Universal Health Services Reports Strong Q3 Performance, Raises 2025 Forecast

Universal Health Services (UHS), a major acute and behavioral hospital operator, has reported substantial financial gains in the third quarter of 2025, beating Wall Street expectations and prompting an upward revision of its full-year forecast.

Q3 Financial Highlights

UHS reported a net income of $373 million, or $5.86 per diluted share, for the third quarter, representing a year-over-year increase of 44.2%. Net revenues climbed to approximately $4.5 billion, a 13.4% increase compared to the same period last year. These results significantly outperformed market estimates, which had projected earnings of $4.56 per share and net revenues of $4.31 billion.

The company's acute care segment, comprising 29 hospitals, saw a 12.8% jump in same-facility net revenues. This growth was driven by a combination of increased patient volume and higher revenue per patient. Same-facility adjusted admissions rose by 2%, while net revenue per adjusted admission increased by 9.8%.

In the behavioral health segment, which includes 345 inpatient facilities, same-facility net revenues increased by 9.3%. Although volume gains were more modest in this sector, with adjusted admissions up by 0.5%, net revenue per adjusted admission grew by 8.8%.

Revised 2025 Outlook and Financial Strategy

Following these strong results, UHS has revised its full-year 2025 forecast upward. The company now expects net revenues to range between $17.3 billion and $17.4 billion, up from the previous estimate of $17.1 billion to $17.3 billion. Adjusted earnings per diluted share are now projected to be between $21.50 and $22.10, an increase from the earlier forecast of $20.00 to $21.00.

The improved outlook is partially attributed to $90 million in pre-tax reimbursements from recently approved Medicaid state directed payments. However, this was partially offset by a $35 million pre-tax charge incurred to increase reserves for liabilities.

UHS also reported significant activity in its stock repurchase program. The company has bought back more than 1.3 million shares at an aggregate cost of about $234.3 million in the third quarter alone. Year-to-date, UHS has repurchased nearly 3.2 million shares for $565.8 million. On October 27, the board authorized a $1.5 billion increase to the stock repurchase program, signaling confidence in the company's financial position and future prospects.

Industry Context and Market Response

UHS's strong performance aligns with positive trends seen across the for-profit health system sector. Other major players like HCA Healthcare and Community Health Systems have also reported better-than-expected results for the quarter.

The market responded favorably to UHS's earnings report, with the company's stock trading over 6% higher after hours following the announcement. This upward movement builds on gains seen in the days leading up to the report, as investors anticipated strong performances across the sector.

As the healthcare industry continues to navigate post-pandemic challenges and evolving patient care models, UHS's results demonstrate the resilience and adaptability of large-scale hospital operators. The company's ability to increase revenue per patient while also seeing growth in admissions suggests a successful balance of operational efficiency and service expansion.