Universal Health Services, Inc. (UHS) AI Stock Analysis

Universal Health Services, Inc., and its subsidiaries own and manage a network of acute care hospitals, outpatient facilities, and behavioral health centers. The company operates through two primary segments: Acute Care Hospital Services and Behavioral Health Care Services. These facilities provide medical services such as general and specialized surgeries, internal medicine, obstetrics, emergency care, radiology, oncology, pediatric care, pharmacy services, and behavioral health treatments. As of February 24, 2022, the company owned and operated 363 inpatient facilities and 40 outpatient centers across 39 states, Washington, D.C., the United Kingdom, and Puerto Rico. It also offers commercial health insurance and centralized management services.

Universal Health Services grew revenue from $12.64B in FY2021 to $17.36B in FY2025, posting a five-year compound annual growth rate of 8.5%. Annual net income expanded from $991.6M in FY2021 to $1.49B in FY2025, while diluted earnings per share increased from $11.82 to $21.76 over the same period. Operating margin improved from 10.8% in FY2021 to 11.5% in FY2025, alongside a gross margin of 90.4%. For the trailing twelve months ending June 30, 2026, revenue stood at $18.11B with an operating margin of 11.1%. In the latest quarter, quarterly revenue grew 8.3% year-over-year, while quarterly earnings increased 10.1%.

As of June 30, 2026, the company held $138.8M in cash and short-term investments against $5.26B in total debt, resulting in net debt of $5.12B. Shareholders' equity was $7.51B, and total assets stood at $15.94B, giving a debt-to-equity ratio of 0.70 and a current ratio of 1.12. In FY2025, operating cash flow reached $1.86B and free cash flow was $849.2M. Capital expenditures absorbed $1.02B, while cash return to shareholders included $968.0M in share buybacks and $51.3M in dividends paid.

UHS trades at a trailing price-to-earnings ratio of 7.6x and a forward price-to-earnings ratio of 7.3x, compared to medians of 28.9x and 16.6x for its S&P 500 Healthcare peers. Its enterprise value to EBITDA ratio is 5.6x, below the peer group median of 15.7x, while its price-to-sales multiple is 0.6x versus the peer median of 3.4x. Over the past year, UHS shares declined 9.0%, while the S&P 500 returned 16.8%. Over a five-year period, the stock gained 42.8%, trailing the 83.0% return of the S&P 500.

Universal Health Services pays a quarterly dividend with an annualized forward payout of $0.80 per share, yielding 0.43%. The company has paid dividends for 24 consecutive years, with a five-year annualized dividend growth rate of 32.0%. Supported by an earnings payout ratio of 3.5%, its most recent ex-dividend date was September 1, 2026.

Wall Street coverage includes 6 Strong Buy, 1 Buy, 12 Hold, and 1 Sell ratings. The mean price target is $196.12, representing 6.0% upside compared to the last close of $185.10. For the fiscal year ending December 31, 2026, consensus estimates project revenue of $18.60B and earnings per share of $22.56. The company beat earnings estimates in 3 of the last 4 quarters, and its next earnings date is October 27, 2026.

This page is an AI-written research summary of Universal Health Services, Inc. (UHS). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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