Universal Health Services grew revenues 5.3% year over year but saw its earnings slow during this year’s third quarter, according to financial results shared by the acute and behavioral health chain Tuesday after market close.
The company reported net income of $308.7 million ($5.22 per diluted share), as opposed to last year’s $373 million ($5.86 per diluted share), while its net revenue grew 5.3% year over year to about $4.7 billion.
The consensus estimate for earnings and revenue, per a Zacks Investment Research consensus from last week, was $5.33 per diluted share and $4.7 billion, though more recent analyst consensus from investing.com outlined a $5.20 per share expectation.
Of note, the company’s shares closed Tuesday 4.6% below open as fellow for-profit chain HCA Healthcare’s tepid 2027 outlook diminished investor enthusiasm. Its share price fell further in Tuesday evening after-hours trading.
Compared to the forecast UHS shared at the year’s halfway mark, its operating performance included an extra $47 million pre-tax boost from states’ Medicaid supplemental payment programs, partially offset by $26 million the company spent to bolster its liability reserves after a tentative legal settlement reached during the quarter.
UHS’ latest numbers outlined a substantial volume uptick within its acute care business, but a drop in payments, compared to its performances during the first half of the year.
During the third quarter, same-facility adjusted admissions and adjusted patient days both rose 4.9% year over year, whereas during the year’s first six months it had reported 1.4% and 1.9% year-over-year growth. On the other hand, same-facility net revenue per adjusted admission and per adjusted patient day fell by 1.7% (compared to the first six months’ 4.6% and 4.2% growth) and overall same-facility acute care revenue.
Of note, UHS’ third quarter in 2025 had marked a spike in revenue metrics that executives admitted likely wasn’t entirely sustainable, making the latest quarter’s comparison a tough one. On the expense side, it also reported an increase in salaries, wages and benefits (SWB) spending relative to net revenues (from 39.1% to 40%) on a same-facility basis.
Across 2026’s nine months, and all on a same-facility basis, UHS reported year-over-year increases of 2.6% for adjusted admissions, 2.9% for adjusted patient days, 2.4% for net revenue per adjusted admission, 2.1% for net revenue per adjusted patient day and 7% for overall acute care revenues. Same-facility SWB as a percentage of net revenues declined slightly from 39.8% to 39.4%.
Year-over-year growth was more steady, though less substantial, within the behavioral health segment. For the quarter and on a same-facility basis, adjusted admissions rose 2.5% and adjusted patient days increased 2.1%. Net revenue per adjusted admission rose by1.7%, net revenue per adjusted patient day by 2.1% and overall net revenues by 4%. Same-facility SWB as a percentage of net revenues rose from 54.6% to 55.6%.
Over nine months and on a same-facility basis, UHS reported year-over-year growth of 1.4% for adjusted admissions, 1.7% for adjusted patient days, 4.9% for revenue per adjusted admission, 4.7% for revenue per adjusted patient day and 6.2% for overall revenue. Same-facility SWB rose from 54.1% to 54.3%.
UHS comprises 30 inpatient acute care facilities, 388 inpatient behavioral health facilities, 169 outpatient facilities and, as of the close of August’s $835 million Talkspace acquisition, a virtual behavioral health services platform. It reported $17.4 billion in revenues across 2025.
Executives will be providing commentary on the quarter’s operating performance in a Wednesday morning earnings call.