Universal Health Services Q2 Earnings Beat, Raises 2025 Guidance Amid Behavioral Health Concerns.

Universal Health Services (UHS) reported Q2 adjusted earnings of $5.35 per share, beating the consensus of $4.92. The company's sales of $4.28 billion increased 9.6% YoY, also exceeding expectations. However, concerns over the behavioral segment's performance overshadowed the results, with some analysts citing underperformance and ongoing challenges in patient volumes. UHS raised its FY25 adjusted earnings guidance to $20.00-$21.00 per share and narrowed its sales guidance to $17.09 billion-$17.31 billion.

Universal Health Services (UHS) reported its second-quarter 2025 earnings, with adjusted earnings per share (EPS) of $5.35, surpassing the Zacks Consensus Estimate of $4.92 by 8.4%. The company's net revenues increased 9.6% year over year to nearly $4.3 billion, exceeding analyst expectations by 1.5% [1].

The strong quarterly results were driven by continued growth in admissions at its acute care facilities and behavioral health care services. Adjusted admissions in acute care facilities rose 2%, while adjusted patient days grew 1.1%. Net revenues from acute care services advanced 7.9% on a same-facility basis. Similarly, adjusted admissions in the behavioral health care services segment increased 0.4%, with adjusted patient days rising 1.2%. Net revenues from behavioral healthcare services increased 8.9% on a same-facility basis [1].

However, the company's performance was partly offset by higher expenses. Total operating costs escalated 9% year over year to $3.8 billion, primarily due to higher salaries, wages, and benefits, supplies, and other operating expenses [1].

UHS raised its full-year 2025 adjusted earnings guidance to $20.00-$21.00 per share, up from the previous estimate of $18.45-$19.95. The company also narrowed its sales guidance to $17.09 billion-$17.31 billion, compared to the earlier range of $17.020-$17.364 billion [1].

Despite the positive results, concerns over the behavioral segment's performance overshadowed the earnings report. Some analysts cited underperformance and ongoing challenges in patient volumes in the behavioral health segment [2].

References:
[1] https://finance.yahoo.com/news/universal-health-q2-earnings-beat-153000163.html
[2] https://finance.yahoo.com/news/universal-health-services-nyse-uhs-214021384.html