Universal Health Services (UHS) Q1 2026 earnings summary

Executive summary

• Achieved 9.6% revenue growth and 16.1% adjusted EPS growth year-over-year for Q1 2026, with net income attributable to shareholders rising to $348.7 million ($5.65 per diluted share).

• EBITDA net of NCI reached $651.7 million, up from $603.9 million year-over-year, and adjusted net income was $346.5 million ($5.62 per diluted share).

• Announced and closed acquisition of Talkspace, a leading virtual behavioral health platform, expected to accelerate outpatient strategy and be accretive to earnings within 12 months post-closing.

• Maintained steady operating performance and cash flow despite challenging seasonal volume trends.

• Continued investment in technology and operational efficiency, including AI deployment in revenue cycle and clinical operations.

Financial highlights

• Net income per diluted share was $5.65; adjusted EPS was $5.62 for Q1 2026.

• Net revenues increased 9.6% year-over-year to $4.495 billion in Q1 2026.

• Cash from operating activities was $402 million, up from $360 million year-over-year.

• Capital expenditures totaled $217 million in Q1 2026.

• Repurchased 675,000 shares for $127 million; $1.3 billion buyback authorization remains.

Outlook and guidance

• Reiterated full-year 2026 financial and operating guidance set in February.

• Expects earnings ramp through the year to achieve core 5% growth target, with volume and pricing more balanced as seasonal impacts subside.

• Guidance includes $75 million pre-tax impact from health insurance exchange (HIX) declines, expected to steepen as the year progresses.

• Management highlighted risks from changes in Medicaid and Medicare funding, new legislation affecting Medicaid eligibility, and interest rate volatility.

• The company expects potential impacts from the integration of the proposed Talkspace acquisition.