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Universal Health's Q3 Earnings Top on Patient Volumes, Ups '25 EPS View
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Key Takeaways
UHS reported Q3 EPS of $5.69, beating estimates by 22% and rising 53.4% year over year.
Q3 revenues rose 13.4% to $4.5B, driven by growth in Acute Care and Behavioral Health segments.
Adjusted EBITDA jumped 27.4% to $670.6M, aided by increased admissions and patient days.
Universal Health Services, Inc. (UHS - Free Report) reported third-quarter 2025 adjusted earnings per share (EPS) of $5.69, which outpaced the Zacks Consensus Estimate by 22.1%. The bottom line soared 53.4% year over year.
Net revenues of $4.5 billion improved 13.4% year over year. The top line beat the consensus mark by 4.2%.
The quarterly results benefited from strong top-line growth driven by robust performance in both Acute Care and Behavioral Health segments. Increased adjusted admissions and improved patient days boosted segmental revenues. However, the upside was partly offset by elevated operating costs.
Universal Health Services, Inc. Price, Consensus and EPS Surprise
Adjusted EBITDA, net of NCI, rose 27.4% year over year to $670.6 million, higher than our estimate of $577.4 million.
Total operating costs came in at $4 billion, which escalated 11% year over year in the quarter under review due to higher salaries, wages and benefits, supplies and other operating expenses. The metric came higher than our estimate of $3.9 billion.
UHS’ Segmental Update
Acute Care Hospital Services
Adjusted admissions (adjusted for outpatient activity) grew 2% on a same-facility basis in the third quarter. Adjusted patient days inched up 0.4% year over year, while net revenue per adjusted admission advanced 9.8%. Net revenues stemming from Universal Health’s acute care services improved 12.8% on a same-facility basis.
Behavioral Health Care Services
Adjusted admissions inched up 0.5% on a same-facility basis. Adjusted patient days rose 1.3% on a same-facility basis, while net revenue per adjusted patient day advanced 7.9%. Net revenues derived from UHS’ behavioral healthcare services improved 9.3% on a same-facility basis.
Financial Update of UHS (As of Sept. 30, 2025)
Universal Health exited the third quarter with cash and cash equivalents of $112.9 million, which fell 10.4% from the 2024-end level. As part of its $1.3 billion revolving credit facility, net of outstanding borrowings and letters of credit, there remains an aggregate available borrowing capacity of $965 million at the third-quarter end.
Total assets of $15.3 billion increased 6% from the figure at 2024-end.
Long-term debt amounted to $4 billion, which declined 11.5% from the prior-year comparable period. Current maturities of long-term debt totaled $740.2 million.
Total equity of $7.2 billion advanced 7.1% from the 2024-end figure.
UHS generated cash flows from operations of $1.3 billion for the first nine months of 2025, which slipped 8.4% from the prior-year comparable period.
UHS’ Share Repurchase Update
Universal Health bought back shares worth around $234.3 million in the third quarter.
On Oct. 27, 2025, management approved a $1.5 billion increase to the existing stock repurchase program. Including this latest authorization, the total remaining authorization available under the program now stands at $1.8 billion.
2025 Guidance of Universal Health Revised
Management currently forecasts net revenues within $17.306-$17.445 billion, higher than the earlier view of $17.096-$17.312 billion. The mid-point of the revised guidance implies 9.8% growth from the 2024 figure.
Adjusted EBITDA, net of NCI, is now anticipated to be in the range of $2.569-$2.619 billion, up from the previous forecast of $2.458-$2.543 billion. Adjusted net income attributable to UHS is forecasted within $1.382-$1.420 billion.
EPS is presently expected in the band of $21.50-$22.10, higher than the earlier guidance of $20-$21. The mid-point of the revised outlook suggests 31.2% growth from the 2024 figure.
Depreciation and amortization expenses are anticipated to be $617.4 million. Interest expenses are estimated at $151.9 million. Provisions for income taxes are expected in the range of $434.352-$446.316 million.
Capital expenditures were earlier expected to be between $850 million and $1 billion.
Of the Medical sector players that have reported third-quarter 2025 results so far, the bottom-line results of Elevance Health, Inc. (ELV - Free Report) , HCA Healthcare, Inc. (HCA - Free Report) and Intuitive Surgical, Inc. (ISRG - Free Report) beat the respective Zacks Consensus Estimate.
Elevance Health reported third-quarter 2025 adjusted EPS of $6.03, which surpassed the Zacks Consensus Estimate by 21.1%. The bottom line dropped 29.9% year over year. Operating revenues advanced 12% year over year to $50.1 billion. The top line beat the consensus mark by 1.2%. Medical membership of Elevance Health was around 45.4 million as of Sept. 30, 2025, which dipped 0.9% year over year. Premiums totaled $41.8 billion in the quarter under review, which improved 13.5% year over year.
