Universal Health Services Posts Higher Revenue and Profit on Both the Three-Month and Six-Month Windows Year Over Year

Bottom line

Universal Health Services Posts Higher Revenue and Profit on Both the Three-Month and Six-Month Windows Year Over Year is the central takeaway from this interim disclosure. Across every reported dimension of the income statement, the three-month window showed an authorized increase versus the prior-year comparative: Revenue from Contract with Customer, Excluding Assessed Tax rose from $4,099,720,000 USD in the three months ended March 31, 2025 to $4,495,182,000 USD in the three months ended March 31, 2026; Operating Income (Loss) increased from $454,825,000 USD to $502,860,000 USD; Net Income (Loss) Attributable to Parent climbed from $316,680,000 USD to $348,682,000 USD; and Earnings Per Share, Diluted moved from $4.80 per diluted share USD/SHARES to $5.65 per diluted share USD/SHARES. Each transition retains its prior-state character — revenue remains positive, operating income remains positive, and net income to parent remains a profit rather than a loss — so the comparison is profit-to-profit on all earnings lines.

The filing's narrative frames the company as a holding company that conducts all healthcare and management operations through subsidiaries, principally UHS of Delaware, Inc., with the operations of those subsidiaries consolidated for accounting purposes. Management describes its ongoing relationship with Universal Health Realty Income Trust, under which the company serves as Advisor and accounts for its investment using the equity method. An asset purchase and sale agreement with the Trust during the first quarter is described as an Inland Valley Campus repurchase together with the transfer of the Aiken Regional Medical Center and Canyon Creek Behavioral Health real estate; the transaction is treated as a failed sale leaseback under U.S. GAAP. The narrative also references unconditional guarantees and cross-defaults on the underlying leases, and notes ongoing commitments covered in Note 6.

The reported figures all move in the same direction that the reported comparisons permit — higher revenue, operating income, net income, and diluted EPS year over year — without any line flipping between profit and loss or between positive and negative cash. The magnitude of the moves cannot be quantified here. Quarter-end equity-method exposure to the Trust and the failed sale leaseback treatment of the Aiken and Canyon Creek transfers are notable structural items a reader should carry forward, but they cannot be tied to any specific income-statement movement from the filing evidence alone.

COUNTER-EVIDENCE AND The filing evidence contains no peer or industry comparison, so any positioning of UHS against other hospital operators is unsupported — The filing evidence contains no peer or industry comparison.. The filing evidence does not disclose segment-level revenue or margin detail for the three-month window, so the acute care versus behavioral health split cannot be derived here — The filing evidence does not disclose segment-level detail for this dimension.. Causality for the year-over-year increases is not assigned in the evidence and must not be narrated in our own words — The filing evidence does not attribute this change to any single cause.. The reporting-period identity, filing form, and accession scope are captured under 10-Q, period-ended-2026-03-31, 0000352915, UNIVERSAL HEALTH SERVICES INC, UHS, and 0001193125-26-211992.

Financial performance

- Reported facts: For the three-month period covered by UNIVERSAL HEALTH SERVICES INC's 10-Q filing identified by 0001193125-26-211992, top-line results expanded on a year-over-year basis, with revenue rising to $4,495,182,000 USD from $4,099,720,000 USD in the prior-year comparative window the three months ended March 31, 2025. Operating profit climbed in tandem, with operating income for the three months ended March 31, 2026 reported at $502,860,000 USD versus $454,825,000 USD for the three months ended March 31, 2025. Net income attributable to the parent followed the same direction, reaching $348,682,000 USD against $316,680,000 USD, and diluted earnings per share lifted to $5.65 per diluted share USD/SHARES from $4.80 per diluted share USD/SHARES. - Management explanations: The filing frames the interim statements as unaudited and prepared under the same accounting policies used in the prior annual report on Form (omitted), noting only normal recurring adjustments and condensed footnote disclosures per Securities and Exchange Commission interim-reporting rules. The Company also describes a related-party transaction with Universal Health Realty Income Trust involving the purchase of the Inland Valley Campus of Southwest Healthcare System in Wildomar, California, and the transfer of the real estate assets of Aiken Regional Medical Center and Canyon Creek Behavioral Health to the Trust, accounted for as a failed sale-leaseback financing arrangement, with Note 6 carrying the related commitments and contingency detail. - Analyst inference: The authorized comparisons in this section indicate that revenue, operating income, net income, and diluted EPS each advanced in the same direction versus the prior-year quarter, preserving profit status on all three earnings lines and supporting a profit-to-profit transition on diluted earnings. Operating profit moving in line with the revenue gain suggests the period's earnings expansion tracked the top line rather than reflecting one-off or below-the-line items, although the filing evidence does not break out the contribution of acute care versus behavioral health operations. - Counter-evidence: No peer or industry comparables are included in the cited excerpts, and the filing does not disclose segment-level revenue or margin detail for the interim window, so any read-across to hospital-sector peers or to the Company's own prior-year non-comparable periods remains outside the cited material. - Unknowns: The filing evidence does not attribute the quarter's revenue or earnings growth to any single cause. The filing evidence contains no peer or industry comparison. The filing evidence does not disclose segment-level detail for this dimension.

