Universal Health 2025 Q3 Earnings Net Income Surges 42.6% on Strong Revenue Growth

Universal Health (UHS) delivered robust Q3 2025 results, exceeding expectations with 13.4% revenue growth and a 42.6% net income increase. The company raised its full-year 2025 guidance following the new Medicaid program approval and share buyback expansion.

Revenue

Universal Health’s total revenue surged 13.4% year-over-year to $4.50 billion in Q3 2025. Acute Care Hospital Services remained the largest contributor, generating $2.63 billion, while Behavioral Health Services added $1.86 billion. Smaller segments, including Other services, accounted for $4.92 million. The performance reflects strong demand across core healthcare segments.

Earnings/Net Income

The company’s net income soared 42.6% to $379.11 million, with EPS rising 52.2% to $5.92. This marks continued earnings growth and underscores UHS’s ability to maintain profitability for over two decades. The EPS increase aligns with operational efficiency and strategic market positioning.

Price Action

Universal Health’s stock gained 0.95% in the latest trading day, 5.63% for the week, and 11.71% month-to-date.

Post-Earnings Price Action Review

The stock’s upward trajectory post-earnings reflects investor confidence in UHS’s improved guidance and operational resilience. A 34% rally over three months highlights market optimism, though the one-year total shareholder return of 12% suggests the recent gains remain within a broader consolidation phase. The 11.71% monthly gain indicates short-term momentum, aligning with the company’s strong financial performance.

Additional News

Universal Health expanded its share buyback program and raised 2025 guidance following Q3 results, citing a new Medicaid program approval as a key driver. Analysts estimate the stock is 6.6% undervalued, with a fair value target of $243.94. The company’s strategic focus on behavioral health and hospital expansions underpins growth expectations, though regulatory and staffing challenges remain critical risks.