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, Inc. posted top-line and bottom-line gains in both the three-month reporting period and the six-month year-to-date period versus the prior-year comparative windows, with revenue, operating income, net income attributable to parent, and diluted earnings per share all higher year over year on each window. - For the three-month reporting period, Revenue from Contract with Customer, Excluding Assessed Tax was higher than the prior-year quarter, Operating Income (Loss) was higher than the prior-year quarter, Net Income (Loss) Attributable to Parent was higher than the prior-year quarter, and Earnings Per Share, Diluted was higher than the prior-year quarter, with each line moving from a profit to a higher profit. - For the six-month year-to-date period, Revenue from Contract with Customer, Excluding Assessed Tax was higher than the prior-year comparative period, Operating Income (Loss) was higher than the prior-year comparative period, Net Income (Loss) Attributable to Parent was higher than the prior-year comparative period, and Earnings Per Share, Diluted was higher than the prior-year comparative period, with each line again moving from a profit to a higher profit. - The figures above are sourced directly from the unaudited condensed consolidated interim financial statements included in this Quarterly Report and are reported on a recurring-adjustment basis as prepared by management.

- Management characterizes this filing as a routine quarterly report, states that all healthcare and management operations are conducted through subsidiaries (including UHS of Delaware, Inc.), and notes that the interim financial statements reflect only normal recurring adjustments that, in its opinion, are necessary to present interim results fairly. - Management describes Universal Health Realty Income Trust as a related party for which UHS serves as Advisor under an annually renewable advisory agreement, and references a prior asset purchase and sale agreement with the Trust that was amended during the first quarter of a prior year and is being accounted for as a failed sale leaseback, with the related real property continuing to be depreciated and the monthly lease payments to the Trust recorded to interest expense and as a reduction of the outstanding financial liability.

- The reported top-line and operating-line improvement on both windows is consistent with continued period-over-period growth in the underlying hospital and behavioral-health operations, but no segment-level split between acute care and behavioral health is disclosed for revenue, operating income, net income, or earnings per share in the filing evidence. - The interim statements have been prepared without audit under SEC rules and regulations, with certain footnote disclosures condensed or omitted relative to the audited annual financial statements, so any finer-grain read on revenue mix, same-facility versus new-facility contribution, or margin movement sits outside what this filing discloses.

- No counter-evidence is present in the filing evidence: every reported line on both windows is shown moving from a profit in the prior-year comparative to a higher profit in the current period, with no offsetting deterioration or restructuring charge surfaced in the cited portions.

UNKNOWN: - A precise dollar value for any of revenue, operating income, net income, or diluted earnings per share, on either the three-month or six-month window for either the current period or the prior-year comparative, is not part of the reader-facing prose and is left to the machine-owned fact lines. - The specific cause of the year-over-year movement on any line is not attributable in the filing evidence. - Segment-level detail for revenue, operating income, net income, or earnings per share between the acute care and behavioral health operations is not disclosed in the filing evidence. - The filing evidence contains no peer or industry comparison.

Financial performance

- The interim filing for UNIVERSAL HEALTH SERVICES INC (CIK 0000352915, ticker UHS, form 10-Q, period period-ended-2026-06-30, accession 0001193125-26-340278) reports results for the three-month period the three months ended June 30, 2026 and the six-month year-to-date period the six months ended June 30, 2026, each compared against the prior-year same windows the three months ended June 30, 2025 and the six months ended June 30, 2025.

- For the three months ended June 30, 2026, Revenue from Contract with Customer, Excluding Assessed Tax was $4,638,012,000 USD, versus $4,283,816,000 USD in the prior-year quarter. The reported direction is higher than the prior period; the prior-year comparative is restated on the same basis, and no cause is authorized by the filing evidence.

- For the six months ended June 30, 2026, the same line was $9,133,194,000 USD, versus $8,383,536,000 USD in the six months ended June 30, 2025; the authorized direction is higher than the prior period, with no authorized cause.

- Operating Income (Loss) for the three months ended June 30, 2026 was $516,675,000 USD, against $500,270,000 USD in the three months ended June 30, 2025 — a profit both periods and an authorized higher-than-prior direction, with no authorized cause; The filing evidence does not attribute this change to any single cause..

- Operating Income (Loss) for the six months ended June 30, 2026 was $1,019,535,000 USD, against $955,095,000 USD in the six months ended June 30, 2025 — a profit both periods and an authorized higher-than-prior direction; The filing evidence does not attribute this change to any single cause..

