Key Takeaways Universal Health will report Q3 results on Oct. 27, with EPS estimated at $4.56 on $4.3B in revenue.Revenue gains are fueled by Acute Care Hospital and Behavioral Health Care Services segment growth.Higher salaries, wages, and supply costs may pressure margins, making an earnings beat uncertain.Universal Health Services, Inc. (UHS) is set to report third-quarter 2025 results on Oct. 27, after the closing bell. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings is currently ...

Company Overview - Universal Health Services, Inc. (UHS) has a market cap of $12.4 billion and operates various medical care facilities including acute care hospitals and behavioral health centers [1] - The company is categorized as a large-cap stock, reflecting its substantial size and influence in the medical care facilities industry [2] Financial Performance - UHS stock reached an all-time high of $243.25 on September 24, 2024, and is currently trading 20% below that peak [3] - Over the past three months, UHS stock has increased by 12.2%, outperforming the iShares U.S. Healthcare Providers ETF (IHF), which rose by 3.7% [3] - Year-to-date, UHS stock has climbed 8.5%, but has dropped 19.1% over the past 52 weeks, while IHF saw a 1.8% rise and a 14.7% decline over the same period [3] Technical Indicators - UHS has recently surpassed its 50-day and 200-day moving averages, indicating a potential uptrend [4] Market Position - UHS has underperformed compared to its peer Encompass Health Corporation (EHC), which experienced a 30.6% surge in 2025 and 37.3% returns over the past 52 weeks [5] Analyst Ratings - Among 20 analysts covering UHS stock, the consensus rating is a "Moderate Buy," with a mean price target of $217.75, suggesting an 11.8% upside potential from current price levels [6]

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]