Universal Health (UHS) Q3 2026 Earnings Report
MX:UHS Q3 2026 EPS Results
- Actual EPS
- MXN 97.42
- Consensus EPS
- MXN 96.90
- Beat/Miss
- Beat by +MXN 0.52
- One Year Ago EPS
- MXN 106.19
MX:UHS Q3 2026 Revenue Results
- Actual Revenue
- MXN 88.34B
- Expected Revenue
- MXN 87.89B
- Beat/Miss
- Beat by +MXN 444.84M
- YoY Revenue Growth
- +5.30%
Earnings Announcement Details
- Quarter
- Q3 2026
- Date
- 10/27/2026
- Time
- After Close
- Conference Call
- Tuesday, October 27, 2026
Universal Health's next earnings date is estimated for March 3, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
Q3 2026 Earnings Slide Deck
No slide deck is available for this earnings event.
Q3 2026 Earnings Call Summary
The call reflected a mixed but cautiously constructive outlook. UHS reported solid acute care admissions, emergency department visits, behavioral health volumes, cash flow, labor trends, and strategic progress in outpatient access and Talkspace integration. However, these positives were offset by lower adjusted EPS and EBITDA, slower de novo hospital ramps, a decline in surgical volumes, Laurel Ridge losses, exchange-related pressure, and substantial expected Medicaid supplemental payment headwinds. Management reiterated guidance but expects 2026 results toward the lower end of the ranges, making the overall tone balanced.
UHS reiterated its financial and operating forecast ranges issued with its second quarter results in July and currently expects results to be towards the lower end of these ranges; it expects Cedar Hill Regional Medical Center to reach operational break even in the first half of 2027, Laurel Ridge Treatment Center recertification during 2027, and facilities incurring operating losses during 2026 of $80 million-$100 million to recover at least a meaningful portion of those losses in 2027. The company estimates a 2027 Medicaid supplemental payments headwind of approximately $175 million-$200 million, including approximately $10 million during the fourth quarter 2027 from the initial provider tax portion of the OB3 funding cuts, while annualizing the second half 2026 exchange run rate would create a $15 million headwind in 2027; it has no estimate for Medicaid work requirements. UHS expects capital expenditures to be slightly below $1 billion for the full-year of 2026 and to moderate towards $800 million beyond 2026, with its acute care growth algorithm at 1.5%-2.5% adjusted admission growth and 2%-3% pricing growth and its behavioral health algorithm at 1%-2% adjusted patient day growth and 2%-3% pricing; Talkspace synergies are expected over the first 12-24 months of ownership, with the transaction expected to be slightly accretive in the first 12 months.
- Sequential Operating ImprovementUnderlying third-quarter performance reflected sequential improvement in several areas: acute care demand remained strong, behavioral health volumes increased relative to recent quarters, labor trends continued to moderate, and expense management remained disciplined.
- Acute Care Admissions and Emergency Department GrowthSame-facility adjusted admissions increased 4.9% year over year, while acute care emergency department visits increased 4.6%. Volume performance was broad-based geographically and benefited from capacity additions at three hospitals during the second quarter of 2026.
- Acute Care Revenue GrowthAcute care same-facility net revenue increased 4.7% in the third quarter, or 3.1% excluding the health plan. After adjusting for out-of-period Medicaid supplemental benefits, the exchange-to-uninsured volume shift, and the higher inpatient medical versus surgical mix, estimated acute care rate growth was approximately 3%.
- Acute Care Expense ManagementAcute care salaries, wages, and benefits expense per adjusted admission increased 2.1%, while supply expense per adjusted admission decreased 2.3% compared with the third quarter of 2025. Operating expenses were described as well managed across labor, supply, and other categories.
- Underlying Acute Care EBITDA ImprovementAlthough reported acute care segment EBITDA declined 4.5%, acute care segment EBITDA increased 2.9% when excluding the out-of-period supplemental program benefit from both periods.
- Behavioral Health Revenue and Volume GrowthBehavioral health same-facility net revenue increased 4.0%, supported by a 2.1% increase in same-facility revenue per adjusted patient day and a 2.1% increase in same-facility adjusted patient days. Volumes improved modestly compared with recent quarters, reflecting steady demand and greater emphasis on outpatient levels of care.
- Strength in Key Acute Care Service LinesThe company reported continued strength in cardiology, neurology, and urology. Medicare and Managed Medicare adjusted admissions growth was above the acute care segment average, while Medicaid, Managed Medicaid, and Managed Care volume growth excluding exchanges was positive.
- Acute Care Capacity ExpansionThe 177 acute care beds added during the second quarter are expected to continue ramping through year-end. The company also opened one freestanding emergency department in the third quarter, opened another during the fourth quarter, and expects its ambulatory development pipeline to add several outpatient access points over the coming quarters.
