UHS

A month has gone by since the last earnings report for Universal Health Services (UHS). Shares have added about 5.7% in that time frame, outperforming the S&P 500. But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Universal Health Services due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers. UHS Beats Q2 Earnings and Revenue Estimates Despite Cost Pressures Universal Health Services reported second-quarter 2026 adjusted earnings per share (EPS) of $5.98, which beat the Zacks Consensus Estimate by 5.7%. The bottom line rose 10.1% year over year. Net revenues of $4.6 billion improved 8.3% year over year. The top line beat the consensus mark by 2.6%. The strong quarterly results were driven by healthy revenue growth across both the Acute Care and Behavioral Health segments. Higher adjusted admissions, increased patient days and improved unit revenues on a same-facility basis supported performance in both businesses. However, the upside was partly offset by elevated operating costs. Adjusted EBITDA, net of NCI, rose 5.4% year over year to $677.9 million, and beat our estimate of $647.5 million. Total operating costs were $4.1 billion, which escalated 8.9% year over year due to higher salaries, wages and benefits, supplies expense, and other operating expenses. The metric came slightly higher than our estimate of $4 billion. Acute Care Hospital Services On a same-facility basis, UHS' acute care business delivered solid volume and higher unit revenues in the second quarter of 2026. Adjusted admissions (adjusted for outpatient activity) increased 2.9% year over year, while adjusted patient days grew 3.1%. Net revenue per adjusted admission increased 3.0%, and net revenue per adjusted patient day rose 2.8%. Net revenues from Universal Health's acute care services increased 8.2% on a same-facility basis. Behavioral Health Care Services Behavioral health care also posted solid same-facility revenue growth, supported by modest volume gains and higher unit revenues. Adjusted admissions inched up 0.5% on a same-facility basis, while adjusted patient days increased 1.4%. Net revenue per adjusted admission improved 7.1%, and net revenue per adjusted patient day increased 6.1%. Net revenues from UHS' behavioral health care services grew 7.4% on a same-facility basis. Universal Health exited the second quarter with cash and cash equivalents of $138.8 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 $1.3 billion of available borrowing capacity at the end of the second quarter. Total assets of $15.9 billion increased from the 2025-end figure of $15.5 billion. Long-term debt amounted to $4.1 billion, which increased from $4 billion as of 2025-end. Current maturities of long-term debt totaled $771.9 million. Total equity of $7.6 billion advanced from the 2025-end figure of $7.3 billion. UHS generated operating cash flow of $844.9 million in the first six months of 2026, down 7.1% from the year-ago period’s level. Universal Health repurchased shares worth approximately $320.3 million during the second quarter of 2026. The remaining authorization under its share repurchase program was approximately $977.6 million as of June 30, 2026. Management now expects net revenues of $18.501-$18.762 billion compared with its earlier guidance of $18.417-$18.789 billion. The midpoint of the revised guidance implies 7.3% growth from the 2025 figure of $17.365 billion. Adjusted EBITDA, net of NCI, is now projected to be in the range of $2.610-$2.717 billion, down from the previous forecast of $2.641-$2.789 billion. The midpoint of the revised range indicates 2.8% growth from the 2025 level of $2.59 billion. Adjusted EPS is now expected to be in the band of $22.28-$23.65 compared with the prior outlook of $22.64-$24.52. The midpoint suggests 5.6% growth from the 2025 figure of $21.74. Capital expenditures are still expected to be between $950 million and $1.1 billion, on par with the previous guidance. In the past month, investors have witnessed a downward trend in estimates revision. The consensus estimate has shifted -5.42% due to these changes. Currently, Universal Health Services has a average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. However, the stock has a grade of A on the value side, putting it in the top quintile for value investors. Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Universal Health Services has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. Universal Health Services belongs to the Zacks Medical - Hospital industry. Another stock from the same industry, Community Health Systems (CYH), has gained 6.5% over the past month. More than a month has passed since the company reported results for the quarter ended June 2026. Community Health Systems reported revenues of $2.83 billion in the last reported quarter, representing a year-over-year change of -9.8%. EPS of -$0.19 for the same period compares with -$0.05 a year ago. For the current quarter, Community Health Systems is expected to post a loss of $0.22 per share, indicating a change of -117.3% from the year-ago quarter. The Zacks Consensus Estimate has changed -3.2% over the last 30 days. Community Health Systems has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of C. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Universal Health Services, Inc. (UHS) : Free Stock Analysis Report Community Health Systems, Inc. (CYH) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Tenet Healthcare Corporation’s THC second-quarter 2026 results show why its Hospital Operations segment remains an important earnings driver. Despite pressure from weaker exchange enrollment, the segment delivered stronger volumes, better revenue per patient and meaningful margin improvement, giving investors a reason to remain optimistic about the earnings outlook. Hospital adjusted admissions increased 2.6% year over year, while revenue per adjusted admission rose 3.3%. This combination is encouraging because THC is benefiting from both healthy patient demand and a better mix of services. The improvement in revenue per admission reflects its focus on higher-acuity care, while stronger commercial revenues are helping support top-line growth. The hospital segment is translating this momentum into stronger profitability. Hospital adjusted EBITDA jumped 22.3% to $762 million, significantly faster than revenue growth, while the margin expanded to 18% from 15.6% a year ago. This suggests its cost-management efforts are helping convert operational growth into stronger profits. However, exchange weakness