DaVita beat Q3 estimates but a $62M China charge sent shares lower
As seen on the 24/7 Wall St. homepage on October 29, 2026.
DaVita topped both EPS and revenue estimates and lifted the floor of its 2026 adjusted EPS guidance to $14.30, yet the stock fell anyway. The culprit: a $62 million non-cash China impairment and rising patient care costs per treatment.
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DaVita reported adjusted diluted EPS of $3.82 for Q3 2026, beating expectations, yet the stock fell as investors looked past the headline figures.
The immediate drag was a $62 million non-cash goodwill and asset impairment charge tied to the company's China business, which pushed the international segment to an operating loss for the quarter.
Patient care costs per treatment climbed to $280.22 on higher medical supplies expenses, and sustained pressure on per-treatment economics compresses the U.S. dialysis business that carries the company.
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Management raised the floor of its 2026 adjusted diluted EPS guidance to $14.30, while leaving free cash flow guidance unchanged.
DaVita kept buying back stock, repurchasing $111 million of shares in Q3, which supports per-share earnings even as free cash flow dropped 59% versus the prior year.
Sources
Mentioned: DVA