UHS earnings fell in the third quarter of 2026 even as revenue increased, Universal Health Services said on October 27. Net income attributable to the hospital operator declined to $308.7 million from $373.0 million a year earlier, while revenue rose 5.3% to $4.733 billion.

Key Takeaways

  • Diluted earnings per share fell to $5.22 from $5.86 in the third quarter of 2025.
  • The quarter included a net $21 million pre-tax benefit from Medicaid payments and a liability reserve increase.
  • Same-facility revenue rose in both acute care and behavioral health services.

UHS earnings and revenue

The company reported third-quarter adjusted EBITDA, net of income attributable to noncontrolling interests, of $624.6 million, down from $670.6 million a year earlier. UHS said there were no adjustments applicable to its operating results in the 2026 quarter.

For the first nine months of 2026, net income attributable to UHS was $1.016 billion, compared with $1.043 billion in the same period of 2025. Revenue increased 7.7% to $13.867 billion from $12.879 billion.

Medicaid payments and liability reserves

Third-quarter results included a $47 million favorable pre-tax impact, net of related provider taxes, from increased Medicaid supplemental payments, primarily in Washington, D.C., and California. That was partly offset by a $26 million increase in reserves for self-insured professional and general liability claims. Neither item was included in the company’s July operating forecast.

UHS said the reserve increase was primarily due to a tentative settlement reached in August concerning claims in litigation involving its Cumberland Hospital subsidiary. The settlement remains subject to final release agreements and certain court approvals where necessary; its aggregate terms are confidential.

The comparable 2025 quarter included a net $55 million favorable pre-tax impact from Medicaid reimbursements and a liability reserve charge.

Patient activity and cash flow

At acute care hospitals owned in both periods, third-quarter adjusted admissions and adjusted patient days each rose 4.9% year over year. Revenue per adjusted admission and per adjusted patient day each fell 1.7%, while same-facility acute care revenue rose 4.7%.

At comparable behavioral health facilities, adjusted admissions rose 2.5% and adjusted patient days rose 2.1%. Same-facility revenue increased 4.0%.

Net cash provided by operating activities rose to $1.481 billion in the first nine months of 2026 from $1.290 billion a year earlier. UHS repurchased 1.35 million shares for approximately $242.1 million in the third quarter and had approximately $735.4 million of repurchase authorization available at September 30.

Next milestone

UHS scheduled an investor and analyst conference call for October 28, 2026.

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