Universal Health Services (UHS) Q2 2026 earnings summary

Executive summary

• Q2 2026 net revenues rose 8.3% year-over-year to $4.64 billion, with net income attributable to shareholders up 2% to $358 million ($5.98/diluted share); both acute care and behavioral health segments contributed to growth.

• Acute care capacity expanded with 177 new licensed beds and the opening of a new hospital in Palm Beach Gardens, FL; new facilities contributed to revenue growth but also incurred start-up losses.

• The company announced the $835 million acquisition of Talkspace, expected to close in Q3 2026, and completed the acquisition of 39 residential and community homes in Ireland for $188 million.

• Share repurchases accelerated to $320 million in Q2, reflecting confidence in long-term cash flow and value.

• Operating margins remained strong despite inflationary pressures, increased provider tax assessments, and higher liability reserves.

Financial highlights

• Adjusted EPS for Q2 2026 was $5.98, up from $5.43 in Q2 2025; adjusted EBITDA less NCI reached $678 million (14.6% margin), up 5% year-over-year.

• Q2 2026 net revenues: $4.64 billion (up from $4.28 billion in Q2 2025); six-month revenues: $9.13 billion (up from $8.38 billion); net income for Q2: $358 million.

• Q2 cash from operations was $44.3 million, down from $549 million last year; operating cash flow for six months was $845 million, with $228 million in Q2 capital expenditures and $445 million for the first half.

• Acute care segment same-facility net revenue rose 8.2%, with EBITDA up 8.2% (6.3% excluding supplemental benefits); behavioral health same-facility net revenue increased 7.4%, with EBITDA up 9.0% (5.7% excluding supplemental benefits).

• Q2 2026 results included a $100 million favorable pre-tax impact from the Florida Medicaid managed care program and a $28 million unfavorable impact from increased liability reserves.

Outlook and guidance

• 2026 guidance updated: revenue growth ~7%, EBITDA less NCI growth ~3%, EPS growth ~6% at midpoint; adjusted EBITDA less NCI forecasted at $2.61–$2.72 billion, down $50 million from prior outlook.

• Revised 2026 full-year forecast: net revenues $18.50B–$18.76B, adjusted EPS $22.28–$23.65; midpoint of revised net revenues is up 0.2% from original forecast, adjusted EBITDA midpoint down 1.9%, adjusted EPS midpoint down 2.6%.

• Capital expenditures for 2026 expected at $950 million to $1.1 billion, with $505–$655 million to be spent in the second half.

• Medicaid supplemental net benefit for 2026 expected at $1.5 billion, up $150 million from prior outlook; management anticipates a $500 million annual reduction in Medicaid supplemental payments by 2032 due to legislative changes.

• Acute care adjusted admissions guidance narrowed to 1.5%-2.5%; behavioral health adjusted patient days to 1%-2%.