Key Takeaways UHS posted Q4 EPS of $5.88, missing estimates as admissions and patient days fell short.Universal Health saw 9% higher operating costs, driven by wages, supplies and expenses.UHS guided 2026 revenue of $18.417-$18.789B and EPS of $22.64-$24.52.Universal Health Services, Inc. (UHS) reported fourth-quarter 2025 adjusted earnings per share (EPS) of $5.88, which missed the Zacks Consensus Estimate by 0.6%. The bottom line soared 19.5% year over year.Net revenues of $4.49 billion improved 9.1% year ...

BIRMINGHAM, Ala., Feb. 26, 2026 /PRNewswire/ -- Encompass Health Corp. (NYSE: EHC) today announced it will participate in the Barclays Global Healthcare Conference, which is being held March 10-12, 2026. Encompass Health's President and Chief Executive Officer Mark Tarr and Executive Vice President and Chief Financial Officer Doug Coltharp will participate in a fireside chat on Wednesday, March 11, 2026, from 9-9:25 a.m. ET. From Fortune.© 2026 Fortune Media IP Limited. All rights reserved. Fortune® is a re ...

Core Viewpoint - Universal Health Services, Inc. (UHS) is expected to report its fourth-quarter 2025 results on February 25, 2026, with earnings estimated at $5.91 per share and revenues of $4.48 billion [1]. Earnings Estimates - The fourth-quarter earnings estimate has seen two upward revisions in the last 60 days, indicating a year-over-year increase of 20.1% [2]. - The Zacks Consensus Estimate for quarterly revenues suggests a year-over-year growth of 9% [2]. Full-Year Projections - For the full year 2025, the revenue estimate for UHS is $17.36 billion, reflecting a 9.7% year-over-year increase [5]. - The consensus estimate for full-year EPS is $21.80, indicating a growth of 31.3% year-over-year [5]. Recent Performance - UHS has consistently beaten consensus earnings estimates in the last four quarters, with an average surprise of 15.2% [5]. Earnings Prediction Model - The current Earnings ESP for UHS is 0.00%, and it holds a Zacks Rank of 2 (Buy), which does not strongly indicate an earnings beat this time [6]. Factors Influencing Q4 Results - UHS is projected to achieve 20.1% EPS growth and 9% revenue growth for Q4 2025, driven by strong performance in Acute Care and Behavioral segments [9]. - The Acute Care Hospital Services segment is expected to generate net revenues of $2.51 billion, representing an 8.3% year-over-year growth [10]. - The Behavioral Health Care Services segment is estimated to have net revenues of $1.97 billion, indicating a 10% increase from the prior year [11]. Operating Income Expectations - The operating income for Acute Care Hospital Services is projected to grow by 11.2% year-over-year, while the Behavioral Health Care Services segment is expected to see a 20.9% increase [11]. Cost Pressures - Rising total operating expenses are anticipated to increase by nearly 8%, primarily due to higher salaries, wages, and supply costs, which may impact margins and create uncertainty around earnings beats [12]. - Salaries, wages, and benefits are expected to rise by 8.4% year-over-year, while supply expenses are projected to increase by 6.7% [12]. Industry Performance Comparison - Other companies in the medical sector, such as HCA Healthcare, Ensign Group, and Encompass Health, have reported their fourth-quarter results, with varying degrees of success influenced by similar cost pressures [13][14][15].

