Universal Health Services (NYSE:UHS) Q4 2025 Earnings call February 26, 2026 09:00 AM ET Company ParticipantsAnna Barsanti - Equity Research AssociateBen Hendrix - VPDarren Lehrich - Vice President of Investor RelationsMarc Miller - President and Chief Executive OfficerMatthew Gillmor - Director, Healthcare Services Equity ResearchRyan Langston - Vice President, Healthcare ResearchSam Becker - Equity ResearchSteve Filton - Executive Vice President and Chief Financial OfficerConference Call ParticipantsA.J. ...

Universal Health Services (NYSE:UHS) Q4 2025 Earnings call February 26, 2026 09:00 AM ET Speaker9Good day. Thank you for standing by. Welcome to the Q4 2025 Universal Health Services Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there'll be a question-and-answer session. To ask a question during the session, you'll need to press star one on your telephone. You will hear an automated message advising your hand is raised. To withdraw your ...

Core Insights - Universal Health Services (UHS) reported revenue of $4.49 billion for the quarter ended December 2025, reflecting a 9.1% increase year-over-year and a slight revenue surprise of +0.05% over the Zacks Consensus Estimate of $4.48 billion [1] - Earnings per share (EPS) for the quarter was $5.88, up from $4.92 in the same quarter last year, although it fell short of the consensus estimate of $5.92, resulting in an EPS surprise of -0.63% [1] Financial Performance - Net Revenues from Acute Care Hospital Services reached $2.55 billion, exceeding the average estimate of $2.51 billion by four analysts, with a year-over-year increase of +9.8% [4] - Net Revenues from Behavioral Health Services were reported at $1.94 billion, slightly below the estimated $1.97 billion, marking an +8.1% change compared to the previous year [4] - Net Revenues from Other services totaled $2.95 million, under the average estimate of $3.28 million, with a year-over-year increase of +11.8% [4] - Operating Income for Behavioral Health Care Services was $382.09 million, below the average estimate of $436.21 million [4] - Operating Income for Acute Care Hospital Services was $251.68 million, slightly above the average estimate of $245.66 million [4] Stock Performance - Shares of Universal Health Services have returned +13.5% over the past month, contrasting with a -0.3% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 2 (Buy), suggesting potential outperformance against the broader market in the near term [3]

Core Viewpoint - Analysts project that Universal Health Services (UHS) will report quarterly earnings of $5.91 per share, reflecting a 20.1% year-over-year increase, with revenues expected to reach $4.48 billion, a 9% increase from the same quarter last year [1] Group 1: Earnings Estimates - The consensus EPS estimate for the quarter has remained unchanged over the past 30 days, indicating analysts' reassessment of their initial projections [1][2] - Changes in earnings estimates are crucial for predicting potential investor reactions to the stock, with empirical studies showing a strong relationship between earnings estimate revisions and short-term stock price performance [2] Group 2: Revenue Projections - Analysts estimate 'Net Revenues- Acute care hospital services' at $2.51 billion, representing an 8.3% increase from the previous year [4] - 'Net Revenues- Behavioral health services' are projected to be $1.97 billion, indicating a year-over-year change of 10% [4] Group 3: Operational Metrics - The average prediction for 'Admissions - Behavioral health' is 121,441, up from 114,684 in the same quarter last year [5] - 'Operating Income- Behavioral Health Care Services' is expected to reach $436.21 million, compared to $360.85 million reported in the same quarter last year [5] - 'Operating Income- Acute Care Hospital Services' is projected at $245.66 million, an increase from $220.87 million in the same quarter last year [6] Group 4: Stock Performance - Over the past month, Universal Health Services shares have gained 11.8%, while the Zacks S&P 500 composite has decreased by 0.8% [6] - UHS holds a Zacks Rank 2 (Buy), suggesting it is likely to outperform the overall market in the upcoming period [6]

Core Insights - Health Net, a managed care health plan under Centene Corporation, partnered with the Pro Football Hall of Fame to host impactful events in Sacramento, "Salute to Service" and "Strong Youth, Strong Communities," aimed at recognizing local heroes and empowering the next generation [1][10] Group 1: Salute to Service Event - The "Salute to Service" event honored healthcare heroes at WellSpace Health Alhambra Community Health Center, recognizing the essential work of medical professionals serving vulnerable communities in Sacramento [2][4] - Health Net emphasized the importance of community support and honoring those who dedicate their lives to helping others, aiming to inspire youth leadership with compassion and resilience [3][10] Group 2: Strong Youth, Strong Communities Event - The "Strong Youth, Strong Communities" assembly at River City High School engaged over 2,000 students with motivational talks from professional football legends and community leaders, providing life skills and leadership lessons [7][9] - The event focused on educating youth about mental health and empowering them to improve their lives and communities, highlighting the importance of resilience and support systems [8][9] Group 3: Organizational Commitment - Both events reflect Health Net's and the Pro Football Hall of Fame's commitment to honoring those who serve and inspiring youth in the Sacramento metropolitan area [10] - Health Net and Centene Corporation maintain a long-standing commitment to the military community, addressing a wide range of healthcare needs for veterans and active military families [10][12]

Core Viewpoint - LifeStance Health Group (NASDAQ:LFST) is identified as a promising mid-cap healthcare stock with significant upside potential, particularly highlighted by a bullish rating from BTIG analyst David Larsen, who raised the price target from $9 to $10, indicating a potential upside of approximately 42% for investors [1]. Group 1: Analyst Insights - The analyst forecasts strong medical utilization trends in 2026, driven by a favorable labor market and increased demand for medical oncology, mental health services, and specialty medications, which could create additional market opportunities for LifeStance Health Group [2]. - The stock has a consensus 1-year average price target of $9, suggesting an upside potential of 27.7% from current levels, with all seven analysts covering the stock issuing Buy ratings [3]. Group 2: Company Overview - LifeStance Health Group operates as an outpatient health service provider, offering both in-person and telehealth services focused on individuals with mental health issues, including ketamine therapies, psychiatry, and other behavioral health services [4].

