Highlights

  • Net revenues were $4.638 billion for the three months ended June 30, 2026, against $4.284 billion a year earlier.
  • Net income attributable to UHS was $358 million, with diluted earnings per share of $5.98 against $5.43.
  • The company recorded a $28 million increase to reserves for professional and general liability claims in the quarter.
  • UHS agreed to acquire Talkspace for approximately $835 million, expected to close in the third quarter of 2026.

Universal Health Services, Inc. (NYSE: UHS) shares were trading at USD 174.23 on October 27, 2026, down 6.18%, with a relative volume at time of 4.82. The hospital operator agreed to acquire Talkspace on March 9, 2026, acquired Irish residential facilities in July 2026, and filed its Form 10-Q for the quarter ended June 30, 2026 on August 7, 2026.

Universal Health Services is incorporated in Delaware and lists its principal executive offices in King of Prussia, Pennsylvania. As of June 30, 2026, it owned and operated 376 inpatient facilities and 168 outpatient and other facilities in 40 states, Washington, D.C., the United Kingdom and Puerto Rico. Acute care and the commercial health insurer accounted for 56% of net revenues in the second quarter, and behavioral health care accounted for 44%. Its fiscal year ends December 31.

Second Quarter Results

Net revenues increased by 8.3%, or $354 million, to $4.638 billion for the three months ended June 30, 2026, compared with $4.284 billion for the second quarter of 2025. The company said Same Facility net revenues increased $322 million, or 7.8%, and that a $47 million increase in provider tax assessments had no impact on income before income taxes.

Income before income taxes was $479 million, compared with $473 million. Net income attributable to UHS was $358 million, compared with $353 million. Earnings per diluted share attributable to UHS were $5.98, compared with $5.43.

The company stated that its results included a $28 million pre-tax increase to reserves for self-insured professional and general liability claims, and that there were no such adjustments in 2025. It said it is reasonably likely that future results may include material adjustments to prior period reserves.

For the six months ended June 30, 2026, net revenues were $9.133 billion and net income attributable to UHS was $707 million, with earnings per diluted share of $11.63.

Legal and Regulatory Matters

Cumberland Hospital for Children and Adolescents, an indirect subsidiary, is a defendant in multi-plaintiff lawsuits in Richmond, Virginia. In September 2024, a jury awarded three plaintiffs combined compensatory damages of $60 million, an additional combined $180 million in trebled damages and $120 million in punitive damages. Approximately 43 additional plaintiffs have claims pending. The company said it can make no assurances about the ultimate financial exposure.

On July 6, 2026, the Utah Department of Health and Human Services notified the Springville Campus of Provo Canyon School that its license was being revoked, and it issued a similar notice for the Provo campus on July 17, 2026. The company has filed appeals and must discharge remaining patients by early to mid-August 2026.

Cash Flow, Debt and Capital

For the six months, net cash provided by operating activities was $845 million, compared with $909 million a year earlier, and capital expenditures were $445 million. The company spent $485 million to repurchase Class B Common Stock, generated $300 million of additional term loan A borrowings, and paid cash dividends of $.20 per share each quarter.

An April 2026 amendment increased the revolving credit facility to $1.5 billion and the term loan A to $1.455 billion, and added a $400 million delayed draw term loan A for the Talkspace closing. At June 30, 2026, available revolving borrowing capacity was $1.272 billion.

Outlook and Pending Transactions

For full year 2026, UHS expects capital expenditures of approximately $950 million to $1.1 billion. The Talkspace acquisition is priced at $5.25 per share, was approved by Talkspace stockholders in the second quarter of 2026, and remains subject to regulatory approvals and customary closing conditions. The company intends to finance it with additional borrowings under its Credit Agreement. In July 2026, UHS acquired 39 residential and community homes and 2 day services facilities in Ireland for a net purchase price of approximately $188 million.