DaVita Q3 EPS Misses; Guidance Narrowed

DaVita reported Q3 2025 revenue of $3.42 billion, roughly in line with expectations, but posted adjusted EPS of $2.51, well below estimates, sending shares lower in extended trading. Average daily U.S. dialysis treatments fell 0.5% quarter‑over‑quarter and sales volumes were down about 1.5% year‑over‑year, while revenue reflected some pricing. Patient‑care cost per treatment rose roughly 6% year‑over‑year driven by higher drug and compensation costs, and the company incurred $11.7 million to remediate a cybersecurity incident as general and administrative and IT expenses increased. Management narrowed full‑year 2025 guidance and raised the lower end of adjusted EPS guidance to a range of $10.35–$11.15, effectively keeping the midpoint near $10.75. International operations grew about 36% year‑to‑date, but operating and free‑cash‑flow margins declined and nine‑month net income fell roughly 17%, highlighting ongoing cost and volume headwinds despite pockets of growth.