Universal Health Q3 profit meets estimates as sales rise 5.3%

Universal Health Services Inc. (UHS) said on Oct. 27 that net income attributable to UHS was $308.7 million, or $5.22 per diluted share, for the third quarter of 2026. Net revenues rose 5.3% to $4.733 billion from $4.495 billion a year earlier, according to the earnings release attached to its 8-K.

Here's how the company did:

• Adjusted EPS: $5.22 vs. $5.69 a year earlier, in line with the $5.21 consensus estimate compiled by Finnhub
• Revenue: $4.733 billion vs. $4.495 billion a year earlier, in line with the $4.76 billion consensus estimate compiled by Finnhub
• EBITDA net of NCI, or earnings before interest, taxes, depreciation and amortization with noncontrolling interests excluded: $640.4 million vs. $684.2 million a year earlier

The company said the quarter included a net favorable pre-tax impact of approximately $21 million from items not included in its 2026 operating results forecast. That figure combined $47 million from increases in Medicaid supplemental payment programs in various states, mainly Washington, D.C. and California, with a $26 million charge to raise reserves for self-insured professional and general liability claims.

Adjusted EBITDA net of NCI, which excludes other income and expense, was $624.6 million, compared with $670.6 million a year earlier. The release reports no non-GAAP adjustments to operating results for the quarter.

The release refers to the 2026 operating results forecast the company disclosed on July 27, 2026, but gives no new guidance figures.

Acute and behavioral care

Same facility acute care revenue rose 4.7% in the quarter. Adjusted admissions and adjusted patient days each rose 4.9%, while net revenue per adjusted admission fell 1.7%.

Same facility behavioral health revenue rose 4.0%. Adjusted admissions increased 2.5% and adjusted patient days 2.1%, and net revenue per adjusted admission rose 1.7%.

Cumberland litigation

The company said it reached a tentative settlement in August 2026 to resolve the outstanding claims of current claimants in the Cumberland Litigation, which involves Cumberland Hospital for Children and Adolescents. The lawsuits were filed in the Circuit Court for Richmond, Virginia.

The settlement is subject to final release agreements and certain court approvals, and its terms are confidential. The company believes a substantial portion of the amount is covered by its commercial excess insurance, and the remainder is covered by reserves it had already recorded.

Cash and buybacks

Net cash provided by operating activities rose 14.9% to $1.481 billion in the first nine months of 2026, from $1.290 billion a year earlier.

During the quarter the company repurchased 1.35 million shares at an aggregate cost of approximately $242.1 million. It had about $735.4 million left under its repurchase authorization as of Sept. 30, and $1.187 billion of available borrowing capacity under its $1.5 billion revolving credit facility.