Universal Health (UHS)
NYSE:UHS
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Universal Health
(NYSE:UHS)
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Rating:66Neutral
Price Target:
$206.00
▲(11.93% Upside)
Action:DowngradedDate:03/10/26
UHS scores as moderately attractive: strong underlying financial performance and a low P/E support the rating, and 2026 guidance is constructive despite defined headwinds. The main drag is the clearly bearish technical setup (below major moving averages with negative momentum), along with cash-flow consistency and debt remaining key items to monitor.
Positive Factors
Revenue and Profitability Growth
Sustained top-line growth and materially higher EPS reflect improving operating leverage and margin expansion. That stronger earnings power supports reinvestment in capacity, continued buybacks, and improved ROE, providing durable ability to fund strategy over multiple quarters.
Negative Factors
Sizable Absolute Debt Load
Even as leverage ratios improved, a multi-billion dollar absolute debt burden limits financial flexibility. In a midcycle slowdown or higher rates, interest and refinancing needs could constrain capital allocation, slowing expansions or restricting buybacks over ensuing quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue and Profitability Growth
Sustained top-line growth and materially higher EPS reflect improving operating leverage and margin expansion. That stronger earnings power supports reinvestment in capacity, continued buybacks, and improved ROE, providing durable ability to fund strategy over multiple quarters.
Read all positive factors
Universal Health (UHS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$11.24B
Dividend Yield0.35%
Average Volume (3M)819.40K
Price to Earnings (P/E)9.3
Beta (1Y)0.67
Revenue Growth10.21%
EPS Growth39.58%
CountryUS
Employees78,400
SectorHealthcare
Sector Strength45
IndustryMedical - Care Facilities
Share Statistics
EPS (TTM)5.88
Shares Outstanding53,837,856
10 Day Avg. Volume792,193
30 Day Avg. Volume819,397
Financial Highlights & Ratios
PEG Ratio0.26
Price to Book (P/B)1.91
Price to Sales (P/S)0.80
P/FCF Ratio16.32
Enterprise Value/Market Cap1.52
Enterprise Value/Revenue0.98
Enterprise Value/Gross Profit1.09
Enterprise Value/Ebitda6.22
Forecast
1Y Price Target
$246.00Price Target Upside33.67% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering9
EPS Forecast (FY)23.44
Revenue Forecast (FY)$18.48B
Universal Health Business Overview & Revenue Model
Company Description
Universal Health Services, Inc., through its subsidiaries, owns and operates acute care hospitals, and outpatient and behavioral health care facilities. The company operates through Acute Care Hospital Services and Behavioral Health Care Services ...
How the Company Makes Money
UHS generates revenue primarily through the provision of healthcare services, which includes patient admissions to its hospitals and facilities. The company earns money from private payers, government programs such as Medicare and Medicaid, and se...
Universal Health Earnings Call Summary
Earnings Call Date:Feb 25, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 27, 2026
Earnings Call Sentiment Positive
The call balanced strong operating and financial results — double-digit revenue and EPS growth, improved acute margins, a clear growth pipeline (inpatient expansions and outpatient behavioral rollout), active buybacks and accelerated AI adoption — against several manageable but material near-term risks including a $75M exchange-related headwind, a ~$35M one-time 2026 impact from California staffing rules (with ~$30M ongoing), timing-driven cash flow/AR pressure and localized market softness. Management provided constructive 2026 guidance that incorporates these headwinds while signaling confidence in margin expansion, volume recovery and technology-enabled efficiency gains.Positive Updates
Quarter and Full-Year Financial Performance
Q4 2025: revenue growth +9%; adjusted EBITDA net of NCI +10%; adjusted EPS +20% vs Q4 2024. Full-year 2025: revenue growth +10%; adjusted EBITDA net of NCI +15%; adjusted EPS +31% vs 2024.
Negative Updates
Exchange Coverage Headwind
Guidance assumes an adverse pretax earnings impact of ~ $75 million due to reductions in health insurance exchanges (management assumes exchange volumes decline 25%–30%, with 10%–20% of lost exchange volume shifting largely to self-pay/uninsured), concentrated in Acute Care.
Read all updates
Q4-2025 Updates
Positive
Negative
Quarter and Full-Year Financial Performance
Q4 2025: revenue growth +9%; adjusted EBITDA net of NCI +10%; adjusted EPS +20% vs Q4 2024. Full-year 2025: revenue growth +10%; adjusted EBITDA net of NCI +15%; adjusted EPS +31% vs 2024.
