UHS Revenue Rises 5.3% to $4.733 Billion in Third Quarter of 2026
Key Facts
Universal Health Services increased revenue 5.3% to $4.733 billion in the third quarter of 2026, compared with $4.495 billion in the same period a year earlier, according to results republished by Nasdaq. But net income attributable to the company fell to $308.7 million, or $5.22 per diluted share, from $373.0 million, or $5.86 per share, a year earlier. Based on estimates cited by Investing.com, adjusted earnings per share of $5.22 topped the $5.20 estimate, while revenue of $4.73 billion exceeded the $4.71 billion estimate. By contrast, the stock fell 5.26% to $168 in premarket trading on October 28, according to Investing.com.
The comparison between revenue growth and declining net income shows different trajectories for activity and earnings during the quarter. Official operating data also recorded year-over-year declines in revenue per admission and per adjusted patient day in acute care, metrics that explain part of the operating picture alongside higher revenue. On the earnings call, the CFO said the medical and surgical case mix reduced growth in adjusted revenue per admission by about 100 basis points. He added that revenue per admission would have grown in the 3% range if three pressure factors were excluded. He said: "We believe the medical and surgical case mix pressure probably reduced growth in adjusted revenue per admission by about 100 basis points, and we believe revenue per admission would have increased in the 3% range if we adjusted for the impact of these three factors."
For the rest of the year, management reaffirmed the 2026 financial and operating guidance ranges it issued with its second-quarter results in July, but said it expected results to come in near the lower end of those ranges. It tied that view to performance trends through the third quarter and the continued operation of new hospitals in Washington, D.C., and Palm Beach Gardens. The company estimated that the new facilities and Laurel Ridge Center together would record operating losses of between $80 and $100 million in 2026, while noting that a substantial portion could be recouped in 2027. The guidance puts expected operating losses among the factors management is tracking in its estimate of full-year results.
Management also addressed expected pressures in 2027. It estimated that pressures from supplemental Medicaid payments would amount to about $175 to $200 million that year. It said that if the insurance market rate recorded in the second half of 2026 continued on an annualized basis, it would add a $15 million burden in 2027. The company therefore kept its announced annual ranges unchanged, while expecting results near their lower bounds and highlighting losses at new facilities and pressures related to payments and insurance in its forward calculations.