DVA

It has been about a month since the last earnings report for DaVita HealthCare (DVA). Shares have lost about 4.9% in that time frame, underperforming the S&P 500. Will the recent negative trend continue leading up to its next earnings release, or is DaVita HealthCare due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important drivers. DaVita Inc. (DVA) delivered adjusted earnings per share from continuing operations of $4.02 in the second quarter of 2026, up 36.3% year over year. The figure surpassed the Zacks Consensus Estimate by 0.3%. GAAP earnings per share from continuing operations for the quarter was also $4.02, reflecting an uptick of 55.8% year over year. Revenues of $3.55 billion in the second quarter increased 5.2% year over year. The figure topped the Zacks Consensus Estimate by 0.6%. RPT in the second quarter of 2026 was $415.9, up 2.8% year over year, but down 0.4% sequentially. Per management, the sequential decline reflected a lower commercial mix from declining Affordable Care Act enrollment and lower sequential revenue contribution from phosphate binders. DaVita generates revenues via two sources — Dialysis patient service revenues and Other revenues. The dialysis patient service revenues were $3.37 billion, up 4.9% year over year. Other revenues were $187.7 million, up 8.7% from the year-ago quarter’s figure. Per management, the total U.S. dialysis treatments for the second quarter were 7,226,600 or 92,649 per day, on average. This represents a per-day increase of 1.09% on a sequential basis. Normalized non-acquired treatment increased 0.3% year over year in the second quarter of 2026. As of June 30, 2026, DaVita provided dialysis services to around 298,500 patients at 3,266 outpatient dialysis centers, of which 2,671 were U.S. centers while 595 were located across 14 other countries. As of June 30, 2026, DVA had approximately 64,900 patients in risk-based integrated care arrangements in its Integrated Kidney Care business, representing $5.8 billion in annualized medical spend. The company also had an additional 5,700 patients in other integrated care arrangements. In the quarter under review, DaVita’s gross profit increased 3.9% year over year to $1.16 billion. However, the gross margin contracted 38 basis points (bps) to 32.7%. General & administrative expenses climbed 2.6% year over year to $423.5 million. Adjusted operating profit totaled $738.6 million, reflecting a 4.7% increase from the prior-year quarter’s level. Adjusted operating margin in the second quarter contracted 8 bps to 20.8%. DaVita exited second-quarter 2026 with cash and cash equivalents and short-term investments of $688.9 million compared with $666.5 million at the end of the first quarter of 2026. Total debt (including the current portion) at the end of second-quarter 2026 was $10.78 billion compared with $10.63 billion at the end of the first quarter of 2026. Cumulative net cash provided by operating activities at the end of second-quarter 2026 was $810.9 million compared with $504.2 million a year ago.During the three months ended June 30, 2026, DVA repurchased 2.2 million shares for $348 million. Subsequent to June 30, through Aug. 4, 2026, the company has repurchased 0.2 million shares of its common stock for $37 million. DaVita has revised its outlook for 2026. For 2026, DVA continues to expect RPT to reflect growth of 1%-2%, while treatment volume is expected to be near the top end of the company’s previous guidance range of 25 to 50 bps. Adjusted earnings per share from continuing operations for the full year remains expected in the range of $14.10-$15.20. The Zacks Consensus Estimate is currently pegged at $15.07. In the past month, investors have witnessed a downward trend in estimates revision. The consensus estimate has shifted -12.69% due to these changes. Currently, DaVita HealthCare has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a score of A on the value side, putting it in the top quintile for value investors. Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been broadly trending downward for the stock, and the magnitude of this revision indicates a downward shift. Notably, DaVita HealthCare has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. DaVita HealthCare is part of the Zacks Medical - Outpatient and Home Healthcare industry. Over the past month, Quest Diagnostics (DGX), a stock from the same industry, has gained 2.1%. The company reported its results for the quarter ended June 2026 more than a month ago. Quest Diagnostics reported revenues of $3.04 billion in the last reported quarter, representing a year-over-year change of +10.2%. EPS of $3.12 for the same period compares with $2.62 a year ago. Quest Diagnostics is expected to post earnings of $2.85 per share for the current quarter, representing a year-over-year change of +9.6%. Over the last 30 days, the Zacks Consensus Estimate has changed +0.1%. Quest Diagnostics has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of B. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report DaVita Inc. (DVA) : Free Stock Analysis Report Quest Diagnostics Incorporated (DGX) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

SHANGHAI, Aug. 26, 2026 /PRNewswire/ -- Alebund Pharmaceuticals (Jiangsu) Limited ("Alebund" or the "Company"; stock code: 09637.HK), a renal-focused biopharmaceutical company, today announced its unaudited consolidated interim results for the six months ended June 30, 2026 (the "Reporting Period"). During the Reporting Period and up to the date of the interim results announcement, the Company made significant progress on four fronts: clinical development, external collaborations, commercialization in China, and the capital markets. Highlights of the Reporting Period Clinical Development AP301 — patient enrollment completed in the global Phase III pivotal multi-regional clinical trial; the New Drug Application in China accepted for review by the National Medical Products Administration of China (the "NMPA"). In May 2026, RESPOND-2, the global Phase III pivotal multi-regional clinical trial (the "MRCT") conducted in the United States and China, completed patient enrollment. On August 7, 2026, subsequent to the Reporting Period, the New Drug Application submitted by the Company for AP301 for the treatment of hyperphosphatemia in chronic kidney disease ("CKD") patients receiving maintenance dialysis was accepted for review by the NMPA as a Class 1 chemical drug in China. AP306 — the global Phase IIb multi-regional clinical trial has been initiated. The trial is co-sponsored by the Company and R1 Therapeutics, Inc. ("R1"), with the Company leading the conduct of the trial in the Chinese Mainland. The trial plans to enroll a total of approximately 168 participants with hyperphosphatemia receiving maintenance hemodialysis, and the first participant was randomized and dosed in July 2026, subsequent to the Reporting Period, as announced by the Company. The trial is expected to be completed in the second quarter of 2027, and the Company will announce topline results in due course. AP303 — the data from three completed Phase I/Ib clinical trials have been published in Kidney International Reports in August 2026, demonstrating that AP303 was safe and well tolerated; the expected dose-related hemodynamic effects were observed in healthy participants and patients with diabetic kidney disease (DKD). AP308 — preclinical results published in May 2026 in Kidney International. In humanized IgA (immunoglobulin A) nephropathy mouse models, AP308 reduced circulating human IgA1 by approximately 90% after a single dose, and eight weeks of treatment achieved near-complete clearance of glomerular IgA deposits with significant improvement in renal pathology and no treatment-related adverse effects; in a separate paired design, a single dose completely cleared established glomerular IgA and complement C3 deposits. External Collaborations Licensing and equity agreements in respect of AP306 entered into with R1 Therapeutics. In March 2026, the Company announced that it had entered into licensing and equity agreements in respect of its product candidate AP306 with R1. The Company retains all rights to AP306 in Greater China and holds an equity interest in R1 as a principal shareholder, while R1 has obtained an exclusive license to develop, manufacture, and commercialize AP306 outside Greater China. R1's shareholders include DaVita (NYSE: DVA) and U.S. Renal Care, leading global kidney care providers. During the Reporting Period, the Company recognized licensing revenue of RMB79.3 million from the transaction. Commercialization in China Sales revenue of Mircera® increased by approximately 105.0% year-on-year. During the Reporting Period, Mircera® generated sales revenue of RMB24.8 million (corresponding period of 2025: RMB12.1 million), representing a year-on-year increase of approximately 105.0%. Capital Markets Listing of the H Shares on the Main Board of the Stock Exchange. The H Shares of the Company were listed on the Main Board of The Stock Exchange of Hong Kong Limited (the "Stock Exchange") on June 29, 2026 (stock code: 09637). Together with the full exercise of the Over-allotment Option under the Global Offering on July 24, 2026, subsequent to the Reporting Period, the aggregate net proceeds from the Global Offering amounted to approximately HK$1,355.8 million, of which approximately HK$184.7 million in additional net proceeds was attributable to the exercise of the Over-allotment Option. Financial Overview Revenue growth with narrowing losses. Revenue for the first half of 2026 grew to RMB104.2 million from RMB12.1 million for the first half of 2025, representing an increase of RMB92.1 million, or 761.2%, primarily reflecting licensing revenue of RMB79.3 million recognized under the licensing and equity agreements entered into with R1 in respect of AP306, as well as sales revenue of RMB24.8 million from the commercialized product Mircera®; loss for the period was RMB162.6 million, narrowing by 22.5% year-on-year, and adjusted net loss for the period (non-International Financial Reporting Standards ("IFRS") measure) was RMB130.1 million, narrowing by 12.6% year-on-year. As of June 30, 2026, the aggregate balance of cash and cash equivalents, time deposits, and wealth management products was RMB1,392.8 million, representing an increase of RMB861.6 million. Financial Summary Product sales. During the Reporting Period, Mircera®, the Company's commercialized product, generated sales revenue of RMB24.8 million, representing an increase of approximately 105.0% from RMB12.1 million in the corresponding period of 2025; the gross profit of Mircera® was RMB11.7 million, representing an increase of RMB6.4 million, or 120.8%, from RMB5.3 million in the corresponding period of 2025, and the gross profit margin improved from 43.4% for the first half of 2025 to 47.3% for the first half of 2026. Licensing value. In March 2026, the Company completed its performance obligations under the licensing and equity agreements entered into with R1 in respect of AP306 and recognized licensing revenue of RMB79.3 million; the consideration was received in the form of unlisted class B common shares of R1 as upfront, non-monetary, and non-refundable consideration. Together with the sales revenue of Mircera®, revenue for the first half of 2026 grew to RMB104.2 million from RMB12.1 million for the first half of 2025, representing an increase of RMB92.1 million, or 761.2%. Narrowing of losses. Net loss for the first half of 2026 narrowed by RMB47.1 million, or 22.5%, to RMB162.6 million from RMB209.7 million for the first half of 2025. The narrowing was primarily driven by (i) the increase in licensing revenue during the Reporting Period and (ii) the termination, prior to the Listing, of the redemption liabilities in respect of certain shares of the Company (which is one-off in nature), following which no related interest was accrued during the Reporting Period. Adjusted net loss for the first half of 2026 was RMB130.1 million, a decrease of RMB18.8 million, or 12.6%, from RMB148.9 million for the first half of 2025, likewise primarily due to the increase in licensing revenue during the period. R&D investment. Research and development (R&D) expenses increased by RMB31.3 million, or 28.4%, to RMB141.4 million for the first half of 2026 from RMB110.1 million for the first half of 2025. The increase primarily reflected progress across the R&D pipeline during the Reporting Period, including the completion of patient enrollment in the AP301 MRCT, the initiation of the global Phase IIb multi-regional clinical trial of AP306, and the continued advancement of preclinical and chemistry, manufacturing, and controls (CMC) studies of AP308. Liquidity. As of June 30, 2026, the aggregate balance of cash and cash equivalents, time deposits, and wealth management products was RMB1,392.8 million, representing an increase