DVA DaVita Inc

$DVA If DaVita adopts $AKBA’s Vafseo across its entire network, it could reduce patient care costs while potentially improving DaVita’s financial performance and earnings.

Dug deeper and it looks worse than it seems. Yesterday $DVA, the biggest customer, said the $8.32 DefenCath payment only covers Q1 2027 and should drop significantly after that. Hence today’s 25% plunge on 5x volume. Revenue already down to ~$50M/qtr (from $127M). DefenCath depends on 2 customers and isn’t essential. Rezzayo prophylaxis only matches cheap generics. TPN trial slipped to 2028. No bankruptcy risk, but a shrinking business and silent management. Out on the next bounce. Not advice.

$DVA Ancillary revenue grew to 551.8 million dollars in Q3, but Note 2 in the 10-Q says 137.5 million dollars of IKC revenue booked in the first nine months was for work from prior years, recognized late because the value-based contracts are constrained. Contract assets climbed to 386.7 million dollars from 310.5 million at year end, and the ancillary segment still lost 18.6 million dollars in the quarter while dialysis made 544.2 million.

$DVA Q3 '26 Earnings Results & Recap • Reported GAAP EPS of $3.82 up 52.19% YoY • Reported revenue of $3.58B up 4.62% YoY • DaVita's current 2026 guidance is adjusted operating income of $2.18B, adjusted diluted net income per share of $14.30$15.20, and free cash flow of $1B.

$DVA reports earnings today after the close. I’m bullish heading into the report: DVA has beaten EPS estimates in 6 of its last 8 reports, according to Stock Meadow.