UNIVERSAL HEALTH SERVICES, INC. ANNOUNCES FINANCIAL RESULTS FOR THE THREE AND SIX-MONTH PERIODS ENDED JUNE 30, 2026, AND REVISES 2026 FULL YEAR OPERATING RESULTS FORECAST

Rhea-AI Summary

Universal Health Services (NYSE: UHS) reported second-quarter 2026 net income attributable to UHS of $358.4 million, or $5.98 per diluted share, up from $353.2 million, or $5.43, in 2025. Net revenues rose 8.3% to $4.638 billion, aided by a favorable net pre-tax impact of about $72 million, primarily from a Florida Medicaid managed care directed payment program partly offset by higher self-insured liability reserves.

For the first six months of 2026, net income attributable to UHS was $707.1 million ($11.63 per diluted share) on net revenues of $9.133 billion, up 8.9% year over year. Adjusted EBITDA net of NCI reached $677.9 million in Q2 and $1.326 billion year-to-date. Same-facility acute and behavioral operations showed mid‑single‑digit volume gains and higher net revenue per unit. Net cash from operating activities was $845 million versus $909 million in 2025.

UHS repurchased 2.565 million shares for $447.5 million in the first half and had $977.6 million of remaining authorization. The company maintained strong liquidity with $1.272 billion of revolver capacity and delayed draw term loans tied to the expected Talkspace acquisition. UHS revised its 2026 forecast: net revenues midpoint up 0.2%, but Adjusted EBITDA and Adjusted EPS midpoints decreased 1.9% and 2.6%, respectively, versus the original outlook.

Positive

• Q2 2026 net revenues up 8.3% to $4.638 billion
• Q2 2026 diluted EPS increased to $5.98 from $5.43
• First-half 2026 net revenues up 8.9% to $9.133 billion
• Q2 2026 Adjusted EBITDA net of NCI rose to $677.9 million
• First-half 2026 Adjusted EBITDA net of NCI reached $1.326 billion
• Same-facility acute care net revenues up 8.2% first half
• Same-facility behavioral health net revenues up 7.4% first half
• Operating cash flow of $845 million in first half 2026
• Share repurchases of $447.5 million, 2.565 million shares in H1 2026
• Remaining share repurchase authorization of $977.6 million
• $1.272 billion available on $1.5 billion revolving credit facility
• New $700 million delayed draw term loan A added in July 2026

Negative

• Operating cash flow down $64 million year over year to $845 million
• Unfavorable $45 million change in accounts receivable in H1 2026
• Unfavorable $207 million swing in other working capital accounts
• Increased self-insured liability reserve with $28 million pre-tax impact
• Revised 2026 Adjusted EBITDA midpoint cut by 1.9%
• Revised 2026 Adjusted EPS midpoint reduced by 2.6%

News Explained

UHS added optional borrowing capacity of $700 million; the release does not report that it has been drawn.

On July 27, 2026, UHS reported its first-half results and revised its 2026 forecast while disclosing a new $700 million delayed-draw facility; because UHS says it may elect whether to use it, the amendment adds potential borrowing capacity rather than a current debt draw.

The release describes the facility as fundable by September 30, 2026 for general corporate purposes, including possible repayment of $700 million of senior secured notes due September 1, 2026; no cash receipt or repayment is reported in this disclosure. The revised forecast also excludes any further Florida Medicaid benefit beyond the $100 million recorded for the earlier period because CMS has not approved an increased program size after September 30, 2025.

The financing mechanics will be resolved by whether UHS elects to fund the new facility by September 30, 2026, while the related Talkspace acquisition is described as expected to close during the third quarter of 2026.

News Market Reaction – UHT

+2.12%

+2.12% Session close to close

In the Jul 28 session, UHT gained 2.12%, reflecting a moderate positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

Market Context

The tag-matched earnings record averaged 0.44% across five events, while prior results included both...

Analysis

The tag-matched earnings record averaged 0.44% across five events, while prior results included both positive and negative reactions. The release paired revenue growth with lower EBITDA and EPS forecast midpoints; low short positioning was relevant risk context.

Key Figures

Q2 net income: $358.4 million Q2 diluted EPS: $5.98 per share Q2 net revenues: $4.638 billion +5 more

8 metrics

Q2 net income $358.4 million Q2 2026, versus $353.2 million in Q2 2025

Q2 diluted EPS $5.98 per share Q2 2026, versus $5.43 in Q2 2025

Q2 net revenues $4.638 billion Q2 2026, up 8.3% versus Q2 2025

Q2 adjusted EBITDA $677.9 million Adjusted EBITDA net of NCI, versus $642.9 million in Q2 2025

Operating cash flow $845 million Six months ended June 30, 2026, versus $909 million in 2025

2026 revenue forecast $18.501 billion-$18.762 billion Revised full-year 2026 forecast, versus $18.417 billion-$18.789 billion originally

2026 adjusted EBITDA forecast $2.610 billion-$2.717 billion Revised full-year 2026 forecast, versus $2.641 billion-$2.789 billion originally

2026 adjusted diluted EPS forecast $22.28-$23.65 per share Revised full-year 2026 forecast, versus $22.64-$24.52 originally

Previous Earnings Reports

5 past events · Latest: Apr 27 (Positive)

Same Type Pattern 5 events

Date	Event	Sentiment	24h Move	Catalyst
Apr 27	Q1 earnings report	Positive	-0.1%	Net income and FFO increased year over year; credit capacity also expanded.
Apr 27	Q1 earnings report	Positive	-0.1%	Net income, revenue and adjusted EBITDA increased; operating cash flow totaled $402 million.
Feb 25	Q4 earnings report	Positive	+0.2%	Annual net income and FFO were reported alongside $68.8 million available borrowing capacity.
Feb 25	Full-year earnings report	Positive	+0.2%	Full-year revenue and EBITDA increased; 2026 operating guidance was issued.
Oct 27	Q3 earnings report	Neutral	+2.1%	Third-quarter FFO increased year over year despite lower nine-month FFO.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

Tag-matched earnings events showed mixed reactions, with three aligned positive reactions and two divergences.

Key Terms

adjusted ebitda net of nci, non-gaap financial measure, delayed draw term loan a, same facility basis

4 terms

adjusted ebitda net of nci financial

"Our adjusted earnings before interest, taxes, depreciation & amortization ("Adjusted EBITDA net of NCI")"

Adjusted EBITDA net of NCI is a measure of a company’s operating profit—before interest, taxes, depreciation and amortization—after making routine adjustments (such as removing one-time items) and then subtracting the portion attributable to minority or outside owners. Think of it as the company’s core cash-earning slice of the pie that belongs only to the main owners. Investors use it to compare underlying operating performance and cash-generating ability across companies without distortion from accounting choices or minority interests.

non-gaap financial measure financial

"Adjusted EBITDA net of NCI, is a non-GAAP financial measure"

A non-GAAP financial measure is a way companies present their financial results that excludes certain expenses or income to show how they believe their core business is performing. It matters because it can give a clearer picture of how the company is really doing, but it can also be used to make results look better than they actually are.

delayed draw term loan a financial

"we had $400 million of borrowing capacity pursuant to a delayed draw term loan A"

A delayed draw term loan A is a committed loan facility where a borrower can take one or more fixed-size advances later during a set draw period instead of receiving the full amount up front. It usually sits alongside other debt, carries scheduled principal repayments, and may include covenants and interest tied to market rates. For investors, it signals future cash obligations and affects a company’s leverage and liquidity planning, like having a credit card with a locked credit limit you can use in stages.

same facility basis technical

"at our acute care hospitals owned during both periods ("same facility basis")"

A measurement that compares operational or financial performance using only facilities that were open and operating in both reporting periods, excluding effects from newly opened, closed, sold, or acquired locations. It isolates how the same physical sites performed over time so investors can see underlying trends without distortion from changes in the number or mix of facilities. Think of it as comparing results from the same set of stores or factories rather than the company as a whole.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Consolidated Results of Operations, As Reported and As Adjusted  – Three-month periods ended June 30, 2026 and 2025:

KING OF PRUSSIA, Pa., July 27, 2026 /PRNewswire/ -- Universal Health Services, Inc. (NYSE: UHS) announced today that its reported net income attributable to UHS was $358.4 million, or $5.98 per diluted share, during the second quarter of 2026, as compared to $353.2 million, or $5.43 per diluted share, during the second quarter of 2025.  Net revenues increased by 8.3% to $4.638 billion during the second quarter of 2026, as compared to $4.284 billion during the second quarter of 2025.