of RMB861.6 million, or 162.2%, from December 31, 2025. Business Progress AP301: A Best-in-Class Oral Iron-Based Phosphate Binder for the Treatment of Hyperphosphatemia AP301 is a best-in-class oral iron-based phosphate binder (registered as a Class 1 chemical drug in China), offering a very high phosphate-binding capacity, no need for chewing, minimal volume expansion in gastric fluid, and no systemic absorption. These characteristics help reduce the amount of medication patients need to take each day and lower the incidence of gastrointestinal adverse events such as nausea, vomiting, constipation, and intestinal obstruction, thereby delivering better safety and gastrointestinal tolerability and enhancing patients' long-term treatment adherence. Global Phase III pivotal multi-regional clinical trial (RESPOND-2, NCT06933472) underway. The trial is a randomized, double-blind, global multi-regional Phase III clinical trial conducted in the United States and China. It planned to enroll 264 CKD patients aged 12 years and above with hyperphosphatemia receiving maintenance dialysis, and ultimately enrolled a total of 282 patients (138 in the United States and 144 in China). Based on the existing clinical data for AP301, the Company and the FDA have agreed that this global Phase III multi-regional clinical trial will serve as the single pivotal study to support the U.S. registration of AP301. The trial completed patient enrollment in May 2026. Registration progress, catalysts and future milestones. On August 7, 2026, subsequent to the Reporting Period, the New Drug Application submitted by the Company for AP301 for the treatment of hyperphosphatemia in CKD patients receiving maintenance dialysis was accepted for review by the NMPA as a Class 1 chemical drug in China. The application is supported primarily by the results of RESPOND-1, the China pivotal Phase III clinical trial, together with other accumulated clinical data; the Company will actively cooperate with the NMPA's review and expects to obtain approval in 2027, subject to the progress of the regulatory review. The global Phase III multi-regional clinical trial is expected to be completed in the second quarter of 2027, following which the Company plans to submit a New Drug Application to the FDA. AP306: First-in-Class Oral Pan-Phosphate Transporter Inhibitor with the Potential to Reshape the Treatment Landscape of Hyperphosphatemia AP306 (formerly known as EOS789, originally discovered by Chugai) is an oral pan-phosphate transporter inhibitor that simultaneously inhibits three key sodium-dependent intestinal phosphate transporters: phosphate transporter type IIb (NaPi-IIb), phosphate transporter-1 (PiT-1), and phosphate transporter-2 (PiT-2). As of the Latest Practicable Date (August 20, 2026), AP306 is the world's first and only pan-phosphate transporter inhibitor to have entered clinical development — the only oral agent that simultaneously targets these three key intestinal phosphate transporters. The global Phase IIb multi-regional clinical trial underway. The trial (NCT06712654) is a multicenter, randomized, double-blind, placebo-controlled, fixed-dose study conducted at multiple clinical sites in the United States and China and co-sponsored by the Company and R1, designed to evaluate the safety, tolerability, and serum phosphate-lowering effect of AP306. The trial plans to enroll approximately 168 participants with hyperphosphatemia receiving maintenance hemodialysis, randomized across six fixed-dose AP306 regimens and placebo over an eight-week treatment period. The primary endpoint is the change in serum phosphate level from baseline to the end of treatment, and the secondary endpoints include the proportion of participants reaching the target phosphate range and the time to phosphate control. The trial has been approved by the Office of Human Genetic Resources Administration of China. As announced by the Company on July 21, 2026, subsequent to the Reporting Period, the first participant in the trial was randomized and dosed. Catalysts and future milestones. The global Phase IIb multi-regional clinical trial described above is expected to be completed in the second quarter of 2027, and the Company will announce topline results in due course. The Company also plans to initiate a global Phase III multi-regional clinical trial in the second half of 2027. Regulatory designation. In June 2024, AP306 was granted Breakthrough Therapy Designation by the NMPA for the treatment of hyperphosphatemia in patients with chronic kidney disease. AP303: A First-in-Class Oral Dual PPAR Agonist Intended to Delay or Halt the Progression of Chronic Kidney Disease AP303 is a first-in-class oral small-molecule dual peroxisome proliferator-activated receptor (PPAR) α/γ agonist discovered and developed in-house, and the Company holds the global rights to develop, manufacture, and commercialize it. A differentiated disease-modifying agent, AP303 is intended to delay or halt the progression of chronic kidney disease, with target indications spanning multiple high-value therapeutic areas, including DKD, IgA nephropathy (IgAN), autosomal dominant polycystic kidney disease (ADPKD), and focal segmental glomerulosclerosis (FSGS). Clinical development progress. AP303 has completed three Phase I clinical trials, which enrolled a total of 80 healthy participants and 18 DKD patients with impaired renal function and showed that AP303 was safe and well tolerated. The expected dose-related hemodynamic effects were observed in both healthy participants and patients with DKD. These Phase I results support the initiation of Phase II studies in patient populations. The Phase I/Ib clinical data were published in Kidney International Reports in August 2026.[1] Regulatory progress: Phase II clinical trial approvals obtained. In China, the Company submitted an Investigational New Drug application for the Phase II clinical trial to the NMPA and obtained approval for the pan-CKD indication, which can cover subsequent Phase II clinical trials in patients with DKD, IgAN, ADPKD, and FSGS. In the United States, the Company has communicated with the FDA regarding DKD, IgAN, ADPKD, and FSGS and received positive feedback. Among these, the ADPKD indication has been granted Orphan Drug Designation (ODD), and Phase II clinical trial approvals have been obtained for the DKD and IgAN indications. Subsequent development plan. The Company expects to begin site selection for the Phase II basket trial in DKD and IgAN in the second half of 2026, while preparing in parallel for the initiation of the Phase II multi-regional clinical trials in ADPKD and FSGS and maintaining ongoing communication with the relevant regulatory authorities. AP308: A First-in-Class Engineered Recombinant IgA Protease Aiming for Functional Cure of IgA Nephropathy AP308 is an engineered recombinant IgA protease derived from Thomasclavelia ramosa, a human commensal bacterium, and specifically cleaves human IgA1 at a site upstream of the hinge region. Unlike existing therapies that reduce upstream IgA production by modulating B-cell pathways (such as APRIL/BAFF), AP308 acts by directly cleaving and clearing pathogenic IgA and IgA immune complexes that have already formed, including IgA deposited in the glomeruli. Preclinical data. In the humanized mouse model of IgA nephropathy, a single dose reduced circulating human IgA1 by approximately 90% relative to controls, and circulating IgA1 remained low throughout the eight-week treatment period of weekly subcutaneous dosing; at the end of treatment, histological examination confirmed that glomerular IgA deposits were almost completely cleared, proteinuria decreased significantly, and kidney pathology improved markedly, while repeated dosing produced no treatment-related adverse reactions and no increase in anti-drug antibody titers. In a separate paired pre- and post-treatment design, a single dose completely cleared pre-existing glomerular IgA and complement C3 deposits. As of the Latest Practicable Date, no IgA protease drug candidate globally has entered the clinical stage. These results were published in May 2026 in Kidney International, the official journal of the International Society of Nephrology (ISN).[2] Development stage, catalysts and future milestones. As of the Latest Practicable Date, AP308 is at the preclinical stage. The Company plans to submit Investigational New Drug applications for AP308 to the NMPA and the FDA, respectively, in the second half of 2026, and will initiate the Phase I clinical trial of AP308 upon obtaining the relevant clearances. External Collaboration In March 2026, the Company announced that it had entered into licensing and equity agreements in respect of its product candidate AP306 with R1; the agreements were entered into in December 2025. The Company retains full rights and control over AP306 in Chinese Mainland, Hong Kong, Macau and Taiwan (collectively, "Greater China"), while R1 has obtained an exclusive license to develop, manufacture, and commercialize AP306 outside Greater China (the "R1 Territory"). R1 and the Company are co-sponsors of the global Phase IIb clinical trial; each party is responsible for clinical trial execution and regulatory submissions in its respective territory and provides the other party with relevant data and support required for regulatory purposes. During the Reporting Period, the Company recognized licensing revenue of RMB79.3 million from the transaction. Commercialization in China: Mircera® Mircera® (generic name: methoxy polyethylene glycol-epoetin beta) is a long-acting erythropoiesis-stimulating agent (ESA) of the continuous erythropoietin receptor activator (CERA) class and the world's first and only ESA approved for once-monthly administration. As of the Latest Practicable Date, no biosimilar of Mircera® has been approved or is under review anywhere in the world. In October 2023, the Company entered into a supply and marketing agreement with Roche Hong Kong, Ltd. ("Roche", a subsidiary of Roche Holding AG), obtaining the exclusive rights to sell, distribute, and otherwise commercialize Mircera® in the Chinese Mainland (excluding Hong Kong, Macau, and Taiwan); Roche is responsible for supply and for maintaining the drug registration certificate, while the Company is responsible for obtaining the permits required for promotion. Mircera® was included in the National Reimbursement Drug List (Category B) through the national medical insurance negotiations in 2023 and its listing was renewed in 2025 with no price reduction. In the first half of 2026, revenue of Mircera® reached RMB24.8 million, an increase of approximately 105.0% from RMB12.1 million in the corresponding period of 2025, at a gross profit margin of approximately 47.3%. The Company has built a dedicated in-house nephrology sales team comprising 43 sales personnel as of the Latest Practicable Date to conduct academic promotion. The commercial availability of Mircera® has given the Company proven access channels to public hospitals, an established distribution network, and dedicated nephrology academic promotion capabilities ahead of the approval of AP301 — ready-made infrastructure for the commercialization of AP301 and subsequent products. Integrated R&D, Manufacturing, and Commercialization Capabilities Manufacturing capabilities. Construction of the Company's in-house manufacturing facility in Yangzhou is complete, and the facility has obtained a Drug Manufacturing License (Category B) issued by the Jiangsu Provincial Drug Administration. It has completed pilot-scale production and is preparing for scale-up, to support future commercial-scale production of product candidates such as AP301 and AP306. Intellectual property. As of the Latest Practicable Date, the Company held 39 granted patents and 117 pending patent applications worldwide, spanning major jurisdictions including China, the United States, and Europe, and together covering the key inventions that underpin the Company's product pipeline. During the Reporting Period, the Company was granted 7 new patents and filed 22 new patent applications. Outlook The Company is committed to bringing better treatment options, covering the full course of disease, to patients with chronic kidney disease and related diseases worldwide. In the treatment of complications in patients with end-stage renal disease, the New Drug Application for the Company's core product AP301 in China was accepted for review by the NMPA on August 7, 2026, subsequent to the Reporting Period. We will give the review process our full cooperation and, following completion of the global Phase III multi-regional clinical trial in the second quarter of 2027, will submit a New Drug Application to the FDA. In parallel, we will press ahead with capacity preparation at the Yangzhou manufacturing facility and continue building out our nephrology commercialization system, so that AP301 can