Universal Health Services (NYSE:UHS) Stock Price Down 9.1% After Earnings Miss

Universal Health Services, Inc. (NYSE:UHS)’s share price dropped 9.1% during trading on Thursday following a weaker than expected earnings announcement. The company traded as low as $210.00 and last traded at $209.6240. Approximately 128,412 shares changed hands during mid-day trading, a decline of 82% from the average daily volume of 698,194 shares. The stock had previously closed at $230.73.

The health services provider reported $5.88 EPS for the quarter, missing analysts’ consensus estimates of $5.92 by ($0.04). The firm had revenue of $4.49 billion during the quarter, compared to analysts’ expectations of $4.50 billion. Universal Health Services had a net margin of 8.09% and a return on equity of 19.47%. The company’s revenue for the quarter was up 9.1% compared to the same quarter last year. During the same quarter in the previous year, the business earned $4.92 EPS. Universal Health Services has set its FY 2026 guidance at 22.640-24.520 EPS.

Universal Health Services Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Monday, March 16th. Stockholders of record on Monday, March 2nd will be issued a dividend of $0.20 per share. This represents a $0.80 dividend on an annualized basis and a dividend yield of 0.4%. The ex-dividend date is Monday, March 2nd. Universal Health Services’s payout ratio is 3.80%.

Universal Health Services News Roundup

Here are the key news stories impacting Universal Health Services this week:

• Positive Sentiment: UHS guided to higher FY‑2026 revenue and solid EPS range (22.640–24.520) and signaled continued earnings growth for 2026, which underpins the company’s medium‑term outlook. Universal Health Services forecasts more revenue, earnings gains for 2026
• Positive Sentiment: UHS reported improved profitability in 2025 — operating margin rose to 11.5% and net income jumped ~30% year‑over‑year — suggesting better operational leverage that supports margins and cash flow. UHS posts 11.5% operating margin in 2025 as net income jumps 30%
• Positive Sentiment: The company press release highlights a meaningful increase in reported net income and reiterates the FY‑2026 forecast, offering management’s direct view on upcoming performance. UHS announces financial results and 2026 forecast
• Neutral Sentiment: Analysts and commentary are parsing UHS’s valuation and index implications — how the stock’s recent pressure could affect its S&P 500 weighting and investor perception is under discussion, but this is more macro/structural than immediate fundamental news. Valuation after pressure now matters to S&P 500
• Neutral Sentiment: A data‑driven review compares UHS’s Q4 metrics vs. estimates and prior year figures, useful for investors wanting detail on volumes, margins and adjustments but not adding new directional news. Q4 earnings: key metrics versus estimates
• Neutral Sentiment: An analysis of UHS’s expansion plans frames long‑term growth vs. execution risk — relevant for longer‑term investors but less likely to move the stock intraday. Expansion tests long term growth and risk balance
• Negative Sentiment: UHS missed Q4 consensus: EPS of $5.88 vs. $5.92 expected and revenue $4.49B vs. $4.50B expected — small misses that drove short‑term selling pressure. UHS misses Q4 sales expectations
• Negative Sentiment: Zacks notes UHS lagged consensus on Q4 EPS (miss by $0.04), reinforcing the market reaction to the quarter’s shortfall versus expectations. UHS lags Q4 earnings estimates
• Negative Sentiment: Reuters reports the miss was driven by lower medical‑care demand and admissions — a demand‑side signal that could pressure near‑term volume recovery expectations. UHS misses quarterly profit estimates on lower medical care demand

Wall Street Analyst Weigh In

Several analysts recently weighed in on UHS shares. Wells Fargo & Company restated an “equal weight” rating and issued a $235.00 price target (down from $259.00) on shares of Universal Health Services in a research note on Wednesday, January 7th. Cantor Fitzgerald increased their target price on Universal Health Services from $227.00 to $250.00 and gave the company a “neutral” rating in a research note on Wednesday, October 29th. Guggenheim boosted their price target on Universal Health Services from $253.00 to $274.00 and gave the stock a “buy” rating in a research note on Tuesday, December 2nd. Morgan Stanley set a $233.00 target price on shares of Universal Health Services in a research note on Wednesday, October 29th. Finally, Weiss Ratings reiterated a “buy (b)” rating on shares of Universal Health Services in a research note on Monday, December 29th. One research analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating, eight have given a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat, the company currently has a consensus rating of “Hold” and an average price target of $234.53.

Hedge Funds Weigh In On Universal Health Services

A number of institutional investors and hedge funds have recently made changes to their positions in the business. Elyxium Wealth LLC bought a new position in Universal Health Services in the fourth quarter worth approximately $25,000. SBI Securities Co. Ltd. increased its stake in shares of Universal Health Services by 320.0% in the 3rd quarter. SBI Securities Co. Ltd. now owns 126 shares of the health services provider’s stock worth $26,000 after purchasing an additional 96 shares in the last quarter. Harbor Capital Advisors Inc. bought a new position in Universal Health Services in the 4th quarter worth $26,000. Root Financial Partners LLC bought a new position in Universal Health Services in the 3rd quarter worth $28,000. Finally, Founders Capital Management purchased a new position in Universal Health Services during the fourth quarter valued at $28,000. Hedge funds and other institutional investors own 86.05% of the company’s stock.

Universal Health Services Stock Down 9.3%

The company has a fifty day simple moving average of $216.73 and a 200-day simple moving average of $210.48. The company has a quick ratio of 0.96, a current ratio of 1.03 and a debt-to-equity ratio of 0.55. The firm has a market cap of $13.07 billion, a P/E ratio of 9.94, a price-to-earnings-growth ratio of 0.72 and a beta of 1.26.

About Universal Health Services

Universal Health Services, Inc (NYSE: UHS) is one of the largest diversified health care management companies in the United States, offering a broad spectrum of services through its acute care hospital and behavioral health segments. The company operates general acute care hospitals, surgical hospitals and ambulatory centers, as well as inpatient and outpatient behavioral health facilities. Its network provides emergency and specialized medicine, diagnostic imaging, laboratory services, advanced surgical care and rehabilitation, complemented by a comprehensive array of behavioral services including psychiatric treatment, addiction programs and developmental disabilities care.

In the acute care segment, UHS’s facilities deliver services ranging from emergency department treatment and intensive care to maternity care and outpatient surgery.