DaVita reports first profitable year in kidney care with record 2025 earnings

DaVita reports first profitable year in kidney care with record 2025 earnings

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DaVita reports first profitable year in kidney care with record 2025 earnings

DaVita has reported its first profitable year in Integrated Kidney Care (IKC), slightly ahead of expectations. The company also announced strong financial results for 2025, with adjusted earnings per share reaching $10.78 for the full year.

CEO Javier Rodriguez highlighted disciplined execution and the fulfilment of commitments set at the start of the year.

The company's fourth-quarter performance included adjusted earnings per share of $3.40. Adjusted operating income for the same period was $586 million, bringing the full-year total to $2.094 billion.

Looking ahead, DaVita forecasts adjusted earnings per share between $13.60 and $15.00 for 2026. This represents a 33% growth at the midpoint. Adjusted operating income is expected to range from $2.085 billion to $2.235 billion, reflecting a 3.2% midpoint increase. Free cash flow projections for 2026 sit between $1 billion and $1.25 billion.

Over the past five years, DaVita's revenue-per-treatment grew at a compound annual rate of 4.2%. This outpaced competitors like Fresenius Medical Care (3.1%) and U.S. Renal Care, driven by stronger pricing power and operational efficiencies.

The company continues to invest in patient care improvements and future growth. Key initiatives include advancing dialysis technologies, maintaining high vaccination rates, and a new partnership with Elara Caring. This collaboration aims to create an end-stage kidney disease (ESKD) focused offering.

Data shows IKC patients are 35% more likely to begin dialysis with permanent vascular access. This leads to better patient outcomes and lower costs in the first 180 days of treatment.

DaVita's financial outlook for 2026 includes higher earnings, steady operating income growth, and strong cash flow. The company's focus on clinical innovation and strategic partnerships aims to enhance patient care while maintaining financial discipline. These steps follow a period of consistent revenue growth and competitive performance in the kidney care sector.

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