We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
UHS Beats Q2 Earnings and Revenue Estimates Despite Cost Pressures
Read MoreHide Full Article
Key Takeaways
UHS beat Q2 EPS and revenue estimates on growth across Acute Care and Behavioral Health.
UHS updated its 2026 outlook, lowering adjusted EBITDA and adjusted EPS guidance.
UHS repurchased $320.3 million of shares in Q2, with $977.6 million authorization remaining.
Universal Health Services, Inc. (UHS - Free Report) reported second-quarter 2026 adjusted earnings per share (EPS) of $5.98, which beat the Zacks Consensus Estimate by 5.7%. The bottom line rose 10.1% year over year.
Net revenues of $4.6 billion improved 8.3% year over year. The top line beat the consensus mark by 2.6%.
The strong quarterly results were driven by healthy revenue growth across both the Acute Care and Behavioral Health segments. Higher adjusted admissions, increased patient days and improved unit revenues on a same-facility basis supported performance in both businesses. 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 5.4% year over year to $677.9 million, and beat our estimate of $647.5 million.
Total operating costs were $4.1 billion, which escalated 8.9% year over year due to higher salaries, wages and benefits, supplies expense, and other operating expenses. The metric came slightly higher than our estimate of $4 billion.
UHS’ Q2 Segmental Update
Acute Care Hospital Services
On a same-facility basis, UHS' acute care business delivered solid volume and higher unit revenues in the second quarter of 2026. Adjusted admissions (adjusted for outpatient activity) increased 2.9% year over year, while adjusted patient days grew 3.1%. Net revenue per adjusted admission increased 3.0%, and net revenue per adjusted patient day rose 2.8%. Net revenues from Universal Health's acute care services increased 8.2% on a same-facility basis.
Behavioral Health Care Services
Behavioral health care also posted solid same-facility revenue growth, supported by modest volume gains and higher unit revenues. Adjusted admissions inched up 0.5% on a same-facility basis, while adjusted patient days increased 1.4%. Net revenue per adjusted admission improved 7.1%, and net revenue per adjusted patient day increased 6.1%. Net revenues from UHS' behavioral health care services grew 7.4% on a same-facility basis.
Universal Health’s Q2 Financial Update
Universal Health exited the second quarter with cash and cash equivalents of $138.8 million, which improved from the 2025-end level of $137.8 million. As part of its $1.5 billion revolving credit facility, net of outstanding borrowings and letters of credit, UHS had approximately $1.3 billion of available borrowing capacity at the end of the second quarter. Total assets of $15.9 billion increased from the 2025-end figure of $15.5 billion.
Long-term debt amounted to $4.1 billion, which increased from $4 billion as of 2025-end. Current maturities of long-term debt totaled $771.9 million.
Total equity of $7.6 billion advanced from the 2025-end figure of $7.3 billion.
UHS generated operating cash flow of $844.9 million in the first six months of 2026, down 7.1% from the year-ago period’s level.
UHS’ Share Repurchase Update
Universal Health repurchased shares worth approximately $320.3 million during the second quarter of 2026. The remaining authorization under its share repurchase program was approximately $977.6 million as of June 30, 2026.
2026 Guidance
Management now expects net revenues of $18.501-$18.762 billion compared with the earlier guidance of $18.417-$18.789 billion. The midpoint of the revised guidance implies 7.3% growth from the 2025 figure of $17.365 billion.
Adjusted EBITDA, net of NCI, is now projected to be in the range of $2.610-$2.717 billion, down from the previous forecast of $2.641-$2.789 billion. The midpoint of the revised range indicates 2.8% growth from the 2025 level of $2.59 billion.
Adjusted EPS is now expected to be in the band of $22.28-$23.65 compared with the prior outlook of $22.64-$24.52. The midpoint suggests 5.6% growth from the 2025 figure of $21.74. Capital expenditures are still expected to be between $950 million and $1.1 billion, on par with the previous guidance.
Here are some stocks from the broader Medical space that have also reported their quarterly results: Tenet Healthcare Corporation (THC - Free Report) , Elevance Health, Inc. (ELV - Free Report) and UnitedHealth Group Incorporated (UNH - Free Report) . Here's how they have performed:
Tenet Healthcare reported second-quarter 2026 adjusted earnings per share of $6.12, which surpassed the Zacks Consensus Estimate by 50%. The bottom line increased 52.2% year over year. THC’s net operating revenues advanced 6.8% year over year to $5.63 billion. The top line surpassed the consensus mark by 4.4%. The quarterly results were driven by strong same-facility revenue growth, higher patient acuity, disciplined expense management and higher Medicaid supplemental revenues. However, the gains were partly offset by an unfavorable payer mix due to lower exchange admissions.
Elevance Health reported second-quarter 2026 adjusted earnings per share of $7.45, which surpassed the Zacks Consensus Estimate by 20.6%. However, the bottom line declined 15.7% year over year. Operating revenues advanced 0.8% year over year to $49.8 billion. The top line beat the consensus mark by 2.9%. ELV’s quarterly results were primarily driven by higher premium yields in the Health Benefits segment and increased CarelonRx product revenues. The gains were partly offset by a decline in overall medical membership and higher operating expenses.
UnitedHealth Group reported second-quarter 2026 adjusted earnings per share of $6.38, which beat the Zacks Consensus Estimate of $4.94. The bottom line rose 56.4% year over year. Revenues rose 0.4% year over year to $112 billion. The top line beat the consensus mark by 1.7%. UNH’s strong quarterly results were aided by growth in commercial fee-based membership and the strength in Optum Insight. Medical cost management, pricing discipline and benefit design changes also contributed to the upside. However, weaker performance at Optum Health and Optum Rx, along with declining risk-based membership, partially offset these gains.
