DAVITA INC. (DVA)

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AI: Fair-priced

Price checkAt $180.06, DaVita looks fairly priced because strong cash generation is offset by heavy debt.

The August 14 close was $180.06, the latest available price before the requested Monday premarket time. With 63.96 million June shares, that implies an $11.5 billion value for all shares. Against 2026 guidance of $14.10-$15.20 a share, the price is 11.8-12.8 times earnings. Guided free cash flow—cash left after operations, investment, and partner distributions—of $1.0-$1.25 billion equals an 8.7%-10.9% cash return at today’s price. Those attractive figures are offset by roughly $10.1 billion of net debt, supporting Fair-priced rather than either extreme.

Big pictureDialysis demand is steady, but patient growth is slow and insurance changes drive most uncertainty.

Revenue rose 5.2% from a year earlier to $3.55 billion in Q2 2026, while operating income rose 7.7% to $579 million and diluted earnings per share jumped 56% to $4.02, helped by fewer shares. After removing acquired clinics and calendar effects, U.S. treatment growth was only 0.3%, following 0.1% in Q1. Revenue per treatment slipped $1.72 sequentially to $415.87 as insurance mix changed. Dialysis is less economically cyclical than most businesses because treatment is essential, but patient mortality and reimbursement shifts still affect results.

Business strengthCash generation is dependable, while buybacks shrink shares but rising debt narrows the safety margin.

Operating cash flow stayed between $1.56 billion and $2.06 billion during 2020-2025; after capital spending, 2025 produced about $1.31 billion before partner distributions. Shares fell from 109.9 million at 2020 year-end to 64.0 million by June 2026, more than offsetting shares issued as employee pay. However, debt reached $10.78 billion, cash was $0.67 billion, and accounting value belonging to common shareholders was negative $0.77 billion. Net debt equaled about 3.6 times trailing earnings before interest, taxes, depreciation, and amortization. Near-term assets covered near-term liabilities 1.47 times, indicating adequate liquidity but limited downside protection.

What could change the storyStable payments and lasting cash would create upside; weaker insurance coverage or leverage would erase it.

The bull case needs roughly $1.0 billion-plus annual free cash flow to persist, modest treatment growth, and continued buybacks without more leverage; that could make today’s near-10% midpoint cash return cheap. The bear case is concrete: net debt rose $0.52 billion in 2026’s first half, Q2 revenue per treatment weakened, and expired health-insurance subsidies are estimated to reduce results by $40 million in 2026 and $70 million in 2027. Medicare proposed only a 1.1% industry payment increase for 2027. A higher final rate, better commercial coverage, or clear debt reduction strengthens the case; sub-$1 billion cash flow weakens it.

$180.06 price considered

AI: News

Second-quarter expectation resetStrong results could not offset lower treatment payments, an unchanged yearly forecast, and lofty expectations.

On August 4, DaVita reported $3.55 billion of revenue, $4.02 of diluted earnings per share, and $256 million in cash left after operations, investment, and partner distributions. Adjusted earnings exceeded the $3.88 analyst estimate. Management kept yearly earnings guidance at $14.10-$15.20, while revenue per treatment fell sequentially. Shares dropped 17.24% on August 5 and another 4.25% on August 6. Reuters linked after-hours weakness to lower treatment revenue and unchanged guidance; the larger full-day fall likely also reflected high prior expectations.

First-quarter guidance raiseA major earnings beat and higher annual outlook sharply lifted confidence in DaVita’s profit recovery.

On May 5, DaVita reported Q1 revenue of $3.416 billion, operating income of $482 million, and $2.87 of diluted earnings per share, up from $2.00 a year earlier. It raised 2026 adjusted earnings guidance from $13.60-$15.00 to $14.10-$15.20 and adjusted operating-income guidance to $2.15-$2.25 billion. Reuters reported shares gained more than 3% after hours; MarketScreener recorded a 22.49% rise in the next session. The earnings surprise and raised outlook were reported drivers, although exact attribution of every price move remains uncertain.

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Financial statements

	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015	2014	2013	2012	2011	2010	2009	2008	2007
Revenue	$13.64B	$12.82B	$12.14B	$11.61B	$11.62B	$11.04B	$10.92B	$10.71B	$10.09B	$9.73B	—	—	—	—	—	—	—	—	—
Operating income	$2.04B	$2.09B	$1.60B	$1.34B	$1.80B	$1.69B	$1.64B	$1.53B	$1.81B	$2.03B	$1.14B	$1.82B	$1.55B	$1.30B	$1.15B	$993.8M	$939.6M	$869.1M	$908.9M
EBITDAderived	$2.75B	$2.81B	$2.34B	$2.06B	$2.47B	$2.31B	$2.24B	$2.10B	$2.36B	$2.52B	$1.58B	$2.24B	$1.92B	$1.60B	$1.40B	$1.21B	$1.15B	$1.07B	$1.10B
Net income	$746.8M	$936.3M	$691.5M	$560.4M	$978.5M	$773.6M	$811.0M	$159.4M	$663.6M	$879.9M	$269.7M	$723.1M	$633.4M	$536.0M	$478.0M	$405.7M	$422.7M	$374.2M	$381.8M
Basic EPSper diluted share	$10.06	$11.02	$7.62	$6.03	$9.30	$6.46	$5.29	$0.93	$3.52	$4.36	$1.27	$3.41	$3.02	$2.79	$2.53	$4.00	$4.08	$3.56	$3.61
Diluted EPSper diluted share	$9.84	$10.73	$7.42	$5.85	$8.90	$6.31	$5.27	$0.92	$3.47	$4.29	$1.25	$3.33	$2.95	$2.74	$2.48	$3.94	$4.06	$3.53	$3.55

Review source filings at SEC.gov ↗

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys0$0.00 disclosed value

Sells (SEC code S)51$1.08B disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
Jun 16, 2026Form 4	Rodriguez JavierChief Executive Officer	SellCommon Stock	39.4K	$209.28	$8.25M	840.4K
Jun 15, 2026Form 4	Waters Kathleen AlyceChief Legal & Pub. Affairs Off	SellCommon Stock	6.5K	$209.17	$1.35M	109.2K
Jun 15, 2026Form 4	Waters Kathleen AlyceChief Legal & Pub. Affairs Off	SellCommon Stock	8.9K	$207.84	$1.86M	115.6K
Jun 15, 2026Form 4	Rodriguez JavierChief Executive Officer	SellCommon Stock	30.0K	$209.50	$6.29M	879.8K
May 15, 2026Form 4	HEARTY JAMES OChief Compliance Officer	SellCommon Stock	15.0K	$193.98	$2.91M	22.4K

Review ownership filings at SEC.gov ↗

DAVITA INC. (DVA)

Financial charts

Financial statements

Insider buys & sells