benefit patients as soon as possible. For AP306, we will work with R1 to advance enrollment and execution of the global Phase IIb multi-regional clinical trial and will disclose topline results in due course. In delaying the progression of CKD, we have now obtained all Phase II clinical trial approvals for AP303. In the second half of 2026, we will begin site selection for the Phase II basket trial in DKD and IgAN, prepare in parallel for initiation of the Phase II multi-regional clinical trials in ADPKD and FSGS, and map out the later-stage registration pathway for IgAN. For AP308, we will advance the submission of its Investigational New Drug applications and, once the relevant clearances are obtained, initiate the Phase I clinical trial. We will disclose these developments in due course. In addition, we will continue to strengthen our integrated capabilities across R&D, manufacturing, and commercialization, advance capacity preparation at the Yangzhou manufacturing facility as planned, and continue to expand our product pipeline in kidney disease through a two-pronged approach of internal R&D and external collaboration. References [1] Perkovic V, et al. Randomized clinical trials of deutaleglitazar in healthy participants and in patients with diabetic kidney disease. Kidney Int Rep. Published online August 20, 2026. doi:10.1016/j.ekir.2026.107037 [2] Shen X, et al. Therapeutic efficacy and antigenicity of a novel PEGylated IgA protease in preclinical models of IgA nephropathy. Kidney Int. 2026;110:463–476. doi:10.1016/j.kint.2026.04.020 About Alebund Pharmaceuticals Alebund Pharmaceuticals (09637.HK) is a biopharmaceutical company focused on kidney disease and related chronic conditions, aiming to bring better therapies to patients worldwide. It has one of the broadest renal-focused pipelines and an integrated platform spanning R&D, manufacturing and commercialization. Its portfolio comprises seven investigational drug candidates and one commercialized product, Mircera®. Three of the candidates are at the clinical stage: AP301 (Phase III; China pivotal Phase III trial completed, New Drug Application accepted for review by the NMPA in China, global MRCT ongoing), AP306 (Phase II) and AP303 (Phase I). Together they address chronic kidney disease (CKD) and its complications, including hyperphosphatemia, renal anemia, IgA nephropathy, diabetic kidney disease, FSGS and ADPKD. Alebund has built a manufacturing site in Yangzhou, Jiangsu to support the future commercial manufacturing of AP301 and other pipeline products, has obtained a Drug Manufacturing License (Category B) issued by the Jiangsu Provincial Drug Administration, and has completed pilot-scale production and is preparing for scale-up. The Company has also established a dedicated nephrology sales team responsible for the commercialization of relevant products in China. For more information, visit www.alebund.com. Forward-Looking Statements This press release contains certain forward-looking statements relating to the Company's future plans, clinical development and registration progress, commercialization prospects and industry trends, among other matters. These statements are based on the Company's judgments and assumptions as of the date of this press release and are subject to various risks and uncertainties; actual results may differ materially from such forward-looking statements. For further details of the Company's 2026 interim results, please refer to the interim results announcement published on the websites of the Stock Exchange (www.hkexnews.hk) and the Company (www.alebund.com), and the interim report of the Company to be made available in due course. View original content:https://www.prnewswire.com/apac/news-releases/alebund-pharmaceuticals-announces-2026-interim-results-302860500.html

DaVita’s second quarter results surpassed Wall Street’s revenue and adjusted profit expectations, but the market response was notably negative. Management attributed this to a mix of operational and industry-specific challenges, including flat treatment volumes and sequential declines in revenue per treatment, primarily due to a less favorable commercial mix and reduced revenue from phosphate binders. CEO Javier Rodriguez emphasized, “Our growth is mainly performance clinical—that expands life, and therefore, you get the volume treatment,” highlighting improved patient mortality as a key factor. However, higher general and administrative expenses and only modest gains from recent industry consolidation contributed to investor caution. Is now the time to buy DVA? Find out in our full research report (it’s free). Revenue: $3.55 billion vs analyst estimates of $3.50 billion (5.2% year-on-year growth, 1.7% beat) Adjusted EPS: $4.02 vs analyst estimates of $3.88 (3.6% beat) Management reiterated its full-year Adjusted EPS guidance of $14.65 at the midpoint Operating Margin: 16.3%, in line with the same quarter last year Sales Volumes were flat year on year (-1.1% in the same quarter last year) Market Capitalization: $11.71 billion While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Andrew Mok (Barclays) pressed on why U.S. dialysis operating income was flat despite volume growth. CFO Joel Ackerman explained that higher costs per treatment and increased general and administrative expenses offset the benefit from volume gains. Albert Rice (UBS) asked about the financial impact of deploying expanded HD technology. CEO Javier Rodriguez and Ackerman clarified that near-term economic effects are minimal, with benefits contingent on future improvements in patient mortality. Pito Chickering (Deutsche Bank) sought details on how changes in commercial mix and ACA enrollment affect revenue per treatment. Ackerman described a sustained negative impact from new patients entering with lower commercial insurance coverage. Justin Lake (Wolfe Research) questioned whether recent mortality improvements were driving all volume growth. Ackerman confirmed that improved mortality was the primary factor, with new patient admissions largely unchanged. Kevin Fischbeck (Bank of America) inquired about DaVita’s ability to fully deploy expanded HD dialyzers. Rodriguez stated the company has secured sufficient supply to meet physician demand as adoption increases gradually. In the upcoming quarters, our analysts will focus on (1) the pace at which expanded HD therapy is adopted across DaVita’s network, (2) updates to Medicare’s ESRD payment rules and their direct financial implications, and (3) whether improvements in patient mortality and volume trends translate into sustained growth. Progress in integrating new clinical technologies and navigating regulatory shifts will be pivotal for DaVita’s performance. DaVita currently trades at $183.64, down from $227.99 just before the earnings. Is there an opportunity in the stock? See for yourself in our full research report (it’s free for active Edge members). ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time. Find out which stocks our AI platform is flagging this week. See this week’s Strong Momentum stocks — FREE. Get Our Strong Momentum Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.

(Bloomberg) -- The latest reason to worry about the stock market is quite the doozy: Earnings growth has been too strong. Most Read from Bloomberg Phoebe Gates Knew Phia Shopping App Took Credit for Sales It Didn’t Drive Trump Weighs Call for Capital Gains Tax Cuts as Midterm Boost Tata Sons Chairman to Step Down, Deepening Leadership Turmoil Five Takeaways From Zuckerberg’s 6,500-Word Manifesto on AI Epstein Victim Files Cleared for Release Over Maxwell’s Protest As the latest reporting season nears completion, all signs are indicating the second quarter was one of the best three-month periods in recent memory with profit growth running at more than 30%. The only problem? That torrid pace is unlikely to last. The consensus currently expects growth to fall below 20% in the first quarter of 2027 before moderating into the mid-teens for the full year, according to strategists at Bank of America Corp. While in isolation those rates are healthy from a historical standpoint, the market often has been less supportive when earnings growth decelerates from elevated levels. It’s a recipe that potentially could place next year’s stock market in the weakest phase for equities: When earnings-per-share growth is above trend but decelerating, the S&P 500’s median 12-month return is 6.7% with a hit rate of 72.3%, according to BofA. That compares with a median 14% return and a hit rate of 83.3% when EPS growth is above trend and accelerating. Still, the historical data set is very limited when it comes to the type of profit bonanza unfolding this year. BofA strategists led by Savita Subramanian expect growth to remain above 20% in the third and fourth quarters, which would mark four consecutive quarters above that level. Streaks like that have been rare, occurring only 10 times since 1936. The most recent examples have taken place after EPS recessions, the strategists said. Examples include Covid and the global financial crisis. And the growth rate is not the only standout statistic for the second quarter reporting season. S&P 500 Index profits are also heading toward one of their largest beats on record versus analysts’ estimates, according to Citadel Securities. Scott Rubner, head of equity and equity derivatives strategy at the firm, noted that companies are also driving the steepest earnings-estimate revision path in at least 26 years. “Importantly, this is not just an AI story,” Rubner wrote in a note published on Tuesday. “The macro debate remains complicated, but the message from corporate America is much simpler: earnings are better than expected, and by a wide margin.” Overall, 85.2% of companies exceeded Wall Street’s EPS expectations through Monday’s close, which is the highest percentage since 2021, data compiled by Bloomberg Intelligence show. Furthermore, only 10.8% of companies have failed to meet expectations, which is the lowest number in three decades. The S&P 500 gained 0.3% on Wednesday as investors cheered better than expected quarterly reports from companies including CoreWeave Inc. and Super Micro Computer Inc. The question now: Is this is as good as it gets? Ben Inker, co-head of asset allocation at GMO, said that earnings have been “extraordinary” in the second quarter. However, there was a difference between the artificial-intelligence space and the rest of the market. Much of the latter can have its good earnings attributed to a “cyclical upturn.” “If the upturn continues, it is very likely to push up inflation and interest rates, and if it falters, companies are likely to disappoint relative to upgraded forecasts,” said Inker. While Bespoke Investment Group’s analysis shows companies are boosting their growth expectations at one of the highest clips in the last 25 years, the firm is exercising caution and warning of extremes. The elevation in analysts’ expectations and companies’ own guidance boosts the likelihood that “pockets of excess will emerge,” according to Noah Weisberger, chief US equity strategist at BCA Research, though he added that low-teens earnings growth expectations for 2027 looks achievable. Yet with interest rates elevated and a large amount of equity supply set to hit the market when more AI companies go public, it’s risky time for earnings growth to peak. “The bond market remains our chief source of concern for equities, given stretched multiples and an IPO wave that still needs to be absorbed at current valuations,” said Weisberger. “At some point, investors will rightly choose not to pay peak multiples for peak earnings.” Potentially, investors are realizing the bar now may be too high for companies in the coming quarters. BofA strategist Jill Carey Hall noted that market reactions to earnings beats and growth have been somewhat more muted in comparison to prior quarters, suggesting that “a lot of the good news has been priced in.” Western Digital Corp., Datadog Inc., Sandisk Corp. and DaVita Inc. all beat on the top and bottom lines but sold off. Indeed, Bloomberg Intelligence data has shown companies that have beaten on revenue, earnings, or both have on average seen flat one-day excess returns. And misses have triggered steeper selloffs. “Investors already were kind of positioning for this good news and strong earnings,” said Carey Hall. “Then once the stocks beat that, that reward isn’t really transpiring to be as much as you normally would see.” --With assistance from Geoffrey Morgan. (Updates with details throughout.) Most Read from Bloomberg Businessweek ICE Arrests Are Pushing Immigrant Families Deeper Into Poverty Supercharged by Social Media, the GLP-1 Boom Is Warping Teen Psyches Suno Says AI Is the Future of Music. Record Labels Say It’s Theft With EV Sales Slowing, Hybrid Cars Are Hot Again Lululemon Is At War With Itself ©2026 Bloomberg L.P.