Readers comparing interim healthcare filings can cross-check a similar top-line and earnings lift in Universal Health Services Posts Higher Revenue and Profit on Both the Three-Month and Six-Month Windows Year Over Year when assembling a cross-sector baseline.

Operating drivers and segments

For the three-month reporting period, Universal Health Services reports consolidated Revenue from Contract with Customer, Excluding Assessed Tax of $4,495,182,000 USD, higher than the prior-year comparative of $4,099,720,000 USD for the three months ended March 31, 2025. Operating Income (Loss) for the same window is reported at $502,860,000 USD, also higher than the prior-year comparative of $454,825,000 USD. Both lines remained profitable on a quarter-versus-prior-year basis, so the year-over-year transition is profit to profit for revenue and for operating income. The condensed consolidated interim statements presented in the filing are prepared at the parent-company level through majority-owned subsidiaries and controlled partnerships, and the excerpts available here do not provide a separately captioned segment breakout between the acute care and behavioral health operations. The filing evidence does not disclose segment-level detail for this dimension.

Management frames the quarter through the same parent-company lens used for the financial statements, noting that all healthcare and management operations are conducted through subsidiaries, including the management company UHS of Delaware, Inc. The discussion accompanying the interim statements describes the consolidated results without attributing the year-over-year movement in revenue or in operating income to specific operating drivers such as patient volume, acuity mix, pricing, or labor cost trends. Management also describes the relationship with Universal Health Realty Income Trust, including an asset purchase and sale agreement under which the company purchased certain real estate from the Trust and transferred other real estate to the Trust, with the transaction accounted for as a failed sale leaseback, and an annually renewable advisory agreement under which the company conducts the Trust's day-to-day affairs and presents investment opportunities. The narrative does not quantify the contribution of these real-estate arrangements, the behavioral health operations, or the acute care operations to the consolidated revenue and operating income lines for the quarter. The filing does not disclose a peer or industry comparison, and the filing evidence does not attribute the year-over-year movement to any single cause. The filing evidence contains no peer or industry comparison. The filing evidence does not attribute this change to any single cause. Readers tracking how interim healthcare operators describe consolidated results can compare the framing in Universal Health Services Posts Higher Revenue and Profit on Both the Three-Month and Six-Month Windows Year Over Year against the parent-company disclosures in this filing.

Cash flow and capital

Universal Health Services Inc, identified by 10-Q period-ended-2026-03-31 under accession 0001193125-26-211992, closes the three-month period the three months ended March 31, 2026 with cash and cash equivalents of $119,028,000 on its balance sheet at the balance sheet date of March 31, 2026, while long-term debt, excluding current maturities, sits at $3,952,118,000 on the same date. The relative scale of these two line items frames the liquidity backdrop against which the quarter's capital allocation choices should be read.

Operating cash flow — the cash-generating engine — moved from $360,048,000 in the prior-year quarter the three months ended March 31, 2025 to $401,628,000 in the current quarter the three months ended March 31, 2026, a higher figure in the later period. Investing activities, by contrast, were a use of cash in both periods, shifting from -$271,299,000 to -$197,579,000, with the current quarter showing a smaller outflow. Financing activities also stayed negative on both sides, moving from -$91,420,000 to -$221,894,000, with the current quarter's outflow larger than the prior year's. The filing evidence does not attribute this change to any single cause.

Inside investing, capital expenditure is the main discretionary item the company controls. Payments to acquire property, plant, and equipment were $239,026,000 in the prior-year quarter and $217,157,000 in the current quarter, a smaller spend in the later window. Inside financing, returns to shareholders are the visible signal. Payments for repurchase of common stock were $223,385,000 a year ago and $163,849,000 in the current quarter, also a smaller figure this time around. Ordinary dividend payments followed the same direction, stepping down from $13,534,000 to $12,974,000. The filing evidence does not attribute this change to any single cause.

