Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
DaVita (DVA) delivered strong Q1 FY2026 results with revenue up 6.0% YoY to $3.42B and net income surging 21.2% to $197.5M, driven by improved operating leverage and significantly higher operating cash flow of $320.8M.
Revenue
$3.42B
+5.96% YoY
EPS (Diluted)
$2.87
+43.50% YoY
Operating Income
$481.89M
+9.79% YoY
Source: SEC XBRL
Davita (DVA) reported Q1 FY2026 revenue of $3.42B, up 6.0% year over year. Operating margin was 14.1%, up 0.5 points from 13.6% a year earlier. Operating cash flow was $320.83M, up 78.2% year over year. DVA's fiscal Q1 FY2026 corresponds to calendar Q1 2026.
Last 4 quarters: 3 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026 | 4.02 | 3.92 | Beat +2.5% |
| Mar 2026This filing | 2.87 | 2.34 | Beat +22.6% |
| Dec 2025 | 3.40 | 3.19 | Beat +6.7% |
| Sep 2025 | 2.04 | 3.25 | Miss -37.3% |
Reported EPS of $2.87 versus the $2.34 analyst consensus — a +22.6% beat for Mar 2026.
Compiled by AI from this SEC filing
Total revenue grew 6.0% YoY from $3.22B to $3.42B in Q1 FY2026, reflecting continued patient volume growth and favorable reimbursement rate dynamics in DaVita's dialysis services business.
Source: 10-Q Income Statement (XBRL Financial Data)
Operating margin improved approximately 50 basis points YoY to 14.1% (from 13.6%), with operating income rising 9.8% to $481.9M, indicating that revenue growth outpaced cost increases and the company achieved meaningful operating leverage.
Source: 10-Q Income Statement & Key Ratios (XBRL Financial Data)
Net income jumped 21.2% YoY to $197.5M, while diluted EPS surged 43.5% to $2.87 (from $2.00), with the outsized EPS gain relative to net income growth reflecting the impact of ongoing share repurchase activity reducing the share count.
Source: 10-Q Income Statement (XBRL Financial Data)
Operating cash flow increased 78.2% YoY to $320.8M from $180.0M, a substantial improvement that signals stronger cash earnings quality and working capital management in Q1 FY2026.
Source: 10-Q Cash Flow Statement (XBRL Financial Data)
DaVita repurchased $196.4M in shares during Q1 FY2026, down 61.5% from $510.2M in Q1 FY2025, suggesting a more measured capital return approach while still returning meaningful capital to shareholders.
Source: 10-Q Cash Flow Statement (XBRL Financial Data)
Compiled by AI from this SEC filing · 3 high, 2 medium, 0 low
DaVita's stockholders' equity deteriorated sharply to -$755.5M from -$267.1M a year ago, a decline of 182.9% YoY. This negative equity position, driven by accumulated share repurchases and debt-financed operations, could limit financial flexibility and raise concerns among lenders or counterparties.
Source: 10-Q Balance Sheet (XBRL Financial Data)
With total liabilities of $16.45B against negative equity, the debt-to-equity ratio stands at an extreme -21.8x, making traditional leverage metrics difficult to interpret but underscoring the company's reliance on debt financing. Rising interest rates or credit market tightening could significantly increase borrowing costs.
Source: 10-Q Balance Sheet & Key Ratios (XBRL Financial Data)
As a dialysis provider, DaVita is heavily dependent on Medicare and Medicaid reimbursement rates set by the federal government. Any adverse changes to the ESRD prospective payment system or bundled payment rates could materially impact revenue and profitability.
Source: 10-Q Financial Data (XBRL); industry-specific risk inferred from business model)
Total liabilities increased 6.4% YoY to $16.45B, growing faster than total assets (up 2.2% to $17.50B), which compresses the equity cushion further. This trajectory, if sustained, could pressure the company's credit ratings and increase financing costs.
Source: 10-Q Balance Sheet (XBRL Financial Data)
Share buybacks declined 61.5% YoY to $196.4M in Q1 FY2026, which may reflect constraints on capital allocation given the elevated debt load and negative equity. A sustained reduction in buybacks could slow EPS growth, which has been partly driven by share count reduction.
Source: 10-Q Cash Flow Statement (XBRL Financial Data)
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 3.42 $B | 3.22 $B | +5.96% |
Operating Income $M | 481.89 $M | 438.94 $M | +9.79% |
Net Income $M | 197.53 $M | 162.92 $M | +21.25% |
EPS (Basic) $ | 2.93 $ | 2.05 $ | +42.93% |
EPS (Diluted) $ | 2.87 $ | 2.00 $ | +43.50% |
Answers draw on this SEC filing and the data on this page
DaVita's Q2 FY2026 results featured accelerating treatment volumes and a strong rebound in IKC profitability, driving operating income growth despite lingering pressure on revenue per treatment.
DaVita (DVA) grew FY2025 revenue 6.5% to $13.6B but net income fell 40.3% to $747M, driven by a sharp increase in financing outflows and a swing to negative stockholders' equity of -$651M due to aggressive share buybacks.
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