Image source: The Motley Fool. Tuesday, Aug. 4, 2026 at 5:00 p.m. ET Group Vice President of Investor Relations - Nic Eliason Chief Executive Officer - Javier Rodriguez Chief Financial Officer - Joel Ackerman Operator: Good evening. My name is Michelle, and I will be your conference facilitator today. At this time, I would like to welcome everyone to the DaVita Second Quarter 2026 Earnings Call. [Operator Instructions] Thank you. Mr. Eliason, you may begin your conference. Nic Eliason: Thank you, and welcome to our second quarter conference call. We appreciate your continued interest in our company. I'm Nic Eliason, Group Vice President of Investor Relations, and joining me today are Javier Rodriguez, our CEO; and Joel Ackerman, our CFO. Please note that during this call, we may make forward-looking statements within the meaning of the federal securities laws. All of these statements are subject to known and unknown risks and uncertainties that could cause the actual results to differ materially from those described in the forward-looking statements. For further details concerning these risks and uncertainties, please refer to our second quarter earnings press release and our SEC filings, including our most recent annual report on Form 10-K, all subsequent quarterly reports on Form 10-Q and other subsequent filings that we may make with the SEC. Our forward-looking statements are based on information currently available to us, and we do not intend and undertake no duty to update these statements, except as may be required by law. Additionally, we'd like to remind you that during this call, we will discuss some non-GAAP financial measures. A reconciliation of these non-GAAP measures to the most comparable GAAP financial measures is included in our earnings press release furnished to the SEC and available on our website. I will now turn the call over to Javier Rodriguez. Javier Rodriguez: Thank you, Nic. Good afternoon, everyone, and thank you for joining the call today. It's been a busy and exciting summer. One exception is that I have to wait another 4 years to root for Mexico to win the World Cup. Moving on to more important topics. Our strategy is coming together, thanks to the amazing work of our teammates and caregivers. Their effort has led to another positive quarter for our patient outcomes and financial results. On today's call, in addition to our second quarter performance, I will focus on recent innovation in the dialysis industry, specifically the clearance of middle molecules and the steps we're taking to elevate the standard of care for our patients. I'll also share our perspective on the recent ESRD proposed rule and close with our guidance for the remaining of the year. But first, as always, I will begin with the clinical highlights. Today, I'd like to reflect on the successful transition of phosphate binders into the Medicare dialysis bundle. With advance notice from CMS, this process began more than 2 years ago with the goal of expanding access to a wide range of therapies for a broader group of patients, and that goal has been achieved. With DaVita's broad formulary, our physician partners now have greater flexibility to prescribe the therapy that's best suited for each patient's needs. This has reduced by more than 50% the number of patients relying on less effective over-the-counter options such as TUMS and instead now are benefiting from clinically preferred therapies. That means more patients are receiving treatments that better manage phosphate levels and help reduce the risk of cardiovascular complications and bone fractures. It's a powerful example of how the right policy, combined with strong clinical execution can expand access to better care and improve long-term patient health. Transitioning to the second quarter performance. Our results were broadly in line with our expectations. Beneath this headline, I'll highlight 2 primary dynamics. First, year-over-year volume growth continued to accelerate, slightly faster than expected, driven by continued improvements in mortality. Second, compared to the first quarter, revenue per treatment declined as we expected, reflecting lower commercial mix from declining ACA enrollment and lower sequential revenue contribution from phosphate binders. Joel will provide more detail on these dynamics and other moving pieces within the quarter. Turning to policy. In late June, as is customary, CMS released the proposed rule for 2027 prospective payment system for ESRD. The proposal includes an update to Medicare base rates and the addition of phosphate binders to the bundled dialysis payment beginning next year. Starting with the base rate. The proposed payment update is more complex than in prior years with methodology changes in various TDAPA-related dynamics. The net result is a rate increase that once again tracks below the cost trends for the industry. We're providing feedback during the rule-making process and remain hopeful the final rule will better reflect the cost of delivering high-quality care. On phosphate binders, we continue to support CMS' approach to moving these medications into the dialysis bundle. In addition to the clinical benefits, the policy is lowering projected government spending. Since the initial transition of these medications, CMS has reduced their estimate for phosphate binder spend by nearly $500 million. We also support concluding the TDAPA period after 2 years. And while the proposed post-TDAPA rate adjustment is appropriate, our ultimate financial impact for 2027 will depend on the bundle update within the final rule later this year. Let me turn to middle molecule clearance and the recent results from the MOTheR clinical trial. As a reminder, the primary objective of dialysis is to remove harmful toxins from the body. Newer therapies can remove a broader range of these toxins known as middle molecules. The goal is to reduce inflammation, cardiovascular complications and mortality while enhancing the patient's quality of life. Achieving these outcomes is a key building block in our expectation of returning to treatment volume growth of at least 2% by 2029. Two approaches, which have been used for many years internationally and are now emerging in the United States, hemodiafiltration, or HDF, which utilizes a specialized dialysis machine and expanded hemodialysis or expanded HD, which is performed with an advanced dialyzer. I will cover 3 things: what the study showed, why it matters and what it means for DaVita going forward. First, the MOTheR trial compared these 2 dialysis therapies head-to-head and demonstrated that expanded HD using medium cutoff dialyzer is non-inferior to HDF on a composite endpoint of all-cause mortality and major cardiovascular events. Why does this matter? First and foremost, it is a great news for our patient. It gives physicians another evidence-based option for middle molecule clearance, allowing them to tailor treatment to the need of individual patients. expanded HD also offers meaningful operational advantages because it can be delivered on our existing dialysis machines, making it faster to expand access without significant capital investment. This brings us to our path forward. We continue to support both HDF and expanded HD and believe physicians should have the flexibility to choose the right therapy for each patient. That said, the recent FDA approval of new expanded HD dialyzer from NIPRO represents an important milestone that should materially improve both market supply and economics. To capture this clinical opportunity, we have secured supply to these expanded HD dialyzers, which are fully compatible with our existing machines and provide highly effective clearance of middle molecules. As a result, we expect to begin deploying expanded HD broadly across our network in the coming quarters. This will allow us to expand access quickly and deliver this option to our patients and physician partners. As we move forward, we'll continue evaluating how both approaches perform across different care settings and patient populations in the real-world practice. I'll wrap up my prepared remarks with our financial outlook for the remaining of the year. With the benefit of another quarter, 3 trends are coming into better focus. First, continued momentum in volume growth; second, greater confidence in our estimate of the impact of effectuation rates for exchange plans; and third, our efforts to provide broad access to middle molecule clearance for our patients. With consideration of these factors, we're reconfirming our full year 2026 guidance ranges. This reflects a midpoint of $2.2 billion for adjusted operating income and a midpoint of $14.65 for adjusted earnings per share. We look forward to continuing our clinical, operational and financial momentum in the back half of the year. I will now turn the call over to Joel to discuss our financial performance in more detail. Joel Ackerman: Thank you, Javier. I'll begin with the details on our second quarter results and close with some additional color on the remainder of the year. Second quarter adjusted operating income was $579 million, adjusted earnings per share was $4.02 and free cash flow was $256 million. Beginning with U.S. dialysis. Treatments increased 56 basis points versus Q2 of 2025. Treatments per normalized day also increased 56 basis points as there was no impact from the calendar as compared to the same period last year. Volume growth was slightly higher than expected as a result of lower-than-expected mortality, offset by fewer admits from closed Fresenius clinics and higher-than-expected missed treatments. Our confidence in our treatment volume trajectory for the year continues to grow, and we now expect 2026 growth in total treatments near the top end of our previous guidance range of 25 to 50 basis points. As a reminder, our treatment volume expectations are for nominal treatment growth. This would translate to approximately 50 to 75 basis points of growth when normalizing for year-over-year calendar impacts. The calendar impact in the back half of the year will result in a year-over-year tailwind in Q3 and headwind in Q4. Revenue per treatment decreased by approximately $2 sequentially, primarily the result of favorable revenue timing in Q1, lower sequential revenue from phosphate binders and a decline in commercial mix related to the expired ACA subsidies in line with our guidance from last quarter. These RPT headwinds were partially offset by the typical sequential increase from higher patient responsibility amounts in the first quarter and higher average rates. Although year-to-date revenue per treatment has been 3.6% higher than the first half of 2025, we continue to expect full year 2026 RPT growth of 1% to 2%. The midpoint of that range implies that RPT growth in the second half of 2026 will be slightly negative as compared to the second half of 2025. This is a function of declining commercial mix, lower phosphate binder revenue and the benefit in Q4 2025 from the timing of aged claim resolutions. Patient care cost per treatment declined approximately $3 sequentially as a result of operating leverage on labor and other fixed costs driven by increased treatment volume in Q2 and a decline in phosphate binder costs, offset by higher benefit costs. Year-to-date, PCCs have grown more than 3% versus the first half of 2025, above our expected range for the full year growth. Similar to the dynamic in revenue per treatment, we expect year-over-year growth in patient care costs to decelerate in the back half of the year, driven by decreasing phosphate binder expenses and lower year-over-year growth of facility maintenance spend. In other costs, U.S. dialysis G&A increased $11 million versus the first quarter and U.S. dialysis depreciation and amortization decreased by $9 million sequentially. We continue to expect total cost per treatment to grow between 1.25% and 2.25% for the full year. Turning to our other segments. International adjusted operating income was $25 million in Q2, in line with expectations. IKC delivered positive $40 million of adjusted operating income above our expectations for the quarter as a result of timing of revenue earlier in the year than anticipated. We still expect international and IKC growth to contribute approximately $20 million each to full year enterprise adjusted operating income growth. Regarding capital allocation, in July, we closed on our minority investment in Elara Caring, which provides an exciting opportunity to help bring dialysis-tailored home health services offerings to our patients. As a reminder, we invested $200 million and expect Elara to provide a small benefit to other income in 2026, likely mid-single-digit millions. Additionally, we repurchased 2.2 million shares during Q2, an additional 183,000 shares since the end of the quarter. As a reminder, we buy shares from Berkshire Hathaway each quarter pursuant to our repurchase agreement to maintain their ownership near 45%. Our leverage ratio at the end of the quarter was 3.37x consolidated EBITDA, within our target range of 3 to 3.5x EBITDA. Debt expense in the quarter was $152 million. During the quarter, we issued $500 million of incremental debt with proceeds primarily used to repay revolver borrowings. For the full year, we are reiterating our adjusted operating income guidance range with a midpoint of $2.2 billion and our adjusted earnings per share guidance range with a midpoint of $14.65. To help you model the back half of the year, we anticipate a sequential increase in adjusted operating income of $50 million to $100 million from Q3 to Q4, with timing of IKC being the biggest driver. That concludes my prepared remarks for today. Operator, please open the call for Q&A. Operator: [Operator Instructions] Our first caller is Andrew Mok with Barclays. Andrew Mok: Despite the growth in treatments, U.S. dialysis OI was relatively flat year-over-year, while