Universal Health Services (UHS)
NYSE:UHS
Want to see UHS full AI Analyst Report?
Top Page
Universal Health
(NYSE:UHS)
Select Model
Select Model
Rating:72Outperform
Price Target:
$180.00
▼(-1.32% Downside)
Action:Upgraded
Date:05/22/26
UHS scores well on fundamentals and valuation: profitability and returns are strong with manageable leverage, and the P/E is low. The latest earnings call supports the outlook with reiterated guidance and strong Q1 performance, though HIX and labor/volume headwinds remain. The biggest drag on the score is weak technical momentum, with the stock below key moving averages and bearish indicators.
Positive Factors
Strong returns & manageable leverage
High trailing ROE (~21%) and an improving leverage ratio provide durable financial flexibility. Strong returns support reinvestment, dividend/buyback capacity and M&A financing, enabling sustained capital allocation across hospitals and behavioral assets even if near‑term volumes ebb.
Negative Factors
HIX exposure & bad‑debt risk
Significant exposure to health insurance exchange dynamics raises structural payer‑mix and receivable risks. Reduced exchange enrollment or premium nonpayment increases bad debt and lowers commercial margins, pressuring revenue stability and credit metrics across a multi‑quarter horizon.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong returns & manageable leverage
High trailing ROE (~21%) and an improving leverage ratio provide durable financial flexibility. Strong returns support reinvestment, dividend/buyback capacity and M&A financing, enabling sustained capital allocation across hospitals and behavioral assets even if near‑term volumes ebb.
Read all positive factors
Universal Health Key Performance Indicators (KPIs)
Universal Health (UHS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$8.64B
Dividend Yield0.35%
Average Volume (3M)1.19M
Price to Earnings (P/E)5.8
Beta (1Y)0.51
Revenue Growth10.42%
EPS Growth33.92%
CountryUS
Employees78,400
SectorHealthcare
Sector Strength45
IndustryMedical - Care Facilities
Share Statistics
EPS (TTM)24.14
Shares Outstanding53,287,605
10 Day Avg. Volume1,520,250
30 Day Avg. Volume1,187,369
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 Cap1.64
Enterprise Value/Revenue0.80
Enterprise Value/Gross Profit1.12
Enterprise Value/Ebitda5.07
Forecast
1Y Price Target
$218.92Price Target Upside20.02% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering14
EPS Forecast (FY)23.45
Revenue Forecast (FY)$18.55B
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 makes money primarily by delivering healthcare services through its facilities and being reimbursed for those services by third-party payers and patients. The company’s largest revenue streams come from (1) its Acute Care segment, which genera...
Universal Health Earnings Call Summary
Earnings Call Date:Apr 27, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 27, 2026
Earnings Call Sentiment Positive
The call presented a largely positive operational and financial picture: solid top-line growth (revenue +9.6%), strong adjusted EBITDA and EPS growth, healthy operating cash flow, active share repurchases, and a strategically significant, expectedly accretive Talkspace acquisition that accelerates outpatient behavioral capabilities. Offsetting these positives were near-term volume headwinds driven by weaker flu season and winter weather, a meaningful and evolving HIX (exchange) headwind with conservatively reserved bad debt exposure (management reiterated a $75 million full-year impact), tougher prior-period supplemental payment comparisons that pressured core EBITDA in the quarter, and ongoing behavioral staffing/wage pressures and first-year losses at de novo hospitals. Overall, management reiterated guidance and emphasized expense discipline, margin initiatives (including AI), and M&A integration plans, and the balance of strong financial metrics and strategic actions outweighs the identified near-term headwinds.Positive Updates
Revenue and Earnings Growth
Consolidated revenue grew 9.6% year-over-year in Q1 2026. Adjusted EBITDA (net of NCI) increased 8.4% and adjusted EPS rose 16.1% versus Q1 2025. Reported net income attributable to UHS per diluted share was $5.65 and adjusted EPS was $5.62.
Negative Updates
Seasonal Volume Weakness (Flu & Weather)
Acute same-facility adjusted admissions declined versus Q1 2025, with management estimating approximately a 200-basis-point adverse impact from weaker flu activity and winter weather in certain markets. Weather disruptions (e.g., D.C. burst pipes) caused an estimated $5–$7 million impact.
Read all updates
Q1-2026 Updates
Positive
Negative
Revenue and Earnings Growth
Consolidated revenue grew 9.6% year-over-year in Q1 2026. Adjusted EBITDA (net of NCI) increased 8.4% and adjusted EPS rose 16.1% versus Q1 2025. Reported net income attributable to UHS per diluted share was $5.65 and adjusted EPS was $5.62.
