UHS Q3 Beats Estimates; Adds $35M Reserve Charge

Universal Health Services reported Q3 2025 adjusted EPS of $5.69 (GAAP EPS $5.86) and net revenues of $4.495 billion, beating estimates, with EBITDA net of noncontrolling interest of $684.2 million. Same-facility acute admissions rose 2% and behavioral admissions 0.5%, while net revenue per adjusted admission and per patient day increased markedly. The company raised its 2025 revenue and operating outlook, tightening revenue guidance to roughly $17.31–17.45 billion. Results reflected a $90 million pre-tax Medicaid state-directed payment covering prior-year services and a $35 million pre-tax charge to increase reserves for self-insured liabilities. The board authorized a $1.5 billion increase to the share repurchase program (bringing available authorization to $1.759 billion) and the company repurchased 1.315 million shares for about $234.3 million in the quarter. The earnings beat and upgraded outlook drove positive market reaction and year-to-date share gains, though analysts say they will watch management commentary and future estimate revisions for sustainability.