Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
UHS's fiscal second quarter 2026 results were driven by strong same-facility volume growth across both acute care and behavioral health services, as inflationary pressures on labor costs continued to moderate. However, management flagged that the One Big Beautiful Bill Act and the expiration of enhanced premium tax credits are expected to reduce annual net benefits by approximately $500 million by 2032, presenting a significant long-term headwind. The company's balance sheet also revealed a 42% surge in current liabilities, partly reflecting elevated share buybacks and near-term debt obligations, while the planned $835 million acquisition of Talkspace aims to expand its virtual behavioral health capabilities.
Revenue
$4.64B
+8.27% YoY
EPS (Diluted)
$5.98
+10.13% YoY
Operating Income
$516.67M
+3.28% YoY
Source: SEC XBRL
Universal Health Services (UHS) reported Q2 FY2026 revenue of $4.64B, up 8.3% year over year. Operating margin was 11.1%, down 0.6 points from 11.7% a year earlier. UHS's fiscal Q2 FY2026 corresponds to calendar Q2 2026.
Last 4 quarters: 2 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026This filing | 5.98 | 6.02 | Miss -0.6% |
| Mar 2026 | 5.62 | 5.46 | Beat +2.9% |
| Dec 2025 | 5.88 | 5.96 | Miss -1.3% |
| Sep 2025 | 5.69 | 4.88 | Beat +16.5% |
Reported EPS of $5.98 versus the $6.02 analyst consensus — a -0.6% miss for Jun 2026.
2 reported segments · SEC XBRL
Segment revenue totals $4.64B; with $2.95M of reconciling items (corporate, unallocated and eliminations) it ties to the $4.64B of consolidated revenue on the income statement.
Compiled by AI from 10-Q Item 2 of this filing
Management estimates the One Big Beautiful Bill Act will reduce aggregate annual net benefit by approximately $500 million by 2032, as provider fee thresholds are lowered and exchange subsidies have expired, increasing uncompensated care.
Source: 10-Q Item 2 MD&A
UHS announced a definitive agreement to acquire Talkspace for $835 million; stockholder approval was obtained in Q2 2026, and the transaction is expected to close in Q3 2026, subject to regulatory approvals.
Source: 10-Q Item 2 MD&A
Income before income taxes increased only $6 million (1%), as a $15 million improvement in behavioral health was largely offset by a $1 million decline in acute care and an $8 million other net decrease.
Source: 10-Q Item 2 MD&A
Effective June 1, 2026, California implemented staffing standards for acute psychiatric hospitals, which has increased costs and may limit patient volumes at UHS's California facilities.
Source: 10-Q Item 2 MD&A
The company's $700 million 1.65% senior notes mature on September 1, 2026; refinancing at significantly higher rates will materially increase interest expense.
Source: 10-Q Item 2 MD&A
Compiled by AI from this SEC filing · 4 high, 1 medium, 0 low
The planned $835 million acquisition of Talkspace is subject to numerous uncertainties, including regulatory approvals, integration challenges, retention of key providers, and potential disruption to both companies' operations. Failure to close or realize expected benefits could materially adversely affect UHS.
Source: 10-Q Item 1A Risk Factors
The success of UHS's hospitals depends on physician relationships. The transition of physicians at the District Hospitals to a new entity (CMG) faces review by the D.C. Office of the Attorney General, and if not approved or if benefits are not realized, it could materially adversely impact the District Hospitals and consolidated results.
Source: 10-Q Item 1A Risk Factors
The One Big Beautiful Bill Act imposes work requirements and limits on provider fees, expected to reduce UHS's annual net benefit by approximately $500 million by 2032. Expiration of enhanced premium tax credits has already increased uncompensated care, and further legislative or regulatory changes could materially reduce revenues.
Source: 10-Q Item 2 MD&A
UHS has $700 million of 1.65% senior notes maturing in September 2026; refinancing at higher prevailing rates will significantly increase interest expense, reducing net income and free cash flow. Further rate increases could exacerbate this pressure.
Source: 10-Q Item 2 MD&A
The healthcare industry is labor intensive, and UHS faces ongoing wage inflation and staffing shortages. The new California staffing standards for acute psychiatric hospitals, effective June 2026, have already increased costs and may force the company to limit patient volumes at those facilities.
Source: 10-Q Item 2 MD&A
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 4.64 $B | 4.28 $B | +8.27% |
Operating Income $M | 516.68 $M | 500.27 $M | +3.28% |
Net Income $M | 358.45 $M | 353.22 $M | +1.48% |
EPS (Basic) $ | 6.01 $ | 5.49 $ | +9.47% |
EPS (Diluted) $ | 5.98 $ | 5.43 $ | +10.13% |
Answers draw on this SEC filing and the data on this page
Expected release date, analyst estimates & what to watch
UHS delivered strong Q1 FY2026 results with revenue rising 9.6% YoY to $4.50B and net income growing 10.1% to $348.7M, driven by solid operational performance across its hospital segments.
UHS delivered strong FY2025 results with revenue rising 9.7% to $17.4B and net income surging 30.4% to $1.49B, driven by improved operating leverage and margin expansion across its hospital operations.
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