamacare plans after pandemic-era subsidies ended. The company reaffirmed its annual forecast rather than raising it, and the shares fell 17.2% on August 5.

How Much Has DaVita's Profit Really Grown?

On a per-share basis, profit grew considerably. Over the twelve months to June 2026, diluted earnings per share rose to $12.22 from $10.17. In total, however, profit grew very little. Net income was $0.847 billion, barely above the $0.836 billion from a year earlier. With profit nearly flat, the per-share gain came from a smaller share count. DaVita had 66.1 million diluted shares at the end of June 2026, against 77.4 million a year earlier. The company spent $1.56 billion buying back its shares over those twelve months, consuming nearly all of its $1.61 billion of free cash flow.

Most of DaVita's revenue comes from U.S. dialysis, and its treatment count grows slowly. DaVita's treatments in the June quarter rose just over half a percent from a year earlier. Management credited the gain to better patient survival.

Has DaVita's Margin Changed Over The Past Year?

The margin barely moved. DaVita's operating margin was 14.9% over the twelve months to June 2026, against 15.0% in the twelve months to June 2025.

Revenue per treatment, or what DaVita collects for each session, was 3.6% higher in the first half of 2026 than a year earlier. Management expects the second half to come in slightly below the same months of 2025, as fewer of its patients have commercial insurance and phosphate binder revenue falls. Management put the cost of the loss of commercially insured patients alone at $40 million for 2026 and $70 million for 2027.

The stock move should therefore change your view of DaVita's profit less than its size suggests. Profit per share rose on a smaller share count, while net income and the operating margin barely moved over the past year. Revenue per treatment, which management expects to slip in the second half, is the number to watch in DaVita's fiscal Q3 2026 results.

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