Core Viewpoint - Select Medical Holdings Corporation (SEM) is expected to report its fourth-quarter 2025 results on February 19, 2026, with earnings estimated at 23 cents per share and revenues at $1.36 billion [1]. Financial Performance Estimates - The fourth-quarter earnings estimate has decreased by one cent over the past 60 days, indicating a year-over-year increase of 27.8% [2]. - The Zacks Consensus Estimate for quarterly revenues suggests a year-over-year growth of 3.7% [2]. - For the full year 2025, the revenue estimate is $5.42 billion, reflecting an 18.2% year-over-year decline, while the earnings per share estimate is $1.23, implying a rise of 30.9% from the previous year [3]. Earnings Surprise History - Select Medical's earnings have surpassed the Zacks Consensus Estimate in two of the last four quarters, missing in the other two, with an average surprise of 8.7% [3]. Earnings Prediction Model - The current model does not predict an earnings beat for SEM, as it has an Earnings ESP of 0.00% and a Zacks Rank of 4 (Sell) [4]. Segment Performance Insights - The Critical Illness Recovery segment is projected to see a 2.1% year-over-year revenue growth in Q4, with revenues per Patient Day expected to increase by 2.8% [6]. - The Rehabilitation Hospital segment's revenues are anticipated to rise by 11.1% in Q4, with revenues per Patient Day expected to increase by 5.9% [8]. - The Outpatient Rehabilitation segment's adjusted EBITDA is projected to surge by 55.8% year-over-year, although revenues per Visit are expected to dip by 0.8% [9]. Operational Metrics - A 3.8% increase in admissions is expected in Q4, with an occupancy rate projected at 67.3% [7]. - The Rehabilitation Hospital segment is expected to see admissions grow by 10.4% year-over-year, with an occupancy rate expanding by 320 basis points to 84.2% [8]. - Total operating expenses are estimated to decrease to $1.28 billion, primarily due to lower general and administrative expenses, despite a nearly 6% growth in interest expense [10]. Peer Performance Comparison - Ensign Group reported a fourth-quarter adjusted EPS of $1.82, beating estimates by 4%, with a 19.5% year-over-year improvement in earnings [12]. - Encompass Health reported an adjusted EPS of $1.46, exceeding estimates by 13.2%, with a 24.8% year-over-year increase in earnings [13].

Core Insights - Tenet Healthcare Corporation (THC) reported fourth-quarter 2025 adjusted earnings per share (EPS) of $4.70, exceeding the Zacks Consensus Estimate by 15.2%, with a year-over-year increase of 36.6% [1] - Net operating revenues rose 8.9% year over year to $5.53 billion, surpassing the consensus mark by 1.4% [1] Financial Performance - Adjusted net income for the quarter was $413 million, a 25.2% increase year over year [3] - Adjusted EBITDA improved 12.9% year over year to $1.18 billion, exceeding the estimate of $1.13 billion, with an adjusted EBITDA margin expanding 70 basis points to 21.4% [3] - Salaries, wages, and benefits costs increased 6.1% year over year to $2.2 billion, while supply costs rose 8.6% and net other operating expenses increased 10.8% [4] Segment Performance - Hospital Operations and Services segment recorded net operating revenues of $4.09 billion, up 7.3% year over year, driven by improved Medicaid supplemental revenues and a favorable payer mix [5] - Adjusted EBITDA for the Hospital segment climbed 16.4% year over year to $603 million, with an adjusted EBITDA margin of 14.7%, improving 110 basis points [6] - Ambulatory Care segment's net operating revenues rose 13.8% year over year to $1.43 billion, supported by facility buyouts and expansion of service lines, with adjusted EBITDA at $580 million, a 9.4% increase [7] Financial Position - As of December 31, 2025, Tenet Healthcare had cash and cash equivalents of $2.88 billion, down from $3.02 billion at the end of 2024, while total assets increased to $29.7 billion from $28.9 billion [8] - Long-term debt amounted to $13.1 billion, slightly up from the previous year, with total shareholders' equity increasing to $4.22 billion from $4.17 billion [9] Cash Flow and Share Repurchase - Tenet generated $3.5 billion of net cash from operations in 2025, a 72.9% year-over-year increase, with free cash flows improving 126.7% to $2.5 billion [11] - The company repurchased $198 million in shares during the fourth quarter and $1.4 billion in 2025, with a remaining share repurchase authorization of approximately $1.49 billion [12] 2026 Outlook - Net operating revenues for 2026 are projected to be between $21.5 billion and $22.3 billion, higher than the $21.3 billion in 2025 [13] - Adjusted EBITDA is expected to range from $4.485 billion to $4.785 billion, with an estimated adjusted EBITDA margin of 20.9-21.5%, indicating a potential decline from 2025 [14] - Free cash flow is anticipated to remain between $2.94 billion and $3.29 billion, with capital expenditures projected at $700-$800 million [15]

