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Why Is Universal Health Services (UHS) Down 3.6% Since Last Earnings Report?
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A month has gone by since the last earnings report for Universal Health Services (UHS - Free Report) . Shares have lost about 3.6% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Universal Health Services due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important drivers.
UHS' Q1 Earnings Beat on Strong Behavioral Health Care Admissions
Universal Health Services 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.
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.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates review.
VGM Scores
At this time, Universal Health Services has a nice Growth Score of B, however its Momentum Score is doing a bit better with an A. Following the exact same course, the stock was allocated a score of A on the value side, putting it in the top quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, Universal Health Services has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Why Is Universal Health Services (UHS) Down 3.6% Since Last Earnings Report?
A month has gone by since the last earnings report for Universal Health Services (UHS - Free Report) . Shares have lost about 3.6% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Universal Health Services due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important drivers.
UHS' Q1 Earnings Beat on Strong Behavioral Health Care Admissions
Universal Health Services 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.
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.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates review.
VGM Scores
At this time, Universal Health Services has a nice Growth Score of B, however its Momentum Score is doing a bit better with an A. Following the exact same course, the stock was allocated a score of A on the value side, putting it in the top quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, Universal Health Services has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.