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UHS' Q1 Earnings Beat on Strong Behavioral Health Care Admissions
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Key Takeaways
UHS' Q1 EPS of $5.62 beat estimates by 6.2% and rose 16.1% y/y.
Universal Health saw strong growth from Behavioral Health with higher admissions and patient days.
UHS' revenues rose 9.6% y/y to $4.5B, but higher wages and costs pressured margins.
Universal Health Services, Inc. (UHS - Free Report) reported first-quarter 2026 adjusted earnings per share (EPS) of $5.62, which beat the Zacks Consensus Estimate by 6.2%. The bottom line rose 16.1% year over year.
Net revenues of $4.5 billion improved 9.6% year over year. The top line beat the consensus mark by 3%.
The strong 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 Behavioral Health Care 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 8.4% year over year to $648.3 million, and beat our estimate of $633.2 million.
Total operating costs came in at $4 billion, which escalated 9.5% 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’ Q1 Segmental Update
Acute Care Hospital Services
On a same-facility basis, UHS’ acute care business leaned on stronger unit revenues rather than incremental admissions. Adjusted admissions (adjusted for outpatient activity) remained flat on a same-facility basis in the first quarter. Adjusted patient days rose 0.8% year over year, while net revenue per adjusted admission advanced 6.3%. Net revenues stemming from Universal Health’s acute care services improved 8.2% on a same-facility basis.
Behavioral Health Care Services
Behavioral health care also posted solid same-facility revenue growth, helped by both volume and pricing. Adjusted admissions inched up 1.2% on a same-facility basis. Adjusted patient days rose 1.6%, while net revenue per adjusted patient days advanced 6.2%. Net revenues derived from UHS’ behavioral healthcare services improved 7.3% on a same-facility basis.
Financial Update of UHS (As of March 31, 2026)
Universal Health exited the first quarter with cash and cash equivalents of $119 million, which fell from the 2025-end level of $137.8 million. 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 $373 million at the first-quarter end. Total assets of $15.7 billion increased from the $15.5 billion figure at 2025-end.
Long-term debt amounted to $4 billion, which declined 1.3% from the figure at 2025-end. Current maturities of long-term debt totaled $756.2 million.
Total equity of $7.5 billion advanced from the 2025-end figure of $7.3 billion.
UHS generated cash flows from operations of $401.6 million in the first quarter of 2026, which grew from the prior-year comparable period’s $360 million.
Share Repurchase Update
Universal Health bought back shares worth around $127.3 million in the first quarter of 2026. The total remaining authorization available under the buyback program now stands at $1.3 billion.
2026 Guidance by Universal Health
Management earlier expected net revenues within $18.417-$18.789 billion. The mid-point of the guidance implies 7.1% growth from the 2025 figure of $17.365 billion.
Adjusted EBITDA, net of NCI, was anticipated to be in the range of $2.641-$2.789 billion in 2026, indicating 4.8% growth from the 2025 level of $2.59 billion. EPS was projected in the band of $22.64-$24.52, the mid-point of which suggests 8.5% growth from the 2025 figure of $21.74.
Capital expenditures were expected to be between $950 million and $1.1 billion.
Several companies in the Medical space, including Molina Healthcare Inc. (MOH - Free Report) , UnitedHealth Group Incorporated (UNH - Free Report) and Elevance Health, Inc. (ELV - Free Report) , have already reported their financial results for the March quarter of 2026. Here’s how they had performed:
Molina Healthcare reported first-quarter 2026 adjusted earnings per share of $2.35, which beat the Zacks Consensus Estimate of $1.57. The bottom line declined 61.3% from the year-ago period's level. Revenues amounted to $10.8 billion, which decreased 3.1% year over year. The top line of Molina Healthcare marginally missed the consensus mark by 0.2%. The first-quarter performance was supported by lower medical care costs, partially offset by declining premiums, membership and investment income.
UnitedHealth reported first-quarter 2026 EPS of $7.23, which beat the Zacks Consensus Estimate of $6.46. The bottom line rose 0.4% year over year. Revenues rose 2% year over year to $111.7 billion. The top line beat the consensus mark by 2.1%. The strong quarterly earnings were aided by growth in commercial fee-based membership and the strength witnessed in Optum Rx. However, weakness in UnitedHealth’s Optum Health and declining risk-based membership partially offset the positives.
Elevance Health reported first-quarter 2026 adjusted earnings per share of $12.58, which surpassed the Zacks Consensus Estimate by 17.8%. The bottom line rose 5.1% year over year. Operating revenues advanced 1.5% year over year to $49.5 billion. The top line beat the consensus mark by 3.7%. The strong quarterly results benefited on the back of strong growth in premiums. Segment-wise, the Carelon division posted a robust revenue surge, aided by scaling risk-based services, while Health Benefits saw increased premium yields. However, Elevance Health’s upside was partly offset by a decline in overall medical membership and an elevated expense level.