Included in our operating results during the second quarter of 2026, was a favorable net pre-tax impact of approximately $72 million recorded in connection with the following: (i) a favorable net pre-tax impact of $100 million (net of related provider taxes) recorded in connection with the Florida Medicaid managed care directed payment program applicable to the period of October 1, 2024 through September 30, 2025 (pursuant to the Centers for Medicare and Medicaid Services' ("CMS") preprint approval granted in April, 2026 which increased the size of the program and changed the related provider tax structure), and; (ii) an unfavorable pre-tax impact of $28 million resulting from an increase to our reserve for self-insured professional and general liability claims. The impact of these items was not included in our original 2026 operating results forecast, as previously disclosed on February 25, 2026. 

Included in our operating results during the second quarter of 2025, were aggregate net pre-tax incremental reimbursements (net of related provider taxes) of approximately $101 million recorded in connection with the following: (i) approximately $58 million, applicable to the period of July 1, 2024 through June 30, 2025, resulting from the Tennessee Medicaid directed payment program, and; (ii) approximately $43 million of other combined additional net reimbursements recorded in connection with supplemental Medicaid programs in various states (approximately $21 million of which consisted of prior year retroactive reimbursements). Also included in our results of operations during the second quarter of 2025, was a pre-tax loss of approximately $25 million incurred in connection with a newly constructed, 142-bed acute care hospital located in Washington, D.C., that was completed and opened in April, 2025.

As reflected on the Schedule of Non-GAAP Supplemental Information ("Supplemental Schedule"), there were no adjustments applicable to our operating results during the second quarter of 2026. As reflected on the Supplemental Schedule, included in our reported results during the second quarter of 2025 were: (i) an unrealized after-tax gain of $4.5 million, or $.07 per diluted share ($5.9 million pre-tax), resulting from an increase in the market value of certain equity securities that were sold during the fourth quarter of 2025 (included in "Other (income) expense, net"), and; (ii) a favorable net after-tax impact of $0.8 million, or $.01 per diluted share, resulting from the net tax benefit recorded in connection with "ASU 2016-09", Compensation – Stock Compensation: Improvements to Employee Share-Based Payment Accounting, net of the impact of executive compensation limitations pursuant to IRC section 162(m). After giving effect to these items, our adjusted net income during the second quarter of 2025 was $347.9 million, or $5.35 per diluted share.   

As calculated on the attached Supplemental Schedule, our earnings before interest, taxes, depreciation & amortization ("EBITDA net of NCI", NCI is net income attributable to noncontrolling interests), was $680.2 million during the second quarter of 2026, as compared to $651.4 million during the second quarter of 2025. Our adjusted earnings before interest, taxes, depreciation & amortization ("Adjusted EBITDA net of NCI"), which excludes the impact of other (income) expense, net, was $677.9 million during the second quarter of 2026, as compared to $642.9 million during the second quarter of 2025.

Consolidated Results of Operations, As Reported and As Adjusted  – Six-month periods ended June 30, 2026 and 2025:

Reported net income attributable to UHS was $707.1 million, or $11.63 per diluted share, during the first six months of 2026, as compared to $669.9 million, or $10.23 per diluted share, during the comparable period of 2025.  Net revenues increased by 8.9% to $9.133 billion during the first six months of 2026, as compared to $8.384 billion during the comparable period of 2025.

As reflected on the Supplemental Schedule, our adjusted net income during the first six months of 2026 was $705.0 million, or $11.60 per diluted share, as compared to $667.4 million, or $10.19 per diluted share, during the comparable period of 2025. 

As reflected on the Supplemental Schedule, included in our reported results during the first six months of 2026 was a favorable net after-tax impact of $2.2 million, or $.03 per diluted share, resulting from the net tax benefit recorded in connection with ASU 2016-09. Included in our reported results during the first six months of 2025 were: (i) an unrealized after-tax gain of $1.2 million, or $.02 per diluted share ($1.6 million pre-tax), resulting from an increase in the market value of certain equity securities that were sold during the fourth quarter of 2025, and; (ii) a favorable net after-tax impact of $1.3 million, or $.02 per diluted share, resulting from the net tax benefit recorded in connection with ASU 2016-09.    

As calculated on the attached Supplemental Schedule, our EBITDA net of NCI, was $1.332 billion during the first six months of 2026, as compared to $1.255 billion during the comparable period of 2025. Our Adjusted EBITDA net of NCI", which excludes the impact of other (income) expense, net, was $1.326 billion during the first six months of 2026, as compared to $1.241 billion during the comparable period of 2025.

Acute Care Services – Three and six-month periods ended June 30, 2026 and 2025:

During the second quarter of 2026, at our acute care hospitals owned during both periods ("same facility basis"), adjusted admissions (adjusted for outpatient activity) increased by 2.9% and adjusted patient days increased by 3.1%, as compared to the second quarter of 2025. At these facilities, during the second quarter of 2026, net revenue per adjusted admission increased by 3.0% while net revenue per adjusted patient day increased by 2.8%, as compared to the second quarter of 2025. Net revenues generated from our acute care services, on a same facility basis, increased by 8.2% during the second quarter of 2026, as compared to the second quarter of 2025.

During the first six months of 2026, on a same facility basis, adjusted admissions increased by 1.4% and adjusted patient days increased by 1.9%, as compared to the comparable period of 2025. At these facilities, during the first six months of 2026, net revenue per adjusted admission increased by 4.6% while net revenue per adjusted patient day increased by 4.2%, as compared to the comparable period of 2025. Net revenues generated from our acute care services, on a same facility basis, increased by 8.2% during the first six months of 2026, as compared to the comparable period of 2025.

Behavioral Health Care Services – Three and six-month periods ended June 30, 2026 and 2025:

During the second quarter of 2026, at our behavioral health care facilities on a same facility basis, adjusted admissions increased by 0.5% while adjusted patient days increased by 1.4%, as compared to the second quarter of 2025. At these facilities, during the second quarter of 2026, net revenue per adjusted admission increased by 7.1% and net revenue per adjusted patient day increased by 6.1%, as compared to the second quarter of 2025. Net revenues generated from our behavioral health care services, on a same facility basis, increased by 7.4% during the second quarter of 2026, as compared to the second quarter of 2025.

During the first six months of 2026, at our behavioral health care facilities on a same facility basis, adjusted admissions increased by 0.9% while adjusted patient days increased by 1.5%, as compared to the comparable period of 2025. At these facilities, during the first six months of 2026, net revenue per adjusted admission increased by 6.6% and net revenue per adjusted patient day increased by 6.0%, as compared to the comparable period of 2025. Net revenues generated from our behavioral health care services, on a same facility basis, increased by 7.4% during the first six months of 2026, as compared to the comparable period of 2025.