remains a caution. Exchange revenues fell 17% in the second quarter of 2026 and are expected to remain under pressure. Still, continued volume growth, better acuity and cost discipline should help offset some of that weakness. The company’s $2.67-$2.81 billion 2026 Hospital adjusted EBITDA guidance signals confidence in continued underlying improvement, positioning the segment as a potential near-term tailwind for THC’s earnings. Tenet is not the only one benefiting from healthy demand for hospital care. Healthcare peers, including Universal Health Services, Inc. UHS and HCA Healthcare, Inc. HCA, also reported solid hospital volume and revenue growth in the second quarter of 2026. Universal Health delivered strong hospital performance, with acute-care adjusted admissions rising 2.9%. UHS’ net revenue per adjusted admission increased 3.0%, while same-facility acute-care revenues grew 8.2%, reflecting continued strength across its hospital operations. HCA Healthcare posted solid hospital growth in the second quarter of 2026, with same-facility equivalent admissions increasing 2.7%. HCA’s revenue per equivalent admission also rose 6.4%, pointing to healthy demand and a favorable patient mix. Shares of Tenet Healthcare have gained 56.4% over the past year compared with the industry's 28% growth over the same period. Image Source: Zacks Investment Research From a valuation standpoint, THC trades at a forward price-to-earnings ratio of 13.43X, up from the industry average of 11.28X. THC carries a Value Scoreof A. Image Source: Zacks Investment Research The Zacks Consensus Estimate for THC’s 2026 earnings is pegged at $20.16 per share, implying a 20.1% jump from the year-ago period’s level. Image Source: Zacks Investment Research THC currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Tenet Healthcare Corporation (THC) : Free Stock Analysis Report Universal Health Services, Inc. (UHS) : Free Stock Analysis Report HCA Healthcare, Inc. (HCA) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Aveanna Healthcare Holdings Inc. AVAH is set to report second-quarter 2026 results on Aug. 13, before the opening bell. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings is currently pegged at 17 cents per share on revenues of $647.08 million. The second-quarter earnings estimate has witnessed one upward revision and no downward movement over the past 60 days. However, the bottom-line projection indicates a year-over-year decrease of 5.6%. But the Zacks Consensus Estimate for quarterly revenues suggests year-over-year growth of 9.8%. Image Source: Zacks Investment Research For full-year 2026, the Zacks Consensus Estimate for Aveanna Healthcare’s revenues is pegged at $2.65 billion, implying a rise of 8.8% year over year. The consensus mark for 2026 earnings per share is pegged at 73 cents, indicating a jump of 21.7% on a year-over-year basis. Aveanna Healthcare beat the consensus estimate for earnings in each of the trailing four quarters, with the average surprise being 129.4%, as you can see below. Aveanna Healthcare Holdings Inc. price-eps-surprise | Aveanna Healthcare Holdings Inc. Quote Our proven model does not conclusively predict an earnings beat for the company this time around as well. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the odds of an earnings beat. That’s not the case here. AVAH has an Earnings ESP of 0.00% and carries a Zacks Rank #2. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter. You can see the complete list of today’s Zacks #1 Rank stocks here. The Zacks Consensus Estimate for revenues from the PDS segment indicates 9.1% year-over-year growth. AVAH is expected to have witnessed a 9.5% increase in hours, while the revenue rate is likely to have declined 0.4% from the year-ago level. Gross margin from the PDS segment is expected to have declined 8.5% year over year. Higher cost of revenues are also expected to have increased total expenses, partly offset by lower corporate expenses. These factors are likely to have weighed on the bottom line. The consensus estimate for the HHH unit’s revenues signals a 9.5% increase from the year-ago period. Unique patients served (UPS) are expected to have increased 3.9%, while the revenue rate is likely to have risen 2.5%. Gross margin from the segment is expected to have increased 7.7%. Revenues from the MS segment are expected to have increased 6.5% year over year in the second quarter. Gross margin from the segment is also likely to have improved 5.1%. Companies in the broader Medical space, like Encompass Health Corporation EHC, The Ensign Group, Inc. ENSG and Universal Health Services, Inc. UHS, have already reported their results for the June quarter, and here’s how they have performed. Encompass Health reported second-quarter adjusted EPS of $1.55, which beat the Zacks Consensus Estimate by 4.7% and increased 10.7% year over year. Its results were primarily driven by strong growth in net patient revenue per discharge, supported by solid discharge volumes and contributions from capacity expansion. However, the upside was partly offset by EHC’s elevated operating expenses. Ensign reported second-quarter 2026 adjusted EPS of $1.92, which beat the Zacks Consensus Estimate by 6.7% and improved 20.8% year over year. ENSG’s strong results were driven by higher occupancy, improved patient days and contributions from acquired and transitioning facilities, along with growth in rental income. The positives were partly offset by higher expenses. Universal Health Services reported second-quarter 2026 adjusted EPS of $5.98, which beat the Zacks Consensus Estimate by 5.7%. The bottom line rose 10.1% year over year. The strong quarterly results were driven by healthy revenue growth across both the Acute Care and Behavioral Health segments. Higher adjusted admissions, increased patient days and improved unit revenues on a same-facility basis supported performance in both businesses. However, the upside was partly offset by UHS’ elevated operating costs. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Aveanna Healthcare Holdings Inc. (AVAH) : Free Stock Analysis Report Universal Health Services, Inc. (UHS) : Free Stock Analysis Report The Ensign Group, Inc. (ENSG) : Free Stock Analysis Report Encompass Health Corporation (EHC) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Make better investment decisions with Simply Wall St's easy, visual tools that give you a competitive edge. Universal Health Services (UHS) is back in focus after the company completed a long running share repurchase program and released its second quarter 2026 earnings, prompting investors to reassess the stock. See our latest analysis for Universal Health Services. Over the past year Universal Health Services has delivered a 1 year total shareholder return of 2.36%, while the share price is down 23.65% year to date and recently traded at $167.87. This suggests recent momentum has been weak despite longer term gains. If this share repurchase and earnings update has you reviewing your healthcare exposure, it can also be a good moment to look at other opportunities in technology enabled care and 41 healthcare AI stocks Universal Health Services appears to be a solid operator with sizeable acute and behavioral health businesses and a long-running buyback now completed. After the recent share price slide and fresh earnings, is that strength already fully reflected in the valuation? Against the last close at $167.87, the most followed narrative pegs Universal Health Services at a higher fair value, built on very specific growth and margin assumptions. Read the complete narrative. Read the complete narrative. Want to see what sits behind that fair value gap? The narrative focuses on measured revenue growth, steady earnings and a leaner share count. It highlights which assumptions have the greatest impact on the model. Result: Fair Value of $205.24 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, Universal Health Services still faces meaningful risks around Medicaid policy changes and persistent workforce shortages, which could pressure margins and challenge this undervalued narrative. Find out about the key risks to this Universal Health Services narrative. With both risks and potential rewards in play for Universal Health Services, it makes sense to move quickly and test the assumptions against the latest data. To weigh those trade-offs in one place, review the 3 key rewards and 2 important warning signs If you are reassessing Universal Health Services today, do not stop there. Give yourself more options by lining up a few fresh ideas side by side. Zero in on value driven opportunities by scanning companies that currently look mispriced using the 52 high quality undervalued stocks. Strengthen your income potential by reviewing companies with reliable cash flows through the 7 dividend fortresses. Sleep easier at night by focusing on businesses with healthier finances using the 82 resilient stocks with low risk scores. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include UHS. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Universal Health Services delivered an 8.3% year-over-year increase in revenue for Q2 2026, surpassing Wall Street’s revenue expectations. Management pointed to a rebound in both acute care and behavioral health volumes, supported by investments in expanding capacity and disciplined expense management. President and CEO Marc D. Miller highlighted the opening of new hospital beds and the Alan B. Miller Medical Center in Florida as bolstering demand response, and noted that professional and general liability reserves were increased during the quarter to reflect higher claim severity industry-wide. While acute care admissions and surgical volumes rebounded, CFO Steve G. Filton cautioned that same facility volume growth was slightly moderated to reflect observed trends, adding, “We are just trying to be practically reflective of our first half performance.” Is now the time to buy UHS? Find out in our full research report (it’s free). Revenue: $4.64 billion vs analyst estimates of $4.59 billion (8.3% year-on-year growth, 1.1% beat) Adjusted EPS: $5.98 vs analyst expectations of $6.01 (in line) Adjusted EBITDA: $684 million vs analyst estimates of $686.3 million (14.7% margin, in line) Adjusted EPS guidance for the full year is $22.97 at the midpoint, missing analyst estimates by 1.8% EBITDA guidance for the full year is $2.66 billion at the midpoint, below analyst estimates of $2.70 billion Operating Margin: 11.1%, in line with the same quarter last year Same-Store Sales rose 8.2% year on year (2% in the same quarter last year) Market Capitalization: $10.2 billion While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Ann Hynes (Mizuho): asked about the drivers behind acute care volume moderation. CFO Steve G. Filton explained that shifts toward alternate care settings like ambulatory surgery centers are impacting volume growth but emphasized continued satisfaction with overall volume trends. Andrew Mok (Barclays): questioned the drivers of expected EBITDA growth acceleration in the second half of the year. Filton highlighted the ramp-up of new bed additions, Cedar Hill hospital’s path to breakeven, and labor cost moderation as key factors. Matthew Dale Gillmor (KeyBanc): asked about the future of the Florida DPP program and opportunities for other supplemental payments. Filton said future program impacts are uncertain and not included in current guidance, and that other state programs are unlikely to be material in the near term. Jason Cassorla (Guggenheim Partners): inquired about behavioral health volume growth and the impact of headcount expansion. Filton noted that outpatient growth has been slower than anticipated, with the Talkspace acquisition expected to accelerate this area after integration. AJ Rice (UBS): asked about the long-term impact of reductions in Medicaid supplemental payments under the One Big Beautiful Bill Act. Filton outlined steps to improve productivity, invest in technology, and focus on less Medicaid-dependent service lines to mitigate the impact. In the quarters ahead, our team will monitor (1) the ramp-up of newly added hospital beds and the Alan B. Miller Medical Center’s performance, (2) the pace and success of integrating Talkspace and expanding virtual behavioral health offerings, and (3) progress on expense controls and managing liability reserve increases. The durability of supplemental Medicaid funding and evolving payer mix trends will also be critical indicators. Universal Health Services currently trades at $168.50, up from $159.31 just before the earnings. Is there an opportunity in the stock? The answer lies in our full research report (it’s free for active Edge members). ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time. Find out which stocks our AI platform is flagging this week. See this week’s Strong Momentum stocks — FREE. Get Our Strong Momentum Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+1,154% between June 2020 and June 2025). Find your next big winner with StockStory today.

