Universal Health Services Lowers Full-Year Forecast Despite Revenue Growth
The healthcare provider reported net revenues of $4.638 billion for the second quarter.
Universal Health Services (UHS) reported second-quarter net revenues of $4.638 billion, an 8.3% increase from the $4.284 billion recorded in the same period last year.
The healthcare provider saw growth across its primary business lines, though the results were tempered by a downward revision of its full-year financial outlook. The company decreased the midpoint of its 2026 forecasted adjusted EBITDA net of non-controlling interests by 1.9% and the midpoint of its adjusted diluted earnings per share by 2.6% compared to guidance issued on February 25, 2026.
Adjusted EBITDA net of non-controlling interests rose to $677.9 million from $642.9 million in the prior-year quarter. However, the adjusted EBITDA margin net of non-controlling interests compressed to 14.6% from 15.0%.
Revenue growth was driven by both of the company's core segments. Same-facility revenue for the three months ended June 30, 2026, rose 8.2% for Acute Care Services and 7.4% for Behavioral Health Care Services.
Quarterly results included a $100 million favorable net pre-tax impact from the Florida Medicaid managed care directed payment program. This gain was partially offset by a $28 million unfavorable pre-tax impact resulting from increased reserves for self-insured professional and general liability claims.
Cash flow and collections showed signs of pressure. Net cash provided by operating activities for the first six months of 2026 fell to $845 million, down $64 million from the $909 million reported in the first half of 2025. Days Sales Outstanding increased to 56 in the second quarter from 50 in the corresponding quarter last year.
Universal Health Services is expanding its balance sheet and footprint. The company announced a new $700 million delayed draw term loan A in July 2026 for general corporate purposes, including the potential repayment of $700 million in Senior Secured Notes due September 1, 2026. Additionally, the company is pending the acquisition of Talkspace, Inc., which is expected to close in the third quarter of 2026 and is supported by a $400 million delayed draw term loan A.