The Liberals picked up two more seats in the legislature after a pair of byelection wins Tuesday in Trinity-Bay de Verde and Humber East.
Both seats were previously held by former Tory cabinet ministers.
The Tories have lost seven consecutive byelections to the Liberals in the last 16 months.
Davis says the latest byelection results are disappointing, but he accepts the decision of the people.
There are now 29 Progressive Conservative members in the legislature, 16 Liberals and three New Democrats.
Davis is obliged under provincial law to call a general election within a year of his swearing-in as premier on Sept. 26.
Liberal Leader Dwight Ball says it's his job to ensure the party is ready whenever an election is called.
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