Read all positive updates
Company Guidance
UHS guided 2026 revenue of $18.4–$18.8 billion (growth 6–8%), adjusted EBITDA net of NCI of $2.64–$2.79 billion (growth 2–8%), and adjusted net income attributable to UHS per diluted share of $22.64–$24.52 (growth 4–13%), with same‑facility volume growth assumed at 2–3% for both segments (likely below this in Q1 due to winter storms and isolated market impacts); implied pricing is roughly 3–4% in Acute and 2–3% in Behavioral, capex is expected to be $950 million–$1.1 billion (culmination of large inpatient projects coming online in H1), and core consolidated organic growth is pegged at ~5%. The outlook incorporates a ~$75 million pretax headwind from a 25–30% decline in exchange volumes (10–20% of lost exchange volume shifting to other coverage, mostly to self‑pay/uninsured; exchanges were ~6% of Acute adjusted admissions and <5% of Acute revenue in 2025), a ~$35 million 2026 pretax hit (≈$30 million ongoing annual impact) from new California inpatient behavioral staffing regulations effective June 1, 2026, an assumed $1.36 billion net benefit from Medicaid supplemental payments (≈+$23 million vs. 2025, including a newly approved Nevada program), roughly $50 million of favorability from Cedar Hill improvements (largely offset by de‑novo start‑up costs), and an additional ~$50 million pretax benefit from three discrete items (a nonrecurring 2025 legal settlement, Nevada health plan improvements, and modest Behavioral M&A contributions); the company finished 2025 having repurchased 4.65 million shares for $899 million, with $1.425 billion of buyback authorization remaining and about $900 million of available capacity on a $1.3 billion revolver.Universal Health Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
74
Positive
Cash Flow
62
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 17.36B | 15.83B | 14.28B | 13.40B | 12.64B |
| Gross Profit | 15.71B | 14.24B | 12.75B | 11.93B | 11.21B |
| EBITDA | 2.74B | 2.27B | 1.72B | 1.58B | 1.91B |
| Net Income | 1.49B | 1.14B | 717.79M | 675.61M | 991.59M |
Balance Sheet | |||||
| Total Assets | 15.96B | 14.47B | 13.97B | 13.49B | 13.09B |
| Cash, Cash Equivalents and Short-Term Investments | 137.80M | 125.98M | 119.44M | 102.82M | 115.30M |
| Total Debt | 5.51B | 4.96B | 5.37B | 5.27B | 4.56B |
| Total Liabilities | 8.55B | 7.71B | 7.77B | 7.52B | 6.90B |
| Stockholders Equity | 7.28B | 6.67B | 6.15B | 5.92B | 6.09B |
Cash Flow | |||||
| Free Cash Flow | 849.25M | 1.12B | 524.74M | 262.02M | 28.04M |
| Operating Cash Flow | 1.86B | 2.07B | 1.27B | 996.02M | 883.70M |
| Investing Cash Flow | -1.07B | -911.11M | -763.27M | -647.30M | -914.47M |
| Financing Cash Flow | -749.73M | -1.14B | -493.94M | -318.40M | -1.07B |
Universal Health Technical Analysis
Negative
184.04
Price Trends
205.30
Negative
215.07
Negative
200.15
Negative
Market Momentum
-6.96
Positive
31.47
Neutral
20.22
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For UHS, the sentiment is Negative. The current price of 184.04 is below the 20-day moving average (MA) of 191.44, below the 50-day MA of 205.30, and below the 200-day MA of 200.15, indicating a bearish trend. The MACD of -6.96 indicates Positive momentum. The RSI at 31.47 is Neutral, neither overbought nor oversold. The STOCH value of 20.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for UHS.
Universal Health Risk Analysis
Universal Health disclosed 31 risk factors in its most recent earnings report. Universal Health reported the most risks in the "Production" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Universal Health Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $105.52B | 15.88 | -140.78% | 0.61% | 6.82% | 15.82% | |
70 Outperform | $9.70B | 18.84 | 24.48% | 0.65% | 11.13% | 27.53% | |
69 Neutral | $16.68B | 12.83 | 34.82% | ― | -0.56% | -53.50% | |
66 Neutral | $11.24B | 9.31 | 21.03% | 0.35% | 10.21% | 39.58% | |
63 Neutral | $10.32B | 10.44 | -160.63% | ― | 5.14% | 4.37% | |
60 Neutral | $12.93B | 12.07 | 7.13% | 3.29% | 4.09% | 13.17% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
UHS
Universal Health
184.04
-3.12
-1.67%
DVA
DaVita
154.43
1.46
0.95%
FMS
Fresenius Medical Care
22.06
-2.37
-9.70%
HCA
HCA Healthcare
471.85
128.61
37.47%
EHC
Encompass Health
97.57
-3.07
-3.05%
THC
Tenet Healthcare
191.86
57.36
42.65%
Universal Health Corporate Events
Business Operations and StrategyM&A Transactions
Universal Health to Acquire Virtual Care Provider Talkspace
Positive
Mar 9, 2026
On March 9, 2026, Universal Health Services, Inc. announced a definitive agreement to acquire virtual behavioral healthcare provider Talkspace, Inc. for $5.25 per share, implying an enterprise value of about $835 million to be funded through UHS&#...
Business Operations and StrategyFinancial DisclosuresLegal Proceedings
Universal Health Granted New Trial in Nevada Verdict
Positive
Feb 26, 2026
Universal Health Services reported strong 2025 results, with fourth-quarter net income attributable to UHS rising to $445.9 million, or $7.06 per diluted share, on 9.1% higher net revenues of $4.486 billion versus a year earlier. For the full year...
Executive/Board Changes
Universal Health Extends CEO Marc Miller’s Employment Term
Positive
Dec 31, 2025
On December 30, 2025, Universal Health Services’ board compensation committee approved an amended and restated employment agreement for CEO and president Marc D. Miller, extending his term as chief executive through January 1, 2029, with aut...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.