- Net Income (Loss) Attributable to Parent for the three months ended June 30, 2026 was $358,447,000 USD, against $353,218,000 USD in the three months ended June 30, 2025 — profit both periods and an authorized higher-than-prior direction; The filing evidence does not attribute this change to any single cause..

- Net Income (Loss) Attributable to Parent for the six months ended June 30, 2026 was $707,129,000 USD, against $669,898,000 USD in the six months ended June 30, 2025 — profit both periods and an authorized higher-than-prior direction; The filing evidence does not attribute this change to any single cause..

- Earnings Per Share, Diluted for the three months ended June 30, 2026 was $5.98 per diluted share USD/SHARES, versus $5.43 per diluted share USD/SHARES in the three months ended June 30, 2025; an authorized higher-than-prior result, The filing evidence does not attribute this change to any single cause..

- Earnings Per Share, Diluted for the six months ended June 30, 2026 was $11.63 per diluted share USD/SHARES, versus $10.23 per diluted share USD/SHARES in the six months ended June 30, 2025; an authorized higher-than-prior result, The filing evidence does not attribute this change to any single cause..

- Accounting context: the interim statements are unaudited and prepared under U.S. GAAP with normal recurring adjustments only, per the General note that precedes the body of the filing. The Company also describes a related-party relationship with Universal Health Realty Income Trust (the "Trust") — an equity-method investment — and an asset exchange and substitution transaction accounting for Aiken and Canyon Creek as a failed sale leaseback and financing arrangement, with lease payments allocated between interest expense and reduction of the outstanding financial liability at the Company's incremental borrowing rate.

- Scope notes: the filing evidence does not disclose segment-level results, peer comparisons, or forward guidance; The filing evidence does not disclose segment-level detail for this dimension., The filing evidence contains no peer or industry comparison.. Legal proceedings, risk factors, controls and procedures, and other Part II items are addressed in Item 1, Item 1A, Item 2, Item 3, Item 4, Item 5, and Item 6, but none of those items contains financial-result figures usable here.

Operating drivers and segments

- Reported revenue from contracts with customers for the three-month reporting period was higher than the prior-year comparative, an authorized year-over-year direction reported on a consolidated basis only. - Reported revenue for the six-month year-to-date period was higher than the prior-year comparative, an authorized year-over-year direction reported on a consolidated basis only. - Reported operating income for the three-month reporting period was higher than the prior-year comparative, an authorized year-over-year direction reported on a consolidated basis only. - Reported operating income for the six-month year-to-date period was higher than the prior-year comparative, an authorized year-over-year direction reported on a consolidated basis only. - The filing evidence does not disclose segment-level detail for this dimension. - The filing evidence contains no peer or industry comparison.

- The filing narrative describes Universal Health Services, Inc. as a holding company whose subsidiaries conduct healthcare and management operations, with the Quarterly Report on Form filed for the quarter ended in mid-year and prepared on a condensed, unaudited basis under SEC rules. - Management describes a continuing relationship with Universal Health Realty Income Trust, in which the Company holds an equity interest accounted for under the equity method and serves as Advisor under an annually renewable agreement, with certain officers and directors shared between the two entities. - Management discloses an asset exchange and substitution transaction with the Trust involving the Inland Valley Campus of Southwest Healthcare System, Aiken Regional Medical Center, and Canyon Creek Behavioral Health, with the transaction accounted for as a financing arrangement rather than a sale, leaving the underlying real property on the balance sheet. - Management explains that the asset purchase and sale agreement with the Trust was amended during the first quarter of the prior year and that lease payments related to Aiken and Canyon Creek are recorded to interest expense and as a reduction of the outstanding financial liability at the Company's incremental borrowing rate. - The cited note characterizes the lease structure as unconditionally guaranteed by the Company and cross-defaulted among the relevant subsidiary leases. - The filing evidence does not attribute this change to any single cause. - The filing evidence does not disclose segment-level detail for this dimension.

Cash flow and capital

- The six-month year-to-date period ended the six months ended June 30, 2026 showed operating cash generation of $844,931,000, lower than the prior-year comparative of $909,026,000 for the six months ended June 30, 2025. The transition remains profit-to-profit in cash terms, and the filing does not attribute the step-down to any single cause. - Investing activity recorded an outflow of -$431,812,000 against the prior-year outflow of -$577,238,000, leaving investing cash usage roughly flat year over year.

The filing evidence does not attribute this change to any single cause. - Financing activity moved to an outflow of -$411,382,000 compared with the prior-year outflow of -$319,071,000, implying a larger use of cash for financing purposes in the current half. The filing evidence does not attribute this change to any single cause.

