KING OF PRUSSIA, PA — Universal Health Services, Inc. (NYSE: UHS) reported a sharp rise in third-quarter earnings and raised its full-year 2025 outlook, driven by robust revenue growth across both its acute care and behavioral health segments.
Net income attributable to UHS jumped to $373.0 million, or $5.86 per diluted share, for the third quarter of 2025, up from $258.7 million, or $3.80 per diluted share, in the same quarter last year. Net revenues climbed 13.4% year over year to $4.495 billion. On an adjusted basis, net income was $362.3 million, or $5.69 per share, compared to $252.5 million, or $3.71 per share, in the prior-year period.
Earnings before interest, taxes, depreciation, and amortization (EBITDA), net of noncontrolling interests, rose to $684.2 million, up from $528.6 million a year earlier. Adjusted EBITDA increased to $670.6 million, reflecting continued margin expansion and operational strength across the portfolio.
Third-quarter results included a $90 million pre-tax reimbursement tied to a newly approved Medicaid state-directed payment program in Washington, D.C., and a $35 million pre-tax charge to bolster reserves for professional and general liability claims.
Revenue growth was broad-based. Acute care services saw net revenues rise 12.8% on a same-facility basis, supported by higher patient volumes and strong pricing. Adjusted admissions increased 2.0%, while net revenue per adjusted admission grew nearly 10% year over year. Behavioral health facilities also delivered solid gains, with net revenues up 9.3% and net revenue per adjusted admission climbing 8.8% compared to the same quarter last year.
For the first nine months of 2025, UHS reported net income of $1.043 billion, or $16.07 per diluted share, up from $809.7 million, or $11.88 per share, in the prior-year period. Year-to-date net revenues totaled $12.879 billion, up 9.9% from 2024.
Operating cash flow for the first nine months was $1.29 billion, down slightly from $1.41 billion in the prior-year period, primarily due to timing of receivables and self-insurance payments. The company ended the quarter with $965 million in available borrowing capacity under its $1.3 billion revolving credit facility.
UHS also expanded its share repurchase authorization by $1.5 billion, bringing its total capacity to $1.759 billion. During the third quarter, the company repurchased 1.315 million shares for $234.3 million at an average price of about $178 per share.
Following its strong performance, UHS raised its full-year 2025 guidance. The company now expects net revenues between $17.31 billion and $17.45 billion, adjusted EBITDA of $2.57 billion to $2.62 billion, and adjusted diluted EPS between $21.50 and $22.10—up from its previous range of $20.00 to $21.00 per share.
The revised forecast reflects stronger-than-expected operating trends, the impact of the new Medicaid program, and continued demand for behavioral health and acute care services. The company emphasized that the updated guidance excludes potential nonrecurring or nonoperational items such as asset impairments, litigation settlements, or future equity market fluctuations.
With rising revenues, strong patient demand, and disciplined cost management, Universal Health Services enters the final quarter of 2025 in its strongest financial position in recent years, poised to deliver record annual results.
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