- Talkspace Integration ProgressUHS completed the Talkspace acquisition on August 17 and began executing the integration plan. Current workstreams include deploying technology to support transitions and continuity of care, establishing referral flows from UHS behavioral health facilities to Talkspace, and developing market-based outpatient offerings, initially emphasizing virtual intensive outpatient programs.
- Talkspace Synergy OpportunityManagement expects the Talkspace integration initiatives to support long-term benefits over the next 12-24 months. The company expects the transaction to be slightly accretive in the first 12 months of ownership, with most synergies expected to come from revenue opportunities that connect Talkspace's lower-acuity population with UHS's higher-acuity behavioral health population.
- Expansion of Outpatient Behavioral HealthUHS is expanding intensive outpatient and partial hospitalization programs, continuing the Thousand Branches outpatient initiative, and identifying further opportunities to expand outpatient services. Management said the outpatient business has been performing well and that additional expansion opportunities are on the horizon.
- Labor Trend ImprovementBehavioral health headcount growth decelerated to approximately 1.5% in the third quarter after prior investment to address staffing constraints. In acute care, temporary and traveling labor was reduced significantly, and wage inflation had declined to approximately 3%-3.5% in both segments.
- Health Plan ImprovementThe health plan generated approximately $25 million of earnings improvement in 2026, which management said it was largely tracking toward. The plan was operating at low positive single-digit margins, compared with historically low negative or low positive single-digit margins, and approximately 90% of its revenue came from Medicare Advantage.
- Strong Operating Cash Flow and Capital ReturnsThird-quarter cash generated from operating activities was $637 million, compared with $381 million in the same period last year. UHS repurchased 1.35 million shares for $242 million during the quarter, bringing year-to-date repurchases to $690 million, with $735 million of authorization remaining.
- Balance Sheet and LiquidityAs of September 30, 2026, UHS had $169 million of cash, $5.7 billion of total debt, leverage of 2.17x, and approximately $1.2 billion of additional borrowing capacity under its revolving credit facility. Management reaffirmed its commitment to maintaining leverage within its 2x-3x target range.
- Ongoing Strategic InvestmentCapital expenditures are expected to be slightly below $1 billion in 2026 and to moderate toward $800 million beyond 2026 as large de novo projects are completed. Management stated that approximately $250 million-$300 million of the future spending would be maintenance capital, with another $400 million-$550 million directed toward expansionary capital such as new capacity, beds, operating rooms, emergency rooms, robotics, and outpatient access points.
- Technology and Efficiency InitiativesUHS is developing revenue-cycle technology, including AI and other tools, undertaking a behavioral health revenue-cycle consulting effort, and developing technology to help control acute care length of stay. Management also cited payer-mix initiatives and outpatient growth as efforts intended to support the business amid future Medicaid-related changes.
- 2026 Guidance ReiteratedUHS reiterated the financial and operating forecast ranges issued with its second-quarter results in July. Management said the ranges reflect continued underlying operating improvement, balanced against the pace of de novo facility ramp-ups and other near-term variables.
- Expected 2027 Recovery OpportunitiesFacilities expected to contribute operating losses of $80 million-$100 million in 2026, including Laurel Ridge and acute care de novo hospitals, are expected to recover at least a meaningful portion of those losses in 2027 as UHS anticipates operational progress and Laurel Ridge recertification.
MX:UHS Earnings History
| Report Date | Fiscal Quarter | Forecast / EPS | Last Year's EPS | EPS YoY Change | Press Release |
|---|---|---|---|---|---|
| Mar 03, 2027 | 2026 (Q4) | 106.06- | 109.74 | ― | ― |
| Oct 27, 2026 | 2026 (Q3) | 96.9097.42 | 106.19 | -8.26% (-8.77) | |
| Jul 27, 2026 | 2026 (Q2) | 110.86111.60 | 99.85 | 11.78% (+11.76) | |
| Apr 27, 2026 | 2026 (Q1) | 100.95104.88 | 90.33 | 16.12% (+14.56) | |
| Feb 25, 2026 | 2025 (Q4) | 109.36109.74 | 91.82 | 19.51% (+17.92) | |
| Oct 27, 2025 | 2025 (Q3) | 91.04106.19 | 69.24 | 53.37% (+36.95) | |
| Jul 28, 2025 | 2025 (Q2) | 91.7699.85 | 80.44 | 24.13% (+19.41) | |
| Apr 28, 2025 | 2025 (Q1) | 81.2290.33 | 69.05 | 30.81% (+21.28) | |
| Feb 26, 2025 | 2024 (Q4) | 77.6491.82 | 58.41 | 57.19% (+33.41) | |
| Oct 24, 2024 | 2024 (Q3) | 69.3769.24 | 47.59 | 45.49% (+21.65) |
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.