Universal Health's Q3 profit beats estimates boosted by Medicaid reimbursements

Universal Health Services

27/10/2025 20:27

Overview

Universal Health Q3 revenue grows 13.4% yr/yr, beating analyst expectations

Adjusted EPS for Q3 beats analyst expectations, reflecting strong performance

Company increases stock repurchase program by $1.5 bln

Outlook

Universal Health raises 2025 net revenue forecast to $17.306 bln-$17.445 bln

Company increases 2025 adjusted EBITDA forecast to $2.569 bln-$2.619 bln

Universal Health raises 2025 adjusted EPS forecast to $21.50-$22.10

Result Drivers

ACUTE CARE REVENUE - Net revenue per adjusted admission and per adjusted patient day increased significantly, driving revenue growth in acute care services

MEDICAID REIMBURSEMENT - $90 mln pre-tax reimbursements from Medicaid program in Washington, D.C., boosted net income

LIABILITY RESERVES - Increased reserves for self-insured liabilities due to unfavorable claims trends impacted results

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Beat
$4.49 bln
$4.34 bln (14 Analysts)
Q3 Adjusted EPS
Beat
$5.69
$4.79 (16 Analysts)
Q3 EPS
$5.86
Q3 Adjusted Net Income
Beat
$362.30 mln
$308.54 mln (9 Analysts)

Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 8 "strong buy" or "buy", 13 "hold" and 1 "sell" or "strong sell"

The average consensus recommendation for the healthcare facilities & services peer group is "buy."

Wall Street's median 12-month price target for Universal Health Services Inc is $221.24, about 4.8% above its October 24 closing price of $210.68

The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 9 three months ago

Press Release: ID:nPn2LSGjxa

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)