Universal Health beats Q2 revenue estimates. cuts FY profit view

Overview

• U.S. hospital operator's Q2 revenue rose 8.3%, beating analyst expectations

• Adjusted EPS for Q2 rose to $5.98

• Company repurchased 1.89 mln shares for $320.3 mln in Q2

Outlook

• Universal Health revises 2026 net revenue forecast to $18.501 bln-$18.762 bln, slightly higher than prior forecast

• Company now sees 2026 adjusted EBITDA, net of NCI, at $2.610 bln-$2.717 bln, lower than prior forecast

• Universal Health expects 2026 adjusted EPS-diluted of $22.28-$23.65, lower than earlier forecast

Result Drivers

• ACUTE CARE GROWTH - Co said same-facility acute care hospitals saw adjusted admissions rise 2.9% and net revenue per adjusted admission increase 3.0% in Q2

• BEHAVIORAL HEALTH REVENUE - Co said same-facility behavioral health facilities saw net revenue per adjusted admission rise 7.1% in Q2

• MEDICAID PROGRAM IMPACT - Q2 results included a $100 mln favorable pre-tax impact from the Florida Medicaid managed care directed payment program

Company press release: ID:nPn5TDzZpa

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 7 "strong buy" or "buy", 14 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the healthcare facilities services peer group is "buy."

• Wall Street's median 12-month price target for Universal Health Services Inc is $202.00, about 29.7% above its July 24 closing price of $155.75

• The stock recently traded at 6 times the next 12-month earnings vs. a P/E of 7 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)