Core Insights - ARC Health has secured a $182 million credit facility to refinance existing debt and support growth initiatives in the US [1][2] - The company aims to expand its presence and improve behavioral health services across important regions in the US [2] - Thurston Group, a private equity firm, supports ARC Health's growth strategy and the establishment of the new credit facility [3][4] Company Overview - Founded in 2021 and based in Cleveland, Ohio, ARC Health is an outpatient behavioral health provider [1] - The company operates 91 locations across 20 US states and employs over 1,300 clinicians [1] - ARC Health focuses on a data-driven, patient-centered model to achieve strong clinical and operational results [1] Growth Strategy - The new credit facility will provide ARC Health with the capital and flexibility needed for expansion and to support partner practices [2] - The acquisition of Mindsoother Therapy Center in January 2024 marks a significant step in ARC Health's growth journey [4]

Core Insights - The Ensign Group reported strong operational execution in Q3, with revenue growth driven by higher patient volumes and improved clinical outcomes [1] - Management highlighted the importance of occupancy and skilled patient mix, attributing success to their decentralized, locally led model [1] - CEO Barry Port emphasized clinical performance as a key differentiator, with same-store facilities outperforming peers in government surveys and achieving record occupancy [1] Financial Performance - Revenue reached $1.30 billion, exceeding analyst estimates of $1.28 billion, representing a 19.8% year-on-year growth [6] - EPS (GAAP) was $1.42, missing analyst expectations of $1.49 by 4.9% [6] - Adjusted EBITDA was $151.1 million, beating analyst estimates of $147.1 million, with an 11.7% margin [6] - The company raised its full-year revenue guidance to $5.06 billion, a 1.1% increase from the previous guidance of $5.01 billion [6] - Full-year EPS (GAAP) guidance is $6.51, exceeding analyst estimates by 12.1% [6] - Operating margin remained stable at 7.4%, consistent with the same quarter last year [6] - Sales volumes increased by 15.1% year-on-year, compared to 9.9% in the same quarter last year [6] - Market capitalization stands at $10.35 billion [6] Strategic Insights - There is significant potential for skilled mix growth in mature facilities, with only 31.7% of same-store days currently skilled [6] - Organic growth remains a major focus for the company [6] - Managed care contracting in new markets, such as Alabama, is a gradual process that requires time to establish relationships [6] - Acquisition timing is primarily influenced by seller readiness, with a focus on maintaining discipline in pricing despite competitive pressures [6] - The company is expanding behavioral health services, with new units being added in Arizona and California to meet increased demand [6] - Ensign's facilities are positioned as high-quality, lower-cost alternatives, enabling gradual market share gains over time [6]

Financial Performance - Revenue for Q3 2025 is reported at $64 million, with Payor contributing 54% and DTE contributing 34%[6] - The company achieved a +111% YoY growth in Adjusted EBITDA in Q3 2025 and a LTM Adjusted EBITDA of approximately $119 million, compared to approximately $40 million a year ago[17] - Approximately $9 million of shares were repurchased in Q3 under the company's buyback plan[17] Business Growth & Innovation - Unique Active Payor Members increased by +29% YoY, and Payor sessions increased by +37% YoY[16] - Initial psychiatry sessions experienced a +46% sequential growth[16] - Payor Revenue increased by +42% YoY, and Total Revenue increased by +25% YoY[17] - The company broadened its comprehensive care platform with the acquisition of Wisdo Health[16] - Product platform enhancements led to a +50% increase in clients attending the 3rd session in 30 days[16] Partnerships & Brand Awareness - Brand awareness increased, with over 35% of people now recognizing the company[17] Financial Guidance - The company narrowed its 2025 Revenue guidance to $226 million to $230 million, representing a +20% to +23% YoY increase[23] - The company narrowed its 2025 Adjusted EBITDA guidance to $14 million to $16 million, representing a +101% to +130% YoY increase[23]

Core Insights - Universal Health Services (UHS) reported $4.28 billion in revenue for Q2 2025, a year-over-year increase of 9.6% [1] - Earnings per share (EPS) for the same period was $5.35, compared to $4.31 a year ago, representing a surprise of +10.31% over the consensus estimate of $4.85 [1] - The reported revenue exceeded the Zacks Consensus Estimate of $4.22 billion by +1.51% [1] Financial Performance Metrics - Behavioral health admissions were 118,974, below the estimated 122,616 [4] - Net revenues from behavioral health services reached $1.88 billion, slightly above the average estimate of $1.86 billion, with a year-over-year change of +8.6% [4] - Net revenues from acute care hospital services were $2.4 billion, exceeding the estimated $2.37 billion, reflecting a +10.5% change compared to the previous year [4] - Operating income for behavioral health care services was $396.46 million, surpassing the estimated $368.68 million [4] - Operating income for acute care hospital services was $225.22 million, slightly below the average estimate of $226.87 million [4] Stock Performance - Shares of Universal Health Services have returned -12.6% over the past month, contrasting with the Zacks S&P 500 composite's +4.9% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]