NYSE: UHS UNIVERSAL HEALTH SERVICES INC 8-K

UHS cuts 2026 EPS guidance ~3% on Medicaid headwinds despite 10% Q2 earnings growth

Filed July 28, 2026 · Period ending July 27, 2026 · ~1 min read

Key Changes

high

Revised full-year 2026 adjusted EPS midpoint to $22.97 (down 2.6% from prior $23.58) and adjusted EBITDA to $2.663B (down 1.9% from $2.715B) citing operating trends and Medicaid supplemental payment changes.

Exhibit 99.1 view on EDGAR →
high

Q2 2026 EPS of $5.98 rose 10% YoY on 8.3% revenue growth to $4.638B, aided by $72M net pre-tax benefit from Florida Medicaid directed payment program adjustment.

Exhibit 99.1 view on EDGAR →
high

Exhibit 99.1 view on EDGAR →
medium

Repurchased 1.890M shares for $320.3M in Q2 2026 (avg $169/share); added $700M delayed draw term loan A facility in July 2026, potentially to refinance $700M notes maturing September 1, 2026.

Exhibit 99.1 view on EDGAR →
medium

Same-facility acute care adjusted admissions rose 2.9% in Q2 2026 with revenue per adjusted admission up 3.0%; behavioral health adjusted admissions rose 0.5% with revenue per adjusted admission up 7.1%.

Exhibit 99.1 view on EDGAR →

Summary

UHS reported solid Q2 2026 results—EPS of $5.98 rose 10% year-over-year and revenue grew 8.3% to $4.638 billion—but simultaneously cut full-year 2026 guidance by roughly 2-3%. The revised adjusted EPS midpoint of $22.97 is down 2.6% from the original $23.58, and the adjusted EBITDA midpoint fell 1.9% to $2.663 billion.

Management cited operating trends and changes in Medicaid supplemental payment programs as drivers of the downward revision. Notably, the revised forecast excludes incremental Florida Medicaid directed payment benefits beyond Q2 2026 because CMS has not yet approved the increased program size for periods after September 30, 2025.

The Q2 results themselves benefited from a $72 million net pre-tax gain tied to a Florida Medicaid directed payment program adjustment. For retail holders, the guidance cut signals near-term headwinds despite the strong Q2 print. The company's reliance on Medicaid supplemental payments introduces regulatory uncertainty, and the exclusion of potential future Florida benefits from the forecast reflects management's caution. Same-facility metrics showed healthy acute care volume growth (adjusted admissions up 2.9%) and strong behavioral health pricing (revenue per adjusted admission up 7.1%), but these positives were insufficient to offset the Medicaid reimbursement pressures. UHS continues to return capital via buybacks ($320.3 million in Q2 2026) and has secured a $700 million delayed draw term loan to manage upcoming debt maturities. Watch for CMS's decision on the Florida Medicaid program size and any further commentary on Medicaid reimbursement trends in subsequent quarters.

Section-by-Section Diff

Event · Exhibit 99.1

~11,000 words View exhibit on EDGAR ↗

4 Added

Added Q2 2026 earnings and revenue high

Added in current filing · view on EDGAR →

net income attributable to UHS was $358.4 million, or $5.98 per diluted share, during the second quarter of 2026, as compared to $353.2 million, or $5.43 per diluted share, during the second quarter of 2025. Net revenues increased by 8.3% to $4.638 billion during the second quarter of 2026, as compared to $4.284 billion during the second quarter of 2025.

UHS reported Q2 2026 net income of $358.4 million ($5.98 per diluted share), up 10% per share from Q2 2025 ($5.43 per share). Net revenues grew 8.3% to $4.638 billion. Results included a favorable $72 million net pre-tax impact from a Florida Medicaid directed payment program adjustment ($100 million gain, offset by a $28 million increase to self-insurance reserves).

Added H1 2026 earnings and revenue high

Added in current filing · view on EDGAR →

Reported net income attributable to UHS was $707.1 million, or $11.63 per diluted share, during the first six months of 2026, as compared to $669.9 million, or $10.23 per diluted share, during the comparable period of 2025. Net revenues increased by 8.9% to $9.133 billion during the first six months of 2026, as compared to $8.384 billion during the comparable period of 2025.

For the first six months of 2026, UHS reported net income of $707.1 million ($11.63 per diluted share), up 14% per share from H1 2025 ($10.23 per share). Net revenues increased 8.9% to $9.133 billion. Adjusted EBITDA net of NCI was $1.326 billion (14.5% margin) versus $1.241 billion (14.8% margin) in the prior year.

Added Same-facility operating metrics medium

Added in current filing · view on EDGAR →

During the second quarter of 2026, at our acute care hospitals owned during both periods (“same facility basis”), adjusted admissions (adjusted for outpatient activity) increased by 2.9% and adjusted patient days increased by 3.1%, as compared to the second quarter of 2025. At these facilities, during the second quarter of 2026, net revenue per adjusted admission increased by 3.0% while net revenue per adjusted patient day increased by 2.8%, as compared to the second quarter of 2025. ... During the second quarter of 2026, at our behavioral health care facilities on a same facility basis, adjusted admissions increased by 0.5% while adjusted patient days increased by 1.4%, as compared to the second quarter of 2025. At these facilities, during the second quarter of 2026, net revenue per adjusted admission increased by 7.1% and net revenue per adjusted patient day increased by 6.1%, as compared to the second quarter of 2025.

On a same-facility basis in Q2 2026, acute care adjusted admissions rose 2.9% and adjusted patient days rose 3.1%, with revenue per adjusted admission up 3.0% and revenue per adjusted patient day up 2.8%. Behavioral health adjusted admissions rose 0.5% and adjusted patient days rose 1.4%, with revenue per adjusted admission up 7.1% and revenue per adjusted patient day up 6.1%. These metrics reflect solid volume growth in acute care and strong pricing gains in behavioral health.

Added Share repurchases and credit facility amendment medium

Added in current filing · view on EDGAR → · paraphrased

Pursuant to this program, during the second quarter of 2026, we have repurchased 1.890 million shares at an aggregate cost of approximately $320.3 million (average price of approximately $169 per share). During the first six months of 2026, we have repurchased 2.565 million shares at an aggregate cost of approximately $447.5 million (average price of approximately $174 per share). In July, 2026, and as previously disclosed on Form 8-K as filed with the Securities and Exchange Commission on July 21, 2026, we amended our credit agreement to add a new $700 million delayed draw term loan A which, if we elect to utilize, would be funded on or prior to September 30, 2026, with a maturity date 364 days after the initial funding. Potential future borrowings pursuant to this facility would be used for general corporate purposes, including, should we elect, repayment at maturity of our $700 million, 1.650% Senior Secured Notes due on September 1, 2026.

UHS repurchased 1.890 million shares for $320.3 million in Q2 2026 (average $169 per share) and 2.565 million shares for $447.5 million in H1 2026 (average $174 per share). In July 2026, the company amended its credit agreement to add a $700 million delayed draw term loan A, available through September 30, 2026, with a 364-day maturity. The facility may be used for general corporate purposes, including potential repayment of $700 million Senior Secured Notes maturing September 1, 2026.