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- **Record Q3 Performance:** 13.4% revenue growth and $5.69 EPS (53% YoY increase) driven by Medicaid programs and new hospital openings.
- **$1.3B Medicaid Benefits:** DC program contributed $90M, with Florida/Nevada programs adding $75-80M annually if approved.
- **Breakeven Cedar Hill:** New DC hospital expected to reach profitability by year-end, offsetting $50M prior-year drag.
- **Outpatient Expansion:** 34 FEDs and 10 new behavioral health programs support 2-3% volume growth targets.
- **Share Buybacks:** $566M spent year-to-date, with $1.5B new authorization to leverage $965M available liquidity.

**【CEO Summary Section】**
- UHS reported adjusted net income of $5.69 per share for Q3 2025, a 53% increase from Q3 2024, driven by 13.4% year-over-year revenue growth.
- The DC supplemental Medicaid program contributed $90 million in net benefits, with $73 million allocated to acute care and $17 million to behavioral health.
- New hospital openings (Cedar Hill Regional Medical Center and West Henderson Hospital) are performing well, with Cedar Hill expected to reach breakeven by Q4 2025.
- Outpatient strategy expansion includes 34 freestanding emergency departments (FEDs) and 10 new step-in behavioral health programs.
- 2025 adjusted EPS guidance midpoint increased to $21.80 from $20.50, reflecting $1.3 billion in projected Medicaid program benefits.

**【CFO Financial Commentary】**
- Q3 2025 net income attributable to UHS was $5.86 per diluted share, with adjusted EPS of $5.69 after excluding one-time items.
- Acute care same-facility EBITDA margin improved 190 basis points to 15.8%, driven by 12.8% revenue growth and 4.0% operating expense control.
- Behavioral health same-facility EBITDA increased 7.6%, with 9.3% revenue growth and 1.3% adjusted patient day growth.
- Cash flow from operations reached $1.3 billion year-to-date, supporting $566 million in share buybacks and a new $1.5 billion stock repurchase authorization.
- Capital expenditures of $734 million included investments in the Florida and California hospital projects.

**【Q&A Key Highlights】**
- **Medicaid Supplements:** Florida and Nevada programs could add $75-80 million annually, pending CMS approval. Total 2025 Medicaid benefits projected at $1.3 billion.
- **Exchange Volume Impact:** 6-6.5% of acute admissions are exchange patients, with potential $50-100 million annual impact if subsidies expire.
- **Behavioral Health Growth:** Target 2-3% adjusted patient day growth, supported by 100 outpatient access points and 1,000 branches wellness brand expansion.
- **Surgical Trends:** Outpatient surgical volumes improved in Q3, with case mix contributing 30 basis points to revenue growth.
- **Capital Allocation:** Prioritize share buybacks (36% of shares repurchased since 2019) over M&A, with $965 million available under revolving credit facility.

Universal Health Services, Inc. (UHS) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

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Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

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Net Income from Continuing Operations

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Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

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Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

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Diluted EPS from Discontinued Operations

UHS

UHS fundamentals

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