Universal Health Services shares jump 5% on better-than-expected FY25 guidance

Published 27/10/2025, 21:36
 Universal Health Services shares jump 5% on better-than-expected FY25 guidance

KING OF PRUSSIA, Pa. - Universal Health Services (NYSE:UHS) shares rose 5.6% after the healthcare provider reported third-quarter earnings that significantly exceeded analyst expectations and raised its full-year outlook, driven by strong revenue growth across both its acute care and behavioral health segments.

The company posted adjusted earnings of $5.69 per share for the third quarter, handily beating the analyst consensus of $4.84. Revenue climbed 13.4% to $4.5 billion, surpassing the $4.34 billion analysts had expected. The strong performance was bolstered by a $90 million reimbursement from a recently approved Medicaid state directed payment program in Washington, D.C.

"Based upon the operating trends and financial results experienced during the first nine months of 2025, as well as the recent approval of a new Medicaid supplemental payment program in Washington, D.C., we are increasing our operating results forecast," said Universal Health in its earnings release.

The company raised its full-year 2025 guidance, now projecting earnings of $21.50 to $22.10 per share, up from its previous forecast of $20.00 to $21.00 and above the consensus estimate of $20.80. Revenue is now expected to reach $17.31 billion to $17.45 billion, compared to the earlier projection of $17.10 billion to $17.31 billion.

In the acute care segment, same-facility net revenue increased 12.8% YoY, with net revenue per adjusted admission rising 9.8%. Behavioral health services saw same-facility net revenue growth of 9.3%, with net revenue per adjusted admission up 8.8%.

The company’s board also authorized a $1.5 billion increase to its stock repurchase program. During the third quarter, UHS repurchased 1.315 million shares at an average price of approximately $178 per share.

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