Core Insights - Enhabit, Inc. and Encompass Health Corporation have successfully collected $43.1 million in full satisfaction of their claims for attorneys' fees and mitigation damages [1] Legal Proceedings - The claims were filed in the Delaware Court of Chancery against former officer Chris Walker, Vistria Group senior partner David Schuppan, and Nautic Partners managing director Christopher Corey [1] - These claims are related to a December 2024 judgment that favored Enhabit and Encompass [1]

Core Insights - Humana Inc. reported a fourth-quarter 2025 adjusted loss of $3.96 per share, which was narrower than the consensus estimate of a loss of $4.01 per share but wider than the prior year's loss of $2.16 per share [1] - Adjusted revenues increased by 11.8% year over year to $32.6 billion, surpassing the consensus mark by 2.4% [1] Financial Performance - Premiums totaled $30.9 billion, up 11.3% year over year, exceeding the consensus estimate of $30.2 billion [3] - Services revenues rose 28.6% year over year to $1.5 billion, also higher than the consensus mark of $1.4 billion [3] - Investment income fell sharply by 55.6% year over year to $132 million, missing the consensus estimate of $273 million [3] - Total operating expenses increased by 12% year over year to $33.3 billion, exceeding the estimate of $31.8 billion [4] - The benefit ratio was reported at 93%, deteriorating by 150 basis points year over year [4] Segment Performance - The Insurance segment's adjusted revenues rose 11.3% year over year to $31.3 billion, driven by improved per-member premiums [5] - The segment incurred an adjusted operating loss of $923 million, wider than the prior year's loss of $575 million [6] - CenterWell recorded revenues of $6 billion, improving 16.2% year over year and surpassing the consensus estimate of $5.5 billion [7] Future Outlook - Humana forecasts at least $160 billion in revenues for 2026, indicating a 23.4% increase from 2025 [9] - Adjusted EPS is projected to decline to at least $9.00, a 47.5% decrease from the 2025 figure [14] - Management anticipates growth in Individual Medicare Advantage membership by around 25% in 2026 [15]

Core Insights - Tenet Healthcare Corporation (THC) is scheduled to report its fourth-quarter 2025 results on February 11, 2026, with earnings estimated at $4.08 per share and revenues of $5.45 billion [1] Financial Performance Estimates - The fourth-quarter earnings estimate has increased by $0.03 over the past 60 days, indicating a year-over-year increase of 18.6% [2] - The Zacks Consensus Estimate for quarterly revenues suggests a year-over-year growth of 7.5% [2] - For the full year 2025, the revenue estimate is $21.26 billion, reflecting a 2.9% year-over-year rise, while the earnings per share estimate is $16.15, indicating a 35.9% increase year-over-year [3] Earnings Prediction Model - The current model does not predict a definitive earnings beat for THC, as it has an Earnings ESP of +2.72% and a Zacks Rank of 4 (Sell) [4] Q4 Results Influencing Factors - THC is expected to report Q4 EPS of $4.08, up 18.6% year-over-year, with revenues projected to rise by 7.5% [7] - Hospital patient days and average length of stay are projected to decline sharply in Q4 [7] - The Ambulatory Care segment is anticipated to experience strong growth, with operating revenues expected to rise [7] - Adjusted patient admissions in total hospital operations are estimated to grow by 3.9% year-over-year, while adjusted patient admissions on the same hospital basis indicate a 2.7% increase [8] Ambulatory Care Segment Performance - The Ambulatory Care business is likely to benefit from improved patient volumes, new service line growth, and acquisitions, with operating revenues expected to grow by 8.4% year-over-year [9] - The consensus estimate for adjusted EBITDA from Ambulatory Care operations suggests a 9% year-over-year growth [9] Hospital Operations and Services - The Zacks Consensus Estimate for Hospital Operations and Services revenues for Q4 is $4.07 billion, indicating a 6.9% increase from the previous year [10] - The consensus mark for net patient revenues per adjusted admission signals a 4.5% year-over-year increase [10] Challenges and Cost Considerations - Despite expected growth, total hospital patient days are projected to decrease by 6.5% year-over-year, and the average length of stay is expected to decline by 8.8% [11][12] - Increased utilization is anticipated to lead to higher costs in Q4, making an earnings beat uncertain [12] Industry Comparisons - Other companies in the medical sector, such as HCA Healthcare, Ensign Group, and Encompass Health, have reported their Q4 results, with varying degrees of performance against consensus estimates [13][14][15]

