Universal Health Services, Inc. (UHS) is a Fortune 500 healthcare management company headquartered in King of Prussia, Pennsylvania. Founded in 1979 by Alan B. Miller, UHS has grown into one of the largest and most respected providers of hospital and healthcare services in the United States. The company operates through ...Universal Health Services, Inc. (UHS) is a Fortune 500 healthcare management company headquartered in King of Prussia, Pennsylvania. Founded in 1979 by Alan B. Miller, UHS has grown into one of the largest and most respected providers of hospital and healthcare services in the United States. The company operates through two primary segments: Acute Care Hospital Services and Behavioral Health Care Services. Its acute care hospitals offer a comprehensive range of medical services including general and specialty surgery, internal medicine, obstetrics, emergency services, diagnostic imaging, oncology, cardiac care, pediatrics, and pharmaceutical services. The behavioral health segment provides inpatient and outpatient treatment for mental health and substance abuse issues. As of 2022, UHS owned or operated 363 inpatient facilities and 40 outpatient and other specialized sites across 39 U.S. states, the District of Columbia, the United Kingdom, and Puerto Rico. UHS also provides commercial health insurance and management support services such as centralized procurement, IT infrastructure, financial oversight, facilities planning, physician recruitment, and marketing. Financially, UHS generated $17.4 billion in revenues in 2025 and employs approximately 101,500 people. Key leadership includes Marc D. Miller, who was named CEO in January 2021, and Alan B. Miller, the founder and Executive Chairman. UHS is publicly traded on the New York Stock Exchange under the ticker UHS and has a market cap of about $10.5 billion. The company is committed to delivering high-quality, cost-effective healthcare with a focus on patient satisfaction and community well-being.
YoYYoY means Year-over-Year. It compares the latest annual value with the previous annual value to show long-term trend strength.
QoQQoQ means Quarter-over-Quarter. It compares the latest quarter with the immediately previous quarter to show short-term momentum changes.
RevenueThe total money that came through the front door from selling things, before paying a single bill. Think of it as the grand total of every credit card swipe from customers. (YoY compares this year to last year's performance, while QoQ compares the current three months to the previous three).
$17.4B
+9.7%
+3.2%
Net IncomeThe absolute bottom line. If the company paid every single supplier, employee, banker, and tax collector, this is the actual money left in their pocket at the end of the day.
$1.5B
+30.4%
+2.8%
Gross MarginThe basic markup. If they sell a $100 pair of sneakers, this percentage tells you how much of that price tag is profit right after paying for the rubber and shoelaces, but before paying for things like store rent or TV commercials.
+90.4%
+0.5%
+0.4%
Operating MarginThe 'day job' efficiency score. Out of every dollar a customer spends, this shows how many cents the company keeps after making the product AND paying for all the everyday corporate overhead (like salaries, marketing, and keeping the lights on).
+11.5%
+8.1%
-0.4%
Net MarginThe final take-home percentage. When you strip away every conceivable cost, tax, and interest payment, this is the exact number of cents the company truly gets to keep from every dollar in sales.
+8.6%
+18.8%
-0.4%
Free Cash FlowThe holy grail of corporate cash. It's the spendable, physical money left over after the business pays for its daily operations AND buys the big, expensive upgrades (like new factories or servers) it needs to survive. This is the 'free' money they can use to pay dividends or buy back stock.
$849.2M
-24.4%
+16.9%
FCF MarginThe ultimate cash conversion rate. It shows how good the company is at turning regular sales directly into cold, hard, spendable cash. A high percentage means the business is an absolute cash-printing machine.
+4.9%
-31.1%
+13.3%
Debt / EquityThe financial risk gauge. It compares how much of the company's empire was built using borrowed money (loans) versus the owners' own money (shareholders). A high number means they are heavily leveraged and playing a riskier game; a low number means they are playing it safe.
75.7%
+1.8%
+2.9%
Current RatioThe 12-month survival check. It simply compares the cash they have right now (plus things they can quickly turn into cash) against the immediate bills they absolutely must pay this year. A score above 1 means they have enough in the wallet to cover the upcoming bills without panicking.
1.05x
-17.4%
+3.4%
Total AssetsThe absolute size of the company's empire. It bundles together absolutely everything of value they own—from the cash in the register and the inventory in the warehouse, to the software patents in the vault and the factories on the ground.
Operator: Good day, and thank you for standing by. Welcome to the Q2 2026 Universal Health Services earnings conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question-and-answer session. To ask a question during the session, you will need to press 11 on your telephone. You will then hear an automated message advising your hand is raised, To withdraw your question, please press 11 again. Please be advised that today's conference is being recorded. I would now like to turn the conference over to your speaker for today, Darren Lehrich. Please go ahead.
Darren Lehrich: Thank you. Good morning, and welcome to Universal Health Services second quarter 2026 earnings conference call. I am Darren Lehrich, Vice President of Investor Relations. With me this morning are our President and CEO, Marc D. Miller and our Chief Financial Officer, Steve G. Filton. Marc and Steve will provide some prepared remarks and then we will open it up for Q&A. During today's conference call, we will be using words such as believes, expects, anticipates, estimates, and similar words that represent forecasts, projections and forward-looking statements. For anyone not familiar with the risks and uncertainties, inherent in these forward-looking statements, we recommend a careful reading of the section on risk factors and forward-looking statements and risk factors Form 10-K for the year ended December 31, 2025. And our Form 10-Q for the quarter ended March 31, 2026. In addition, we may reference during today's call measures such as EBITDA, adjusted EBITDA, adjusted EBITDA net of NCI, and adjusted net income attributable to UHS which are non-GAAP financial measures. Information and reconciliations of these non-GAAP financial measures to net income attributable to UHS can be found in yesterday's press release and our supplemental materials on our website. With that, let me now turn it over to Marc for some introductory remarks.
Marc D. Miller: Thanks, Darren. Good morning, and thank you for joining today's call. I am pleased to share some operational and strategic highlights for the second quarter before Steve discusses financial highlights. Overall, our second quarter of 2026 featured a rebound in acute care volumes and behavioral health volumes that were consistent with recent trends. Continued expense management, and exchange trends that progressed in line with our expectations. During the quarter, we also benefited from the approval of the Florida DPP program for 2025 which was not contemplated in our original outlook. From an operational perspective, I want to highlight the investments we are making to expand capacity in the communities that we serve. We continue to see favorable demand trends across our markets, supporting confidence in the long-term need for capacity in both inpatient and outpatient service lines. In our acute care and behavioral health segments. Allowing us to extend our footprint …