Net Cash Provided by Operating Activities and Credit Agreement Amendment/Capital Resources:

Net Cash Provided by Operating Activities:

During the six-month period ended June 30, 2026, our net cash provided by operating activities was $845 million as compared to $909 million during the first six months of 2025. The $64 million net decrease in our net cash provided by operating activities consisted of: (i) an unfavorable change of $207 million in other working capital accounts due primarily to the timing of accounts payable disbursements; (ii) a favorable change of $86 million in accrued and deferred income taxes; (iii) a favorable change of $53 million resulting from an increase in net income plus/minus depreciation and amortization expense, stock-based compensation expense and gain on sales of assets and businesses; (iv) a favorable change of $47 million in accrued insurance expense, net of payments made in settlement of self-insured claims; (v) an unfavorable change of $45 million in accounts receivable, and; (vi) other combined net favorable changes of $2 million.  

Credit Agreement Amendment/Capital Resources:

As of June 30, 2026, pursuant to the terms of our $1.5 billion revolving credit facility, we had $1.272 billion of available borrowing capacity, net of outstanding borrowings ($225 million) and letters of credit.  Also as of June 30, 2026, as part of our credit agreement, we had $400 million of borrowing capacity pursuant to a delayed draw term loan A which is expected to be drawn upon the closing of our acquisition of Talkspace, Inc. (expected to be finalized during the third quarter of 2026). The maturity date for our $1.5 billion revolving credit facility and our $400 million delayed draw term loan A is September 26, 2029.

In July, 2026, and as previously disclosed on Form 8-K as filed with the Securities and Exchange Commission on July 21, 2026, we amended our credit agreement to add a new $700 million delayed draw term loan A which, if we elect to utilize, would be funded on or prior to September 30, 2026, with a maturity date 364 days after the initial funding. Potential future borrowings pursuant to this facility would be used for general corporate purposes, including, should we elect, repayment at maturity of our $700 million, 1.650% Senior Secured Notes due on September 1, 2026.  

Stock Repurchase Program:

In connection with our stock repurchase program, shares of our Class B Common Stock may be repurchased, from time to time as conditions allow, on the open market or in negotiated private transactions. 

Pursuant to this program, during the second quarter of 2026, we have repurchased 1.890 million shares at an aggregate cost of approximately $320.3 million (average price of approximately $169 per share). During the first six months of 2026, we have repurchased 2.565 million shares at an aggregate cost of approximately $447.5 million (average price of approximately $174 per share).

As of June 30, 2026, we had an aggregate available repurchase authorization of approximately $977.6 million pursuant to our stock repurchase program.

Revised 2026 Operating Results Forecast:

Based upon the operating trends, changes in reimbursements related to certain Medicaid supplemental payment programs and financial results experienced during the first six months of 2026, as indicated on the Revised Forecast table below, we are revising our operating results forecast range for consolidated net revenues; adjusted earnings before interest, taxes, depreciation & amortization, and the impacts of other income/expense and net income attributable to noncontrolling interests ("Adjusted EBITDA, net of NCI"), and adjusted net income attributable to UHS per diluted share ("Adjusted EPS-diluted") for the year ended December 31, 2026.

As discussed above, our operating results for the three and six-month periods ended June 30, 2026 included a favorable net pre-tax impact of $100 million (net of related provider taxes) recorded in connection with the Florida Medicaid managed care directed payment program applicable to the period of October 1, 2024 through September 30, 2025. Since CMS has not yet approved the increased size of this program for periods beyond September 30, 2025, no incremental benefit related to this program has been included in our revised 2026 operating results forecast beyond amounts included in our operating results during the three and six-month periods ended June 30, 2026.  

Our revised 2026 forecasted range of adjusted net income attributable to UHS, and adjusted EPS-diluted, exclude certain items as described below because we do not believe we can forecast those items with sufficient accuracy. Adjusted EBITDA net of NCI, is a non-GAAP financial measure and should not be considered a measure of financial performance under GAAP. We believe Adjusted EBITDA net of NCI is helpful to our investors as a measure of our operating performance. Please see the Supplemental Non-GAAP Disclosures – Revised 2026 Operating Results Forecast schedule as included herein for additional information and a reconciliation of our revised 2026 forecasted range of adjusted net income attributable to UHS to our revised 2026 forecasted range of Adjusted EBITDA net of NCI. 

The tables below include our full year revised 2026 operating results forecast, as well as our original 2026 operating results forecast which was previously disclosed on February 25, 2026.

	Revised Forecast			Original Forecast
	For the Year Ended			For the Year Ended
	December 31, 2026			December 31, 2026
	Low	High		Low	High
Net revenues	$18.501 billion	$18.762 billion		$18.417 billion	$18.789 billion
Adjusted EBITDA, net of NCI	$2.610 billion	$2.717 billion		$2.641 billion	$2.789 billion
Adjusted EPS – diluted	$22.28 per share	$23.65 per share		$22.64 per share	$24.52 per share

• The midpoint of our revised 2026 forecasted net revenues represents an increase of 0.2% as compared to the midpoint of our original 2026 forecasted net revenues.
• The midpoint of our revised 2026 forecasted Adjusted EBITDA net of NCI, represents a decrease of 1.9% as compared to the midpoint of our original 2026 forecasted Adjusted EBITDA net of NCI.
• The midpoint of our revised 2026 forecasted Adjusted EPS-diluted represents a decrease of 2.6% as compared to our original 2026 Adjusted EPS-diluted.
• As previously disclosed, during the full year of 2026, we expect to spend approximately $950 million to $1.1 billion on capital expenditures which includes expenditures for capital equipment, construction of new facilities, and renovations and expansions to our existing hospitals.   

Because we do not believe we can forecast certain items with sufficient accuracy, our revised 2026 forecasted range of Adjusted EBITDA net of NCI, net income attributable to UHS, and Adjusted EPS-diluted, exclude the impact of future items, if applicable, that are nonrecurring or non-operational in nature including items such as changes in the value of certain non-marketable securities (in connection with our minority ownership in a healthcare generative artificial intelligence company), the impact of ASU 2016-09, and other potential material items that are nonrecurring or non-operational in nature including, but not limited to, impairments of goodwill, long-lived and intangible assets, reserves for various matters including settlements, legal judgments and lawsuits, costs related to extinguishment of debt, gains/losses on sales of assets and businesses, potential impacts of non-ordinary acquisitions, divestitures, joint ventures or other strategic transactions, other amounts that may be reflected in the current or prior year financial statements that relate to prior periods, and the impact of share repurchases that differ from our forecasted assumptions. It is also subject to certain conditions including those as set forth below in General Information, Forward-Looking Statements and Risk Factors and Non-GAAP Financial Measures.

Conference call information:         

We will hold a conference call for investors and analysts at 9:00 a.m. eastern time on July 28, 2026. A live webcast of the call will be available on our website at www.uhs.com. To participate via telephone, please register in advance at this link. Upon registration, all telephone participants will receive a confirmation email detailing how to join the conference call, including the dial-in number along with a unique passcode and registrant ID that can be used to access the call. Supplemental financial disclosures related to our financial results are available on our website.

General Information, Forward-Looking Statements and Risk Factors and Non-GAAP Financial Measures:

Headquartered in King of Prussia, PA, UHS is one of the nation's largest and most respected providers of hospital and healthcare services, with annual revenues of approximately $17.4 billion during 2025. Through its subsidiaries, UHS employs more than 102,000 employees and, as of June 30, 2026, operated 30 inpatient acute care facilities, 346 inpatient behavioral health facilities and approximately 170 outpatient and other facilities, an insurance offering, a physician network and various related services located in 40 states, Washington, D.C., Puerto Rico and the United Kingdom. Since our founding in 1979, UHS has grown steadily into a premier Fortune 500® corporation perennially recognized by multiple esteemed national rating entities.  Our strategy includes investing in talented staff, facilities, technology and innovation across broad care continuums to deliver favorable patient outcomes and contribute to the overall health and wellbeing of the patients we are privileged to serve. A wholly-owned subsidiary of UHS also acts as the advisor to Universal Health Realty Income Trust, a real estate investment trust (NYSE: UHT). For additional information, please visit www.uhs.com.