lapping a $45 million cyber headwind. So can you help us understand why we didn't see better leverage from the treatment growth and comment on the elevated CPT in the quarter? Joel Ackerman: Yes, I'll take that, Andrew. So OI for the quarter at the enterprise level was up about 5%. You're right on the RPT dynamic. I think there are a bunch of other moving pieces on the cost per treatment side. So cost per treatment growth is elevated in the first half of the year, similar to RPT. So I think there's a bit of an offset there. And G&A growth continues to grow. It was roughly 10% for the quarter. So those would be the big items that I'd point out in the U.S. dialysis side. Andrew Mok: Got it. Okay. And maybe on the volume side, there's a lot going on that's impacting volume trends. You spoke to an acceleration in volumes, continued improvement in mortality and the high end of treatment growth for the full year. But when I look at the 2 LDOs reporting together, it looks like same-store treatment growth was negative in the quarter. Is it your sense that industry volumes were negative? Or did smaller chains take market share? Javier Rodriguez: No. We can't comment on the combined because we obviously don't have visibility to everyone else. But what we can tell you is that our growth is mainly performance clinical -- clinically that expands life, and therefore, you get the volume treatment. And so I can't speak to what's going on in the rest of the industry, but we are gaining that through clinical outcomes. Joel Ackerman: Yes. And just to build on that, if you think about our performance for the quarter, as Javier said, it's clinically driven, also that's mortality, and admits was largely in line with our expectations. Andrew Mok: Great. And maybe just last one. On the RPT side, you noted that declined sequentially due to commercial mix and phosphate binders. Can you give us a sequential change in mix and RPT from phosphate binders? Joel Ackerman: Yes. So mix was complicated this quarter because we saw some coverage updates. Remember, in Q1, the impact of the ACA was lower than we expected, although we were waiting to see what happened with effectuation rates and how that would play through with coverage updates in Q2. Turned out it played out largely as we expected. So if you look at the average mix for the first half of the year, it's in the high 10s and really tracking as we expected, in line with the $40 million headwind that we'd expect for the full year. Operator: Our next caller is A.J. Rice with UBS. Albert Rice: Maybe just first question, if you deploy the expanded HD capability, I just want to make sure I understand the way that would impact the economics of the company would be if it results in improved mortality. Is there any other economic implication for you more near term over deploying that? Javier Rodriguez: Thanks, A.J. I think when you think of the deployment of this new technology, we divide it into sort of 3 categories. The first is clinical, and you know the results of that, and we talked about the studies being encouraging, and you talked about the improvement in mortality. Of course, you also have to put physician preference and what they choose. Then you have to kind of move on to operational. And the experience on this is we've switched dialyzer before. It's simple, and we can do it quickly. And then you have to kind of shift into the supply, and we are now confident that we could get supply. And that leads you to sort of the third one, the financial. And what I would say is that in 2026, it's included in our guidance. When you think of the future for 2027 and beyond, there's several puts and takes. But at the end of the day, it will not be significant. Albert Rice: Okay. All right. And maybe just a follow-up. Joel Ackerman: Let me be clear on that. The impact is insignificant until the mortality benefit kicks in. And that's when you'd see a positive economic impact. We wouldn't expect the positive mortality impact to start until 2028. There is a delay from when the new dialyzers are put in place until you see it. Albert Rice: Okay. Interesting. Okay. I think in the prepared remarks, you did mention there was a little bit of elevated missed treatments. You also mentioned you didn't pick up as much as you expected from the Fresenius closures. I don't know whether there's anything to expand on there. It's just normal ebb and flow with respect to the missed treatments, but I wanted to just give you a chance if there was some more color there. Joel Ackerman: Yes. Look, we're really parsing some pretty small numbers here in trying to bridge 10 or 15 basis point changes. Nothing major on the missed treatment rate side. And in terms of the Fresenius closures, it's probably 5 basis points of less positivity than we were expecting on the year. So again, a pretty small numbers, nothing big that I'd call out. Operator: Our next caller is Justin Lake with Wolfe Research. Justin Lake: Appreciate it. Can you -- first, just Joel, I want to make sure I have the numbers right here. For -- you said $75 million or $50 million to $100 million increase in OI from 2Q to 3Q. Is that right? Joel Ackerman: No, no. That's about the phasing in the back half of the year. So we would expect Q3 to be $50 million to $100 million lower than Q4. Justin Lake: That makes a lot more sense than what I thought I understood, okay. Great. Joel Ackerman: Just to explain that, that's largely driven by IKC. Justin Lake: Got it. And then you talked about mortality being a little better. Can you run us some of the numbers behind what you're seeing there? Joel Ackerman: Yes. I don't think we're going to call out quarterly mortality fluctuations. What I can say is the improvement is sustained. So we've seen it over a number of quarters now. It fluctuates. It was significantly better in Q1, which is what you'd expect because you have the flu dynamic there, but we continue to see improvements in Q2 as well. Justin Lake: And what you're saying here is that your new patient starts are relatively flat, and all the growth is coming from mortality improvement. Is that the way to think about it? Joel Ackerman: I think what we're saying is the benefit in the quarter relative to expectations was all mortality. It was actually mortality and then some because missed treatment rate came in a little worse than expected, and admits was in line with expectations. Operator: Our next caller is Pito Chickering with Deutsche Bank. Pito Chickering: So the first one is looking at the revenue per treatment and the commercial mix. You said it was like the high 10s and now you're seeing the impact of the $40 million that you've assumed. Can you walk us through the process of those patients that are transferring from HIX on to government? Are you seeing new patients come in and go on government before they go into HIX? Or are you seeing HIX patients drop coverage? And do you see that mix change throughout the quarter? Did it start the same as the ended? Or did it change through the quarter? Joel Ackerman: So we're seeing both in terms of patients dropping coverage. We think the more sustained dynamic that we're expecting through the rest of the year and into next year would be the new admits coming in at a lower commercial mix because of a lower QHP mix. So hard to predict exactly how it's going to play out, but we would expect that number to sustain itself through some part of next year. And that's what leads to the $40 million impact and then the $70 million impact next year. The $70 million impact is a combination of the anniversary effect or the annualizing effect of the mix loss in 2026 that happened through the year, plus some additional mix loss in '27. But again, largely the result of the new patient mix coming in lower. Pito Chickering: Can you remind us what the current occupancy of your centers are sort of where it was pre-COVID, and thinking about the pure variable costs in patients showing up, kind of what is that? I'm just trying to figure out the sort of fixed cost leverage here of the business if you [ SMCs ] keep on increasing treatment growth throughout the year. Joel Ackerman: Yes. So the capacity utilization is running in the high 50s now. It's been relatively steady for a number of years. If you went back pre-COVID at its peak, it ran about 65%. The question of fixed costs is a hard one because some things are fixed in the short term and less fixed in the long term. Also, the marginal profit of a patient depends on which patient it is. If it's a Medicare patient that has longer mortality, you'll get less marginal economics than adding a new commercial patient. So it's a hard number to pin down. It really depends on the situation you're trying to model. Pito Chickering: Okay. And then last one here. Can you refresh us on sort of leverage ratios, kind of what -- the stock trading at these levels, kind of what do you think the right leverage ratio is for you guys to be running at? Javier Rodriguez: Yes. We have not changed our view on that. And so we've given a range, and we are now at 3.37 for the quarter, and we had drawn down $65 million on our revolver. Operator: [Operator Instructions] Our next caller is Kevin Fischbeck with Bank of America. Kevin Fischbeck: I was wondering the change in the expectation from Fresenius, is that just what you experienced in the quarter? Or have you also changed your expectation for how much you'll pick up from them during the year? Joel Ackerman: Yes. So that was -- is very specific to the 100 clinics that they called out, I guess, last quarter that they were going to be closing. To the best of our understanding, they are done with that effort. And so the pickup is done. I don't expect that to change at all over the course of the year. This had nothing to do with any of the other volume dynamics that they've been talking about over the last 24 hours. This was purely about the 100 clinics they closed. Kevin Fischbeck: Okay. And then as far as the HD dialyzers, so just to be clear because I think you just said you've got a supply of that. So you have secured enough to completely transition all of your facilities over to that next year? Or is it just a portion of facilities next year or within the next year? Javier Rodriguez: We've got enough supply to transition as many as the doctors demand. And so we obviously don't think it will happen in 1 day or 1 week. It will take a little bit of time as the science gets rolled out, but we do have enough capacity to fulfill all the demand. Kevin Fischbeck: Okay. And then can you talk a little bit about the IKC business? Obviously, you've talked about $20 million improvement this year. Can you just remind us, I guess, based upon where you think the margins in that business can get to, how many more years of adding, call it, 1% to OI growth can -- if that business steadily improves, can that add? Is this something that can happen over the next 2 years, 5 years? How should we think about that? Joel Ackerman: I don't see any reason it couldn't continue for a while. It's -- again, it isn't purely a margin play. There's also a volume question of increasing the number of lives and the number of dollars under management. And I could see that continuing to grow and that being as important, maybe more important of a driver than margin expansion. So I think we've got a lot of room to run. Javier Rodriguez: Yes. I think you should think of it as a maturing business that requires a lot of coordination between nephrologists, clinics and our teams. And so as that matures and we evolve our model of care and our health evaluations and all that goes into it, we hope that there's improvement that can be sustained over time. Kevin Fischbeck: Okay. And maybe just last question then on that. So what has been driving that this year? Is that a function of improved medical expense? Is it growth in G&A leverage? What's driving the growth this year? Javier Rodriguez: Well, right now, it's just timing on revenue recognition. But as we look out, we're getting a bit more confident in our ability to manage the total care cost. And so we're getting a little more confidence there, coupled with we want to continue to grow the business, as Joel said, which means more contracts with MA. Operator: Our next question comes from Ryan Langston with TD Cowen. Ryan Langston: On the share repurchase, I think you've only repurchased about 0.2 million since the end of June. Obviously, nice to see the stock price move this year, but does the move change your capital allocation priority such that we might see a little bit less share repo through the rest of the year? Javier Rodriguez: No. I think what you want to think about is more -- our capital allocation and our view on buybacks has been absolutely consistent throughout the year. This particular calendar year, we were heavy on the front end. In Q1, we purchased a fair amount. And so we are in a good spot year-to-date at [ $785 million. ] And you saw where our leverage rate was at 3.37. And you have to remember, we knew that Elara Caring was going to close in July, and that was $200 million of cash. So it's very consistent, and there is no change in our view of buyback. Ryan Langston: Okay. And then any updates on what you're seeing on the M&A side? Is that still primarily focused on international? Or are there more domestic-based assets like maybe IKC that you'd consider taking to market? Javier Rodriguez: There's still onesies and twosies out there, small clinics, but the reality is that the United States is pretty consolidated now. The growth will come more through de novos as the industry starts to grow. And this year, we've had a couple of acquisitions, and we will continue to look at them, but there's not that many out there. Operator: At this time, I'm showing no further questions. Speakers, I'll turn the call back over to you for closing comments. Javier Rodriguez: Okay. Thank you, Michelle, and thanks, everyone, for joining the call today. As we wrap up, I'll leave you with 3 final thoughts. First, the year is tracking in line with our expectations. Second, I hope you heard in our voice, our clinical strategy is gaining traction. This means improved mortality and extending life for more of our patients. And because our clinical and financial objectives are so aligned, this progress directly supports our volume growth. Finally, by delivering new middle molecule technology to our patients and physicians, we're advancing the standard of care to sustain our clinical and financial momentum into the future. Thank you for joining the call today, and we look forward to speaking to you next time. Operator: Thank you. This concludes today's conference call. You may go ahead and disconnect at this time. Before you buy stock in DaVita, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and DaVita wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $411,427!