NYSE:UHS
UNIVERSAL HEALTH SERVICES INC
A premier integrated healthcare provider offering acute, behavioral, and post-acute services with a robust balance sheet and consistent revenue growth.
Key Metrics
Investment Thesis
Bull Case
Investors may favor this stock due to its consistent top-line growth trajectory over the last five years, a diversified revenue stream across multiple healthcare verticals, and a strong return of capital strategy evidenced by significant share buybacks and dividends.
Bear Case
Potential concerns include the company's high debt load with $4.00B in long-term debt and $748.2M in current portion, which limits financial flexibility during economic downturns, alongside persistent industry headwinds from regulatory reimbursement cuts that could compress operating margins.
About UNIVERSAL HEALTH SERVICES INC
Universal Health Services Inc. operates as a leading provider of acute care hospital services, behavioral health services, and post-acute care across the United States, primarily serving the mid-Atlantic region. The company leverages its extensive network of hospitals and skilled nursing facilities to deliver comprehensive healthcare solutions including emergency care, surgery, and rehabilitation.
Analysis
Management Discussion
In 2025, the company reported revenue of $17.36B and net income of $1.51B, representing significant growth from the previous year's figures of $15.83B and $1.16B respectively. This strong performance was supported by a robust cash flow from operations of $1.86B, which comfortably covered the $1.02B in capital expenditures and substantial share repurchases totaling $968.0M.
Industry Overview
The US healthcare sector is characterized by an aging population driving demand for services while facing increasing pressure on profitability from government payer regulations and rising input costs. Universal Health Services competes in a fragmented market where consolidation offers operational synergies but also introduces integration complexities and regulatory scrutiny.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue | $13.40B | $14.28B | $15.83B | $17.36B |
| Cost of Revenue | $0 | $0 | $0 | $0 |
| Gross Profit | $13.40B | $14.28B | $15.83B | $17.36B |
| Operating Expenses | $12.40B | $13.11B | $14.15B | $15.37B |
| Operating Income | $1.00B | $1.18B | $1.68B | $1.99B |
| Stock-Based Comp | $85.4M | $87.7M | $99.3M | $95.7M |
| D&A | $581.9M | $568.0M | $584.8M | $618.7M |
| Depreciation | $544.0M | $535.6M | $559.6M | $594.0M |
| Non-Operating Income | $-137.3M | $-235.0M | $-183.9M | $-21.9M |
| Interest Expense | $126.9M | $206.7M | $186.1M | $156.1M |
| Pre-Tax Income | $866.3M | $940.4M | $1.50B | $1.97B |
| Income Tax | $209.3M | $221.1M | $334.8M | $461.0M |
| Continuing Ops | $657.0M | $719.3M | $1.16B | $1.51B |
| Discontinued Ops | $0 | $0 | $0 | $0 |
| Net Income | $657.0M | $719.3M | $1.16B | $1.51B |
| Minority Interest | $-18.6M | $1.5M | $21.0M | $22.4M |
| Net to Common | $675.6M | $717.8M | $1.14B | $1.49B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Current Assets | $2.54B | $2.81B | $2.82B | $3.41B |
| Cash & Equivalents | $102.8M | $119.4M | $126.0M | $137.8M |
| Accounts Receivable | $2.02B | $2.24B | $2.18B | $2.60B |
| Other Current Assets | $416.8M | $453.6M | $512.6M | $667.7M |
| Long-Term Assets | $10.96B | $11.16B | $11.65B | $12.12B |
| PP&E (Net) | $5.92B | $6.12B | $6.57B | $7.01B |
| Goodwill | $3.91B | $3.93B | $3.93B | $3.99B |
| Operating Leases | $454.6M | $434.0M | $418.7M | $374.2M |
| Other LT Assets | $674.3M | $665.4M | $729.6M | $747.1M |
| Total Assets | $13.49B | $13.97B | $14.47B | $15.53B |
| Current Liabilities | $1.91B | $2.01B | $2.21B | $3.24B |
| Accounts Payable | $636.6M | $614.0M | $632.0M | $750.1M |
| Current Debt | $81.4M | $126.7M | $40.1M | $748.2M |
| Current Leases | $67.8M | $71.6M | $74.6M | $73.2M |
| Taxes Payable | $4.6M | $2.0M | $14.2M | $1.9M |
| Other Current Liab | $1.12B | $1.20B | $1.45B | $1.67B |
| Long-Term Liabilities | $5.61B | $5.76B | $5.51B | $4.95B |
| Long-Term Debt | $4.73B | $4.79B | $4.46B | $4.00B |
| LT Operating Leases | $395.5M | $382.6M | $376.2M | $340.7M |
| Other LT Liab | $492.4M | $589.2M | $669.1M | $604.1M |
| Total Liabilities | $7.53B | $7.77B | $7.72B | $8.19B |
| Shareholders' Equity | $5.97B | $6.20B | $6.75B | $7.34B |
| Retained Earnings | $6.53B | $6.80B | $7.37B | $7.99B |
| AOCI | $-9.7M | $9.3M | $7.2M | $47.8M |
| Total L&E | $13.49B | $13.97B | $14.47B | $15.53B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Net Income (CFO) | $657.0M | $719.3M | $1.16B | $1.51B |
| Non-Cash Adjustments | $-352.3M | $42.8M | $565.5M | $-154.7M |
| Working Capital Changes | $691.3M | $505.7M | $338.5M | $507.9M |
| Cash from Operations | $996.0M | $1.27B | $2.07B | $1.86B |
| Capital Expenditures | $734.0M | $743.1M | $943.8M | $1.02B |
| Cash from Investing | $-647.3M | $-763.3M | $-911.1M | $-1.07B |
| Debt Repayments | $89.4M | $85.5M | $2.64B | $43.5M |
| Share Buybacks | $832.9M | $547.4M | $670.8M | $968.0M |
| Dividends Paid | $58.4M | $55.5M | $53.3M | $51.3M |
| Cash from Financing | $-318.4M | $-493.9M | $-1.14B | $-749.7M |
| FX Effect | $-8.4M | $3.1M | $-833.0K | $2.5M |
| Net Change in Cash | $21.9M | $13.6M | $10.3M | $46.6M |
| Beginning Cash | $178.9M | $200.8M | $214.5M | $224.8M |
| Ending Cash | $200.8M | $214.5M | $224.8M | $271.3M |
Frequently Asked Questions
How does UNIVERSAL HEALTH SERVICES INC make money?
The company generates revenue primarily through its Acute Care segment providing inpatient hospital services, Surgical Services delivering specialized operating room procedures, Behavioral Health Services managing psychiatric facilities, and Post-Acute Care encompassing skilled nursing and rehabilitation units.
What are the main risks for UHS?
Regulatory pressures such as price caps on hospital services and stricter behavioral health regulations could impact margins; high capital expenditure requirements for facility maintenance and expansion create ongoing cash flow strain; reimbursement rates from Medicare and Medicaid remain volatile and subject to political changes.
What is UHS's competitive advantage?
Universal Health Services benefits from significant economies of scale due to its large regional footprint, a diversified service portfolio that mitigates single-line risk, and a highly experienced clinical workforce that drives operational efficiency and patient outcomes.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.