This press release contains forward-looking statements based on current management expectations.  Numerous factors, including those disclosed herein, those related to healthcare industry trends and those detailed in our filings with the Securities and Exchange Commission (as set forth in Item 2-Forward Looking Statements and Risk Factors in our Form 10-Q for the quarter ended March 31, 2026 and in Item 1A-Risk Factors, and Item 7-Forward-Looking Statements and Risk Factors, in our Form 10-K for the year ended December 31, 2025), may cause the results to differ materially from those anticipated in the forward-looking statements.  These statements are subject to risks and uncertainties and therefore actual results may differ materially.  Readers should not place undue reliance on such forward-looking statements which reflect management's view only as of the date hereof.  We undertake no obligation to revise or update any forward-looking statements, or to make any other forward-looking statements, whether as a result of new information, future events or otherwise. 

Many of the factors that could affect our future results are beyond our control or ability to predict, including, but not limited to:

• A significant portion of our revenues are derived from federal and state government programs including the Medicare and Medicaid programs. Payments from these programs are subject to statutory and regulatory changes, administrative rulings, interpretations and determinations, requirements for utilization review, and federal and state funding restrictions.  Changes to these programs could materially affect program payments which could materially impact our results of operations. In addition, we receive substantial reimbursement from multiple states in connection with various supplemental Medicaid payment programs. Failure to renew these programs beyond their scheduled termination dates, failure of the public hospitals to provide the necessary Inter-Governmental Transfers for the states' share of the Medicaid disproportionate share hospital programs, and the failure of our hospitals that currently receive supplemental Medicaid revenues to qualify for future funds under these programs could cause our actual results of operations for the year ended December 31, 2026 to differ materially from our revised 2026 operating results forecast.
• Legislation adopted on July 4, 2025, attaches work and community service requirements to eligibility for Medicaid benefits that will have the effect of limiting Medicaid enrollment and expenditures. That legislation also places limits on provider fees used to increase federal Medicaid funding to states and eliminated certain exchange premium tax credits beyond 2025. As these provisions become effective over the next several years, they may be expected to reduce our revenues and likely increase the level of uncompensated care provided by our facilities.
• The increase in interest rates during the past few years has increased our interest expense significantly thereby reducing our free cash flow. As such, although interest rates have moderated more recently, the effects of increased borrowing rates have adversely impacted our results of operations, financial condition and cash flows. We cannot predict future changes to interest rates, however, significant increases in our borrowing rates could have a material unfavorable impact on our future results of operations and our ability to access the capital markets on favorable terms.
• Changes in laws or policies governing the terms of foreign trade, and in particular, increased trade restrictions, tariffs or taxes on imports from where our products or materials are made (either directly or through our suppliers) could have an impact on our competitive position, business operations and financial results.
• The outcome of known and unknown litigation, liabilities and other claims asserted against us and/or our subsidiaries, including, but not limited to, the matters related to Cumberland Hospital for Children and Adolescents, located in New Kent, Virginia, which was previously disclosed in various filings including, most recently, our Form 10-Q for the quarterly period ended March 31, 2026. Although we can make no assurances regarding the ultimate outcome of these matters, or what damages will ultimately be awarded, the final resolution of these matters could have a material adverse effect on the Company.
• The ability to successfully complete, integrate and realize the benefit and synergies from our proposed acquisition of Talkspace, Inc. 

We believe that adjusted net income attributable to UHS, adjusted net income attributable to UHS per diluted share, EBITDA net of NCI and Adjusted EBITDA net of NCI, which are non-GAAP financial measures ("GAAP" is Generally Accepted Accounting Principles in the United States of America), are helpful to our investors as measures of our operating performance. In addition, we believe that, when applicable, comparing and discussing our financial results based on these measures, as calculated, is helpful to our investors since it neutralizes the effect of material items impacting our net income attributable to UHS, such as, changes in the value of certain non-marketable securities (in connection with our minority ownership in a healthcare generative artificial intelligence company), the impact of ASU 2016-09, and other potential material items that are nonrecurring or non-operational in nature including, but not limited to, impairments of goodwill, long-lived and intangible assets, reserves for various matters including settlements, legal judgments and lawsuits, costs related to extinguishment of debt, gains/losses on sales of assets and businesses, potential impacts of non-ordinary acquisitions, divestitures, joint ventures or other strategic transactions, and other amounts that may be reflected in the current or prior year financial statements that relate to prior periods. To obtain a complete understanding of our financial performance these measures should be examined in connection with net income attributable to UHS, as determined in accordance with GAAP, and as presented in the condensed consolidated financial statements and notes thereto in this report or in our filings with the Securities and Exchange Commission including our Report on Form 10-Q for the quarter ended March 31, 2026 and our Report on Form 10-K for the year ended December 31, 2025. Since the items included or excluded from these measures are significant components in understanding and assessing financial performance under GAAP, these measures should not be considered to be alternatives to net income as a measure of our operating performance or profitability. Since these measures, as presented, are not determined in accordance with GAAP and are thus susceptible to varying calculations, they may not be comparable to other similarly titled measures of other companies. Investors are encouraged to use GAAP measures when evaluating our financial performance.

(more)

Universal Health Services, Inc.
Consolidated Statements of Income
(in thousands, except per share amounts)
(unaudited)
	Three months				Six months
	ended June 30,				ended June 30,
	2026		2025		2026		2025
Net revenues	$4,638,012		$4,283,816		$9,133,194		$8,383,536
Operating charges:
Salaries, wages and benefits	2,140,309		2,014,951		4,228,538		3,966,055
Other operating expenses	1,351,958		1,162,566		2,635,886		2,268,318
Supplies expense	423,257		418,785		849,800		821,666
Depreciation and amortization	167,338		152,004		322,764		300,349
Lease and rental expense	38,475		35,240		76,671		72,053
	4,121,337		3,783,546		8,113,659		7,428,441
Income from operations	516,675		500,270		1,019,535		955,095
Interest expense, net	39,912		35,364		77,045		75,420
Other (income) expense, net	(2,363)		(8,479)		(5,752)		(14,138)
Income before income taxes	479,126		473,385		948,242		893,813
Provision for income taxes	114,536		110,773		224,974		209,573
Net income	364,590		362,612		723,268		684,240
Less:  Net income (loss) attributable to
noncontrolling interests ("NCI")	6,143		9,394		16,139		14,342
Net income attributable to UHS	$358,447		$353,218		$707,129		$669,898
Basic earnings per share attributable to UHS (a)	$6.01		$5.49		$11.71		$10.36
Diluted earnings per share attributable to UHS (a)	$5.98		$5.43		$11.63		$10.23

Universal Health Services, Inc.
Footnotes to Consolidated Statements of Income
(in thousands, except per share amounts)
(unaudited)
	Three months				Six months
(a) Earnings per share calculation:	ended June 30,				ended June 30,
	2026		2025		2026		2025
Basic and diluted:
Net income attributable to UHS - basic and diluted	$358,447		$353,218		$707,129		$669,898
Weighted average number of common shares - basic	59,657		64,356		60,364		64,663
Basic earnings per share attributable to UHS:	$6.01		$5.49		$11.71		$10.36
Weighted average number of common shares	59,657		64,356		60,364		64,663
Add: Other share equivalents	253		635		425		851
Weighted average number of common shares and equiv. - diluted	59,910		64,991		60,789		65,514
Diluted earnings per share attributable to UHS:	$5.98		$5.43		$11.63		$10.23

