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Will Acute Care Strength Help Universal Health Offset Q1 Rising Costs?

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Key Takeaways

  • UHS is set to report Q1 2026 results on April 27, with EPS expected to be up 10.7% year over year.
  • UHS' Acute Care segment revenue is projected near $2.5B, with same-facility admissions up 3.7%.
  • UHS faces rising Q1 operating expenses, with wages up 4.3% and supply costs expected to be up 5.4%.

Hospital operator Universal Health Services, Inc. (UHS - Free Report) is set to report first-quarter 2026 results on April 27, 2026, after the closing bell. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings is currently pegged at $5.36 per share on revenues of $4.37 billion. 

The first-quarter earnings estimate witnessed four upward revisions over the past 60 days against two movements in the opposite direction. The bottom-line projection indicates a year-over-year increase of 10.7%. The Zacks Consensus Estimate for quarterly revenues suggests year-over-year growth of 6.6%.

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For the full-year 2026, the Zacks Consensus Estimate for Universal Health’s revenues is pegged at $18.51 billion, implying a rise of 6.6% year over year. Meanwhile, the consensus mark for full-year EPS is pegged at $23.43, implying growth of 7.8% on a year-over-year basis.

Universal Health beat the consensus estimate for earnings in three of the last four quarters and missed once, with the average surprise being 10.7%. This is depicted in the figure below.

Q1 Earnings Whispers for UHS

Our proven model does not conclusively predict an earnings beat for the company this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the odds of an earnings beat. That’s not the case here.

UHS currently has an Earnings ESP of 0.00% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

What’s Shaping UHS’ Q1 Results?

Universal Health's performance is likely to have been boosted by higher patient days and admissions in both its Acute Care Hospital Services and Behavioral Health Care Services segments.

The Zacks Consensus Estimate for net revenues in the Acute Care Hospital Services segment is pegged at almost $2.5 billion, indicating 6.3% year-over-year growth. The consensus mark for the unit’s same-facility adjusted admissions indicate 3.7% growth from the prior-year quarter.

The Zacks Consensus Estimate for net revenues in the Behavioral Health Care Services segment is pegged at $1.86 billion, indicating a 6.2% increase from the prior-year quarter. The consensus estimate for the unit’s admissions indicates a year-over-year increase of 0.8%.

The Zacks Consensus Estimate for operating income from Acute Care Hospital Services indicates 1.7% year-over-year growth, while the same for Behavioral Health Care Services suggests a 4.3% improvement.

The factors stated above are likely to have positioned the company for year-over-year growth. However, the positives are likely to have been partially offset by rising total operating expenses by 6.3%, due to higher salaries, wages and benefits, as well as increased costs for supplies in the first quarter, making an earnings beat uncertain. We anticipate salaries, wages and benefits to increase 4.3% year over year, while supply expenses are expected to escalate 5.4%.

Stocks That Warrant a Look

While an earnings beat looks uncertain for Universal Health, here are some companies from the broader Medical space that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this time around:

The Ensign Group, Inc. (ENSG - Free Report) has an Earnings ESP of +1.12% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Ensign’s bottom line for the to-be-reported quarter of $1.79 indicates 17.8% year-over-year growth. It has witnessed one upward revision against no downward movement over the past 60 days. The consensus mark for Ensign’s revenues is pegged at $1.39 billion, an 18.5% increase from a year ago.

Janux Therapeutics, Inc. (JANX - Free Report) has an Earnings ESP of +26.03% and a Zacks Rank of 3.

The Zacks Consensus Estimate for Janux Therapeutics’ bottom line for the to-be-reported quarter has improved by 3 cents over the past month. The company’s earnings beat estimates in three of the trailing four quarters and missed once, with an average surprise of 13.4%. The consensus estimate for JANX’s revenues is pegged at $15 million.

Novavax, Inc. (NVAX - Free Report) has an Earnings ESP of +20.00% and a Zacks Rank of 3.

The Zacks Consensus Estimate for Novavax’s bottom line for the to-be-reported quarter improved by 7 cents over the past 60 days. Its earnings beat estimates in each of the past four quarters, with an average surprise of 364.4%. Novavax’s revenues for the to be reported quarter are pegged at $60.39 million.

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