DaVita Inc. Q2 2026 Earnings Recap

Shares dropped 19.3% following DaVita’s Q2 report as investors reacted negatively to margin compression and a cautious outlook driven by lower sequential revenue per treatment and expected headwinds from declining ACA enrollment and phosphate binder reimbursement.

Key Takeaways

• Volume growth accelerated year-over-year, slightly surpassing expectations due to improvements in patient mortality.
• Revenue per treatment declined sequentially, negatively impacted by a lower commercial mix from ACA enrollment declines and reduced contribution from phosphate binders.
• Gross margin pressure emerged, partly reflecting the transition of phosphate binders into the Medicare dialysis bundle and reimbursement complexities.
• Management highlighted support for upcoming CMS ESRD payment rule changes but acknowledged proposed Medicare base rate updates will likely trail industry cost inflation.
• New dialysis therapies (expanded HD with medium cutoff dialyzers) were positioned as a future growth and clinical advancement opportunity but have yet to offset current financial headwinds.