The shape of capital allocation therefore reads as broadly steady but slightly more conservative: lower capex, lower buybacks, and lower dividends than the prior-year quarter, set against higher operating cash generation and a smaller investing outflow. The financing line deepened, which would be consistent with debt-service activity or other non-discretionary cash uses dominating the period. The narrative from management in Note 6 — Commitments and Contingencies — and related disclosures describes a Trust-related real-estate exchange in which a wholly-owned subsidiary purchased the Inland Valley Campus of Southwest Healthcare System real estate at fair market value, while subsidiaries transferred the Aiken Regional Medical Center and Canyon Creek Behavioral Health real estate to the Trust, and the company received approximately a withheld-figure cash amount from the Trust. Because the Inland Valley transaction is treated as a failed sale-leaseback, the real property remains on the books and continues to be depreciated, with monthly lease payments recorded to interest expense and as a reduction of the financial liability. That arrangement sits behind a portion of the financing-activity movement this quarter and partially explains why a "sale" did not translate into a clean investing inflow. Aggregate rent payable to the Trust across McAllen Medical Center, Wellington Regional Medical Center, Aiken Regional Medical Center and Canyon Creek Behavioral Health ran at a withheld-figure level in the current three-month window versus a lower withheld-figure level in the prior-year quarter, with renewal and purchase-option mechanics detailed across the cited note.

For peer context, The filing evidence contains no peer or industry comparison., and the cash-flow dimensions in this section are reported only at the consolidated level, so The filing evidence does not disclose segment-level detail for this dimension.. Investors who track the company's real-estate-heavy capital structure alongside its hospital operating footprint may also find the broader framing in Universal Health Services Posts Higher Revenue and Profit on Both the Three-Month and Six-Month Windows Year Over Year useful as a complement to this section.

Peer and historical context

- The interim filing under accession 0001193125-26-211992 for UNIVERSAL HEALTH SERVICES INC (UHS, CIK 0000352915, 10-Q for period-ended-2026-03-31) supports a year-over-year reading on the three-month window only; the section's catalog is limited to that single comparative pair for the three months ended March 31, 2026 versus the three months ended March 31, 2025. - Direction is consistently positive across the four reported dimensions. Revenue (from contracts with customers, excluding assessed tax), operating income, net income attributable to parent, and net cash provided by operating activities are each reported higher than the prior-year quarter, and each metric remains in the same qualitative state as the prior year (profit to profit for the income lines; positive to positive for cash from operations).

That uniform pattern is the cleanest peer-style reading available from this filing. - Because no same-quarter peer filings, hospital-sector benchmarks, or industry index are quoted in the filing evidence, a direct side-by-side peer table cannot be assembled. The closest available proxy inside this section's catalog is the company's own three-month series repeated across prior periods, but only one prior comparison (the three months ended March 31, 2025) is exposed here.

- The filing evidence contains no peer or industry comparison. The filing evidence contains no peer or industry comparison. - Segment-level detail is not disclosed for revenue, operating income, or net income in this section's catalog; acute care versus behavioral health split therefore cannot be reused in a peer frame.

The filing evidence does not disclose segment-level detail for this dimension. - The quoted narrative surrounding related-party leases, the Trust, and the Premier investment sits outside the four reported dimensions and does not constitute a competing peer data point; it is contextual rather than comparative. - No prior-year six-month window, multi-year stack, or sequential quarterly trend is exposed in this section's fact catalog, so any apparent "trend" beyond the single authorized year-over-year pair would be unsupported.

- The filing evidence does not attribute this change to any single cause. Within the single authorized pair, revenue rose to $4,495,182,000 USD for the three months ended March 31, 2026 from $4,099,720,000 USD for the three months ended March 31, 2025, operating income moved higher to $502,860,000 USD from $454,825,000 USD, net income attributable to parent expanded to $348,682,000 USD from $316,680,000 USD, and net cash provided by operating activities strengthened to $401,628,000 USD from $360,048,000 USD. All four comparisons preserve the prior-period qualitative state (profit to profit for income lines; positive to positive for operating cash flow), which keeps the historical comparison internally consistent even where external peer benchmarks are absent.

Readers comparing this read to other interim windows — for example Universal Health Services Posts Higher Revenue and Profit on Both the Three-Month and Six-Month Windows Year Over Year — should note that the present section only authorizes the three-month quarter-over-quarter transition and does not extend to a six-month frame.

Scenario analysis

- Reported figures for the three-month reporting period show Revenue from Contract with Customer, Excluding Assessed Tax of $4,495,182,000 and Net Income (Loss) Attributable to Parent of $348,682,000 for UNIVERSAL HEALTH SERVICES INC (UHS), per the 10-Q filed for the three months ended March 31, 2026 and reflected under 0001193125-26-211992. - The prior-year comparable on the same three-month window showed Revenue from Contract with Customer, Excluding Assessed Tax of $4,099,720,000 and Net Income (Loss) Attributable to Parent of $316,680,000 for the three months ended March 31, 2025. - Under a base scenario the company carries the same top-line and earnings direction reported for the three-month reporting period into the next interim window, with both lines remaining higher than the prior-year comparable and the bottom line continuing to be a profit rather than a loss. - The base view treats the current relationship between revenue and net income as the working assumption and does not assume any reversal, which is consistent with the authorized profit-to-profit transition for net income on the three-month window. - The filing evidence contains no peer or industry comparison.

