Universal Health Services (UHS) Q1 2025 earnings summary

Executive summary

• Q1 2025 consolidated operating results exceeded expectations, with net revenues rising 6.7% year-over-year to $4.10 billion, driven by strong acute care and behavioral health segments.

• Net income attributable increased 21% to $317 million, with diluted EPS at $4.80 and adjusted net income per diluted share at $4.84.

• Operating income margin improved to 11.1% from 10.1% in Q1 2024, reflecting higher revenue and moderated cost pressures.

• Acute care and behavioral health segments contributed 57% and 43% of consolidated net revenues, respectively.

• Guidance for full-year earnings is reiterated, reflecting confidence in underlying business performance despite external uncertainties.

Financial highlights

• Net revenues: $4.10 billion, up from $3.84 billion year-over-year; net income attributable: $317 million, up from $262 million; diluted EPS: $4.80, up from $3.82.

• Adjusted net income per diluted share was $4.84 for Q1 2025.

• EBITDA increased 21% year-over-year, excluding Medicaid supplemental payments; EBITDA net of NCI was $603.9 million (14.7% margin).

• Cash from operating activities was $360 million, down from $396 million due to delayed Medicaid supplemental payments.

• Capital expenditures for Q1 were $239 million, up from $209 million in Q1 2024.

Outlook and guidance

• Full-year behavioral patient day revenue growth target remains at 2.5% to 3%.

• Capital expenditures for 2025 expected to be $800–$1,000 million; Q1 spend was $239–$240 million.

• Guidance does not include potential revenues from Tennessee and DC Medicaid supplemental programs.

• Acute care segment guidance: 5%–6% same store revenue growth, split evenly between price and volume.

• Management expects to fund growth, acquisitions, and dividends with internal cash flow and available credit.