Financial Performance - In Q4, revenue increased by 9.9% to $1.5 billion, and adjusted EBITDA rose by 15.9% to $335.6 million, driven by 5.3% discharge growth and a 4.1% increase in net revenue per discharge [1][5] - For the full year 2025, revenue grew by 10.5%, with EBITDA increasing by 14.9%, supported by operating leverage and disciplined expense management [3][5] - Adjusted free cash flow for the full year was $818 million, reflecting an 18.5% increase [9] Labor and Operational Efficiency - Premium labor costs decreased significantly, down more than $21 million year-over-year in 2025, with Q4 premium labor at $23.8 million, the lowest since Q1 2021 [2][5][7] - The company added approximately 300 same-store registered nurses (RNs) during 2025, contributing to improved operational efficiency [7] Capacity Expansion and Growth Strategy - Management plans to add 517 beds in 2025 through new hospitals and expansions, with ongoing investments expected to meet a growing target demographic [12] - A new 24-bed small-format hospital prototype is set to launch in 2027 as part of a hub-and-spoke strategy [13] 2026 Guidance - For 2026, management guided net revenue of $6.365–6.465 billion, adjusted EBITDA of $1.34–1.38 billion, and adjusted EPS of $5.81–6.10, with a leverage target of approximately 1.83x [4][18] Regulatory and Payer Dynamics - The company reported a 93% affirmation rate for its Alabama hospitals under the RCD model, indicating effective engagement with CMS [16] - Management expressed concerns about challenges with a national Medicare Advantage payer, which affected conversion rates despite referral growth [20]

Core Insights - The healthcare sector is facing regulatory shifts and economic pressures, impacting hospitals' operations and financial performance [1] - Bank of America (BofA) Securities expresses caution regarding hospitals due to moderating fundamentals and a restrictive policy environment, predicting a 2-4% EBITDA headwind to growth annually for the next five years [2] - BofA highlights that while some new state-directed payment programs may be approved, the quality of EBITDA growth is expected to be low due to future cuts [3] Company-Specific Analysis - Universal Health Services Inc. (UHS) and Ardent Health Inc. (ARDT) are anticipated to be most adversely affected, while HCA Healthcare Inc. (HCA) is positioned to better withstand these headwinds [4] - The demand for hospital services is stabilizing, but policy changes are expected to create a 90 basis points headwind in 2026, likely resulting in volumes falling below long-term growth expectations [5] - The fourth quarter of 2025 may see increased volume due to demand pull-forward ahead of coverage changes, creating a challenging comparison for 2026 [6] Investment Preferences - BofA prefers post-acute care companies, with Encompass Health Corporation (EHC) identified as a top pick due to its minimal exposure to upcoming cuts [6][7] - Tenet Healthcare Corporation (THC) is highlighted as a top pick among hospitals, benefiting from its ambulatory surgery centers' exposure, which insulates it from the impacts of the Reconciliation Bill [8] - Brookdale Senior Living Inc. (BKD) has been upgraded to Buy from Underperform, reflecting improved free cash flow and favorable positioning in the aging demographics sector [9][10]