Universal Health Services, Inc.
Schedule of Non-GAAP Supplemental Information ("Supplemental Schedule")
For the Three Months ended June 30, 2026 and 2025
(in thousands, except per share amounts)
(unaudited)
Calculation of Earnings/Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization ("EBITDA/Adjusted EBITDA net of NCI")
	Three months ended		% Net		Three months ended		% Net
	June 30, 2026		revenues		June 30, 2025		revenues
Net income attributable to UHS	$358,447				$353,218
Depreciation and amortization	167,338				152,004
Interest expense, net	39,912				35,364
Provision for income taxes	114,536				110,773
EBITDA net of NCI	$680,233		14.7 %		$651,359		15.2 %
Other (income) expense, net	(2,363)				(8,479)
Adjusted EBITDA net of NCI	$677,870		14.6 %		$642,880		15.0 %
Net revenues	$4,638,012				$4,283,816
Calculation of Adjusted Net Income Attributable to UHS
	Three months ended				Three months ended
	June 30, 2026				June 30, 2025
			Per				Per
	Amount		Diluted Share		Amount		Diluted Share
Net income attributable to UHS	$358,447		$5.98		$353,218		$5.43
Plus/minus after-tax adjustments:
Unrealized gain on equity securities	-		-		(4,534)		(0.07)
Impact of ASU 2016-09, net	-		-		(796)		(0.01)
Subtotal adjustments	-		-		(5,330)		(0.08)
Adjusted net income	$358,447		$5.98		$347,888		$5.35

Universal Health Services, Inc.
Schedule of Non-GAAP Supplemental Information ("Supplemental Schedule")
For the Six Months ended June 30, 2026 and 2025
(in thousands, except per share amounts)
(unaudited)
Calculation of Earnings/Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization ("EBITDA/Adjusted EBITDA net of NCI")
	Six months ended		% Net		Six months ended		% Net
	June 30, 2026		revenues		June 30, 2025		revenues
Net income attributable to UHS	$707,129				$669,898
Depreciation and amortization	322,764				300,349
Interest expense, net	77,045				75,420
Provision for income taxes	224,974				209,573
EBITDA net of NCI	$1,331,912		14.6 %		$1,255,240		15.0 %
Other (income) expense, net	(5,752)				(14,138)
Adjusted EBITDA net of NCI	$1,326,160		14.5 %		$1,241,102		14.8 %
Net revenues	$9,133,194				$8,383,536
Calculation of Adjusted Net Income Attributable to UHS
	Six months ended				Six months ended
	June 30, 2026				June 30, 2025
			Per				Per
	Amount		Diluted Share		Amount		Diluted Share
Net income attributable to UHS	$707,129		$11.63		$669,898		$10.23
Plus/minus after-tax adjustments:
Unrealized gain on equity securities	-		-		(1,249)		(0.02)
Impact of ASU 2016-09, net	(2,164)		(0.03)		(1,257)		(0.02)
Subtotal adjustments	(2,164)		(0.03)		(2,506)		(0.04)
Adjusted net income attributable to UHS	$704,965		$11.60		$667,392		$10.19

Universal Health Services, Inc.
Condensed Consolidated Balance Sheets
(in thousands)
(unaudited)
			June 30,			December 31,
			2026			2025
Assets
Current assets:
Cash and cash equivalents		$	138,800		$	137,797
Accounts receivable, net			2,801,108			2,602,434
Supplies			234,094			232,110
Other current assets			505,323			435,574
Total current assets			3,679,325			3,407,915
Property and equipment			13,830,293			13,489,811
Less: accumulated depreciation			(6,687,668)			(6,481,714)
			7,142,625			7,008,097
Other assets:
Goodwill			3,981,713			3,990,213
Deferred income taxes			63,719			70,517
Right of use assets-operating leases			365,758			374,239
Deferred charges			9,908			9,272
Other			692,438			667,340
Total Assets		$	15,935,486		$	15,527,593
Liabilities and Stockholders' Equity
Current liabilities:
Current maturities of long-term debt		$	771,910		$	748,158
Accounts payable and other liabilities			2,451,182			2,416,276
Operating lease liabilities			70,861			73,237
Federal and state taxes			3,703			1,930
Total current liabilities			3,297,656			3,239,601
Other noncurrent liabilities			559,955			527,827
Operating lease liabilities noncurrent			339,467			340,715
Deferred income taxes			3,233			5,649
Long-term debt			4,079,937			4,004,393
Redeemable noncontrolling interest			73,603			70,620
UHS common stockholders' equity			7,513,812			7,275,792
Noncontrolling interest			67,823			62,996
Total equity			7,581,635			7,338,788
Total Liabilities and Stockholders' Equity		$	15,935,486		$	15,527,593

Universal Health Services, Inc.
Consolidated Statements of Cash Flows
(in thousands)
(unaudited)
	Six months
	ended June 30,
	2026		2025
Cash Flows from Operating Activities:
Net income	$723,268		$684,240
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation & amortization	322,764		300,349
Stock-based compensation expense	45,413		45,707
(Gain) loss on sales of assets and businesses	(5,578)		2,833
Changes in assets & liabilities, net of effects from
acquisitions and dispositions:
Accounts receivable	(137,907)		(92,636)
Accrued interest	(29)		(4,532)
Accrued and deferred income taxes	29,759		(55,913)
Other working capital accounts	(182,146)		25,324
Other assets and deferred charges	(18,466)		(22,404)
Other, net	10,753		16,143
Accrued insurance expense, net of commercial premiums paid	157,435		94,696
Payments made in settlement of self-insurance claims, net of commercial insurance reimbursements	(100,335)		(84,781)
Net cash provided by operating activities	844,931		909,026
Cash Flows from Investing Activities:
Property and equipment additions	(444,790)		(505,040)
Proceeds received from sales of assets and businesses	15,732		2,980
Acquisition of businesses and property	(4,857)		(8,314)
Inflows (outflows) from foreign exchange contracts that hedge our net U.K. investment	12,011		(66,402)
Costs incurred for purchase and development of enterprise resource planning application	(9,964)		0
Decrease (increase) in capital reserves of commercial insurance subsidiary	56		(462)
Net cash used in investing activities	(431,812)		(577,238)
Cash Flows from Financing Activities:
Repayments of long-term debt	(201,745)		(18,548)
Additional borrowings	300,040		94,601
Financing costs	(1,410)		0
Repurchase of common shares	(484,601)		(378,542)
Dividends paid	(24,760)		(26,434)
Issuance of common stock	8,659		8,137
Profit distributions to noncontrolling interests	(11,889)		(9,621)
Purchase of ownership interests by minority members, net	4,324		11,336
Net cash used in financing activities	(411,382)		(319,071)
Effect of exchange rate changes on cash and cash equivalents	(676)		3,931
Increase in cash, cash equivalents and restricted cash	1,061		16,648
Cash, cash equivalents and restricted cash, beginning of period	271,322		224,752
Cash, cash equivalents and restricted cash, end of period	$272,383		$241,400
Supplemental Disclosures of Cash Flow Information:
Interest paid	$74,460		$77,448
Income taxes paid, net of refunds	$197,419		$251,786
Noncash purchases of property and equipment	$80,646		$148,887