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,335,252!* That performance is why people listen. With a track record of beating the S&P 500 by 4x, Stock Advisor offers a distinct advantage. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built for the long haul. See the 10 stocks » *Stock Advisor returns as of August 11, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. DaVita (DVA) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Make better investment decisions with Simply Wall St's easy, visual tools that give you a competitive edge. DaVita stock has climbed 69.6% over the past three years. After a recent pullback and a strong value score, the current price still raises questions about how much upside investors are actually paying for. Over the past 3 years, DaVita has returned 69.6%, which puts recent share price weakness in the context of a longer period of strong gains. Support for the valuation can come from expectations that DaVita benefits from growing demand for integrated kidney and metabolic care. Execution risks around clinical partnerships and new technologies such as aXess may weigh on how confidently investors price that growth in. DaVita screens as undervalued on the broader checks, with a high value score of 5 out of 6 that suggests the current multiple does not look stretched on these metrics. The issue now is whether DaVita's recent share price drop has opened up a genuine valuation opportunity or simply taken some heat out of an already well owned stock. DaVita delivered 41.9% returns over the last year. See how this stacks up to the rest of the Healthcare industry. The P/E multiple is a useful way to look at DaVita because earnings are a key focus for this kind of mature healthcare services business. DaVita currently trades on a P/E of about 14.2x, which is well below the Healthcare industry average of 25.3x and the peer group average of 42.2x. That puts the stock on a noticeably lower earnings multiple than many other healthcare stocks. The tailored fair P/E ratio for DaVita is 25.9x, based on its industry, margins, size and risk profile. Against that benchmark, the current 14.2x level implies a sizeable discount on earnings. Despite DaVita beating Q2 2026 earnings estimates and reaffirming full year guidance, the recent share price drop means the market is still pricing the stock below what this framework suggests might be a more typical multiple. On this P/E measure, DaVita stock appears undervalued compared with both its fair ratio and the wider Healthcare sector. See what the numbers say about this price — find out in our valuation breakdown. Simply Wall St Narratives for DaVita pick up where this valuation puzzle leaves off by spelling out the combinations of future growth, margins and earnings that would need to play out for DaVita's stock to be worth materially more or less than today's price on the market. Rather than giving a single number, they unpack the assumptions behind it so you can watch how DaVita's actual progress lines up with the scenario you think is most realistic on the Community page. Community views on DaVita are wide apart, with one side seeing meaningful undervaluation and the other arguing current optimism already prices in a lot. Bull case: 12% undervalued Read the full Bull Case to see why DaVita could be undervalued Bear case: 27% overvalued Read the full Bear Case to see why DaVita could be overvalued Do you think there's more to the story for DaVita? Head over to our Community to see what others are saying! DaVita screens as undervalued on earnings multiples, which suggests the current price builds in restrained expectations compared with many healthcare stocks. That discount only helps you if the company can translate its integrated kidney and metabolic care strategy into steady earnings and manage the execution risks around partnerships and new technologies. The key question from here is whether the current P/E gap closes as confidence in that execution grows, or whether the market is correctly pricing in the risk that margins and returns fall short of the more optimistic scenarios. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include DVA. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

DaVita Inc. DVA used its second-quarter 2026 earnings call to emphasize improving mortality, stronger treatment volumes and expanded middle molecule clearance. Management kept its outlook intact while acknowledging commercial-mix and reimbursement pressure. Reported earnings of $4.02 per share topped the Zacks Consensus Estimate of $4.01. Revenues of $3.55 billion exceeded the $3.53 billion estimate. DaVita Inc. price-consensus-eps-surprise-chart | DaVita Inc. Quote CEO Javier Rodriguez said that management is reconfirming 2026 guidance as confidence improves in treatment volumes and exchange-plan effectuation rates. DaVita still expects adjusted operating income of $2.15-$2.25 billion. CFO Joel Ackerman said that adjusted earnings guidance remains $14.10-$15.20 per share, with a midpoint of $14.65. Free cash flow guidance remains $1-$1.25 billion. CFO Ackerman added that third-quarter adjusted operating income should be $50 million to $100 million below the fourth quarter, mainly because of integrated kidney care timing. CFO Ackerman said U.S. dialysis treatments increased 56 basis points year over year, slightly above expectations because mortality was lower than anticipated. Higher missed treatments and fewer additions from closed Fresenius clinics partly offset the benefit. CFO Ackerman now expects 2026 total treatment growth near the top of the prior 25-50-basis-point range. Normalized growth would equal roughly 50-75 basis points. CEO Rodriguez tied the improvement to clinical outcomes that extend patients’ lives. Admissions were broadly in line with expectations, making mortality the main source of upside versus volume assumptions. CFO Ackerman said that revenue per treatment declined about $2 sequentially. The main factors were favorable first-quarter timing, lower phosphate-binder revenue and weaker commercial mix after ACA subsidies expired. Although year-to-date revenue per treatment rose 3.6% from the first half of 2025, CFO Ackerman maintained the full-year growth forecast of 1-2%. The midpoint implies a slightly negative second-half comparison. CFO Ackerman said that patient care cost per treatment fell about $3 sequentially as higher volume improved labor and fixed-cost absorption. U.S. dialysis general and administrative expense rose $11 million from the first quarter. CEO Rodriguez highlighted the MOTheR trial, which found expanded hemodialysis using a medium cutoff dialyzer non-inferior to hemodiafiltration on a combined endpoint of mortality and major cardiovascular events. CEO Rodriguez said that expanded hemodialysis can run on existing machines, allowing faster deployment without significant capital investment. DaVita secured supply of newly approved NIPRO dialyzers and plans broad deployment in coming quarters. In response to a UBS analyst, CFO Ackerman clarified that the financial impact should remain insignificant until a mortality benefit emerges. He said DaVita does not expect that effect before 2028. A Barclays analyst asked why U.S. dialysis operating income showed limited year-over-year leverage despite treatment growth and lapping cybersecurity costs. CFO Ackerman cited elevated cost-per-treatment growth and roughly 10% general and administrative expense growth as the main offsets. He said enterprise operating income still increased about 5%. A Deutsche Bank analyst asked about center utilization. CFO Ackerman said that utilization remains in the high-50% range, versus about 65% at its pre-pandemic peak, while incremental profitability varies by payer mix and fixed-cost timing. CFO Ackerman said that DaVita repurchased 2.2 million shares during the quarter and another 183,000 shares after quarter-end. CEO Rodriguez told a TD Cowen analyst that the higher stock price had not changed the buyback approach. CFO Ackerman said that quarter-end leverage was 3.37 times consolidated EBITDA, within DaVita’s target range of 3 to 3.5 times. CEO Rodriguez said that domestic acquisition opportunities remain limited to small clinics, with U.S. growth expected to rely more on new-center development. CEO Rodriguez closed with a consistent message: clinical execution, mortality improvement and middle molecule clearance are central to DaVita’s plan for sustained volume growth. Management’s tone was constructive but measured, balancing stronger clinical trends against commercial-mix pressure, reimbursement uncertainty and elevated cost growth. DVA carries a Zacks Rank #3 (Hold) at present. It has a Value Score of A, a Growth Score of A, a Momentum Score of B and a VGM Score of A, indicating favorable characteristics across the three investment styles. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. The Style Score complements the Zacks Rank, with A and B representing stronger grades. A Hold rank can pair with favorable Style Scores, but the Zacks Rank may change as analysts revise earnings estimates after the results. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report DaVita Inc. (DVA) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Volume growth acceleration was primarily driven by sustained improvements in patient mortality, which management attributes to successful clinical execution and better management of phosphate levels. The transition of phosphate binders into the Medicare dialysis bundle has reduced reliance on less effective over-the-counter options by more than 50%, expanding access to clinically preferred therapies. Revenue per treatment declined sequentially due to lower commercial mix following the expiration of ACA subsidies and lower sequential revenue contribution from phosphate binders. Management is pivoting toward middle molecule clearance technology, specifically expanded hemodialysis (HD), which offers mortality benefits without requiring significant new capital investment in machines. The recent FDA approval of new expanded HD dialyzers from NIPRO is expected to materially improve market supply and economics for advanced dialysis treatments. U.S. dialysis operating income remained relatively flat year-over-year as treatment growth was offset by elevated cost per treatment and a 10% increase in G&A spending. Capacity utilization currently sits in the high 50s, providing significant room for volume expansion compared to pre-pandemic peaks of approximately 65%. Management reconfirmed full-year 2026 adjusted operating income guidance of $2.2 billion, assuming a sequential increase of $50 million to $100 million from Q3 to Q4 driven by IKC timing. Total treatment growth for 2026 is now expected at the top end of the 25 to 50 basis point range, supported by clinical outcomes that extend patient life. Full-year revenue per treatment (RPT) growth is projected at 1% to 2%, implying slightly negative year-over-year growth in the second half due to declining commercial mix and lower binder revenue. The company expects to return to treatment volume growth of at least 2% by 2029, underpinned by the broad deployment of middle molecule clearance therapies. The financial impact of the 2027 ESRD proposed rule remains uncertain, as the current proposal suggests a rate increase that tracks below industry cost trends. The $200 million minority investment in Elara Caring closed in July, intended to integrate dialysis-tailored home health services into the patient care model. CMS has reduced its estimate for phosphate binder spend by nearly $500 million since the initial transition, highlighting the policy's impact on government spending. Commercial mix headwinds are expected to result in a $40 million impact in 2026 and a $70 million impact in 2027 due to lower exchange plan effectuation rates. Management noted that while mortality improved, volume was slightly tempered by fewer patient admits from closed competitor clinics and higher-than-expected missed treatments. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management clarified that while deployment will begin in the coming quarters, the financial impact will be insignificant until the mortality benefits materialize, likely in 2028. The transition is operationally simple as it involves switching dialyzers rather than replacing existing dialysis machines. Growth is driven by both margin expansion and increasing the number of lives under management through new Medicare Advantage contracts. Management views IKC as a maturing business with significant room for continued contribution to enterprise operating income. The company maintains its leverage target of 3.0x to 3.5x EBITDA and remains committed to its buyback strategy despite the recent stock price appreciation. Repurchases were front-loaded in the first half of the year, with recent activity moderated by the $200 million cash outlay for the Elara Caring investment.

