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UHS' Q3 adjusted EPS fell 8.3% to $5.22, missing estimates despite a 5.3% revenue rise to $4.7 billion.
UHS' operating expenses rose 7.7%, while Acute Care unit revenues fell 1.7% despite stronger patient volumes.
UHS reaffirmed 2026 guidance but expects adjusted EBITDA near the low end of its $2.610-$2.717B range.
Universal Health Services, Inc. (UHS - Free Report) reported third-quarter 2026 adjusted earnings per share (EPS) of $5.22, which missed the Zacks Consensus Estimate by 1.7%. The bottom line declined 8.3% year over year.
Net revenues of $4.7 billion improved 5.3% year over year. The top line beat the consensus mark by 0.2%.
UHS’ third-quarter results were affected by higher operating costs and declining unit revenues in Acute Care. However, same-facility revenue growth in both segments, supported by higher patient volumes and improved unit revenues in Behavioral Health, provided some support.
Universal Health Services, Inc. Price, Consensus and EPS Surprise
Adjusted EBITDA, net of NCI, declined 6.9% year over year to $624.6 million.
Total operating expenses increased 7.7% year over year to $4.3 billion, led by higher salaries, wages and benefits, supplies expense and other operating expenses. The figure came in slightly above our estimate of $4.2 billion.
UHS’ Q3 Segmental Update
Acute Care Hospital Services
On a same-facility basis, UHS' Acute Care business recorded higher patient volumes for the third quarter of 2026. Adjusted admissions (adjusted for outpatient activity) increased 4.9% year over year, while adjusted patient days grew 4.9%. However, net revenue per adjusted admission and net revenue per adjusted patient day declined 1.7% each. Net revenues from Universal Health's Acute Care services increased 4.7% on a same-facility basis.
Behavioral Health Care Services
Behavioral Health Care posted solid same-facility revenue growth, supported by volume gains and higher unit revenues. Adjusted admissions increased 2.5% year over year on a same-facility basis, while adjusted patient days rose 2.1%. Net revenue per adjusted admission increased 1.7%, while net revenue per adjusted patient day grew 2.1%. Net revenues from UHS' Behavioral Health care services increased 4% on a same-facility basis.
Universal Health’s Q3 Financial Update
Universal Health exited the third quarter with cash and cash equivalents of $168.7 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 $1.2 billion of available borrowing capacity at the end of the third quarter. Total assets of $17.2 billion increased from the 2025-end figure of $15.5 billion.
Long-term debt amounted to $5.6 billion, which increased from $4 billion as of 2025-end. Current maturities of long-term debt totaled $79.8 million.
Total equity of $7.7 billion advanced from the 2025-end figure of $7.3 billion.
UHS generated operating cash flow of $1.5 billion in the first nine months of 2026, up 14.9% from the year-ago period’s level.
UHS’ Share Repurchase Update
Universal Health repurchased 1.35 million shares for approximately $242.1 million during the third quarter of 2026, at an average price of about $179 per share. As of Sept. 30, 2026, approximately $735.4 million remained available under its share repurchase authorization.
UHS Reaffirms 2026 Guidance
Management reaffirmed its full-year 2026 guidance, projecting net revenues of $18.501-$18.762 billion. The midpoint of the range implies 7.3% growth from the 2025 figure of $17.365 billion.
Adjusted EBITDA, net of NCI, is expected to range from $2.610 billion to $2.717 billion. The midpoint indicates approximately 2.8% growth from the 2025 level of $2.59 billion. Management expects adjusted EBITDA, net of NCI, to be toward the lower end of the guidance.
Adjusted EPS is projected to range from $22.28 to $23.65, with the midpoint implying 5.6% growth from the 2025 figure of $21.74. Capital expenditures are expected to be between $950 million and $1.1 billion.
The Zacks Consensus Estimate for Globus Medical’s third-quarter earnings is pegged at $1.20 per share, suggesting 1.7% year-over-year growth. GMED beat earnings estimates in each of the trailing four quarters, with the average surprise being 27.9%. The consensus estimate for revenues is pegged at $793 million, suggesting 3.1% year-over-year growth.
The Zacks Consensus Estimate for Phibro Animal Health’s third-quarter earnings is pegged at 79 cents per share, which has remained stable over the past 60 days. It beat earnings estimates in each of the trailing four quarters, with the average surprise being 18.4%. The consensus estimate for PAHC’s third-quarter 2026 revenues is pinned at $379.02 million, indicating a 4.2% year-over-year increase.
The Zacks Consensus Estimate for Concentra Group’s third-quarter 2026 earnings is pegged at 45 cents per share, indicating a 15.4% year-over-year increase. It beat on earnings in each of the trailing four quarters, with the average surprise being 16.3%. The consensus estimate for CON’s third-quarter 2026 revenues is pinned at $600.15 million, implying 4.8% year-over-year growth.
