Shares of DaVita (DVA) are up 20% on Feb. 3 after the kidney dialysis company posted quarterly financial results that beat Wall Street’s expectations.
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The Colorado-based medical technology concern reported earnings per share of $3.40 for the fourth quarter of 2025, beating analysts’ consensus forecast of $3.24. Revenue in the period totaled $3.60 billion, topping analysts’ consensus call of $3.50 billion. Sales were up 10% from a year earlier.
Investors responded strongly to DaVita’s print, with DVA stock was up as much as 25% in early trading on Feb 3. As for guidance, DaVita’s management team said they expect operating income of $2.16 billion at the midpoint of its guidance range in 2026. That’s up from $2.09 billion in 2025 and above analysts’ forecast of $2.14 billion.
The Warren Buffett Connection
Analysts said that the key to sustained success for DVA stock will be the company’s organic volume growth. Normalized treatment volume, excluding acquisitions, fell 0.6% from the previous year and hasn’t risen since the second quarter of 2024.
Another factor will be famed investor Warren Buffett, whose holding company Berkshire Hathaway (BRK.B) is DaVita’s largest shareholder, owning 45% of the kidney dialysis company. Berkshire sold part of its DaVita holdings last year but still has a $4.14 billion stake in the healthcare concern.
Is DVA Stock a Buy?
DaVita stock has a consensus Moderate Sell rating among three Wall Street analysts. That rating is based on two Hold and one Sell recommendations issued in the last three months. The average DVA price target of $158.00 implies 21.54% upside from current levels. These ratings could change after the company’s latest financial results.