Product revenues grew 4.6% year over year to $6.2 billion. Operating expense ratio came in at 10.5%, which improved 130 bps year over year. The benefit expense ratio deteriorated 180 bps year over year to 91.3%. The Health Benefits unit recorded operating revenues of $42.2 billion in the third quarter, which rose 10% year over year. The Carelon segment’s operating revenues soared 33% year over year to $18.3 billion in the quarter under review.
HCA Healthcare’s third-quarter 2025 adjusted EPS of $6.96 surpassed the Zacks Consensus Estimate by 23.2%. The bottom line improved 42% year over year. Revenues were $19.2 billion, which advanced 9.6% year over year. The top line beat the consensus mark by 3.6%. Same-facility equivalent admissions advanced 2.4% year over year in the third quarter, while same-facility admissions increased 2.1%. Same-facility revenue per equivalent admission advanced 6.6% year over year.
Same-facility inpatient surgeries rose 1.4% year over year, while same-facility outpatient surgeries grew 1.1%. Additionally, same-facility emergency room visits inched up 1.3% year over year in the quarter under review. Adjusted EBITDA improved 18.5% year over year to $3.9 billion. HCA Healthcare operated 191 hospitals and roughly 2,500 ambulatory sites of care across 20 states and the United Kingdom as of Sept. 30, 2025.
Intuitive Surgical reported third-quarter 2025 adjusted EPS of $2.40, which beat the Zacks Consensus Estimate of $1.99 by 20.6%. The bottom line improved 30.4% year over year. The company reported revenues of $2.51 billion, up 23% year over year, as well as at constant currency. The top line beat the Zacks Consensus Estimate by 3.9%. Revenues from the Instruments & Accessories segment totaled $1.52 billion, indicating a year-over-year improvement of 20.1%.
The Systems segment’s revenues totaled $590.4 million, up 32.7% year over year. Intuitive Surgical shipped 427 da Vinci Surgical Systems compared with 379 in the prior-year quarter. The company placed 263 systems in the United States and 164 in international markets. Adjusted gross profit was $1.70 billion, up 21% year over year. As a percentage of revenues, the gross margin was 68%, down approximately 110 bps from the prior-year quarter’s figure. Adjusted operating income totaled $975.9 million, up 29.2% year over year.
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Universal Health's Q3 Earnings Top on Patient Volumes, Ups '25 EPS View
Key Takeaways
Universal Health Services, Inc. (UHS - Free Report) reported third-quarter 2025 adjusted earnings per share (EPS) of $5.69, which outpaced the Zacks Consensus Estimate by 22.1%. The bottom line soared 53.4% year over year.
Net revenues of $4.5 billion improved 13.4% year over year. The top line beat the consensus mark by 4.2%.
The quarterly results benefited from strong top-line growth driven by robust performance in both Acute Care and Behavioral Health segments. Increased adjusted admissions and improved patient days boosted segmental revenues. However, the upside was partly offset by elevated operating costs.
Universal Health Services, Inc. Price, Consensus and EPS Surprise
Universal Health Services, Inc. price-consensus-eps-surprise-chart | Universal Health Services, Inc. Quote
UHS’ Quarterly Operational Update
Adjusted EBITDA, net of NCI, rose 27.4% year over year to $670.6 million, higher than our estimate of $577.4 million.
Total operating costs came in at $4 billion, which escalated 11% year over year in the quarter under review due to higher salaries, wages and benefits, supplies and other operating expenses. The metric came higher than our estimate of $3.9 billion.
UHS’ Segmental Update
Acute Care Hospital Services
Adjusted admissions (adjusted for outpatient activity) grew 2% on a same-facility basis in the third quarter. Adjusted patient days inched up 0.4% year over year, while net revenue per adjusted admission advanced 9.8%. Net revenues stemming from Universal Health’s acute care services improved 12.8% on a same-facility basis.
Behavioral Health Care Services
Adjusted admissions inched up 0.5% on a same-facility basis. Adjusted patient days rose 1.3% on a same-facility basis, while net revenue per adjusted patient day advanced 7.9%. Net revenues derived from UHS’ behavioral healthcare services improved 9.3% on a same-facility basis.
Financial Update of UHS (As of Sept. 30, 2025)
Universal Health exited the third quarter with cash and cash equivalents of $112.9 million, which fell 10.4% from the 2024-end level. As part of its $1.3 billion revolving credit facility, net of outstanding borrowings and letters of credit, there remains an aggregate available borrowing capacity of $965 million at the third-quarter end.
Total assets of $15.3 billion increased 6% from the figure at 2024-end.
