Earnings Overview
Universal Health Services Inc. (NYSE:UHS) posted second‑quarter adjusted earnings per share of $5.35, falling short of the analyst consensus of $5.95 by $0.60. The miss triggered a 7.1% decline in the company’s share price.
Revenue and Guidance
Revenue increased 8.3% year‑over‑year to $4.64 billion, surpassing the consensus estimate of $4.58 billion. For full‑year 2026, the company revised its adjusted EPS guidance to a range of $22.28‑$23.65, with a midpoint of $22.97, which is below the analyst consensus of $23.39. Revenue guidance was set at $18.50‑$18.76 billion, with a midpoint of $18.63 billion, marginally above the consensus forecast of $18.52 billion.
Medicaid Program Impact
The quarter recorded a favorable net pre‑tax impact of approximately $72 million, driven primarily by a $100 million benefit from Florida’s Medicaid managed‑care directed payment program. This benefit was partially offset by a $28 million increase in self‑insured liability claim reserves. The company noted that the Centers for Medicare and Medicaid Services has not approved an increased size of the Florida program for periods beyond September 30, 2025, so no additional benefit is included in the 2026 outlook beyond amounts already recorded.
Operational Metrics
At acute‑care hospitals on a same‑facility basis, adjusted admissions rose 2.9% and net revenue per adjusted admission increased 3.0% during the quarter. Behavioral health facilities saw adjusted admissions grow 0.5% with net revenue per adjusted admission up 7.1%.
Share Repurchase Activity
During the quarter, Universal Health repurchased 1.89 million shares at an aggregate cost of approximately $320.3 million. As of June 30, 2026, $977.6 million remained available under the company’s share‑repurchase authorization.