DaVita Misses Quarterly Profit Estimates Amid Rising Costs Lower Treatment Volumes

DaVita, a leading kidney care provider, reported third-quarter revenue that met expectations at $3.42 billion but missed on adjusted earnings per share, which fell to $2.51 versus the anticipated $3.23, impacted by rising patient care costs, including higher drug prices and increased staffing expenses. The company faced additional financial pressure from a ransomware attack that cost $11.7 million and increased IT and cybersecurity-related expenses, pushing general and administrative costs higher by $10 million. Despite a 0.5% decline in average daily U.S. dialysis treatments and a 0.6% year-over-year drop in total treatment volume, DaVita reaffirmed its full-year guidance with adjusted operating income projected between $2.035 billion and $2.135 billion and earnings per share between $10.35 and $11.15. The firm's CEO highlighted ongoing advancements in kidney care through extensive clinical research, while the company continued shareholder rewards through significant stock buybacks. Investor sentiment remains cautious due to persistent healthcare inflation and cybersecurity risks, although DaVita's steady revenue and optimistic outlook provide some confidence in its long-term prospects. The results underscore broader industry challenges where rising costs and digital security concerns increasingly affect operational and financial performance.