DaVita Shares Surge as Strong Dialysis Demand Fuels Optimistic 2026 Outlook
DENVER, Feb 2 (Reuters) — DaVita Inc. (DVA) delivered a powerful dose of optimism to investors Monday, forecasting 2026 adjusted earnings well above analyst estimates on the back of steady demand for its life-sustaining dialysis services. The bullish outlook, coupled with better-than-expected fourth-quarter results, propelled the company's shares up 13% in extended trading.
The provider of outpatient and home-based kidney dialysis services appears to have regained its footing after navigating quarters of elevated patient care and operational expenses. The company now anticipates 2026 adjusted earnings per share in the range of $13.60 to $15.00, a substantial leap from the LSEG-compiled consensus estimate of $12.65.
"Our results reflect the underlying strength and necessity of our services," a company statement indicated. Performance in the last quarter of 2023 was buoyed by higher reimbursement rates and a favorable mix, including a seasonal tailwind from flu vaccine services.
The positive momentum marks a notable recovery from a disruptive ransomware attack in April of last year, which compromised the personal data of approximately 2.7 million individuals and hampered parts of DaVita's operations. For the quarter ended December 31, DaVita reported adjusted earnings of $3.40 per share, surpassing estimates of $3.16. Quarterly revenue reached $3.62 billion, also topping forecasts of $3.50 billion.
The dialysis sector is often viewed as a defensive play within healthcare, given the chronic nature of kidney failure which ensures consistent demand regardless of economic cycles. DaVita's performance is being closely watched as a bellwether for how major providers are managing inflationary cost pressures while serving a vulnerable patient population.
Market Voices
Michael Torres, Portfolio Manager at Clearwater Capital: "This is a classic case of execution meeting essential demand. DaVita has effectively managed through significant headwinds—cybersecurity and cost inflation—and is now guiding for strong, profitable growth. It reinforces the investment thesis around non-discretionary healthcare services."
Dr. Anya Sharma, Nephrologist at City General Hospital: "While investors celebrate, we in the clinic see the human reality behind these numbers. The steady demand is a tragic indicator of the growing prevalence of kidney disease. DaVita's financial health is crucial, but it must translate into continued investment in patient care quality and accessibility."
Leo Grant, independent financial blogger: "A 13% pop on an earnings beat? Let's not forget this is a company that lost the data of millions of people just months ago. Where's the accountability premium? The market's short memory and obsession with guidance is staggering. This feels more like relief than a true turnaround."
Sarah Chen, Healthcare Analyst at Brimstone Research: "The guidance raise is materially significant. It suggests management has greater visibility on mitigating cost pressures and leveraging its scale. The rebound from the cyber incident also appears swifter than anticipated, which de-risks the story for the near term."
(Reporting by Siddhi Mahatole in Bengaluru; Editing by Vijay Kishore)