Universal Health Services, Inc.
Supplemental Statistical Information
(unaudited)
							% Change		% Change
							3 Months ended		6 Months ended
Same Facility:							6/30/2026		6/30/2026
Acute Care Hospitals (1)
Revenues							8.2 %		8.2 %
Adjusted Admissions							2.9 %		1.4 %
Adjusted Patient Days							3.1 %		1.9 %
Revenue Per Adjusted Admission							3.0 %		4.6 %
Revenue Per Adjusted Patient Day							2.8 %		4.2 %
Behavioral Health Hospitals (1)
Revenues							7.4 %		7.4 %
Adjusted Admissions							0.5 %		0.9 %
Adjusted Patient Days							1.4 %		1.5 %
Revenue Per Adjusted Admission							7.1 %		6.6 %
Revenue Per Adjusted Patient Day							6.1 %		6.0 %
UHS Consolidated			Second Quarter Ended				Six Months Ended
			6/30/2026		6/30/2025		6/30/2026		6/30/2025
Revenues			$4,638,012		$4,283,816		$9,133,194		$8,383,536
EBITDA net of NCI			$680,233		$651,359		$1,331,912		$1,255,240
EBITDA Margin net of NCI			14.7 %		15.2 %		14.6 %		15.0 %
Adjusted EBITDA net of NCI			$677,870		$642,880		$1,326,160		$1,241,102
Adjusted EBITDA Margin net of NCI			14.6 %		15.0 %		14.5 %		14.8 %
Cash Flow From Operations			$443,303		$548,978		$844,931		$909,026
Capital Expenditures			$227,633		$266,014		$444,790		$505,040
Days Sales Outstanding							56		50
Debt							$4,851,847		$4,582,897
UHS' Shareholders Equity							$7,513,812		$7,030,048
Debt / Total Capitalization							39.2 %		39.5 %
Debt / EBITDA net of NCI (2)							1.73		1.91
Debt / Adjusted EBITDA net of NCI (2)							1.81		1.92
Debt / Cash From Operations (2)							2.70		2.41

(1) Prior year amounts related to certain facilities previously included in our Behavioral Health Care Services' results have been reclassified into our Acute Care Hospital Services' results as of January 1, 2025 to conform with current year presentation.
(2) Latest 4 quarters.

Universal Health Services, Inc.
Acute Care Hospital Services
For the Three and Six Months ended
June 30, 2026 and 2025
(in thousands)
(unaudited)
Same Facility Basis - Acute Care Hospital Services
		Three months ended				Three months ended				Six months ended				Six months ended
		June 30, 2026				June 30, 2025				June 30, 2026				June 30, 2025
		Amount		% of Net Revenues		Amount		% of Net Revenues		Amount		% of Net Revenues		Amount		% of Net Revenues
Net revenues		$2,507,889		100.0 %		$2,318,826		100.0 %		$4,977,934		100.0 %		$4,600,657		100.0 %
Operating charges:
Salaries, wages and benefits		991,733		39.5 %		938,594		40.5 %		1,944,568		39.1 %		1,852,423		40.3 %
Other operating expenses		779,029		31.1 %		672,172		29.0 %		1,507,181		30.3 %		1,310,771		28.5 %
Supplies expense		362,131		14.4 %		361,093		15.6 %		727,628		14.6 %		709,917		15.4 %
Depreciation and amortization		103,112		4.1 %		96,458		4.2 %		198,793		4.0 %		191,359		4.2 %
Lease and rental expense		25,959		1.0 %		24,240		1.0 %		52,697		1.1 %		49,584		1.1 %
Subtotal-operating expenses		2,261,964		90.2 %		2,092,557		90.2 %		4,430,867		89.0 %		4,114,054		89.4 %
Income from operations		245,925		9.8 %		226,269		9.8 %		547,067		11.0 %		486,603		10.6 %
Interest expense, net		1,301		0.1 %		(1,613)		(0.1) %		2,287		0.0 %		649		0.0 %
Other (income) expense, net		(1,189)		(0.0) %		(1,011)		(0.0) %		(3,744)		(0.1) %		(9,583)		(0.2) %
Income before income taxes		$245,813		9.8 %		$228,893		9.9 %		$548,524		11.0 %		$495,537		10.8 %
All Acute Care Hospital Services
		Three months ended				Three months ended				Six months ended				Six months ended
		June 30, 2026				June 30, 2025				June 30, 2026				June 30, 2025
		Amount		% of Net Revenues		Amount		% of Net Revenues		Amount		% of Net Revenues		Amount		% of Net Revenues
Net revenues		$2,609,999		100.0 %		$2,403,837		100.0 %		$5,220,135		100.0 %		$4,761,651		100.0 %
Operating charges:
Salaries, wages and benefits		999,864		38.3 %		938,708		39.1 %		1,972,710		37.8 %		1,854,232		38.9 %
Other operating expenses		885,882		33.9 %		757,549		31.5 %		1,745,729		33.4 %		1,474,211		31.0 %
Supplies expense		363,494		13.9 %		361,097		15.0 %		731,432		14.0 %		709,789		14.9 %
Depreciation and amortization		106,623		4.1 %		96,459		4.0 %		202,941		3.9 %		191,362		4.0 %
Lease and rental expense		26,170		1.0 %		24,240		1.0 %		52,742		1.0 %		49,584		1.0 %
Subtotal-operating expenses		2,382,033		91.3 %		2,178,053		90.6 %		4,705,554		90.1 %		4,279,178		89.9 %
Income from operations		227,966		8.7 %		225,784		9.4 %		514,581		9.9 %		482,473		10.1 %
Interest expense, net		1,301		0.0 %		(1,613)		(0.1) %		2,287		0.0 %		649		0.0 %
Other (income) expense, net		(985)		(0.0) %		(916)		(0.0) %		(3,117)		(0.1) %		(9,183)		(0.2) %
Income before income taxes		$227,650		8.7 %		$228,313		9.5 %		$515,411		9.9 %		$491,007		10.3 %

We believe that providing our results on a "Same Facility" basis (which is a non-GAAP measure), which includes the operating results for facilities and businesses operated in both the current year and prior year periods, is helpful to our investors as a measure of our operating performance. Our Same Facility results also neutralize (if applicable), the effect of material items that are nonrecurring or non-operational in nature including items such as, but not limited to, reserves for various matters, settlements, legal judgments and lawsuits, cost related to extinguishment of debt, gains/losses on sales of assets and businesses, impairments of goodwill, long-lived and intangible assets and other amounts that may be reflected in the current or prior year financial statements that relate to prior periods. Our Same Facility basis results exclude from net revenues and other operating expenses, provider tax assessments incurred in each period. However, these provider tax assessments are included in net revenues and other operating expenses as reflected in the table under All Acute Care Hospital Services. The provider tax assessments had no impact on the income before income taxes as reflected on the above tables since the amounts offset between net revenues and other operating expenses. To obtain a complete understanding of our financial performance, the Same Facility results should be examined in connection with our net income as determined in accordance with GAAP and as presented herein and the condensed consolidated financial statements and notes thereto as contained in our Form 10-K for the year ended December 31, 2025 and our Form 10-Q for the quarter ended March 31, 2026.

Prior year amounts related to certain facilities previously included in our Behavioral Health Care Services' results have been reclassified into our Acute Care Hospital Services' results as of January 1, 2025 to conform with current year presentation.

The All Acute Care Hospital Services table summarizes the results of operations for all our acute care operations during the periods presented. These amounts include: (i) our acute care results on a same facility basis, as indicated above; (ii) the impact of provider tax assessments which increased net revenues and other operating expenses but had no impact on income before income taxes, and; (iii) certain other amounts including the results of facilities acquired or opened during the last twelve months.