- Within investing, capital spending on property, plant and equipment ran at $444,790,000 versus $505,040,000 in the prior-year half, a directional decrease per the authorized comparison. The filing does not separate maintenance versus growth capex. - Capital return to shareholders combined buybacks of $484,601,000 with ordinary common dividends of $24,760,000.

Buybacks stepped up versus $378,542,000 while ordinary dividends declined against $26,434,000, both directional moves consistent with the authorized comparisons. The filing evidence does not attribute this change to any single cause. - Balance-sheet liquidity at the close of the balance sheet date of June 30, 2026 sat at $138,800,000 in cash and equivalents, while long-term debt (excluding current maturities) stood at $4,079,937,000.

The cited note Item 1 flags a Trust-related asset exchange recorded as a failed sale-leaseback treated as a financing arrangement; the filing states a wholly-owned subsidiary purchased Inland Valley Campus real estate, transferred Aiken Regional Medical Center and Canyon Creek Behavioral Health real estate to the Trust, and received cash proceeds described qualitatively in the narrative, with monthly lease payments allocated between interest expense and reduction of the outstanding financial liability. - The same note describes aggregated rent payable to the Trust across McAllen Medical Center, Wellington Regional Medical Center, Aiken Regional Medical Center and Canyon Creek Behavioral Health for the three-month and six-month periods ending in the reported quarter and the prior-year period, without disclosing segment-level lease cost.

The filing evidence does not disclose segment-level detail for this dimension. - The filing mentions renewal and purchase options, rights of first refusal and a joint-venture interest in Clive Behavioral Health under the cited Master Leases, plus separate medical-office-building and free-standing emergency department arrangements with the Trust. None of these structural disclosures carry authorized numeric cause-and-effect statements in this section.

- The filing evidence contains no peer or industry comparison for these cash-flow or capital-allocation lines. The filing evidence contains no peer or industry comparison.

Peer and historical context

The filing stands alone as a self-comparison: no peer or industry-level data appears anywhere in the quoted evidence, so any read-across to other hospital operators would have to be sourced outside this report. The only historical anchors available are the prior-year comparatives that the filing itself prints next to each line item.

Against that prior-year frame, every reported top-line and bottom-line measure is higher than the year-ago period on both windows. Revenue from Contract with Customer, Excluding Assessed Tax for the three months ended on the reporting date is above the prior-year quarter, and the six-month year-to-date figure is above its prior-year comparative; both periods are profitable, and the comparison is period-over-period rather than quarter-over-quarter or sequential. Operating Income is also higher than the prior year in both the quarter and the half year, again with a profit-to-profit transition in each window. Net Income Attributable to Parent follows the same pattern: higher than the year-ago quarter, higher than the year-ago half year, and a profit-to-profit transition on both sides.

The cash-flow side tells a different story. Net Cash Provided by Operating Activities for the six-month year-to-date period is lower than the prior-year comparative, even though both periods remain positive. The investing-activities line moved the other way — outflows shrank relative to the prior year — while financing-activities outflows widened and capital-return lines split: common-stock repurchases were larger than a year ago, while ordinary dividends on common stock were smaller. None of these shifts is attributed in the quoted evidence to any single driver. The filing evidence does not attribute this change to any single cause.

Because the filing does not disclose segment-level revenue or operating-income detail beyond the consolidated totals, any attempt to compare acute-care versus behavioral-health performance against the prior year cannot be supported from this report. The filing evidence does not disclose segment-level detail for this dimension.

On the peer dimension specifically, the report itself offers nothing: there are no named competitors, no industry benchmarks, and no third-party indices. The filing evidence contains no peer or industry comparison. So the only "historical comparison" that survives this section's rules is the year-over-year set above, and the only fair peer-shaped statement is that the gap between this issuer and its cohort cannot be measured from the filing evidence. Readers looking for a peer benchmark should treat the prior-year comparatives as the floor of what this filing supports.

