Hospital Operator Misses Profit Estimates Amid Lower Admissions

Universal Health Services (UHS) recently reported that it did not meet its quarterly profit estimates, with shares experiencing a slight decline in after-market trading. This performance was attributed to a shortfall in expected patient admissions.

The healthcare sector faces anticipated challenges as subsidies under the Affordable Care Act (ACA) are set to expire. This is projected to lead to reduced patient volumes for elective surgeries, preventive care, and diagnostic services. Additionally, hospitals are preparing for an increase in costs associated with treating a growing number of uninsured individuals.

In the fourth quarter, UHS reported adjusted earnings per share of $5.88, falling short of the $5.90 estimated by analysts. While net revenues saw an increase of 9.1% to $4.49 billion, this was marginally below the $4.50 billion forecast. Admissions at acute care hospitals remained stable, but behavioral healthcare facilities noted a 1.8% rise.

Looking ahead, Universal Health Services provided a positive outlook for 2026, forecasting net revenue between $18.42 billion and $18.79 billion, surpassing the estimated $18.25 billion. The company also projected its 2026 adjusted profit per share to be in the range of $22.64 to $24.52, a forecast that includes figures both below and above analyst expectations of $23.49.