View the Zacks #1 Rank List
Image: Bigstock
UHS Beats Q2 Earnings and Revenue Estimates Despite Cost Pressures
Key Takeaways
Universal Health Services, Inc. (UHS - Free Report) reported second-quarter 2026 adjusted earnings per share (EPS) of $5.98, which beat the Zacks Consensus Estimate by 5.7%. The bottom line rose 10.1% year over year.
Net revenues of $4.6 billion improved 8.3% year over year. The top line beat the consensus mark by 2.6%.
The strong quarterly results were driven by healthy revenue growth across both the Acute Care and Behavioral Health segments. Higher adjusted admissions, increased patient days and improved unit revenues on a same-facility basis supported performance in both businesses. 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 5.4% year over year to $677.9 million, and beat our estimate of $647.5 million.
Total operating costs were $4.1 billion, which escalated 8.9% year over year due to higher salaries, wages and benefits, supplies expense, and other operating expenses. The metric came slightly higher than our estimate of $4 billion.
UHS’ Q2 Segmental Update
Acute Care Hospital Services
On a same-facility basis, UHS' acute care business delivered solid volume and higher unit revenues in the second quarter of 2026. Adjusted admissions (adjusted for outpatient activity) increased 2.9% year over year, while adjusted patient days grew 3.1%. Net revenue per adjusted admission increased 3.0%, and net revenue per adjusted patient day rose 2.8%. Net revenues from Universal Health's acute care services increased 8.2% on a same-facility basis.
Behavioral Health Care Services
Behavioral health care also posted solid same-facility revenue growth, supported by modest volume gains and higher unit revenues. Adjusted admissions inched up 0.5% on a same-facility basis, while adjusted patient days increased 1.4%. Net revenue per adjusted admission improved 7.1%, and net revenue per adjusted patient day increased 6.1%. Net revenues from UHS' behavioral health care services grew 7.4% on a same-facility basis.
Universal Health’s Q2 Financial Update
Universal Health exited the second quarter with cash and cash equivalents of $138.8 million, which improved from the 2025-end level of $137.8 million. As part of its $1.5 billion revolving credit facility, net of outstanding borrowings and letters of credit, UHS had approximately $1.3 billion of available borrowing capacity at the end of the second quarter. Total assets of $15.9 billion increased from the 2025-end figure of $15.5 billion.
Long-term debt amounted to $4.1 billion, which increased from $4 billion as of 2025-end. Current maturities of long-term debt totaled $771.9 million.
Total equity of $7.6 billion advanced from the 2025-end figure of $7.3 billion.
UHS generated operating cash flow of $844.9 million in the first six months of 2026, down 7.1% from the year-ago period’s level.
UHS’ Share Repurchase Update
Universal Health repurchased shares worth approximately $320.3 million during the second quarter of 2026. The remaining authorization under its share repurchase program was approximately $977.6 million as of June 30, 2026.
2026 Guidance
Management now expects net revenues of $18.501-$18.762 billion compared with the earlier guidance of $18.417-$18.789 billion. The midpoint of the revised guidance implies 7.3% growth from the 2025 figure of $17.365 billion.
Adjusted EBITDA, net of NCI, is now projected to be in the range of $2.610-$2.717 billion, down from the previous forecast of $2.641-$2.789 billion. The midpoint of the revised range indicates 2.8% growth from the 2025 level of $2.59 billion.
Adjusted EPS is now expected to be in the band of $22.28-$23.65 compared with the prior outlook of $22.64-$24.52. The midpoint suggests 5.6% growth from the 2025 figure of $21.74. Capital expenditures are still expected to be between $950 million and $1.1 billion, on par with the previous guidance.
UHS’ Zacks Rank
UHS currently has a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
How Did Other Medical Companies Perform?
Here are some stocks from the broader Medical space that have also reported their quarterly results: Tenet Healthcare Corporation (THC - Free Report) , Elevance Health, Inc. (ELV - Free Report) and UnitedHealth Group Incorporated (UNH - Free Report) . Here's how they have performed:
Tenet Healthcare reported second-quarter 2026 adjusted earnings per share of $6.12, which surpassed the Zacks Consensus Estimate by 50%. The bottom line increased 52.2% year over year. THC’s net operating revenues advanced 6.8% year over year to $5.63 billion. The top line surpassed the consensus mark by 4.4%. The quarterly results were driven by strong same-facility revenue growth, higher patient acuity, disciplined expense management and higher Medicaid supplemental revenues. However, the gains were partly offset by an unfavorable payer mix due to lower exchange admissions.
Elevance Health reported second-quarter 2026 adjusted earnings per share of $7.45, which surpassed the Zacks Consensus Estimate by 20.6%. However, the bottom line declined 15.7% year over year. Operating revenues advanced 0.8% year over year to $49.8 billion. The top line beat the consensus mark by 2.9%. ELV’s quarterly results were primarily driven by higher premium yields in the Health Benefits segment and increased CarelonRx product revenues. The gains were partly offset by a decline in overall medical membership and higher operating expenses.
UnitedHealth Group reported second-quarter 2026 adjusted earnings per share of $6.38, which beat the Zacks Consensus Estimate of $4.94. The bottom line rose 56.4% year over year. Revenues rose 0.4% year over year to $112 billion. The top line beat the consensus mark by 1.7%. UNH’s strong quarterly results were aided by growth in commercial fee-based membership and the strength in Optum Insight. Medical cost management, pricing discipline and benefit design changes also contributed to the upside. However, weaker performance at Optum Health and Optum Rx, along with declining risk-based membership, partially offset these gains.