Scenario analysis

- Reported facts (the only facts available for any scenario): the company delivered higher top-line and bottom-line results in both windows. - Revenue from Contract with Customer, Excluding Assessed Tax was $4,638,012,000 USD for the three months ended June 30, 2026, compared with $4,283,816,000 USD for the three months ended June 30, 2025 (authorized direction: higher; transition: positive to positive). - Revenue from Contract with Customer, Excluding Assessed Tax was $9,133,194,000 USD for the six months ended June 30, 2026, compared with $8,383,536,000 USD for the six months ended June 30, 2025 (authorized direction: higher; transition: positive to positive). - Net Income (Loss) Attributable to Parent was $358,447,000 USD for the three months ended June 30, 2026, compared with $353,218,000 USD for the three months ended June 30, 2025 (authorized direction: higher; transition: profit to profit). - Net Income (Loss) Attributable to Parent was $707,129,000 USD for the six months ended June 30, 2026, compared with $669,898,000 USD for the six months ended June 30, 2025 (authorized direction: higher; transition: profit to profit). - Management explanations: none directly relevant to a scenario build are stated in the quoted evidence. - Analyst inference: the base case simply carries forward the reported higher revenue and higher net income in both windows, with the profit-to-profit transitions preserved. The filing evidence does not attribute this change to any single cause.. - Counter-evidence: none stated in the quoted evidence. - Unknowns: any qualitative driver of the higher top line or higher bottom line; the filing evidence does not disclose segment-level detail for this dimension. The filing evidence does not disclose segment-level detail for this dimension. The filing evidence contains no peer or industry comparison.. - Conditional read-through to the base case: if current-period conditions simply persist, the company continues to print a higher revenue figure alongside a higher net-income figure in both the quarter and the six-month window, with EPS on the diluted line also higher (authorized direction: higher; transition: profit to profit), and operating income also higher in both windows (authorized direction: higher; transition: profit to profit).

- Reported facts: the same set of higher revenue and higher net income figures described under the base case. - Management explanations: none stated in the quoted evidence. - Analyst inference: a plausible upside framing would have revenue continuing higher than the prior year and net income continuing higher than the prior year at a pace that preserves the profit-to-profit transitions already authorized. - Conditional read-through to the upside: if the higher revenue trend persists and the higher net-income trend persists, the scenario is consistent with the direction and transition the filing already authorizes for both windows; The filing evidence does not attribute this change to any single cause. for any acceleration driver.

- Reported facts: the same set of higher revenue and higher net income figures described under the base case. - Management explanations: none stated in the quoted evidence. - Analyst inference: a downside framing would contemplate revenue or net income reverting, but the only authorized direction in the filing is higher for both lines in both windows, with profit-to-profit transitions preserved for the bottom line. - Counter-evidence to any downside: the authorized year-over-year direction for revenue and net income is higher in the quarter and in the six-month window, so the reported evidence does not itself support a contraction scenario. - Conditional read-through to the downside: if reported conditions reverse, the filing does not authorize any direction or transition for that reversal; the reader should treat any negative case as an analyst overlay rather than a reading of the filing evidence, and The filing evidence does not attribute this change to any single cause. applies to any driver of deterioration.

Risks and what to watch

- The reported 10-Q for UNIVERSAL HEALTH SERVICES INC (UHS, CIK 0000352915, accession 0001193125-26-340278, fiscal period period-ended-2026-06-30) shows revenue higher than the prior period on both the three-month and six-month windows: $4,638,012,000 for the three months ended June 30, 2026 versus $4,283,816,000 for the three months ended June 30, 2025, and $9,133,194,000 for the six months ended June 30, 2026 versus $8,383,536,000 for the six months ended June 30, 2025. Watch whether the same direction persists into the next quarter; any softening here is the cleanest read on demand.

- Net Income Attributable to Parent is also higher year over year on both windows — $358,447,000 for the three months ended June 30, 2026 versus $353,218,000 for the three months ended June 30, 2025, and $707,129,000 for the six months ended June 30, 2026 versus $669,898,000 for the six months ended June 30, 2025. Both are reported as profits rather than losses, and the authorized machine transition for each is profit to profit. - Counter-evidence sits in non-recurring marks: the cited note describes Premier restricted-stock gains recorded in Other (income) expense, net — meaningful in the three- and six-months ended in June, and tied to a pending Patient Square Capital merger for Premier.

That is a market-driven, non-operating tailwind, so a portion of the headline earnings beat is not from patient-care operations. - Related-party and governance items are flagged in the cited note: supplemental life insurance plans and agreements on the lives of Alan B. Miller, plus personal legal services and trustee roles performed for the Executive Chairman.

Watch whether the next filing restates or expands these disclosures under Item 1A risk factors or Item 4 controls and procedures. - Legal and market-risk headings live in Item 1 and Item 3; if the Premier deal closes or changes terms, the next interim will need to address the carrying value of retained Premier shares and any reclassification out of other assets. - Unknowns: the cited note does not separate acute-care versus behavioral-health results, payer-mix movement, or same-store versus new-facility contributions.

The filing evidence does not disclose segment-level detail for this dimension, and contains no peer or industry comparison. - For any margin or cost-line movement next period, the filing does not attribute the change to any single cause; treat the next quarter's cash-flow statement and the legal-proceedings update as the first places where new information would show up.