DaVita Raises Low End of 2026 Earnings Outlook as Cash Flow Declines

DaVita raised the lower end of its 2026 adjusted earnings guidance on October 29 after reporting higher third-quarter revenue and net income, even as its operating and free cash flow declined substantially from a year earlier.

The US dialysis services company recorded $3.578 billion in quarterly revenue, compared with $3.420 billion in the corresponding period of 2025. Net income attributable to DaVita was approximately $223 million, compared with $150 million a year earlier. Diluted earnings under generally accepted accounting principles rose to $3.40 per share from $2.04, while adjusted earnings reached $3.82 per share. The adjusted measure excludes certain charges and should not be confused with reported earnings.

Cash generation moved in the opposite direction. Operating cash flow declined to $519 million from $842 million, while free cash flow fell to $276 million from $604 million. The company also recorded a $62 million non-cash impairment relating to its business in China, which reduced net income attributable to DaVita by $27 million after accounting for taxes and noncontrolling interests.

DaVita increased the low end of its full-year adjusted operating-income forecast to $2.175 billion from $2.150 billion, leaving the upper end at $2.250 billion. It also lifted the low end of adjusted earnings-per-share guidance to $14.30 from $14.10, retaining the $15.20 upper end. These figures represent management expectations for the full year, not completed results.

The company bought back approximately $111 million of its shares during the quarter and disclosed additional repurchases after September. Its financial performance reflects improved reported profitability alongside weaker cash conversion, a distinction relevant to evaluating the outlook for a large provider of kidney-care services.