Acadia Healthcare Company, Inc. ACHC reported adjusted second-quarter earnings of 38 cents per share, which beat the Zacks Consensus Estimate by 15.2%. However, the bottom line declined 54% year over year. Total revenues declined 0.4% year over year to $865.8 million. The top line surpassed the Zacks Consensus Estimate by 2.5%. The better-than-expected quarterly results reflected strong patient demand, as admissions increased and same-facility patient days improved. Residential Treatment Facilities also delivered double-digit revenue growth. However, lower revenue per patient day, a shorter average length of stay and higher operating expenses weighed on profitability. Acadia Healthcare Company, Inc. price-consensus-eps-surprise-chart | Acadia Healthcare Company, Inc. Quote Acute Inpatient Psychiatric Facilities revenues totaled $494.6 million, which remained flat year over year but beat the Zacks Consensus Estimate by 4.3%. Specialty Treatment Facilities' revenues declined 8.4% year over year to $133.5 million. Comprehensive Treatment Facilities revenues amounted to $141.2 million, flat year over year. Residential Treatment Facilities revenues increased 11.6% to $96.5 million. Same-facility revenues of $856.4 million edged down 0.1% year over year but beat the Zacks Consensus Estimate by 3.6%. Patient days increased 0.8%, while revenue per patient day declined 0.8%. Admissions grew 6.4% year over year. The average length of stay decreased 5.3% year over year and missed the consensus estimate by 3.2%. Overall facility patient days remained flat year over year, while admissions increased 6.3%. Revenue per patient day declined 0.4% year over year, and the average length of stay decreased 5.9%. Total operating expenses increased 7.3% year over year to $727.6 million, primarily due to higher salaries, wages and benefits, professional fees, supplies and other operating expenses. Total adjusted EBITDA declined 26% year over year to $149.2 million. During the quarter, the company added 240 licensed beds from newly constructed facilities. Acadia Healthcare exited the second quarter with cash and cash equivalents of $171.3 million, which increased from the 2025-end level of $133.2 million. It had remaining borrowing capacity of $669.8 million under its $1 billion revolving credit facility at the end of the second quarter. Total assets of $5.5 billion increased 0.3% from the 2025-end figure. Long-term debt amounted to $2.4 billion, which declined from $2.5 billion as of Dec. 31, 2025. The current portion of long-term debt was $32.5 million. Total equity of $2 billion increased from the 2025-end level of $1.9 billion. Net cash provided by operating activities totaled $223.6 million in the first six months of 2026 compared with $145.0 million in the prior-year period. The company did not buy back shares in the second quarter of 2026. Acadia Healthcare updated its 2026 guidance. The company now expects revenues to be in the range of $3.40-$3.45 billion compared with the previous guidance of $3.37-$3.45 billion. Adjusted EBITDA is now projected to be in the band of $590-$615 million compared with the previous outlook of $580-$615 million. Adjusted EPS is now expected to be $1.45-$1.60 compared with the earlier guidance of $1.35-$1.60. Management also raised its operating cash flow forecast to $350-$400 million from $285-$325 million. Capital expenditures are now expected to be $235-$255 million, down from the prior guidance of $255-$280 million. Management previously guided for the addition of 400-600 licensed beds in 2026. Acadia Healthcare currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Here are some stocks from the broader Medical space that have also reported their quarterly results: Tenet Healthcare Corporation THC, UnitedHealth Group Incorporated UNH and Universal Health Services, Inc. UHS. Here's how they have performed: Tenet Healthcare reported second-quarter 2026 adjusted earnings per share of $6.12, which surpassed the Zacks Consensus Estimate by 50%. The bottom line increased 52.2% year over year. THC’s net operating revenues advanced 6.8% year over year to $5.63 billion. The top line surpassed the consensus mark by 4.4%. The quarterly results were driven by strong same-facility revenue growth, higher patient acuity, disciplined expense management and higher Medicaid supplemental revenues. However, the gains were partly offset by an unfavorable payer mix due to lower exchange admissions. UnitedHealth Group reported second-quarter 2026 adjusted earnings per share of $6.38, which beat the Zacks Consensus Estimate of $4.94. The bottom line rose 56.4% year over year. Revenues rose 0.4% year over year to $112 billion. The top line beat the consensus mark by 1.7%. UNH’s strong quarterly results were aided by growth in commercial fee-based membership and the strength in Optum Insight. Medical cost management, pricing discipline and benefit design changes also contributed to the upside. However, weaker performance at Optum Health and Optum Rx, along with declining risk-based membership, partially offset these gains. Universal Health Services reported second-quarter 2026 adjusted earnings per share of $5.98, which beat the Zacks Consensus Estimate by 5.7%. The bottom line rose 10.1% year over year. Net revenues of $4.6 billion improved 8.3% year over year. The top line beat the consensus mark by 2.6%. UHS’ strong quarterly results were driven by healthy revenue growth across both the Acute Care and Behavioral Health segments. Higher adjusted admissions, increased patient days and improved unit revenues on a same-facility basis supported performance in both businesses. However, the upside was partly offset by elevated operating costs. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Acadia Healthcare Company, Inc. (ACHC) : Free Stock Analysis Report UnitedHealth Group Incorporated (UNH) : Free Stock Analysis Report Universal Health Services, Inc. (UHS) : Free Stock Analysis Report Tenet Healthcare Corporation (THC) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