DaVita Inc. DVA delivered adjusted earnings per share (EPS) from continuing operations of $4.02 in the second quarter of 2026, up 36.3% year over year. The figure surpassed the Zacks Consensus Estimate by 0.3%. GAAP EPS from continuing operations for the quarter was also $4.02, reflecting an uptick of 55.8% year over year. Revenues of $3.55 billion in the second quarter increased 5.2% year over year. The figure topped the Zacks Consensus Estimate by 0.6%. Revenue per treatment (RPT) in the second quarter of 2026 was $415.9 million, up 2.8% year over year, but down 0.4% sequentially. Per management, the sequential decline reflected a lower commercial mix from declining Affordable Care Act enrollment and lower sequential revenue contribution from phosphate binders. Shares of this company lost nearly 7.1% in today’s pre-market trading. DaVita generates revenues via two sources — Dialysis patient service revenues and Other revenues. The dialysis patient service revenues were $3.37 billion, up 4.9% year over year. Other revenues were $187.7 million, up 8.7% from the year-ago quarter’s figure. Per management, the total U.S. dialysis treatments for the second quarter were 7,226,600 or 92,649 per day, on average. This represents a per-day increase of 1.09% on a sequential basis. Normalized non-acquired treatment increased 0.3% year over year in the second quarter of 2026. As of June 30, 2026, DaVita provided dialysis services to around 298,500 patients at 3,266 outpatient dialysis centers, of which 2,671 were U.S. centers while 595 were located across 14 other countries. As of June 30, 2026, DVA had approximately 64,900 patients in risk-based integrated care arrangements in its Integrated Kidney Care business, representing $5.8 billion in annualized medical spend. The company also had an additional 5,700 patients in other integrated care arrangements. DaVita Inc. price-consensus-eps-surprise-chart | DaVita Inc. Quote In the quarter under review, DaVita’s gross profit increased 3.9% year over year to $1.16 billion. However, the gross margin contracted 38 basis points (bps) to 32.7%. General & administrative expenses climbed 2.6% year over year to $423.5 million. Adjusted operating profit totaled $738.6 million, reflecting a 4.7% increase from the prior-year quarter’s level. Adjusted operating margin in the second quarter contracted 8 bps to 20.8%. DaVita exited second-quarter 2026 with cash and cash equivalents and short-term investments of $688.9 million compared with $666.5 million at the first quarter of 2026-end. Total debt (including the current portion) at the end of second-quarter 2026 was $10.78 billion compared with $10.63 billion at the end of the first quarter of 2026. Cumulative net cash provided by operating activities at the end of second-quarter 2026 was $810.9 million compared with $504.2 million a year ago. During the three months ended June 30, 2026, DVA repurchased 2.2 million shares for $348 million. Subsequent to June 30, through Aug. 4, 2026, the company has repurchased 0.2 million shares of its common stock for $37 million. DaVita has revised its outlook for 2026. For 2026, DVA continues to expect RPT to reflect growth of 1%-2%, while treatment volume is expected to be near the top end of the company’s previous guidance range of 25 to 50 bps. Adjusted EPS from continuing operations for the full year is continued to be expected in the range of $14.10-$15.20. The Zacks Consensus Estimate is currently pegged at $15.07. DaVita ended the second quarter of 2026 with better-than-expected results. The uptick in the company’s top and bottom lines and RPT was encouraging. Solid revenues from both sources and a per-day increase in total U.S. dialysis treatments on a sequential basis were promising. An uptick in normalized non-acquired treatment was also recorded. On the earnings call, management highlighted plans to deploy expanded hemodialysis across its network after securing an adequate supply of newly approved dialyzers. The technology is compatible with DaVita’s existing machines, enabling broader patient access without significant capital investment. Management expects it to support improved clinical outcomes over time, with mortality-related economic benefits likely beginning in 2028. This initiative aligns with DVA’s broader focus on innovative dialysis technologies and raises our optimism about the stock. However, the sequential decline in RPT for the second quarter was disappointing. The contraction of both margins does not bode well for the stock. DVA currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader medical space that have announced quarterly results are BrightSpring Health Services, Inc. BTSG, Quest Diagnostics Incorporated DGX and Avantor, Inc. AVTR. BrightSpring, sporting a Zacks Rank of 1 (Strong Buy), reported second-quarter 2026 adjusted EPS of 45 cents, beating the Zacks Consensus Estimate by 21.6%. Revenues of $3.87 billion outpaced the consensus mark by 6.1%. You can see the complete list of today’s Zacks #1 Rank stocks here. BrightSpring has a long-term estimated growth rate of 46%. BTSG’s earnings surpassed estimates in three of the trailing four quarters and missed once, the average surprise being 16.1%. Quest Diagnostics reported second-quarter 2026 adjusted EPS of $3.12, beating the Zacks Consensus Estimate by 11%. Revenues of $3.04 billion surpassed the Zacks Consensus Estimate by 2.2%. It currently carries a Zacks Rank #2 (Buy). Quest Diagnostics has a long-term estimated growth rate of 9.7%. DGX’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 5.8%. Avantor reported second-quarter 2026 adjusted EPS of 21 cents, beating the Zacks Consensus Estimate by 10.5%. Revenues of $1.69 billion surpassed the Zacks Consensus Estimate by 4.2%. It currently carries a Zacks Rank #2. Avantor has a long-term estimated growth rate of 1.6%. AVTR’s earnings surpassed estimates in three of the trailing four quarters and missed once, the average surprise being 4.3%. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report DaVita Inc. (DVA) : Free Stock Analysis Report Quest Diagnostics Incorporated (DGX) : Free Stock Analysis Report Avantor, Inc. (AVTR) : Free Stock Analysis Report BrightSpring Health Services, Inc. (BTSG) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Interested in DaVita Inc.? Here are five stocks we like better. DaVita reaffirmed its 2026 outlook after reporting second-quarter adjusted operating income of $579 million, adjusted EPS of $4.02 and free cash flow of $256 million. Treatment growth exceeded expectations, helped by lower patient mortality, and full-year nominal volume growth is expected near the top of the company’s 25–50 basis-point range. Revenue per treatment fell sequentially by about $2 due to timing effects, lower phosphate-binder revenue and reduced commercial insurance mix. DaVita still expects full-year revenue-per-treatment growth of 1%–2%, while patient-care costs per treatment declined by about $3. DaVita plans to broadly deploy expanded hemodialysis using existing machines after securing dialyzer supplies, with management citing clinical results showing non-inferiority to HDF. The company also repurchased shares, completed a $200 million investment in Elara Caring and maintained its guidance midpoint of $2.2 billion in adjusted operating income and $14.65 in adjusted EPS. How Berkshire Hathaway Performed During Buffett's Final Quarter DaVita (NYSE:DVA) reported second-quarter results that management said were broadly in line with expectations, supported by accelerating treatment-volume growth and lower mortality among patients. The kidney-care company reaffirmed its full-year 2026 guidance, while outlining plans to expand access to newer dialysis technology designed to improve clearance of so-called middle molecules. Second-quarter adjusted operating income was $579 million, adjusted earnings per share were $4.02, and free cash flow totaled $256 million, Chief Financial Officer Joel Ackerman said on the company’s earnings call. → SpaceX’s First Earnings Report Could Decide Whether Shorts or Bulls Have Control Buffett's Latest Portfolio Moves, and Another Secret Stock U.S. dialysis treatments increased 56 basis points from the second quarter of 2025, with treatments per normalized day rising by the same amount. Ackerman said volume growth came in slightly above expectations, primarily because mortality was lower than anticipated. That benefit was partly offset by fewer patient admissions from closed Fresenius clinics and a higher-than-expected level of missed treatments. DaVita now expects full-year nominal treatment growth near the upper end of its prior range of 25 to 50 basis points. On a calendar-normalized basis, that would translate to growth of roughly 50 to 75 basis points, according to Ackerman. → 3 Drone Stocks That Should Soar After the Summer Slump Wall Street Is Cautious on These 2 First Half Winners Revenue per treatment declined by about $2 from the first quarter. Ackerman attributed the sequential decrease to favorable revenue timing in the first quarter, lower revenue from phosphate binders and a decline in commercial insurance mix related to expired Affordable Care Act subsidies. Although revenue per treatment was up 3.6% in the first half compared with the first half of 2025, the company continues to expect full-year growth of 1% to 2%. The midpoint of that outlook implies slightly negative revenue-per-treatment growth in the second half versus the same period a year earlier, driven by lower commercial mix, lower phosphate-binder revenue and a favorable fourth-quarter 2025 comparison related to aged-claim resolutions. → Why Rare Earth Processing Could Be the Real 2027 Opportunity Patient care costs per treatment fell about $3 sequentially, reflecting labor and fixed-cost leverage from higher treatment volume and lower phosphate-binder costs. Higher benefit costs partly offset those improvements. DaVita expects total cost per treatment to grow between 1.25% and 2.25% for the full year. During the question-and-answer session, Ackerman said U.S. dialysis general and administrative expenses increased 10% in the quarter, while enterprise adjusted operating income increased about 5%. Chief Executive Officer Javier Rodriguez highlighted the transition of phosphate binders into the Medicare dialysis bundle. He said the policy change, which began more than two years ago after advance notice from the Centers for Medicare & Medicaid Services, has expanded access to clinically preferred therapies. Rodriguez said the number of patients relying on over-the-counter options such as TUMS has declined by more than 50%, allowing more patients to use treatments intended to better manage phosphate levels and reduce risks associated with cardiovascular complications and bone fractures. CMS in late June issued its proposed rule for the 2027 ESRD prospective payment system. Rodriguez said the proposal includes a Medicare base-rate update and the addition of phosphate binders to the bundled dialysis payment beginning next year. He said the proposed payment update remains below the industry’s cost trends because of methodology changes and TDAPA-related dynamics. DaVita is providing feedback during the rulemaking process and hopes the final rule better reflects the cost of providing care. Rodriguez added that CMS has reduced its projected phosphate-binder spending estimate by nearly $500 million since the medications’ initial transition. DaVita supports ending the TDAPA period after two years, though the company said its ultimate 2027 financial effect will depend on the final dialysis-bundle update. DaVita plans to begin broadly deploying expanded hemodialysis, or expanded HD, across its network in coming quarters after securing supplies of compatible dialyzers. The technology is intended to clear a broader group of toxins known as middle