Universal Health Services, Inc.
Behavioral Health Care Services
For the Three and Six Months ended
June 30, 2026 and 2025
(in thousands)
(unaudited)
Same Facility Basis - Behavioral Health Care Services
		Three months ended				Three months ended				Six months ended				Six months ended
		June 30, 2026				June 30, 2025				June 30, 2026				June 30, 2025
		Amount		% of Net Revenues		Amount		% of Net Revenues		Amount		% of Net Revenues		Amount		% of Net Revenues
Net revenues		$1,929,171		100.0 %		$1,796,295		100.0 %		$3,747,847		100.0 %		$3,490,455		100.0 %
Operating charges:
Salaries, wages and benefits		1,019,296		52.8 %		959,030		53.4 %		2,012,334		53.7 %		1,878,820		53.8 %
Other operating expenses		355,579		18.4 %		325,595		18.1 %		690,002		18.4 %		645,195		18.5 %
Supplies expense		57,889		3.0 %		56,957		3.2 %		116,345		3.1 %		111,952		3.2 %
Depreciation and amortization		56,764		2.9 %		51,873		2.9 %		111,920		3.0 %		102,752		2.9 %
Lease and rental expense		12,054		0.6 %		10,412		0.6 %		23,359		0.6 %		21,290		0.6 %
Subtotal-operating expenses		1,501,582		77.8 %		1,403,867		78.2 %		2,953,960		78.8 %		2,760,009		79.1 %
Income from operations		427,589		22.2 %		392,428		21.8 %		793,887		21.2 %		730,446		20.9 %
Interest expense, net		1,168		0.1 %		1,104		0.1 %		2,360		0.1 %		2,179		0.1 %
Other (income) expense, net		(983)		(0.1) %		(837)		(0.0) %		(1,866)		(0.0) %		(1,662)		(0.0) %
Income before income taxes		$427,404		22.2 %		$392,161		21.8 %		$793,393		21.2 %		$729,929		20.9 %
All Behavioral Health Care Services
		Three months ended				Three months ended				Six months ended				Six months ended
		June 30, 2026				June 30, 2025				June 30, 2026				June 30, 2025
		Amount		% of Net Revenues		Amount		% of Net Revenues		Amount		% of Net Revenues		Amount		% of Net Revenues
Net revenues		$2,025,065		100.0 %		$1,877,273		100.0 %		$3,907,217		100.0 %		$3,616,337		100.0 %
Operating charges:
Salaries, wages and benefits		1,040,604		51.4 %		975,553		52.0 %		2,041,698		52.3 %		1,898,919		52.5 %
Other operating expenses		443,752		21.9 %		383,412		20.4 %		835,650		21.4 %		745,674		20.6 %
Supplies expense		58,475		2.9 %		58,289		3.1 %		117,262		3.0 %		113,437		3.1 %
Depreciation and amortization		58,895		2.9 %		53,170		2.8 %		115,529		3.0 %		104,322		2.9 %
Lease and rental expense		12,212		0.6 %		10,963		0.6 %		23,727		0.6 %		22,327		0.6 %
Subtotal-operating expenses		1,613,938		79.7 %		1,481,387		78.9 %		3,133,866		80.2 %		2,884,679		79.8 %
Income from operations		411,127		20.3 %		395,886		21.1 %		773,351		19.8 %		731,658		20.2 %
Interest expense, net		1,273		0.1 %		1,104		0.1 %		2,545		0.1 %		2,179		0.1 %
Other (income) expense, net		(983)		(0.0) %		(837)		(0.0) %		(1,866)		(0.0) %		(1,662)		(0.0) %
Income before income taxes		$410,837		20.3 %		$395,619		21.1 %		$772,672		19.8 %		$731,141		20.2 %

We believe that providing our results on a "Same Facility" basis (which is a non-GAAP measure), which includes the operating results for facilities and businesses operated in both the current year and prior year periods, is helpful to our investors as a measure of our operating performance. Our Same Facility results also neutralize (if applicable), the effect of material items that are nonrecurring or non-operational in nature including items such as, but not limited to, reserves for various matters, settlements, legal judgments and lawsuits, cost related to extinguishment of debt, gains/losses on sales of assets and businesses, impairments of goodwill, long-lived and intangible assets and other amounts that may be reflected in the current or prior year financial statements that relate to prior periods. Our Same Facility basis results exclude from net revenues and other operating expenses, provider tax assessments incurred in each period. However, these provider tax assessments are included in net revenues and other operating expenses as reflected in the table under All Behavioral Health Care Services. The provider tax assessments had no impact on the income before income taxes as reflected on the above tables since the amounts offset between net revenues and other operating expenses. To obtain a complete understanding of our financial performance, the Same Facility results should be examined in connection with our net income as determined in accordance with GAAP and as presented herein and the condensed consolidated financial statements and notes thereto as contained in our Form 10-K for the year ended December 31, 2025 and our Form 10-Q for the quarter ended March 31, 2026.

Prior year amounts related to certain facilities previously included in our Behavioral Health Care Services' results have been reclassified into our Acute Care Hospital Services' results as of January 1, 2025 to conform with current year presentation.

The All Behavioral Health Care Services table summarizes the results of operations for all our behavioral health care facilities during the periods presented. These amounts include: (i) our behavioral health results on a same facility basis, as indicated above; (ii) the impact of provider tax assessments which increased net revenues and other operating expenses but had no impact on income before income taxes, and; (iii) certain other amounts including the results of facilities acquired or opened during the last twelve months.

Universal Health Services, Inc.
Selected Hospital Statistics
For the Three Months ended
June 30, 2026 and 2025
(unaudited)
AS REPORTED:
		ACUTE						BEHAVIORAL HEALTH
		6/30/26		6/30/25		%  change		6/30/26		6/30/25		%  change
Hospitals owned and leased		30		28		7.1 %		346		338		2.4 %
Average licensed beds		7,434		7,159		3.8 %		24,587		24,254		1.4 %
Average available beds		7,262		6,987		3.9 %		24,487		24,154		1.4 %
Patient days		420,001		412,885		1.7 %		1,631,375		1,620,819		0.7 %
Average daily census		4,615.4		4,537.2		1.7 %		17,927.2		17,811.2		0.7 %
Occupancy-licensed beds		62.1 %		63.4 %		-2.0 %		72.9 %		73.4 %		-0.7 %
Occupancy-available beds		63.6 %		64.9 %		-2.1 %		73.2 %		73.7 %		-0.7 %
Admissions		88,649		87,278		1.6 %		116,857		118,519		-1.4 %
Length of stay		4.7		4.7		0.2 %		14.0		13.7		2.1 %
Inpatient revenue		$15,586,752		$13,886,867		12.2 %		$3,302,515		$2,993,234		10.3 %
Outpatient revenue		11,194,461		9,638,566		16.1 %		326,489		294,989		10.7 %
Total patient revenue		26,781,213		23,525,433		13.8 %		3,629,004		3,288,223		10.4 %
Other revenue		353,881		285,690		23.9 %		96,736		93,542		3.4 %
Gross revenue		27,135,094		23,811,123		14.0 %		3,725,740		3,381,765		10.2 %
Total deductions		24,525,095		21,407,286		14.6 %		1,700,675		1,504,492		13.0 %
Net revenue		$2,609,999		$2,403,837		8.6 %		$2,025,065		$1,877,273		7.9 %
SAME FACILITY:
		ACUTE						BEHAVIORAL HEALTH
		6/30/26		6/30/25		%  change		6/30/26		6/30/25		%  change
Hospitals owned and leased		29		29		0.0 %		334		334		0.0 %
Average licensed beds		7,330		7,159		2.4 %		23,703		23,652		0.2 %
Average available beds		7,158		6,987		2.4 %		23,603		23,552		0.2 %
Patient days		419,710		412,885		1.7 %		1,597,105		1,576,830		1.3 %
Average daily census		4,612.2		4,537.2		1.7 %		17,550.6		17,327.8		1.3 %
Occupancy-licensed beds		62.9 %		63.4 %		-0.7 %		74.0 %		73.3 %		1.1 %
Occupancy-available beds		64.4 %		64.9 %		-0.8 %		74.4 %		73.6 %		1.1 %
Admissions		88,562		87,278		1.5 %		114,911		114,433		0.4 %
Length of stay		4.7		4.7		0.2 %		13.9		13.8		0.9 %

Prior year amounts related to certain facilities previously included in our Behavioral Health Care Services' results have been reclassified into our Acute Care Hospital Services' results as of January 1, 2025 to conform with current year presentation.