- In an upside scenario the company widens the spread between the three-month revenue and net income that is already reported, with revenue of $4,495,182,000 moving higher against the prior-year revenue of $4,099,720,000 and net income of $348,682,000 moving higher against the prior-year net income of $316,680,000. - The upside view would also be compatible with the authorized increase on operating income for the three-month window compared with the three months ended March 31, 2025, on the same profit-to-profit basis. - Because The filing evidence does not disclose segment-level detail for this dimension., the upside is described at the consolidated level rather than by facility type or service line. - The filing evidence does not attribute this change to any single cause.

- A downside scenario would see the company give back part of the three-month gain on revenue and net income, with the still-positive revenue of $4,495,182,000 compressing relative to the prior-year revenue of $4,099,720,000 and the still-positive net income of $348,682,000 compressing relative to the prior-year net income of $316,680,000. - Even in the downside framing the lines remain positive, preserving the authorized profit-to-profit transition for net income on the three-month window, so the downside here is about magnitude rather than a swing into a loss. - Capital-allocation items tied to the same filing, such as Payments of Ordinary Dividends, Common Stock, Payments for Repurchase of Common Stock and Payments to Acquire Property, Plant, and Equipment, are each authorized as lower than the prior-year window on the three-month comparison, which can shape how much cushion the company has if the revenue and net income lines compress. - Net Cash Provided by (Used in) Financing Activities is authorized as a smaller use of cash than the prior-year window on the three-month comparison, while Net Cash Provided by (Used in) Investing Activities and Net Cash Provided by (Used in) Operating Activities are each authorized as larger than the prior-year window on the same three-month comparison, with operating cash flow staying positive and investing cash flow staying negative. - The filing evidence does not attribute this change to any single cause.

Risks and what to watch

- Reported figures: Net Income (Loss) Attributable to Parent rose to $348,682,000 in the three months ended March 31, 2026, up from $316,680,000 in the three months ended March 31, 2025. Revenue from Contract with Customer, Excluding Assessed Tax rose to $4,495,182,000 from $4,099,720,000 over the same comparison. - Management explanations: The filing narrative describes an equity-stake restructuring in which the company's ownership interest in Premier was converted into Class A Common Stock of Premier during the period, with retained shares marked to market through Other (income) expense, net.

A subsequent Premier agreement and plan of merger with Patient Square Capital is disclosed, along with mark-to-market losses and Premier cash dividends flowing through Other (income) expense, net. The narrative also notes related-party context in which a Board member and his law firm provide personal legal services to the Executive Chairman and act as trustee for certain family trusts. The cited note discusses redeemable/noncontrolling interests, "put options" held by outside owners of certain behavioral health care facilities, and the Eleventh Amendment to the company's Credit Agreement.

- Analyst inference: The Premier mark-to-market activity and the Patient Square Capital merger introduce non-operating volatility into the income statement that the company itself flags as residing in Other (income) expense, net, so headline net income comparability across windows depends partly on equity-market movements outside the operating business. Put-option rights held by minority owners of behavioral health care facilities are an off-equity claim that could require cash settlement at fair market value if triggered, representing a contingent financing or capital-structure risk.

Related-party legal services and trust roles involving the Executive Chairman are governance and disclosure considerations rather than operating drivers. - Counter-evidence: The filing does not present any segment-level operating data, payer-mix detail, or same-store metric that would let a reader verify whether the higher revenue and profit were spread across acute care and behavioral health operations or concentrated in one segment. There is no peer or industry comparison in the evidence, so a reader cannot triangulate whether the directional improvement reflects market-wide hospital trends or company-specific execution.

The Eleven-th Amendment to the Credit Agreement is referenced, but the filing text quoted here does not disclose the resulting borrowing capacity, covenant changes, or interest-rate terms that would indicate the company's incremental liquidity or leverage posture. - Unknowns: Segment revenue and operating income for acute care versus behavioral health are not in the filing evidence, and the causes of the revenue and profit improvement are not attributed to any single driver in the quoted narrative. The put-option redemption amounts, the treatment of any Premier-related gain or loss on closing of the Patient Square Capital merger, and the size of any potential contingent consideration are not disclosed.

- Metrics to watch next period: Operating revenue growth at the consolidated level, mark-to-market movement on retained Premier exposure and any closing impact from the Patient Square Capital transaction, movement in redeemable noncontrolling interests and put-option valuations tied to behavioral health facilities, and any further amendments or borrowings under the Credit Agreement described in the cited note.