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UHS' Q1 Earnings Beat on Strong Behavioral Health Care Admissions
Key Takeaways
Universal Health Services, Inc. (UHS - Free Report) reported first-quarter 2026 adjusted earnings per share (EPS) of $5.62, which beat the Zacks Consensus Estimate by 6.2%. The bottom line rose 16.1% year over year.
Net revenues of $4.5 billion improved 9.6% year over year. The top line beat the consensus mark by 3%.
The strong 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 Behavioral Health Care 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 8.4% year over year to $648.3 million, and beat our estimate of $633.2 million.
Total operating costs came in at $4 billion, which escalated 9.5% 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’ Q1 Segmental Update
Acute Care Hospital Services
On a same-facility basis, UHS’ acute care business leaned on stronger unit revenues rather than incremental admissions. Adjusted admissions (adjusted for outpatient activity) remained flat on a same-facility basis in the first quarter. Adjusted patient days rose 0.8% year over year, while net revenue per adjusted admission advanced 6.3%. Net revenues stemming from Universal Health’s acute care services improved 8.2% on a same-facility basis.
Behavioral Health Care Services
Behavioral health care also posted solid same-facility revenue growth, helped by both volume and pricing. Adjusted admissions inched up 1.2% on a same-facility basis. Adjusted patient days rose 1.6%, while net revenue per adjusted patient days advanced 6.2%. Net revenues derived from UHS’ behavioral healthcare services improved 7.3% on a same-facility basis.
Financial Update of UHS (As of March 31, 2026)
Universal Health exited the first quarter with cash and cash equivalents of $119 million, which fell from the 2025-end level of $137.8 million. 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 $373 million at the first-quarter end. Total assets of $15.7 billion increased from the $15.5 billion figure at 2025-end.
Long-term debt amounted to $4 billion, which declined 1.3% from the figure at 2025-end. Current maturities of long-term debt totaled $756.2 million.
Total equity of $7.5 billion advanced from the 2025-end figure of $7.3 billion.
UHS generated cash flows from operations of $401.6 million in the first quarter of 2026, which grew from the prior-year comparable period’s $360 million.
Share Repurchase Update
Universal Health bought back shares worth around $127.3 million in the first quarter of 2026. The total remaining authorization available under the buyback program now stands at $1.3 billion.
2026 Guidance by Universal Health
Management earlier expected net revenues within $18.417-$18.789 billion. The mid-point of the guidance implies 7.1% growth from the 2025 figure of $17.365 billion.
Adjusted EBITDA, net of NCI, was anticipated to be in the range of $2.641-$2.789 billion in 2026, indicating 4.8% growth from the 2025 level of $2.59 billion. EPS was projected in the band of $22.64-$24.52, the mid-point of which suggests 8.5% growth from the 2025 figure of $21.74.
Capital expenditures were expected to be between $950 million and $1.1 billion.
UHS’ Zacks Rank
UHS currently carries a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
How Did Peers Perform?
Several companies in the Medical space, including Molina Healthcare Inc. (MOH - Free Report) , UnitedHealth Group Incorporated (UNH - Free Report) and Elevance Health, Inc. (ELV - Free Report) , have already reported their financial results for the March quarter of 2026. Here’s how they had performed:
Molina Healthcare reported first-quarter 2026 adjusted earnings per share of $2.35, which beat the Zacks Consensus Estimate of $1.57. The bottom line declined 61.3% from the year-ago period's level. Revenues amounted to $10.8 billion, which decreased 3.1% year over year. The top line of Molina Healthcare marginally missed the consensus mark by 0.2%. The first-quarter performance was supported by lower medical care costs, partially offset by declining premiums, membership and investment income.
UnitedHealth reported first-quarter 2026 EPS of $7.23, which beat the Zacks Consensus Estimate of $6.46. The bottom line rose 0.4% year over year. Revenues rose 2% year over year to $111.7 billion. The top line beat the consensus mark by 2.1%. The strong quarterly earnings were aided by growth in commercial fee-based membership and the strength witnessed in Optum Rx. However, weakness in UnitedHealth’s Optum Health and declining risk-based membership partially offset the positives.
Elevance Health reported first-quarter 2026 adjusted earnings per share of $12.58, which surpassed the Zacks Consensus Estimate by 17.8%. The bottom line rose 5.1% year over year. Operating revenues advanced 1.5% year over year to $49.5 billion. The top line beat the consensus mark by 3.7%. The strong quarterly results benefited on the back of strong growth in premiums. Segment-wise, the Carelon division posted a robust revenue surge, aided by scaling risk-based services, while Health Benefits saw increased premium yields. However, Elevance Health’s upside was partly offset by a decline in overall medical membership and an elevated expense level.