10-Q · May 7, 2026
Universal Health Services (UHS) reported a strong performance for Q1 2026, with revenues at $4.495 billion, marking a 9.6% increase year-over-year. The company's diluted EPS of $5.62 exceeded estimates, reflecting…
Earnings analysis · 10-Q
UHS earnings analysis
Filed August 7, 2026 · Our reading of the company's report
The latest report
UHS delivered solid Q2 operating growth, with revenue of $4.638 billion and diluted EPS of $5.98, up 8.4% and 10.1% year over year, respectively. Operating income increased to $516.7 million, but operating margin…
Read full summary
UHS delivered solid Q2 operating growth, with revenue of $4.638 billion and diluted EPS of $5.98, up 8.4% and 10.1% year over year, respectively. Operating income increased to $516.7 million, but operating margin declined to approximately 11.1% from 11.7% in the prior-year quarter. The 10-Q introduces material execution and regulatory risks related to the approximately $835 million Talkspace acquisition and the District of Columbia physician transaction, while providing no new quantitative guidance.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $5.98
- Operating margin
- 11.1%
What stood out
-
Revenue growth accelerated
Second-quarter revenue was $4.638 billion, up approximately 3.1% from $4.5 billion in Q1 2026 and 8.4% from $4.28 billion in Q2 2025.
-
EPS increased sequentially and year over year
Diluted EPS was $5.98, versus $5.65 in Q1 2026 and $5.43 in Q2 2025, representing sequential growth of approximately 5.8% and year-over-year growth of 10.1%.
-
Operating income rose, margin contracted
Operating income increased to $516.7 million from $500.3 million in the prior-year quarter. Based on reported revenue, operating margin was approximately 11.1%, down from 11.7% in Q2 2025.
-
Significant share repurchases
UHS repurchased 1,890,298 shares for an aggregate purchase price of approximately $320.3 million during Q2 2026, at an average price of $169.43 per share.
-
Talkspace acquisition advances
UHS agreed to acquire Talkspace for $5.25 per share, or approximately $835 million in aggregate. Talkspace has approximately 6,000 licensed professionals serving all 50 states, Washington, D.C., and Puerto Rico, and closing is expected during Q3 2026.
-
Quarterly dividend maintained
The company declared and paid a quarterly dividend of $0.20 per share during the quarter ended June 30, 2026.
What to watch
-
Talkspace execution and financing risk
The approximately $835 million Talkspace acquisition is subject to regulatory approvals and customary closing conditions, with closing expected in Q3 2026. The filing identifies integration, financing, provider retention and synergy-realization risks.
-
District Hospitals regulatory review
The District of Columbia Office of the Attorney General is reviewing the physician-management transaction involving George Washington University Hospital and Cedar Hill Regional Medical Center; the review is expected to be completed by the end of Q3 2026. If the transaction is rejected or materially changed, it may need to be unwound and could materially affect District Hospitals' results.
-
Physician retention pressure
The filing adds or updates physician recruitment and retention risks, noting that physicians may terminate affiliations at any time and that the loss of one or more physicians could cause a material reduction in revenue.
-
Higher capital and borrowing needs
UHS repurchased approximately $320.3 million of stock in Q2 2026 while also intending to finance the approximately $835 million Talkspace acquisition with additional borrowings under its Credit Agreement, increasing capital-allocation and leverage sensitivity.
Management's outlook
The 10-Q does not provide new quantitative revenue or EPS guidance. The prior 8-K disclosed FY2026 revenue guidance of $18.501 billion-$18.762 billion and adjusted diluted EPS guidance of $22.28-$23.65, but no updated outlook was included in this filing.
Earlier filings 4
10-K · February 25, 2026
Universal Health Services (UHS) emphasizes growth through selective acquisitions, expansion of outpatient services and operational improvements while operating 375 inpatient and 168 outpatient/other facilities as of…
10-Q · November 7, 2025
Universal Health Services reported Q3 2025 net revenues of $4,495,245 (thousands), up versus Q3 2024 $3,963,027 (thousands) (+~13.4% YoY), and diluted EPS attributable to UHS of $5.86 (Q3 2025) versus $3.80 (Q3 2024).…
10-Q · November 8, 2024
UHS reported Q3 net revenues of $3,963,027 (thousands), up 11.3% year-over-year from $3,562,774 and up modestly sequentially vs. Q2 2024 ($3.91B). Income from operations rose to $384,165 (thousands) and diluted EPS was…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.