KING OF PRUSSIA, PA — Universal Health Services, Inc. (NYSE: UHS) reported a sharp rise in net income and revenue for the second quarter of 2025, citing favorable Medicaid reimbursements and continued growth across its acute and behavioral health services. The company also raised its full-year earnings outlook following robust first-half performance.
UHS posted net income attributable to shareholders of $353.2 million for the quarter, or $5.43 per diluted share, up from $289.2 million, or $4.26 per share, during the same period in 2024. Quarterly revenue climbed 9.6% year-over-year to $4.28 billion.
Adjusted net income—excluding certain one-time items—reached $347.9 million, or $5.35 per share, compared to $292.6 million, or $4.31 per share, in Q2 of last year.
The company’s earnings benefited from $101 million in net pre-tax supplemental Medicaid reimbursements, including $58 million tied to Tennessee’s newly approved directed payment program and $43 million from other state programs. These contributions were not included in UHS’s original 2025 forecast.
However, the quarter also included a $25 million pre-tax loss related to the opening of a new 142-bed acute care hospital in Washington, D.C., which commenced operations in April. Despite the startup costs, UHS views the facility as a strategic long-term investment.
Segment Performance
In acute care services, same-facility adjusted admissions rose 2.0% while adjusted patient days increased 1.1%. Revenue per adjusted admission and patient day grew 3.8% and 4.7%, respectively, resulting in a 7.9% revenue increase for the segment.
Behavioral health services posted more modest volume gains, with adjusted admissions up 0.4% and adjusted patient days up 1.2%. However, higher pricing drove an 8.9% increase in revenue, thanks to an 8.6% rise in revenue per adjusted admission.
Strong First-Half Results and Cash Flow
For the first six months of 2025, net income attributable to UHS totaled $669.9 million, or $10.23 per share, up from $551.0 million, or $8.08 per share, a year earlier. Revenue rose 8.2% to $8.38 billion.
Adjusted EBITDA net of noncontrolling interests reached $1.24 billion in the first half, compared to $1.10 billion in 2024.
Despite strong earnings, net cash provided by operating activities declined to $909 million in the first half, down from $1.08 billion in the same period last year, due in part to unfavorable changes in receivables and tax accruals.
Stock Repurchases and Liquidity
UHS continued its share repurchase program, buying back 1.875 million shares for $331.5 million in the first half of the year. As of June 30, the company had $492.9 million remaining in its repurchase authorization and $1.08 billion in available borrowing capacity.
Revised Full-Year Forecast
Citing favorable reimbursement trends and strong operating momentum, UHS raised its 2025 financial guidance. The company now expects:
- Net revenue between $17.10 billion and $17.31 billion
- Adjusted EBITDA net of NCI between $2.46 billion and $2.54 billion (up 2.4%–4.3%)
- Adjusted EPS (diluted) between $20.00 and $21.00 (up 5.3%–8.4%)
These projections exclude non-operational items such as investment gains/losses, tax impacts, and potential future acquisitions.
With solid second-quarter earnings and an optimistic outlook for the remainder of the year, UHS appears well-positioned to maintain momentum across both its acute and behavioral health portfolios, bolstered by ongoing investments and favorable policy shifts in Medicaid funding.
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