KING OF PRUSSIA, PA — Universal Health Services Inc. (NYSE: UHS) lowered the midpoint of its 2026 profit outlook despite higher second-quarter revenue and earnings, as the hospital operator incorporated changing Medicaid reimbursements and first-half operating trends into its forecast.
The revised midpoint for adjusted earnings per diluted share is 2.6% below the company’s original forecast, while the midpoint for adjusted EBITDA excluding noncontrolling interests is 1.9% lower. The midpoint of projected revenue increased 0.2%.
UHS did not provide the revised dollar ranges in the supplied information.
Second-quarter net income attributable to UHS increased to $358.4 million, or $5.98 per diluted share, from $353.2 million, or $5.43 per share, a year earlier.
Revenue rose 8.3% to $4.64 billion from $4.28 billion. Adjusted EBITDA excluding noncontrolling interests increased to $677.9 million from $642.9 million.
The quarter included a net pretax benefit of about $72 million. That reflected $100 million tied to Florida’s Medicaid managed-care directed-payment program, partially offset by a $28 million increase in reserves for self-insured professional and general liability claims.
The Florida payment applied to the period from Oct. 1, 2024, through Sept. 30, 2025. The Centers for Medicare & Medicaid Services has not approved the larger program for later periods, and UHS excluded any additional benefit beyond amounts already recorded from its revised outlook.
Prior-year comparisons also included significant supplemental payments. UHS recorded about $101 million in incremental Medicaid reimbursements during the second quarter of 2025, along with a roughly $25 million loss tied to a newly opened 142-bed hospital in Washington, D.C.
For the first six months of 2026, net income rose to $707.1 million, or $11.63 per diluted share, from $669.9 million, or $10.23 per share. Revenue increased 8.9% to $9.13 billion.
Adjusted first-half net income was $705 million, or $11.60 per diluted share, compared with $667.4 million, or $10.19 per share, a year earlier.
Acute-care revenue at facilities owned during both periods increased 8.2% in the quarter. Adjusted admissions rose 2.9%, adjusted patient days increased 3.1% and revenue per adjusted admission climbed 3%.
Same-facility behavioral health revenue advanced 7.4%. Adjusted admissions increased 0.5%, while revenue per adjusted admission rose 7.1%.
The operating figures indicate that pricing and reimbursement gains contributed more to behavioral health growth than patient volume.
Operating cash flow declined to $845 million during the first half from $909 million a year earlier. UHS attributed the decrease primarily to working-capital movements and the timing of accounts-payable disbursements.
The company had $1.27 billion available under its $1.5 billion revolving credit facility as of June 30, excluding $225 million in outstanding borrowings and letters of credit.
UHS also had access to a $400 million delayed-draw term loan expected to fund its planned acquisition of Talkspace Inc., which the company anticipates closing during the third quarter.
In July, UHS added another $700 million delayed-draw facility that could be used for general corporate purposes, including repayment of $700 million in senior secured notes due Sept. 1.
The company repurchased 1.89 million shares for $320.3 million during the quarter, at an average price of about $169. First-half repurchases totaled $447.5 million, leaving approximately $977.6 million under the authorization.
UHS continues to expect between $950 million and $1.1 billion in 2026 capital expenditures for equipment, new facilities, renovations and hospital expansions.
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