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UHS Misses Q3 Earnings Estimates Despite Higher Patient Volumes
Key Takeaways
Universal Health Services, Inc. (UHS - Free Report) reported third-quarter 2026 adjusted earnings per share (EPS) of $5.22, which missed the Zacks Consensus Estimate by 1.7%. The bottom line declined 8.3% year over year.
Net revenues of $4.7 billion improved 5.3% year over year. The top line beat the consensus mark by 0.2%.
UHS’ third-quarter results were affected by higher operating costs and declining unit revenues in Acute Care. However, same-facility revenue growth in both segments, supported by higher patient volumes and improved unit revenues in Behavioral Health, provided some support.
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, declined 6.9% year over year to $624.6 million.
Total operating expenses increased 7.7% year over year to $4.3 billion, led by higher salaries, wages and benefits, supplies expense and other operating expenses. The figure came in slightly above our estimate of $4.2 billion.
UHS’ Q3 Segmental Update
Acute Care Hospital Services
On a same-facility basis, UHS' Acute Care business recorded higher patient volumes for the third quarter of 2026. Adjusted admissions (adjusted for outpatient activity) increased 4.9% year over year, while adjusted patient days grew 4.9%. However, net revenue per adjusted admission and net revenue per adjusted patient day declined 1.7% each. Net revenues from Universal Health's Acute Care services increased 4.7% on a same-facility basis.
Behavioral Health Care Services
Behavioral Health Care posted solid same-facility revenue growth, supported by volume gains and higher unit revenues. Adjusted admissions increased 2.5% year over year on a same-facility basis, while adjusted patient days rose 2.1%. Net revenue per adjusted admission increased 1.7%, while net revenue per adjusted patient day grew 2.1%. Net revenues from UHS' Behavioral Health care services increased 4% on a same-facility basis.
Universal Health’s Q3 Financial Update
Universal Health exited the third quarter with cash and cash equivalents of $168.7 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 $1.2 billion of available borrowing capacity at the end of the third quarter. Total assets of $17.2 billion increased from the 2025-end figure of $15.5 billion.
Long-term debt amounted to $5.6 billion, which increased from $4 billion as of 2025-end. Current maturities of long-term debt totaled $79.8 million.
Total equity of $7.7 billion advanced from the 2025-end figure of $7.3 billion.
UHS generated operating cash flow of $1.5 billion in the first nine months of 2026, up 14.9% from the year-ago period’s level.
UHS’ Share Repurchase Update
Universal Health repurchased 1.35 million shares for approximately $242.1 million during the third quarter of 2026, at an average price of about $179 per share. As of Sept. 30, 2026, approximately $735.4 million remained available under its share repurchase authorization.
UHS Reaffirms 2026 Guidance
Management reaffirmed its full-year 2026 guidance, projecting net revenues of $18.501-$18.762 billion. The midpoint of the range implies 7.3% growth from the 2025 figure of $17.365 billion.
Adjusted EBITDA, net of NCI, is expected to range from $2.610 billion to $2.717 billion. The midpoint indicates approximately 2.8% growth from the 2025 level of $2.59 billion. Management expects adjusted EBITDA, net of NCI, to be toward the lower end of the guidance.
Adjusted EPS is projected to range from $22.28 to $23.65, with the midpoint implying 5.6% growth from the 2025 figure of $21.74. Capital expenditures are expected to be between $950 million and $1.1 billion.
UHS’ Zacks Rank & Key Picks
UHS currently has a Zacks Rank #4 (Sell).
Some better-ranked stocks in the broader Medical space are Globus Medical, Inc. (GMED - Free Report) , Phibro Animal Health Corporation (PAHC - Free Report) and Concentra Group Holdings Parent, Inc. (CON - Free Report) , each currently carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Globus Medical’s third-quarter earnings is pegged at $1.20 per share, suggesting 1.7% year-over-year growth. GMED beat earnings estimates in each of the trailing four quarters, with the average surprise being 27.9%. The consensus estimate for revenues is pegged at $793 million, suggesting 3.1% year-over-year growth.
The Zacks Consensus Estimate for Phibro Animal Health’s third-quarter earnings is pegged at 79 cents per share, which has remained stable over the past 60 days. It beat earnings estimates in each of the trailing four quarters, with the average surprise being 18.4%. The consensus estimate for PAHC’s third-quarter 2026 revenues is pinned at $379.02 million, indicating a 4.2% year-over-year increase.
The Zacks Consensus Estimate for Concentra Group’s third-quarter 2026 earnings is pegged at 45 cents per share, indicating a 15.4% year-over-year increase. It beat on earnings in each of the trailing four quarters, with the average surprise being 16.3%. The consensus estimate for CON’s third-quarter 2026 revenues is pinned at $600.15 million, implying 4.8% year-over-year growth.