Highlights

  • Third quarter 2026 net revenues were $4.733 billion, and net income attributable to UHS was $308.7 million, or $5.22 per diluted share.
  • Third quarter 2025 net income attributable to UHS was $373.0 million, or $5.86 per diluted share, on net revenues of $4.495 billion.
  • UHS reached a tentative settlement in August 2026 to resolve outstanding claims by current claimants in the Cumberland Litigation.
  • UHS repurchased 1.35 million shares at an aggregate cost of approximately $242.1 million during the third quarter of 2026.

Universal Health Services, Inc. (NYSE:UHS) shares were trading at USD 170.33 on October 28, 2026, down 3.94%, with a relative volume at time of 4.58. The hospital and healthcare services provider completed its Talkspace acquisition in August, reached a tentative litigation settlement and reported third quarter 2026 results on October 27.

Universal Health Services is headquartered in King of Prussia, Pennsylvania, and is incorporated in Delaware. Through its subsidiaries, the company reports acute care and behavioral health care services. As of September 30, 2026, it operated 30 inpatient acute care facilities, 388 inpatient behavioral health facilities, 169 outpatient and other facilities, nationwide virtual behavioral health services, an insurance offering and a physician network. Its locations are in 40 states, Washington, D.C., Puerto Rico, Ireland and the United Kingdom. The company says it employs more than 102,000 people, and its fiscal year ends December 31.

Third Quarter Results

UHS reported net income attributable to UHS of $308.7 million, or $5.22 per diluted share, for the third quarter of 2026, compared with $373.0 million, or $5.86 per diluted share, a year earlier. Net revenues increased 5.3% to $4.733 billion from $4.495 billion.

The company said third quarter 2026 results included an aggregate net pre-tax benefit of approximately $21 million from items not in its 2026 operating results forecast. These were $47 million from increased Medicaid supplemental payment programs, mainly in Washington, D.C. and California, partly offset by a $26 million increase to reserves for self-insured professional and general liability claims.

EBITDA net of NCI was $640.4 million, compared with $684.2 million. Adjusted EBITDA net of NCI, a non-GAAP measure, was $624.6 million, compared with $670.6 million. For the first nine months of 2026, net revenues were $13.867 billion and net income attributable to UHS was $1.016 billion, or $16.86 per diluted share.

Segment Metrics

At acute care hospitals on a same facility basis, adjusted admissions and adjusted patient days each increased 4.9% in the third quarter, while net revenue per adjusted admission decreased 1.7%. Same facility acute care net revenues increased 4.7%.

At behavioral health facilities on a same facility basis, adjusted admissions increased 2.5% and adjusted patient days increased 2.1%. Net revenue per adjusted admission increased 1.7%, and same facility behavioral health net revenues increased 4.0%.

Balance Sheet, Cash Flow and Capital

Net cash provided by operating activities for the nine months ended September 30, 2026 was $1.481 billion, compared with $1.290 billion. Cash and cash equivalents were $168,749 thousand and long-term debt was $5,627,528 thousand. Under its $1.5 billion revolving credit facility, UHS had $1.187 billion of available borrowing capacity.

During the first nine months of 2026, UHS repurchased 3.915 million shares at an aggregate cost of approximately $689.6 million. Approximately $735.4 million remained under the repurchase authorization at September 30, 2026.

Legal Update and Outlook

In the Cumberland Litigation, about 53 additional claimants have claims pending. In August 2026, UHS reached a tentative settlement to resolve all outstanding claims by current claimants. The settlement is subject to final release agreements and court approvals, and its terms are confidential. UHS said it believes a portion of the amount is covered by commercial excess insurance and the remainder by reserves.

On the earnings call, management said it is reiterating the financial and operating forecast ranges issued in July, and now expects full-year results towards the lower end of those ranges. Management said it plans to issue 2027 guidance in February when it reports fourth quarter results.