Long-term debt amounted to $4 billion, which declined 11.5% from the prior-year comparable period. Current maturities of long-term debt totaled $740.2 million.
Total equity of $7.2 billion advanced 7.1% from the 2024-end figure.
UHS generated cash flows from operations of $1.3 billion for the first nine months of 2025, which slipped 8.4% from the prior-year comparable period.
UHS’ Share Repurchase Update
Universal Health bought back shares worth around $234.3 million in the third quarter.
On Oct. 27, 2025, management approved a $1.5 billion increase to the existing stock repurchase program. Including this latest authorization, the total remaining authorization available under the program now stands at $1.8 billion.
2025 Guidance of Universal Health Revised
Management currently forecasts net revenues within $17.306-$17.445 billion, higher than the earlier view of $17.096-$17.312 billion. The mid-point of the revised guidance implies 9.8% growth from the 2024 figure.
Adjusted EBITDA, net of NCI, is now anticipated to be in the range of $2.569-$2.619 billion, up from the previous forecast of $2.458-$2.543 billion. Adjusted net income attributable to UHS is forecasted within $1.382-$1.420 billion.
EPS is presently expected in the band of $21.50-$22.10, higher than the earlier guidance of $20-$21. The mid-point of the revised outlook suggests 31.2% growth from the 2024 figure.
Depreciation and amortization expenses are anticipated to be $617.4 million. Interest expenses are estimated at $151.9 million. Provisions for income taxes are expected in the range of $434.352-$446.316 million.
Capital expenditures were earlier expected to be between $850 million and $1 billion.
UHS’ Zacks Rank
Universal Health currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Other Medical Sector Releases
Of the Medical sector players that have reported third-quarter 2025 results so far, the bottom-line results of Elevance Health, Inc. (ELV - Free Report) , HCA Healthcare, Inc. (HCA - Free Report) and Intuitive Surgical, Inc. (ISRG - Free Report) beat the respective Zacks Consensus Estimate.
Elevance Health reported third-quarter 2025 adjusted EPS of $6.03, which surpassed the Zacks Consensus Estimate by 21.1%. The bottom line dropped 29.9% year over year. Operating revenues advanced 12% year over year to $50.1 billion. The top line beat the consensus mark by 1.2%. Medical membership of Elevance Health was around 45.4 million as of Sept. 30, 2025, which dipped 0.9% year over year. Premiums totaled $41.8 billion in the quarter under review, which improved 13.5% year over year.
Product revenues grew 4.6% year over year to $6.2 billion. Operating expense ratio came in at 10.5%, which improved 130 bps year over year. The benefit expense ratio deteriorated 180 bps year over year to 91.3%. The Health Benefits unit recorded operating revenues of $42.2 billion in the third quarter, which rose 10% year over year. The Carelon segment’s operating revenues soared 33% year over year to $18.3 billion in the quarter under review.
HCA Healthcare’s third-quarter 2025 adjusted EPS of $6.96 surpassed the Zacks Consensus Estimate by 23.2%. The bottom line improved 42% year over year. Revenues were $19.2 billion, which advanced 9.6% year over year. The top line beat the consensus mark by 3.6%. Same-facility equivalent admissions advanced 2.4% year over year in the third quarter, while same-facility admissions increased 2.1%. Same-facility revenue per equivalent admission advanced 6.6% year over year.
Same-facility inpatient surgeries rose 1.4% year over year, while same-facility outpatient surgeries grew 1.1%. Additionally, same-facility emergency room visits inched up 1.3% year over year in the quarter under review. Adjusted EBITDA improved 18.5% year over year to $3.9 billion. HCA Healthcare operated 191 hospitals and roughly 2,500 ambulatory sites of care across 20 states and the United Kingdom as of Sept. 30, 2025.
Intuitive Surgical reported third-quarter 2025 adjusted EPS of $2.40, which beat the Zacks Consensus Estimate of $1.99 by 20.6%. The bottom line improved 30.4% year over year. The company reported revenues of $2.51 billion, up 23% year over year, as well as at constant currency. The top line beat the Zacks Consensus Estimate by 3.9%. Revenues from the Instruments & Accessories segment totaled $1.52 billion, indicating a year-over-year improvement of 20.1%.
The Systems segment’s revenues totaled $590.4 million, up 32.7% year over year. Intuitive Surgical shipped 427 da Vinci Surgical Systems compared with 379 in the prior-year quarter. The company placed 263 systems in the United States and 164 in international markets. Adjusted gross profit was $1.70 billion, up 21% year over year. As a percentage of revenues, the gross margin was 68%, down approximately 110 bps from the prior-year quarter’s figure. Adjusted operating income totaled $975.9 million, up 29.2% year over year.