This article first appeared on GuruFocus. Adjusted EPS: $5.98 for Q2 2026, 12% year-over-year growth. Adjusted EBITDA less NCI: $678 million for Q2 2026, 5% year-over-year growth. Same-Facility Acute Care Adjusted Admissions: Increased 2.9% compared to Q2 2025. Same-Facility Acute Care Net Revenue: Increased 8.2% in Q2 2026. Same-Facility Behavioral Health Net Revenue: Increased 7.4% in Q2 2026. Same-Facility Behavioral Health Adjusted Patient Days: Increased 1.4% compared to Q2 2025. Cash from Operating Activities: $44.3 million in Q2 2026, down from $549 million in Q2 2025. Capital Expenditures: $228 million in Q2 2026. Share Repurchase: $320 million in Q2 2026, acquiring 1.89 million shares. Total Debt: $4.85 billion as of June 30, 2026. Net Leverage: 1.8 times as of June 30, 2026. Warning! GuruFocus has detected 10 Warning Signs with HRI. Is UHS fairly valued? Test your thesis with our free DCF calculator. Release Date: July 28, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Universal Health Services Inc (NYSE:UHS) reported a 12% year-over-year growth in adjusted EPS for Q2 2026. The company added 177 licensed beds across three hospitals, representing a 2.5% increase in bed capacity. UHS experienced a strong reception for the newly opened Alan B. Miller Medical Center in Palm Beach Gardens, Florida. The integration planning for the pending Talkspace acquisition is progressing well, expected to enhance UHS's outpatient market presence. UHS accelerated its share repurchase activity to $320 million in Q2 2026, reflecting confidence in its financial position and share value. Q2 adjusted EBITDA less NCI fell short of internal expectations due to higher professional and general liability reserves and slower ramp-up at new facilities. The San Antonio behavioral health facility is incurring operating losses due to the recertification process, impacting financial performance. UHS adjusted its full-year volume guidance downward for both Acute Care and Behavioral Health segments due to lower-than-expected growth. The company is facing increased professional and general liability expenses, reflecting industry-wide trends of higher claim severity. Exchange volumes declined approximately 15% compared to Q2 2025, leading to an increase in self-pay volumes and impacting financial projections. Q: My question is focused on your Acute Care volume change. Is that non-ACA-related, meaning you're seeing some pressure just in your base business? And if that's the case, can you provide a little bit more detail on what you think is happening? A: Yes. As we said, we're trying to be reflective of our first half performance. Acute Care volumes trended in the 2% adjusted admission range for the first half. We're seeing a continued shift of certain elective and outpatient procedures into alternate site settings, such as ASCs and freestanding imaging. However, we're pleased with our Acute Care volume growth and surgical volumes in Q2, which rebounded. We slightly lowered the midpoint of our admission growth for the back half of the year to be respectful of the first half performance. Q: When we contemplate all the puts and takes to the guidance revision for this year, it looks like underlying EBITDA growth accelerates several hundred basis points in the back half. Can you walk us through the drivers of that back half acceleration? A: We identified several positive developments for the second half. We added 177 beds across three markets in our acute facilities, representing a 2.5% increase in bed capacity. Cedar Hill is expected to reach breakeven, providing a positive swing. In Behavioral Health, head count and labor cost growth are expected to moderate. Additionally, we anticipate more normal growth trends in Nevada, particularly in the fourth quarter, which had softer trends last year. Q: For the Florida DPP program, I heard that you booked the 2025 portion in the second quarter. If this program is renewed for fiscal 2026, would the sizing of the 2026 program be about the same? Are there more opportunities with DPP to be recognized during 2026? A: We're not certain about the impact of the 2026 approved program, which is why we haven't recorded any benefit in 2026 or included it in our guidance. If approved, we will record it. Other states are contemplating new or expanded programs, but none are expected to be material or included in our guidance. Q: Can you discuss behavioral volumes, particularly after the head count increases you've had over the past few quarters? Is there anything changing on the demand front? A: The 1% to 2% change in our estimated volume range is consistent with recent quarters. We anticipated slightly higher growth based on outpatient demand, but outpatient is growing at about the same rate as inpatient. We've added head count to accommodate more outpatient capacity, but it's growing slower than expected. The Talkspace acquisition is expected to accelerate outpatient growth by providing a virtual option for outpatient care. Q: Can you talk about the emergent versus elective surgeries that you saw in Q2 and split out between inpatient and outpatient? What do you think the demand setup is for that in the back half of the year? A: We don't necessarily track elective versus nonelective surgeries. Overall surgical volume was down 0.8% in the quarter, with an increase in inpatient surgeries and a slight decline in outpatient surgeries. We've been focused on investing in revenue-producing equipment, which seems to have a positive impact. We continue to invest in ambulatory surgery centers and expand our outpatient surgical capacity. Q: Sounds like you had fairly strong same-store ED volumes, but a little less growth in inpatient admissions and surgical procedures. Anything in particular driving that slightly lower ED conversion to inpatient rate? A: This is not a new phenomenon. Many patients use hospital ERs as their primary care doctors, leading to visits that are not traditionally emergent. While we continue to see acutely ill patients in our ERs, we also see patients coming for what are traditionally more like PCP visits. Q: You gave some comments about your payer mix. Are you seeing any meaningful shift in your uncompensated care burden? A: The decline in exchange volumes was offset almost on a direct one-for-one basis by an increase in self-pay volumes. We assumed a small percentage of those losing exchange coverage would replace it with other commercial coverage, but that didn't seem to be true. This phenomenon led to a $10 million increase in our exchange impact projection. Q: Can you give a little more color on Cedar Hill? What are the drags, and how does that affect the ramp for the 177 new beds you talked about adding? A: Cedar Hill was built in an underserved area with significant demand, but it lacks an established physician base. We're building up the physician component, and we expect the facility to reach breakeven by the end of the year. The 177 new beds added at existing facilities with demonstrated demand will ramp up much faster. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Acute care volumes rebounded in Q2 with broad-based geographic growth, though surgical volumes remained slightly muted due to shifts toward alternate site settings. Management attributed a shortfall in internal EBITDA expectations to higher professional liability reserves and operational challenges at specific facilities in D.C. and Texas. The company added 177 licensed beds across three hospitals, representing a 2.5% increase in same-facility capacity to meet strong regional demand. Behavioral health performance was supported by consistent volume trends and improved labor management, with headcount growth moderating to 2%. Strategic focus remains on building an end-to-end behavioral health continuum, highlighted by the pending Talkspace acquisition to accelerate virtual outpatient presence. A significant $100 million out-of-period benefit from the Florida DPP program provided a one-time boost not originally included in the annual outlook. Management accelerated share repurchases to $320 million in Q2, citing a share price dislocation as a compelling opportunity to deploy capital. Full-year EBITDA guidance was lowered by $50 million at the midpoint to reflect higher liability reserves and slower-than-expected ramps at de novo facilities. Volume guidance for both segments was fine-tuned downward by 50-100 basis points to align with year-to-date trends while maintaining a healthy demand outlook. The Cedar Hill facility in D.C. is now expected to reach breakeven in Q4 2026, a delay from previous assumptions of positive second-half earnings. Management anticipates a $50 million impact from the San Antonio behavioral facility, which will operate at a loss until recertification is achieved in 2027. Guidance assumes a $150 million increase in Medicaid supplemental funding, partially offsetting $200 million in adverse operational items. Professional and general liability expense estimates were increased by $50 million for the year due to industry-wide trends in claim severity. The San Antonio behavioral hospital stopped receiving reimbursement in April 2026; it will incur $5 million to $10 million in quarterly losses until recertified. Health insurance exchange volumes declined 15%, with management noting a near one-for-one shift from exchange coverage to self-pay/uninsured status. The company is proactively managing exposure to 2028 Medicaid reimbursement reductions (OBBBA) by shifting toward Medicare-centric outpatient services. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Growth will be driven by the ramp-up of 177 new beds added in Q2 and the expected breakeven of the Cedar Hill facility by year-end. Management expects continued moderation in labor cost growth and more favorable year-over-year comparisons in the Nevada market. Talkspace addresses geographic and therapist capacity limitations that previously hindered the 'step-down' business from inpatient to outpatient care. The acquisition provides access to over 6,000 virtual therapists, allowing UHS to capture demand where patients prefer virtual alternatives. UHS is seeing inflationary pressures of 7% to 9% in professional fees for hospital-based physicians like anesthesiologists and radiologists. The company is mitigating these costs by reducing reliance on expensive locums coverage and putting certain physician contracts out to bid. Management is investing in AI and revenue cycle technology to improve productivity ahead of scheduled 2028 reimbursement ratchets. Strategic emphasis is shifting toward service lines that are less Medicaid-centric to diversify the payer mix.

Universal Health Services, Inc. UHS reported second-quarter 2026 adjusted earnings per share (EPS) of $5.98, which beat the Zacks Consensus Estimate by 5.7%. The bottom line rose 10.1% year over year. Net revenues of $4.6 billion improved 8.3% year over year. The top line beat the consensus mark by 2.6%. The strong quarterly results were driven by healthy revenue growth across both the Acute Care and Behavioral Health segments. Higher adjusted admissions, increased patient days and improved unit revenues on a same-facility basis supported performance in both businesses. However, the upside was partly offset by elevated operating costs. Universal Health Services, Inc. price-consensus-eps-surprise-chart | Universal Health Services, Inc. Quote Adjusted EBITDA, net of NCI, rose 5.4% year over year to $677.9 million, and beat our estimate of $647.5 million. Total operating costs were $4.1 billion, which escalated 8.9% year over year due to higher salaries, wages and benefits, supplies expense, and other operating expenses. The metric came slightly higher than our estimate of $4 billion. On a same-facility basis, UHS' acute care business delivered solid volume and higher unit revenues in the second quarter of 2026. Adjusted admissions (adjusted for outpatient activity) increased 2.9% year over year, while adjusted patient days grew 3.1%. Net revenue per adjusted admission increased 3.0%, and net revenue per adjusted patient day rose 2.8%. Net revenues from Universal Health's acute care services increased 8.2% on a same-facility basis. Behavioral health care also posted solid same-facility revenue growth, supported by modest volume gains and higher unit revenues. Adjusted admissions inched up 0.5% on a same-facility basis, while adjusted patient days increased 1.4%. Net revenue per adjusted admission improved 7.1%, and net revenue per adjusted patient day increased 6.1%. Net revenues from UHS' behavioral health care services grew 7.4% on a same-facility basis. Universal Health exited the second quarter with cash and cash equivalents of $138.8 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 $1.3 billion of available borrowing capacity at the end of the second quarter. Total assets of $15.9 billion increased from the 2025-end figure of $15.5 billion. Long-term debt amounted to $4.1 billion, which increased from $4 billion as of 2025-end. Current maturities of long-term debt totaled $771.9 million. Total equity of $7.6 billion advanced from the 2025-end figure of $7.3 billion. UHS generated operating cash flow of $844.9 million in the first six months of 2026, down 7.1% from the year-ago period’s level. Universal Health repurchased shares worth approximately $320.3 million during the second quarter of 2026. The remaining authorization under its share repurchase program was approximately $977.6 million as of June 30, 2026. Management now expects net revenues of $18.501-$18.762 billion compared with the earlier guidance of $18.417-$18.789 billion. The midpoint of the revised guidance implies 7.3% growth from the 2025 figure of $17.365 billion. Adjusted EBITDA, net of NCI, is now projected to be in the range of $2.610-$2.717 billion, down from the previous forecast of $2.641-$2.789 billion. The midpoint of the revised range indicates 2.8% growth from the 2025 level of $2.59 billion. Adjusted EPS is now expected to be in the band of $22.28-$23.65 compared with the prior outlook of $22.64-$24.52. The midpoint suggests 5.6% growth from the 2025 figure of $21.74. Capital expenditures are still expected to be between $950 million and $1.1 billion, on par with the previous guidance. UHS currently has a Zacks Rank #4 (Sell). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Here are some stocks from the broader Medical space that have also reported their quarterly results: Tenet Healthcare Corporation THC, Elevance Health, Inc. ELV and UnitedHealth Group Incorporated UNH. Here's how they have performed: Tenet Healthcare reported second-quarter 2026 adjusted earnings per share of $6.12, which surpassed the Zacks Consensus Estimate by 50%. The bottom line increased 52.2% year over year. THC’s net operating revenues advanced 6.8% year over year to $5.63 billion. The top line surpassed the consensus mark by 4.4%. The quarterly results were driven by strong same-facility revenue growth, higher patient acuity, disciplined expense management and higher Medicaid supplemental revenues. However, the gains were partly offset by an unfavorable payer mix due to lower exchange admissions. Elevance Health reported second-quarter 2026 adjusted earnings per share of $7.45, which surpassed the Zacks Consensus Estimate by 20.6%. However, the bottom line declined 15.7% year over year. Operating revenues advanced 0.8% year over year to $49.8 billion. The top line beat the consensus mark by 2.9%. ELV’s quarterly results were primarily driven by higher premium yields in the Health Benefits segment and increased CarelonRx product revenues. The gains were partly offset by a decline in overall medical membership and higher operating expenses. UnitedHealth Group reported second-quarter 2026 adjusted earnings per share of $6.38, which beat the Zacks Consensus Estimate of $4.94. The bottom line rose 56.4% year over year. Revenues rose 0.4% year over year to $112 billion. The top line beat the consensus mark by 1.7%. UNH’s strong quarterly results were aided by growth in commercial fee-based membership and the strength in Optum Insight. Medical cost management, pricing discipline and benefit design changes also contributed to the upside. However, weaker performance at Optum Health and Optum Rx, along with declining risk-based membership, partially offset these gains. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Universal Health Services, Inc. (UHS) : Free Stock Analysis Report UnitedHealth Group Incorporated (UNH) : Free Stock Analysis Report Tenet Healthcare Corporation (THC) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Interested in Universal Health Services, Inc.? Here are five stocks we like better. UHS reported solid second-quarter results, with adjusted EPS up 12% to $5.98 and adjusted EBITDA rising 5% to $678 million, helped by a $100 million Florida Medicaid payment benefit. Excluding that benefit, results missed internal expectations due to liability reserves, Texas facility costs and a slower Cedar Hill ramp-up. Acute-care admissions increased 2.9% and behavioral-health revenue rose 7.4%, but UHS lowered its full-year volume-growth outlook for both segments as elective procedures shift to alternate settings and outpatient behavioral demand remains moderate. The company also expects to complete its Talkspace acquisition in mid-August. UHS reduced its 2026 adjusted EBITDA guidance to $2.61 billion-$2.72 billion, despite higher anticipated Medicaid supplemental funding, because of roughly $200 million in adverse items. The company repurchased $320 million of stock during the quarter and expects to meet or exceed its $800 million-$900 million 2026 buyback target. 3 Oversold Healthcare Stocks to Buy After Jobs Data Universal Health Services (NYSE:UHS) reported second-quarter adjusted earnings per share of $5.98, up 12% from a year earlier, while adjusted EBITDA less noncontrolling interests rose 5% to $678 million. The company said results benefited from a $100 million out-of-period Florida directed payment program benefit that had not been included in its original outlook. Excluding that Florida benefit, Chief Financial Officer Steve Filton said quarterly adjusted EBITDA fell short of internal expectations, citing approximately $63 million in costs and operational pressures. Those items included $28 million of higher professional and general liability reserves, about $20 million related to a Texas behavioral health facility undergoing recertification, and roughly $15 million from a slower-than-expected ramp at Cedar Hill Regional Medical Center GW Health in Washington, D.C. → Volatility Is Back and These 3 Market Tollbooths Are Best Positioned to Profit HCA Healthcare: Temporary Setbacks, Long-Term Strength Same-facility adjusted admissions in the acute-care business increased 2.9% year over year during the second quarter, improving from first-quarter trends and reflecting broad-based geographic gains. Emergency department visits rose 4%, while surgeries declined 0.8%, although Filton said surgical trends improved modestly from recent quarters. The company reported growth in higher-acuity inpatient service lines including urology, neurology and cardiology. Payer mix continued to favor Medicare and managed Medicare, with modest managed-care volume growth excluding exchange coverage and slightly lower Medicaid volumes. → This Tiny AI Supplier Could Be More Important Than the Chipmakers Tenet Healthcare Stock Sees Strong Gains from Acute Care Boom However, UHS reduced its full-year same-facility acute-care adjusted-admission growth outlook to 1.5% to 2.5%, from its earlier 2% to 3% range. Filton said the revision reflected first-half performance, as certain elective and outpatient procedures continue to shift to alternate care settings such as ambulatory surgery centers and freestanding imaging facilities. Same-facility acute-care revenue increased 8.2%, or 5.9% excluding the company’s health plan. Revenue per adjusted admission rose 3.0% on a reported basis and 2.7% after excluding out-of-period Medicaid supplemental benefits. Labor costs per adjusted admission increased 2.7%, while supply expense per adjusted admission declined 2.5%. Contract labor represented 2.5% of acute-care revenue, down 20 basis points from the prior year. → 2 Stocks Built to Thrive If Inflation Refuses to Fade President and CEO Marc Miller said UHS added 177 licensed beds at three acute-care hospitals during the quarter, representing a 2.5% increase in same-facility bed capacity. The company also opened the Alan B. Miller Medical Center in Palm Beach Gardens, Florida, in May and received Joint Commission accreditation for the de novo hospital in July. In behavioral health, same-facility net revenue increased 7.4%, supported by a 6.1% increase in revenue per adjusted patient day and a 1.4% increase in adjusted patient