Universal Health Services Q2 2025 Earnings Preview: Revenue Expected to Rise 8.4% Y/Y

Universal Health Services (UHS) is set to announce Q2 2025 earnings results on July 28th. The consensus EPS estimate is $4.94 (+14.6% Y/Y), and the consensus revenue estimate is $4.24B (+8.4% Y/Y). Over the last 2 years, UHS has seen a 14.6% increase in EPS and an 8.4% increase in revenue.

Universal Health Services, Inc. (UHS) is poised to release its second-quarter 2025 earnings results on July 28th, following the closing bell. Analysts anticipate an earnings per share (EPS) of $4.94, representing a year-over-year (YoY) increase of 14.6%, and revenues of $4.24 billion, up 8.4% YoY [1].

Over the past two years, UHS has experienced a 14.6% increase in EPS and an 8.4% rise in revenue, showcasing steady growth. The company's second-quarter earnings estimates have been revised downward in recent days, with the Zacks Consensus Estimate for the quarter's earnings currently set at $4.85 per share [1].

The expected revenue growth of 8.2% YoY is attributed to strong contributions from the Acute Care Hospital Services and Behavioral Health Care Services segments. The Acute Care Hospital Services unit is projected to benefit from increased adjusted admissions and higher revenue per adjusted admission, while the Behavioral Health Care Services segment is expected to be supported by sustained demand for mental health services [1].

However, UHS's margins may face pressure from rising total expenses, particularly due to higher salaries, wages, and benefits, as well as increased costs for supplies. The company anticipates salaries, wages, and benefits to increase by 6.4% YoY and supply expenses to escalate by nearly 6.7% [1].

Analysts have mixed expectations for UHS's performance. The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. However, UHS has missed Wall Street's revenue estimates twice over the last two years [2, 3].

Peers in the healthcare providers & services segment have provided mixed signals. Tenet Healthcare delivered year-on-year revenue growth of 3.3%, beating analysts' expectations by 2.3%, while HCA Healthcare reported revenues up 6.4%, topping estimates by 0.7% [2, 3]. Investors in the healthcare providers & services segment have had steady hands going into earnings, with share prices flat over the last month. UHS is down 10.9% during the same time and is heading into earnings with an average analyst price target of $224.38 (compared to the current share price of $158.71) [2, 3].

References:
[1] https://finance.yahoo.com/news/universal-health-report-q2-earnings-140100276.html
[2] https://www.tradingview.com/news/stockstory:be76569e3094b:0-earnings-to-watch-universal-health-services-uhs-reports-q2-results-tomorrow/
[3] https://finance.yahoo.com/news/earnings-watch-universal-health-services-030235950.html