Universal Health Services (NYSE:UHS) Stock Price Down 9.1% Following Weak Earnings

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

The health services provider reported $5.88 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $5.92 by ($0.04). The company had revenue of $4.49 billion for the quarter, compared to analyst estimates of $4.50 billion. Universal Health Services had a return on equity of 19.84% and a net margin of 8.57%.The company’s quarterly revenue was up 9.1% compared to the same quarter last year. During the same period in the prior year, the company earned $4.92 EPS. Universal Health Services has set its FY 2026 guidance at 22.640-24.520 EPS.

Universal Health Services Announces Dividend

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

Key Universal Health Services News

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

• Positive Sentiment: Barclays raised its price target and kept an overweight rating, highlighting upside expectations that could support the stock longer term. Barclays price target raise
• Positive Sentiment: UHS forecasts further revenue and earnings gains for 2026 and reported improved operating performance in 2025 (11.5% operating margin; net income up ~30%), which supports the company’s longer-term profitability outlook. UHS forecasts for 2026
• Neutral Sentiment: Local/university matter — officials say they are near a deal to end George Washington University’s financial support arrangement with UHS for the MFA program; this appears operational/legal and is unlikely to materially affect consolidated results but bears watching for reputational or contract-close costs. GWU / MFA support
• Negative Sentiment: UHS slightly missed Q4 estimates (EPS $5.88 vs. $5.92 consensus) and revenue narrowly missed forecasts; management cited lower-than-expected admissions as a drag — the beat/miss proximity still disappointed traders. Q4 miss / admissions weakness
• Negative Sentiment: UHS updated FY2026 EPS guidance to a range that sits slightly around/below consensus midpoints, and said it expects a roughly $35M earnings hit from California’s new psychiatric staffing mandate — adding a clear near-term cost pressure. California staffing mandate $35M hit
• Negative Sentiment: Market commentary and headlines are framing the miss + guidance/cost news as the cause of heavy selling today; coverage highlights valuation and S&P inclusion sensitivity that can amplify downside. Why shares are down

Wall Street Analysts Forecast Growth

Several research analysts have commented on the stock. Barclays boosted their price objective on shares of Universal Health Services from $262.00 to $268.00 and gave the company an “overweight” rating in a research report on Thursday. Guggenheim upped their price objective on Universal Health Services from $253.00 to $274.00 and gave the stock a “buy” rating in a research report on Tuesday, December 2nd. Raymond James Financial set a $270.00 price objective on Universal Health Services and gave the company an “outperform” rating in a research note on Monday, November 3rd. Wells Fargo & Company reissued an “equal weight” rating and set a $235.00 target price (down from $259.00) on shares of Universal Health Services in a research note on Wednesday, January 7th. Finally, TD Cowen reduced their price target on shares of Universal Health Services from $251.00 to $245.00 and set a “buy” rating on the stock in a research note on Wednesday, January 7th. One analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating, eight have issued a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the company currently has an average rating of “Hold” and an average price target of $234.53.

Institutional Investors Weigh In On Universal Health Services

Several hedge funds have recently added to or reduced their stakes in UHS. NewEdge Advisors LLC raised its stake in shares of Universal Health Services by 2.7% during the first quarter. NewEdge Advisors LLC now owns 2,665 shares of the health services provider’s stock valued at $501,000 after acquiring an additional 69 shares during the last quarter. United Services Automobile Association bought a new position in Universal Health Services during the 1st quarter worth $235,000. Focus Partners Wealth lifted its holdings in Universal Health Services by 80.6% during the 1st quarter. Focus Partners Wealth now owns 2,631 shares of the health services provider’s stock worth $494,000 after buying an additional 1,174 shares during the period. Brighton Jones LLC acquired a new position in Universal Health Services during the 2nd quarter worth about $311,000. Finally, Envestnet Asset Management Inc. grew its position in shares of Universal Health Services by 9.3% in the 2nd quarter. Envestnet Asset Management Inc. now owns 87,880 shares of the health services provider’s stock valued at $15,919,000 after buying an additional 7,472 shares during the last quarter. 86.05% of the stock is currently owned by institutional investors and hedge funds.

Universal Health Services Trading Down 11.5%

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 company has a market cap of $12.76 billion, a price-to-earnings ratio of 8.82, a PEG ratio of 0.72 and a beta of 1.26. The firm has a 50 day moving average price of $216.32 and a two-hundred day moving average price of $210.44.

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.