molecules. Rodriguez cited results from the MOTheR clinical trial, which compared expanded HD using medium cut-off dialyzers with hemodiafiltration, or HDF. He said expanded HD was shown to be non-inferior to HDF on a composite endpoint including all-cause mortality and major cardiovascular events. Unlike HDF, expanded HD can be delivered using DaVita’s existing dialysis machines, which Rodriguez said should allow for faster implementation without significant capital investment. He said a recent Food and Drug Administration approval of a new expanded-HD dialyzer from NIPRO improved supply availability and economics. Management said the near-term financial impact of deployment is included in 2026 guidance and is not expected to be significant. Ackerman said a positive economic impact would depend on a mortality benefit and is not expected to begin until 2028. DaVita closed its $200 million minority investment in Elara Caring in July. Ackerman said the home-health provider is expected to generate a small other-income benefit in 2026, likely in the mid-single-digit millions. The company repurchased 2.2 million shares in the second quarter and another 183,000 shares after quarter-end. Its leverage ratio was 3.37 times consolidated EBITDA, within its stated 3.0 to 3.5 times target range. DaVita also issued $500 million of incremental debt during the quarter, primarily to repay revolver borrowings. International adjusted operating income was $25 million, in line with expectations. Integrated Kidney Care, or IKC, generated $40 million of adjusted operating income, above expectations because revenue was recognized earlier than anticipated. Management still expects International and IKC each to contribute about $20 million to full-year enterprise adjusted operating income growth. DaVita reaffirmed full-year guidance with a midpoint of $2.2 billion for adjusted operating income and $14.65 for adjusted earnings per share. Ackerman said the company expects adjusted operating income in the fourth quarter to be $50 million to $100 million higher than in the third quarter, with IKC revenue timing the largest driver. DaVita Inc (NYSE: DVA) is a leading provider of kidney care services, specializing in the management and operation of outpatient dialysis centers for patients with chronic kidney failure and end-stage renal disease. Headquartered in Denver, Colorado, the company offers a comprehensive suite of treatment modalities, including in-center hemodialysis, peritoneal dialysis, and home dialysis therapies. In addition to its core dialysis services, DaVita provides patient education, nutritional counseling, vascular access management and related laboratory services to support kidney health and overall patient well-being. Since its formation in the mid-1990s through a clinical management services spin-off, DaVita has expanded both organically and through strategic partnerships and acquisitions. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "DaVita Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

This article first appeared on GuruFocus. Adjusted Operating Income: $579 million in Q2 2026. Adjusted Earnings Per Share: $4.02 in Q2 2026. Free Cash Flow: $256 million in Q2 2026. U.S. Dialysis Treatment Volume Growth: Increased 56 basis points year-over-year in Q2 2026. Revenue Per Treatment: Decreased approximately $2 sequentially in Q2 2026. Patient Care Cost Per Treatment: Declined approximately $3 sequentially in Q2 2026. International Adjusted Operating Income: $25 million in Q2 2026. IKC Adjusted Operating Income: Positive $40 million in Q2 2026. Debt Expense: $152 million in Q2 2026. Share Repurchases: Repurchased 2.2 million shares during Q2 2026, plus an additional 183,000 shares after quarter-end. Leverage Ratio: 3.37 times consolidated EBITDA at the end of Q2 2026. Full-Year 2026 Guidance: Reconfirmed adjusted operating income midpoint of $2.2 billion and adjusted EPS midpoint of $14.65. Warning! GuruFocus has detected 6 Warning Signs with DVA. Is DVA fairly valued? Test your thesis with our free DCF calculator. Release Date: August 04, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. DaVita Inc (NYSE:DVA) reported another positive quarter with adjusted operating income of $579 million and adjusted EPS of $4.02, in line with expectations. Treatment volume growth accelerated slightly faster than expected, driven by continued improvements in mortality, leading to increased confidence in achieving near the top end of the 25-50 basis points growth guidance. The transition of phosphate binders into the Medicare bundle has been successful, reducing reliance on less effective OTC options and improving patient access to clinically preferred therapies. DaVita Inc (NYSE:DVA) has secured supply for expanded HD dialyzers, which are compatible with existing machines, allowing for broad deployment without significant capital investment and potentially improving patient outcomes. The company reaffirmed its full-year 2026 guidance for adjusted operating income and adjusted EPS, reflecting stable financial performance and strategic execution. DaVita Inc (NYSE:DVA) continues to return capital to shareholders, repurchasing 2.2 million shares in Q2 and maintaining a consistent buyback program, with leverage within its target range. The minority investment in Elara Caring provides an opportunity to expand integrated care services, potentially enhancing patient care and creating new revenue streams. Revenue per treatment declined sequentially by approximately $2, reflecting lower commercial mix from declining ACA enrollment and lower phosphate binder revenue, with expectations of slightly negative RPT growth in the second half of 2026. The proposed 2027 ESRD payment update tracks below industry cost trends, potentially pressuring margins despite ongoing feedback to CMS. Patient care costs per treatment grew more than 3% year-to-date, above the expected range, though deceleration is anticipated in the back half of the year. The company experienced higher-than-expected miss treatments and fewer admits from closed Fresenius clinics, which partially offset volume gains. Commercial mix is expected to decline further, with a $40 million headwind in 2026 and an additional $70 million impact in 2027, driven by lower new patient mix from ACA subsidy expirations. The financial impact of deploying expanded HD technology is not expected to be significant until 2028, when mortality benefits may begin to materialize, delaying potential economic upside. G&A costs increased by $11 million sequentially, contributing to elevated cost per treatment growth in the first half of the year. Q: Despite growth in treatment, U.S. dialysis OI was relatively flat year-over-year while lapping a $45 million cyber headwind. Why aren't we seeing better leverage from treatment growth, and what drove the elevated cost per treatment in the quarter?A: Joel Ackerman (CFO) explained that while enterprise OI was up about 5%, cost per treatment growth was elevated in the first half of the year, similar to revenue per treatment, creating an offset. Additionally, G&A growth continued at roughly 10% for the quarter, which were the primary items impacting U.S. dialysis margins. Q: Can you provide more color on the volume trends? The two large dialysis providers combined appear to show negative same-store treatment growth. Is the industry shrinking, or are smaller chains taking share?A: Javier Rodriguez (CEO) stated that DaVita's growth is driven by clinical performance that extends life, leading to increased treatment volume. He could not comment on the rest of the industry's performance. Joel Ackerman (CFO) added that the company's performance was clinically driven, with mortality and admits largely in line with expectations. Q: With the deployment of expanded HD capability, what are the near-term economic implications beyond the potential for improved mortality?A: Javier Rodriguez (CEO) outlined three categories: clinical benefits, operational simplicity (as switching dialyzers is straightforward), and supply confidence. He noted the financial impact is included in 2026 guidance and will not be significant for 2027 and beyond. Joel Ackerman (CFO) clarified that the impact is insignificant until the mortality benefit kicks in, which is not expected until 2028. Q: Can you walk us through the process of patients transferring from commercial to government coverage due to ACA subsidy expiration? Are you seeing new patients come in on government plans, or existing patients dropping coverage?A: Joel Ackerman (CFO) stated that DaVita is seeing both dynamics. The more sustained trend is new admits coming in at a lower commercial mix due to lower Qualified Health Plan (QHP) enrollment. This is expected to drive a $40 million headwind in 2026 and a $70 million headwind in 2027, which combines the annualizing effect of 2026 losses plus additional mix loss next year. Q: What is the current occupancy rate of your centers, and how should we think about fixed cost leverage as treatment growth continues?A: Joel Ackerman (CFO) noted that capacity utilization is running in the high 50s, up from a pre-COVID peak of about 65%. He cautioned that the marginal profit of a patient depends on the payer mix, with Medicare patients providing less marginal economics than commercial patients, making it difficult to pin down a single fixed-cost leverage number. Q: The change in expectation from Fresenius clinic closuresis that just what you experienced in the quarter, or have you changed your full-year outlook for patient pickups?A: Joel Ackerman (CFO) clarified that the pickup from the 100 Fresenius clinics they announced closing is now complete, as Fresenius has finished that effort. He does not expect this to change over the course of the year, and it is separate from other volume dynamics Fresenius has discussed. Q: Have you secured enough supply of the new expanded HD dialyzers to transition all of your facilities, or just a portion?A: Javier Rodriguez (CEO) confirmed that DaVita has secured enough supply to fulfill all physician demand for the transition. While the rollout will take time as the science is adopted, the company has the capacity to meet the full demand for the new dialyzers. Q: Can you talk about the IKC business? How many more years can it contribute roughly $20 million to OI growth, and what is driving the improvement this year?A: Joel Ackerman (CFO) stated there is no reason the growth can't continue for a while, driven by both margin expansion and increasing the number of lives and dollars under management. Javier Rodriguez (CEO) added that the current year's improvement is partly due to timing on revenue recognition, but the company is gaining confidence in managing total care costs and growing the business with more Medicare Advantage contracts. Q: Given the stock price move, does the share repurchase pace change your capital allocation priorities for the rest of the year?A: Javier Rodriguez (CEO) stated that capital allocation and the view on buybacks have been consistent throughout the year. The company was heavy on buybacks in Q1, totaling $785 million year-to-date, and the leverage ratio of 3.37x reflects the anticipated $200 million cash outlay for the Elara Caring investment that closed in July. There is no change in the buyback view. Q: Are there any updates on M&A activity? Is it still primarily focused on international, or are there domestic assets like IKC you'd consider?A: Javier Rodriguez (CEO) noted that the U.S. market is now highly consolidated, with only small "onesies and twosies" available. Future growth will come more from de novo clinic openings as the industry grows. The company will continue to evaluate acquisitions but there are not many available in the U.S. market. For the complete transcript of the earnings call, please refer to the full earnings call transcript.