Universal Health Services beats Q2 expectations, raises full-year outlook

Published 28/07/2025, 21:30
 Universal Health Services beats Q2 expectations, raises full-year outlook

KING OF PRUSSIA, Pa. - Universal Health Services , Inc. (NYSE:UHS) reported second-quarter adjusted earnings that surpassed analyst expectations, driven by strong revenue growth and supplemental Medicaid reimbursements. The healthcare provider has raised its full-year guidance following the solid performance.

The company posted adjusted earnings of $5.35 per share for the second quarter, significantly exceeding the analyst estimate of $4.93. Revenue rose 9.6% to $4.28 billion, compared to $3.91 billion in the same period last year and above the consensus estimate of $4.24 billion.

Universal Health Services’ shares edged up 0.6% following the announcement of these strong results and improved outlook.

The second-quarter results included approximately $101 million in aggregate net pre-tax incremental reimbursements from Medicaid programs, including $58 million from the recently approved Tennessee Medicaid directed payment program. This was partially offset by a $25 million pre-tax loss from a newly constructed acute care hospital in Washington, D.C. that opened in April.

"Based upon the operating trends and financial results experienced during the first six months of 2025, as well as the recent approval of a new Medicaid supplemental payment program in Tennessee and changes in reimbursements to certain existing Medicaid supplemental payment programs in various states, we are increasing our operating results forecast," the company stated in its earnings release.

For the full year 2025, Universal Health Services now expects adjusted earnings of $20.00 to $21.00 per share, up from its previous forecast of $18.45 to $19.95 and above the analyst consensus of $19.58. The company projects annual revenue between $17.1 billion and $17.31 billion.

The company’s acute care hospitals reported a 7.9% increase in same-facility net revenues during the quarter, with adjusted admissions rising 2.0%. Behavioral health facilities saw same-facility net revenues grow 8.9%, with adjusted patient days increasing 1.2%.

During the quarter, Universal Health Services repurchased 875,000 shares at an aggregate cost of approximately $150.8 million, with $492.9 million remaining under its stock repurchase authorization as of June 30.

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