Universal Health Services Reports Strong Financial Performance for Q3 2025 and Expands Stock Repurchase Program

Overview of Financial Results

Universal Health Services, Inc. (UHS), a leading provider of hospital and healthcare services, revealed its financial performance for the three and nine-month periods ended September 30, 2025. The reported net income attributable to the company was $373 million, translating to $5.86 per diluted share during the third quarter. This marks a significant increase from the previous year, where the figure was $258.7 million, or $3.80 per diluted share. Overall, UHS reported a 13.4% increase in net revenues, which rose to $4.495 billion in Q3 2025 compared to $3.963 billion in Q3 2024.

Year-to-Date Performance

For the first nine months of 2025, UHS reported a net income of $1.043 billion, or $16.07 per diluted share, compared to $809.7 million, or $11.88 per diluted share, for the same period in 2024. The company's net revenues for this period were $12.879 billion, up 9.9% from $11.714 billion.

Adjusted Financial Metrics

UHS also presented adjusted net income figures. The adjusted net income for Q3 2025 was $362.3 million, or $5.69 per diluted share, which reflects a similar increase from $252.5 million, or $3.71 per diluted share, in Q3 2024. This adjustment includes items such as a $90 million Medicaid reimbursement and a $35 million reserve increase for general liabilities, which were not included in the previous operating forecast.

Highlights of Acute Care Services

In terms of acute care services, UHS saw a 2.0% rise in adjusted admissions, alongside a 0.4% increase in adjusted patient days, compared to Q3 2024. The net revenue per adjusted admission was notably up by 9.8%, and by 11.5% per adjusted patient day, leading to a 12.8% rise in net revenues for this segment.

Behavioral Health Care Services

For behavioral health care services, adjusted admissions rose by 0.5%, and adjusted patient days increased 1.3% year on year. The segment also experienced a 9.3% revenue increase compared to Q3 2024, driven by higher revenue per adjusted admission (up 8.8%) and adjusted patient day (up 7.9%).

Cash Flow and Liquidity

UHS's cash flow from operating activities for the nine months ending September 30, 2025, was approximately $1.290 billion. This represents a decrease compared to $1.409 billion in the year-ago period. Nonetheless, the company maintains a strong liquidity position, with a borrowing capacity of $965 million.

Stock Repurchase Program Expansion

In a notable move, UHS's Board of Directors announced a $1.5 billion increase to its stock repurchase program. With this expansion, the total stock repurchase authority now stands at $1.759 billion. The company repurchased 1.315 million shares at a cost of $234.3 million during the third quarter of 2025, averaging around $178 per share.

Revised 2025 Operating Results Forecast

In light of the positive operational trends and financial outcomes, UHS has adjusted its full-year forecasts for 2025. The revised projections anticipate consolidated net revenues between $17.306 billion and $17.445 billion, alongside adjusted EBITDA of $2.569 billion to $2.619 billion. The adjusted earnings per diluted share is now expected to be between $21.50 and $22.10.

Conclusion

The robust financial performance showcased by Universal Health Services not only highlights its commitment to delivering quality healthcare but also represents its strategic growth plans, particularly through the expansion of its stock buyback program. UHS continues to demonstrate resilience in a competitive healthcare landscape, aiming to maintain its position as a leader in the sector.