Financial Performance - Reported net income attributable to Universal Health Services, Inc. (UHS) for Q2 2025 was $353.2 million, or $5.43 per diluted share, compared to $289.2 million, or $4.26 per diluted share in Q2 2024, reflecting a significant increase [1][2] - Net revenues for Q2 2025 increased by 9.6% to $4.284 billion from $3.908 billion in Q2 2024 [1] - Adjusted net income attributable to UHS for Q2 2025 was $347.9 million, or $5.35 per diluted share, compared to $292.6 million, or $4.31 per diluted share in Q2 2024 [2][36] Medicaid Reimbursements - Included in the reported and adjusted net income for Q2 2025 were approximately $101 million in net pre-tax incremental reimbursements related to Medicaid programs, with $58 million from the Tennessee Medicaid directed payment program and $43 million from other states' supplemental Medicaid programs [3] EBITDA Metrics - EBITDA net of noncontrolling interests (NCI) for Q2 2025 was $651.4 million, up from $573.2 million in Q2 2024 [6] - Adjusted EBITDA net of NCI for Q2 2025 was $642.9 million, compared to $578.7 million in Q2 2024 [6][37] Acute Care Services - In Q2 2025, adjusted admissions at acute care hospitals increased by 2.0%, and adjusted patient days increased by 1.1% compared to Q2 2024 [12] - Net revenues from acute care services on a same facility basis increased by 7.9% in Q2 2025 compared to Q2 2024 [12] Behavioral Health Care Services - For Q2 2025, adjusted admissions at behavioral health care facilities increased by 0.4%, while adjusted patient days increased by 1.2% compared to Q2 2024 [14][15] - Net revenues from behavioral health care services increased by 8.9% during Q2 2025 compared to Q2 2024 [15] Cash Flow and Liquidity - Net cash provided by operating activities for the first six months of 2025 was $909 million, down from $1.076 billion in the same period of 2024 [17] - As of June 30, 2025, UHS had $1.08 billion of available borrowing capacity under its revolving credit facility [18] Stock Repurchase Program - During Q2 2025, UHS repurchased 875,000 shares at an aggregate cost of approximately $150.8 million, with a total of 1.875 million shares repurchased for $331.5 million in the first six months of 2025 [20][21] Revised Operating Results Forecast - UHS revised its 2025 operating results forecast, estimating net revenues between $17.096 billion and $17.312 billion, and adjusted EBITDA net of NCI between $2.458 billion and $2.543 billion [22][25] - The revised forecast for adjusted EPS-diluted is estimated to be between $20.00 and $21.00 per share, reflecting increases over the original forecast [25]

Core Insights - Universal Health Services, Inc. (UHS) reported first-quarter 2025 adjusted earnings per share (EPS) of $4.84, exceeding the Zacks Consensus Estimate by 11% and reflecting a year-over-year increase of 30.8% [1] - Net revenues for the quarter reached nearly $4.1 billion, marking a 6.7% year-over-year growth, although it fell short of the consensus estimate by 1.1% [1] Financial Performance - Adjusted EBITDA net of NCI was $598.2 million, up 13.8% year over year, surpassing the estimate of $559.3 million [3] - Total operating costs increased by 5.5% year over year to $3.6 billion, driven by higher salaries, wages, benefits, and other operating expenses [3] - Cash and cash equivalents at the end of the first quarter stood at $126.8 million, slightly up from $126 million at the end of 2024 [6] - Total assets increased to $14.9 billion from $14.5 billion at the end of 2024 [6] - Long-term debt rose to $4.6 billion from $4.5 billion as of December 31, 2024 [7] - Cash flows from operations were $360 million, down 9.2% from the previous year [7] Segment Performance - Acute Care Hospital Services saw adjusted admissions rise by 2.4% on a same-facility basis, with net revenues increasing by 6.5% [4] - Behavioral Health Care Services experienced a 1.6% decline in adjusted admissions on a same-facility basis, but net revenues increased by 5.5% [5] Share Repurchase and Guidance - UHS repurchased shares worth $180.6 million in the first quarter, with a remaining repurchase capacity of approximately $643.7 million [8] - The company anticipates 2025 net revenues between $17.02 billion and $17.36 billion, indicating an 8.6% improvement from 2024 [10] - Adjusted EBITDA is projected to be in the range of $2.36 billion to $2.48 billion, suggesting a 7.8% growth from 2024 [10] - EPS is expected to be between $18.45 and $19.95, implying a 15.6% increase from 2024 [10]

Core Viewpoint - Universal Health Services, Inc. (UHS) is expected to report first-quarter 2025 results on April 28, 2025, with earnings estimated at $4.36 per share and revenues of $4.14 billion, reflecting year-over-year growth of 17.8% and 7.8% respectively [1][2] Financial Performance - The Zacks Consensus Estimate for UHS's revenues in 2025 is $17.12 billion, indicating an 8.1% year-over-year increase, while the EPS estimate for the current year is $18.94, suggesting a 14% rise year-over-year [2] - UHS has beaten consensus earnings estimates in three of the last four quarters, with an average surprise of 15.5% [2] Earnings Prediction - The current model does not predict a definitive earnings beat for UHS, as it has an Earnings ESP of -0.83% despite holding a Zacks Rank of 1 (Strong Buy) [3] Revenue Segments - The Acute Care Hospital Services segment is projected to generate net revenues of $2.3 billion, reflecting a 7.4% year-over-year growth, with same-facility adjusted admissions expected to grow by 1.6% [6] - The Behavioral Health Care Services segment is estimated to achieve net revenues of $1.8 billion, indicating an 8.2% increase from the prior year, with adjusted patient days expected to rise by 2.8% [8] Cost Pressures - UHS's margins may face pressure due to rising total expenses, particularly from increased salaries, wages, and benefits, which are anticipated to rise by 7.3% year-over-year, alongside supply expenses expected to increase nearly 2% [9]