days. Same-facility segment EBITDA rose 9.0%, or 5.7% excluding the net benefit from out-of-period supplemental payments. UHS narrowed its behavioral-health volume outlook to growth of 1% to 2% for the full year, compared with its prior 2% to 3% expectation. Filton said outpatient demand has been growing at roughly the same pace as inpatient demand, rather than at the faster rate the company had anticipated. The company expects to complete its acquisition of Talkspace in mid-August. Miller said the transaction is intended to expand UHS’s outpatient behavioral-health presence through national virtual services, complementing its inpatient, residential and in-person outpatient offerings. Filton said Talkspace’s network of more than 6,000 therapists could help UHS provide follow-up care to patients discharged from inpatient facilities, including patients who live far from a UHS location or lack local therapist access. UHS also continues to work toward recertification of its San Antonio behavioral health facility. The company stopped receiving reimbursement from government and managed-care payers at the end of April and does not expect reimbursement to resume until certification is regained, which it anticipates in 2027. The facility generated approximately $10 million in pretax losses during the second quarter, including staff severance costs, and UHS expects losses of $5 million to $10 million per quarter for the remainder of 2026. UHS now forecasts approximately 7% revenue growth, 3% adjusted EBITDA less noncontrolling interests growth and 6% adjusted EPS growth at the midpoint for 2026. Its updated adjusted EBITDA less noncontrolling interests guidance range is $2.61 billion to $2.72 billion, representing a reduction of about $50 million at the midpoint from the prior outlook. The revised forecast includes an estimated $150 million increase in net Medicaid supplemental funding for the year, including the $100 million Florida benefit recognized in the second quarter and an anticipated $25 million Texas ATLAS program benefit in the third quarter. That benefit is offset by approximately $200 million in adverse items that were not initially contemplated. Approximately $50 million of impact from the Texas behavioral health facility, including lost budgeted earnings and expected operating losses. A $50 million reduction in the expected year-over-year benefit from Cedar Hill, which is now projected to reach breakeven in the fourth quarter rather than earlier in the year. A $50 million increase in full-year professional and general liability expense, reflecting higher claim severity identified through a third-party actuarial review. Approximately $50 million of impact from lower volume assumptions in both operating segments. Exchange volumes declined about 15% from the prior-year quarter, producing an estimated $20 million second-quarter impact. UHS now expects the full-year pretax effect from exchange trends to be approximately $85 million, in the upper half of its original guidance range. Filton said the decline in exchange enrollment was nearly offset one-for-one by increased self-pay volume. Cash generated from operating activities totaled $44.3 million in the second quarter, compared with $549 million a year earlier. Capital expenditures were $228 million, reflecting the Florida hospital opening and capacity expansions. UHS repurchased 1.89 million shares for $320 million during the quarter, up from $127 million in the first quarter. As of June 30, the company had $978 million remaining under its repurchase authorization. Miller said the company views its recent share-price weakness as an opportunity to retire shares, and Filton said UHS expects to meet or exceed its initial plan to repurchase $800 million to $900 million of stock during 2026. The company ended the quarter with $139 million in cash, $4.85 billion in total debt and net leverage of 1.8 times. It also had $1.27 billion of additional borrowing capacity available under its revolving credit facility. Universal Health Services, Inc (NYSE: UHS) is one of the largest diversified health care management companies in the United States, offering a broad spectrum of services through its acute care hospital and behavioral health segments. The company operates general acute care hospitals, surgical hospitals and ambulatory centers, as well as inpatient and outpatient behavioral health facilities. Its network provides emergency and specialized medicine, diagnostic imaging, laboratory services, advanced surgical care and rehabilitation, complemented by a comprehensive array of behavioral services including psychiatric treatment, addiction programs and developmental disabilities care. In the acute care segment, UHS's facilities deliver services ranging from emergency department treatment and intensive care to maternity care and outpatient surgery. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Universal Health Services Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

Universal Health Services (UHS) reported $4.64 billion in revenue for the quarter ended June 2026, representing a year-over-year increase of 8.3%. EPS of $5.98 for the same period compares to $5.35 a year ago. The reported revenue represents a surprise of +2.62% over the Zacks Consensus Estimate of $4.52 billion. With the consensus EPS estimate being $5.66, the EPS surprise was +5.65%. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance. As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately. Here is how Universal Health Services performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Admissions - Acute - Same facility basis: 88,562 versus 86,913 estimated by two analysts on average. Admissions - Behavioral health: 116,857 versus 122,248 estimated by two analysts on average. Net Revenues- Behavioral health services: $2.03 billion versus the four-analyst average estimate of $1.98 billion. The reported number represents a year-over-year change of +7.7%. Net Revenues- Acute care hospital services: $2.61 billion versus the four-analyst average estimate of $2.55 billion. The reported number represents a year-over-year change of +8.7%. Operating Income- All Behavioral Health Care Services: $411.13 million versus $392.94 million estimated by three analysts on average. Operating Income- All Acute Care Hospital Services: $227.97 million versus $264.64 million estimated by three analysts on average. View all Key Company Metrics for Universal Health Services here>>> Shares of Universal Health Services have returned +6.9% over the past month versus the Zacks S&P 500 composite's +0.8% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Universal Health Services, Inc. (UHS) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research