Universal Health Services, Inc. — Third Quarter 2026 Earnings Summary

Financial Performance:

• Reported net income attributable to UHS for the three months ended September 30, 2026, was $308.7 million ($5.22 per diluted share), down from $373.0 million ($5.86 per diluted share) in the prior year period.
• Net revenues for the three months ended September 30, 2026, increased 5.3% to $4.733 billion, compared to $4.495 billion in the prior year period.
• Reported net income attributable to UHS for the nine months ended September 30, 2026, was $1.016 billion ($16.86 per diluted share), compared to $1.043 billion ($16.07 per diluted share) in the prior year period.
• Net revenues for the nine months ended September 30, 2026, increased 7.7% to $13.867 billion, compared to $12.879 billion in the prior year period.
• EBITDA net of NCI for the three months ended September 30, 2026, was $640.4 million, down from $684.2 million in the prior year period.
• Adjusted EBITDA net of NCI for the three months ended September 30, 2026, was $624.6 million, down from $670.6 million in the prior year period.
• EBITDA net of NCI for the nine months ended September 30, 2026, was $1.972 billion, up from $1.939 billion in the prior year period.
• Adjusted EBITDA net of NCI for the nine months ended September 30, 2026, was $1.951 billion, up from $1.912 billion in the prior year period.
• Net cash provided by operating activities for the nine months ended September 30, 2026, increased 14.9% to $1.481 billion, compared to $1.290 billion in the prior year period.
• As of September 30, 2026, total debt was $5.707 billion, up from $4.691 billion as of September 30, 2025.
• Debt to Adjusted EBITDA net of NCI ratio was 2.17x as of September 30, 2026, compared to 1.86x in the prior year period.

Business Segments and Product Lines:

• Acute Care Services (Same Facility Basis):
  • Adjusted admissions increased 4.9% and adjusted patient days increased 4.9% in the third quarter of 2026 compared to the prior year.
  • Net revenue per adjusted admission and net revenue per adjusted patient day each decreased 1.7% in the third quarter of 2026 compared to the prior year.
  • Net revenues increased 4.7% in the third quarter of 2026 compared to the prior year.
  • For the nine months of 2026, adjusted admissions increased 2.6% and adjusted patient days increased 2.9%.
  • Net revenue per adjusted admission increased 2.4% and net revenue per adjusted patient day increased 2.1% for the nine months of 2026.
  • Net revenues increased 7.0% for the nine months of 2026 compared to the prior year.
• Behavioral Health Care Services (Same Facility Basis):
  • Adjusted admissions increased 2.5% and adjusted patient days increased 2.1% in the third quarter of 2026 compared to the prior year.
  • Net revenue per adjusted admission increased 1.7% and net revenue per adjusted patient day increased 2.1% in the third quarter of 2026.
  • Net revenues increased 4.0% in the third quarter of 2026 compared to the prior year.
  • For the nine months of 2026, adjusted admissions increased 1.4% and adjusted patient days increased 1.7%.
  • Net revenue per adjusted admission increased 4.9% and net revenue per adjusted patient day increased 4.7% for the nine months of 2026.
  • Net revenues increased 6.2% for the nine months of 2026 compared to the prior year.

Risks and Challenges:

• A significant portion of revenues is derived from federal and state government programs (Medicare and Medicaid); statutory and regulatory changes could materially affect payments.
• Failure to renew supplemental Medicaid payment programs or failure of public hospitals to provide necessary Inter-Governmental Transfers could cause results to differ from forecasts.
• Legislation adopted on July 4, 2025, attaches work and community service requirements to Medicaid eligibility, which may limit enrollment and expenditures, reduce revenues, and increase uncompensated care.
• Increased interest rates have significantly increased interest expense, reducing free cash flow and potentially impacting future results and capital market access.
• Changes in foreign trade laws, tariffs, or taxes on imports could impact competitive position and financial results.
• The outcome of known and unknown litigation, liabilities, and claims remains a risk.
• The ability to successfully integrate and realize benefits from the acquisition of Talkspace, Inc. (completed August 2026) is a risk factor.

Other Key Points:

• Legal Proceedings: In August 2026, the Company reached a tentative settlement agreement to resolve all outstanding claims related to the Cumberland Litigation (allegations of inappropriate sexual contact by Dr. Daniel Davidow). The aggregate settlement amount is confidential but is expected to be substantially covered by commercial excess insurance and reserves.
• Stock Repurchases: During the third quarter of 2026, the Company repurchased 1.35 million shares for approximately $242.1 million (average price ~$179/share). For the nine months of 2026, 3.915 million shares were repurchased for approximately $689.6 million (average price ~$176/share). As of September 30, 2026, approximately $735.4 million of repurchase authorization remained.
• Credit Facility: As of September 30, 2026, the Company had $1.187 billion of available borrowing capacity under its $1.5 billion revolving credit facility, net of $310 million in outstanding borrowings and $3 million in letters of credit.
• Acquisition: The acquisition of Talkspace, Inc. was completed in August 2026.
• Non-GAAP Adjustments: The third quarter of 2026 included a net favorable pre-tax impact of approximately $21 million, consisting of a $47 million benefit from Medicaid supplemental payment increases (offset by provider taxes) and a $26 million unfavorable charge for increased liability reserves. The third quarter of 2025 included a net favorable pre-tax impact of approximately $55 million, consisting of $90 million in Medicaid reimbursements and a $35 million charge for liability reserves.
• Facility Count: As of September 30, 2026, the Company operated 30 inpatient acute care facilities, 388 inpatient behavioral health facilities, and 169 outpatient and other facilities.