Universal Health Services, Inc.
Selected Hospital Statistics
For the Six Months ended
June 30, 2026 and 2025
(unaudited)
AS REPORTED:
		ACUTE						BEHAVIORAL HEALTH
		6/30/26		6/30/25		%  change		6/30/26		6/30/25		%  change
Hospitals owned and leased		30		28		7.1 %		346		338		2.4 %
Average licensed beds		7,300		7,076		3.2 %		24,579		24,170		1.7 %
Average available beds		7,128		6,904		3.2 %		24,479		24,070		1.7 %
Patient days		851,080		841,922		1.1 %		3,250,959		3,209,365		1.3 %
Average daily census		4,702.1		4,651.5		1.1 %		17,961.1		17,731.3		1.3 %
Occupancy-licensed beds		64.4 %		65.7 %		-2.0 %		73.1 %		73.4 %		-0.4 %
Occupancy-available beds		66.0 %		67.4 %		-2.1 %		73.4 %		73.7 %		-0.4 %
Admissions		176,538		175,368		0.7 %		234,348		234,869		-0.2 %
Length of stay		4.8		4.8		0.4 %		13.9		13.7		1.5 %
Inpatient revenue		$31,549,934		$28,205,158		11.9 %		$6,568,817		$5,838,122		12.5 %
Outpatient revenue		22,007,439		18,966,362		16.0 %		638,981		569,023		12.3 %
Total patient revenue		53,557,373		47,171,520		13.5 %		7,207,798		6,407,145		12.5 %
Other revenue		691,138		566,133		22.1 %		192,211		181,921		5.7 %
Gross revenue		54,248,511		47,737,653		13.6 %		7,400,009		6,589,066		12.3 %
Total deductions		49,028,376		42,976,002		14.1 %		3,492,792		2,972,729		17.5 %
Net revenue		$5,220,135		$4,761,651		9.6 %		$3,907,217		$3,616,337		8.0 %
SAME FACILITY:
		ACUTE						BEHAVIORAL HEALTH
		6/30/26		6/30/25		%  change		6/30/26		6/30/25		%  change
Hospitals owned and leased		29		29		0.0 %		334		334		0.0 %
Average licensed beds		7,177		7,076		1.4 %		23,860		23,754		0.4 %
Average available beds		7,005		6,904		1.5 %		23,760		23,654		0.4 %
Patient days		845,542		841,922		0.4 %		3,190,451		3,147,427		1.4 %
Average daily census		4,671.5		4,651.5		0.4 %		17,626.8		17,389.1		1.4 %
Occupancy-licensed beds		65.1 %		65.7 %		-1.0 %		73.9 %		73.2 %		0.9 %
Occupancy-available beds		66.7 %		67.4 %		-1.0 %		74.2 %		73.5 %		0.9 %
Admissions		175,342		175,368		0.0 %		231,179		229,482		0.7 %
Length of stay		4.8		4.8		0.4 %		13.8		13.7		0.6 %

Prior year amounts related to certain facilities previously included in our Behavioral Health Care Services' results have been reclassified into our Acute Care Hospital Services' results as of January 1, 2025 to conform with current year presentation.

Universal Health Services, Inc.
Supplemental Non-GAAP Disclosures
Revised 2026 Operating Results Forecast
(in thousands, except per share amounts)
			Revised Forecast For The Year Ending December 31, 2026
					% Net				% Net
			Low		revenues		High		revenues
Net revenues			$18,501,000				$18,762,000
Adjusted net income attributable to UHS (a)			$1,322,985				$1,404,050
Depreciation and amortization			669,318				669,318
Interest expense			204,898				204,898
Other (income) expense, net			(9,924)				(9,924)
Provision for income taxes			422,378				448,259
Adjusted EBITDA net of NCI (b)			$2,609,655		14.1 %		$2,716,601		14.5 %
Adjusted net income attributable to UHS, per diluted share (a)			$22.28				$23.65
Shares used in computing diluted earnings per share			59,369				59,369

(a) Adjusted net income attributable to UHS/per diluted share exclude the following items because we do not believe we can forecast these items with sufficient accuracy. Such items include: the impact of future items, if applicable, that are nonrecurring or non-operational in nature including items such as pre-tax unrealized gains/losses resulting from changes in the value of certain non-marketable securities, the impact of ASU 2016-09, and other potential material items including, but not limited to, impairments of goodwill, long-lived and intangible assets, reserves for various matters including settlements, legal judgments and lawsuits, costs related to extinguishment of debt, gains/losses on sales of assets and businesses, potential impacts of non-ordinary acquisitions, divestitures, joint ventures or other strategic transactions, other amounts that may be reflected in the current or prior year financial statements that relate to prior periods, and the impact of share repurchases that differ from our forecasted assumptions. Adjusted net income attributable to UHS/per diluted share is also subject to certain conditions including those as set forth in General Information, Forward-Looking Statements and Risk Factors and Non-GAAP Financial Measures.
(b) Adjusted EBITDA net of NCI is a non-GAAP financial measure and should not be considered a measure of financial performance under GAAP.  We believe Adjusted EBITDA net of NCI is helpful to our investors as a measure of operating performance.

 

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SOURCE Universal Health Services, Inc.

FAQ

How did Universal Health Services (UHS) perform financially in Q2 2026?

UHS reported Q2 2026 net income attributable to UHS of $358.4 million, or $5.98 per diluted share. According to UHS, net revenues rose 8.3% year over year to $4.638 billion, supported by higher acute and behavioral same-facility volumes and pricing.

What were Universal Health Services (UHS) first-half 2026 results compared with 2025?

For the first six months of 2026, UHS earned $707.1 million in net income attributable to UHS, or $11.63 per diluted share. According to UHS, net revenues increased 8.9% to $9.133 billion, and Adjusted EBITDA net of NCI rose to $1.326 billion from $1.241 billion.

How did UHS revise its 2026 full-year forecast for revenue, EBITDA and EPS (UHS)?

UHS now forecasts 2026 net revenues between $18.501–$18.762 billion, slightly above the prior midpoint. According to UHS, the revised Adjusted EBITDA net of NCI range is $2.610–$2.717 billion and Adjusted EPS-diluted is $22.28–$23.65, both below earlier guidance midpoints.

What drove the UHS 2026 guidance changes for Adjusted EBITDA and EPS?

The revised outlook reflects first-half trends and Medicaid supplemental payment program changes, including Florida directed payments recognized through September 30, 2025. According to UHS, no additional Florida program benefit beyond amounts already recorded is included in the revised 2026 forecast, pressuring Adjusted EBITDA and EPS midpoints.

How strong was Universal Health Services’ cash flow and liquidity in the first half of 2026?

UHS generated $845 million of net cash from operating activities in the first half of 2026, down $64 million year over year. According to UHS, it had $1.272 billion of available capacity on its $1.5 billion revolver plus delayed draw term loans supporting acquisitions and potential debt repayment.

How much stock did UHS repurchase in Q2 and first-half 2026 and at what prices?

UHS repurchased 1.890 million shares for about $320.3 million in Q2 2026, averaging $169 per share. According to UHS, first-half 2026 repurchases totaled 2.565 million shares for $447.5 million, at an average price of $174, with $977.6 million remaining authorization.

What financing does UHS have in place for the planned Talkspace acquisition in 2026?

As of June 30, 2026, UHS had a $400 million delayed draw term loan A expected to fund at the Talkspace acquisition closing. According to UHS, a new $700 million delayed draw term loan A added in July 2026 provides additional flexibility for general corporate uses and debt repayment.