Read all positive updates
Company Guidance
Management reiterated the full‑year 2026 financial and operating forecast established Feb. 25 and said it will re‑evaluate guidance at Q2 in July, while explicitly embedding a $75 million pretax headwind from expected HIX declines; they also expect the Talkspace acquisition to be earnings‑accretive within the first 12 months and to result in an effective EBITDA multiple in the single digits by year three. Key capital and liquidity metrics: Q1 share repurchases totaled 675,000 shares for $127 million, $1.3 billion of repurchase authorization remained as of 3/31/26, annual buyback targets remain at least $800–$900 million, credit capacity was expanded by $900 million in late April (revolver capacity now $1.5 billion with $373 million outstanding), and leverage is expected to move from just under 2x to just over 2x with the Talkspace deal. Operational and margin assumptions called out include behavioral wage growth of ~6% in 2026 (down from 7–8% in 2025), California nurse‑staffing assumptions on track for the June 1 effective date, the new 156‑bed Florida de novo likely to have a first‑year operating loss, and DPP dynamics (including $46 million of out‑of‑period DPP in Q1) reflected in the company’s outlook. Q1 performance that underpins the guidance: revenue +9.6%, adjusted EBITDA net of NCI +8.4%, adjusted EPS $5.62 (GAAP diluted EPS $5.65), acute same‑facility revenue +8.2% (6.2% excl. health plan), acute revenue per adjusted admission +6.3% (4.9% excl. ~ $30M prior‑period supplemental), same‑facility acute EBITDA +11.7%, behavioral same‑facility revenue +7.3% with revenue per adjusted patient day +5.8% (4.9% excl. prior‑period supplemental) and same‑facility behavioral EBITDA +8.4%; additional liquidity/flow metrics: cash from operations $402 million and Q1 capex $217 million, with an estimated ~$15 million HIX impact in Q1 and exchange adjusted admissions down ~5%.Universal Health Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
72
Positive
Cash Flow
64
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 17.76B | 17.36B | 15.83B | 14.28B | 13.40B | 12.64B |
| Gross Profit | 12.67B | 15.71B | 14.24B | 12.75B | 11.93B | 11.21B |
| EBITDA | 2.79B | 2.74B | 2.27B | 1.72B | 1.58B | 1.91B |
| Net Income | 1.52B | 1.49B | 1.14B | 717.79M | 675.61M | 991.59M |
Balance Sheet | ||||||
| Total Assets | 15.68B | 15.96B | 14.47B | 13.97B | 13.49B | 13.09B |
| Cash, Cash Equivalents and Short-Term Investments | 119.03M | 137.80M | 125.98M | 119.44M | 102.82M | 115.30M |
| Total Debt | 5.13B | 5.51B | 4.96B | 5.37B | 5.27B | 4.56B |
| Total Liabilities | 8.11B | 8.55B | 7.71B | 7.77B | 7.52B | 6.90B |
| Stockholders Equity | 7.53B | 7.28B | 6.67B | 6.15B | 5.92B | 6.09B |
Cash Flow | ||||||
| Free Cash Flow | 894.02M | 849.25M | 1.12B | 524.74M | 262.02M | 28.04M |
| Operating Cash Flow | 1.91B | 1.86B | 2.07B | 1.27B | 996.02M | 883.70M |
| Investing Cash Flow | -996.90M | -1.07B | -911.11M | -763.27M | -647.30M | -914.47M |
| Financing Cash Flow | -880.20M | -749.73M | -1.14B | -493.94M | -318.40M | -1.07B |
Universal Health Technical Analysis
Negative
182.41
Price Trends
169.71
Negative
187.82
Negative
199.35
Negative
Market Momentum
-8.11
Positive
29.28
Positive
18.33
Positive
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 182.41 is above the 20-day moving average (MA) of 158.33, above the 50-day MA of 169.71, and below the 200-day MA of 199.35, indicating a bearish trend. The MACD of -8.11 indicates Positive momentum. The RSI at 29.28 is Positive, neither overbought nor oversold. The STOCH value of 18.33 is Positive, 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 32 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 |
|---|---|---|---|---|---|---|---|
72 Outperform | $9.90B | 16.94 | 25.35% | 0.65% | 10.05% | 23.59% | |
72 Outperform | $8.64B | 5.83 | 20.93% | 0.35% | 10.42% | 33.92% | |
68 Neutral | $12.34B | 16.57 | -133.12% | ― | 6.68% | 2.79% | |
68 Neutral | $13.90B | 8.26 | 40.55% | ― | 4.56% | 27.14% | |
63 Neutral | $11.56B | 11.12 | 7.16% | 3.29% | 7.24% | 67.43% | |
58 Neutral | $80.27B | 12.41 | -123.20% | 0.61% | 6.71% | 29.32% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
UHS
Universal Health
145.17
-43.67
-23.13%
DVA
DaVita
192.16
54.26
39.35%
FMS
Fresenius Medical Care
22.03
-5.70
-20.57%
HCA
HCA Healthcare
372.13
-9.64
-2.53%
EHC
Encompass Health
104.01
-16.72
-13.85%
THC
Tenet Healthcare
162.06
-9.40
-5.48%
Universal Health Corporate Events
Executive/Board ChangesShareholder Meetings
Universal Health Shareholders Back Board, Pay and Auditor
Positive
May 22, 2026
On May 20, 2026, Universal Health held its 2026 Annual Meeting of Stockholders virtually via live audio webcast, where shareholders elected two Class III directors, Alan B. Miller and Nina Chen-Langenmayr, to three-year terms ending at the 2029 an...
Business Operations and StrategyExecutive/Board Changes
Universal Health Announces Leadership Transition in Behavioral Health
Neutral
May 21, 2026
Universal Health Services, Inc. announced that Matthew J. Peterson, Executive Vice President and President of Behavioral Health since 2019, submitted his resignation on May 18, 2026, effective June 19, 2026, to pursue a non‑competitive exter...
Business Operations and StrategyM&A TransactionsPrivate Placements and Financing
Universal Health Expands Credit Facilities for Acquisition Financing
Positive
Apr 24, 2026
On April 22, 2026, Universal Health Services, Inc. amended its long‑standing senior secured credit agreement to expand borrowing capacity and adjust pricing terms. The company added a $200 million incremental revolving credit facility, a $30...
Executive/Board Changes
Universal Health Sets 2026 Executive Incentive Compensation Framework
Positive
Mar 30, 2026
On March 26, 2026, Universal Health’s Compensation Committee approved the bonus formulas that will govern annual incentive compensation for executive officers for the year ending Dec. 31, 2026, under its 2022 Executive Incentive Plan. Each e...
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...
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.