UNIVERSAL HEALTH SERVICES, INC. ANNOUNCES FINANCIAL RESULTS FOR THE THREE AND SIX-MONTH PERIODS ENDED JUNE 30, 2026, AND REVISES 2026 FULL YEAR OPERATING RESULTS FORECAST

Consolidated Results of Operations, As Reported and As Adjusted – Three-month periods ended June 30, 2026 and 2025:

KING OF PRUSSIA, Pa., July 27, 2026 /PRNewswire/ -- Universal Health Services, Inc. (NYSE: UHS) announced today that its reported net income attributable to UHS was $358.4 million, or $5.98 per diluted share, during the second quarter of 2026, as compared to $353.2 million, or $5.43 per diluted share, during the second quarter of 2025. Net revenues increased by 8.3% to $4.638 billion during the second quarter of 2026, as compared to $4.284 billion during the second quarter of 2025.

Included in our operating results during the second quarter of 2026, was a favorable net pre-tax impact of approximately $72 million recorded in connection with the following: (i) a favorable net pre-tax impact of $100 million (net of related provider taxes) recorded in connection with the Florida Medicaid managed care directed payment program applicable to the period of October 1, 2024 through September 30, 2025 (pursuant to the Centers for Medicare and Medicaid Services' ("CMS") preprint approval granted in April, 2026 which increased the size of the program and changed the related provider tax structure), and; (ii) an unfavorable pre-tax impact of $28 million resulting from an increase to our reserve for self-insured professional and general liability claims. The impact of these items was not included in our original 2026 operating results forecast, as previously disclosed on February 25, 2026.

Included in our operating results during the second quarter of 2025, were aggregate net pre-tax incremental reimbursements (net of related provider taxes) of approximately $101 million recorded in connection with the following: (i) approximately $58 million, applicable to the period of July 1, 2024 through June 30, 2025, resulting from the Tennessee Medicaid directed payment program, and; (ii) approximately $43 million of other combined additional net reimbursements recorded in connection with supplemental Medicaid programs in various states (approximately $21 million of which consisted of prior year retroactive reimbursements). Also included in our results of operations during the second quarter of 2025, was a pre-tax loss of approximately $25 million incurred in connection with a newly constructed, 142-bed acute care hospital located in Washington, D.C., that was completed and opened in April, 2025.

As reflected on the Schedule of Non-GAAP Supplemental Information ("Supplemental Schedule"), there were no adjustments applicable to our operating results during the second quarter of 2026. As reflected on the Supplemental Schedule, included in our reported results during the second quarter of 2025 were: (i) an unrealized after-tax gain of $4.5 million, or $.07 per diluted share ($5.9 million pre-tax), resulting from an increase in the market value of certain equity securities that were sold during the fourth quarter of 2025 (included in "Other (income) expense, net"), and; (ii) a favorable net after-tax impact of $0.8 million, or $.01 per diluted share, resulting from the net tax benefit recorded in connection with "ASU 2016-09", Compensation – Stock Compensation: Improvements to Employee Share-Based Payment Accounting, net of the impact of executive compensation limitations pursuant to IRC section 162(m). After giving effect to these items, our adjusted net income during the second quarter of 2025 was $347.9 million, or $5.35 per diluted share.

As calculated on the attached Supplemental Schedule, our earnings before interest, taxes, depreciation & amortization ("EBITDA net of NCI", NCI is net income attributable to noncontrolling interests), was $680.2 million during the second quarter of 2026, as compared to $651.4 million during the second quarter of 2025. Our adjusted earnings before interest, taxes, depreciation & amortization ("Adjusted EBITDA net of NCI"), which excludes the impact of other (income) expense, net, was $677.9 million during the second quarter of 2026, as compared to $642.9 million during the second quarter of 2025.

Consolidated Results of Operations, As Reported and As Adjusted – Six-month periods ended June 30, 2026 and 2025:

Reported net income attributable to UHS was $707.1 million, or $11.63 per diluted share, during the first six months of 2026, as compared to $669.9 million, or $10.23 per diluted share, during the comparable period of 2025. Net revenues increased by 8.9% to $9.133 billion during the first six months of 2026, as compared to $8.384 billion during the comparable period of 2025.

As reflected on the Supplemental Schedule, our adjusted net income during the first six months of 2026 was $705.0 million, or $11.60 per diluted share, as compared to $667.4 million, or $10.19 per diluted share, during the comparable period of 2025.

As reflected on the Supplemental Schedule, included in our reported results during the first six months of 2026 was a favorable net after-tax impact of $2.2 million, or $.03 per diluted share, resulting from the net tax benefit recorded in connection with ASU 2016-09. Included in our reported results during the first six months of 2025 were: (i) an unrealized after-tax gain of $1.2 million, or $.02 per diluted share ($1.6 million pre-tax), resulting from an increase in the market value of certain equity securities that were sold during the fourth quarter of 2025, and; (ii) a favorable net after-tax impact of $1.3 million, or $.02 per diluted share, resulting from the net tax benefit recorded in connection with ASU 2016-09.

As calculated on the attached Supplemental Schedule, our EBITDA net of NCI, was $1.332 billion during the first six months of 2026, as compared to $1.255 billion during the comparable period of 2025. Our Adjusted EBITDA net of NCI", which excludes the impact of other (income) expense, net, was $1.326 billion during the first six months of 2026, as compared to $1.241 billion during the comparable period of 2025.

Acute Care Services – Three and six-month periods ended June 30, 2026 and 2025:

During the second quarter of 2026, at our acute care hospitals owned during both periods ("same facility basis"), adjusted admissions (adjusted for outpatient activity) increased by 2.9% and adjusted patient days increased by 3.1%, as compared to the second quarter of 2025. At these facilities, during the second quarter of 2026, net revenue per adjusted admission increased by 3.0% while net revenue per adjusted patient day increased by 2.8%, as compared to the second quarter of 2025. Net revenues generated from our acute care services, on a same facility basis, increased by 8.2% during the second quarter of 2026, as compared to the second quarter of 2025.

During the first six months of 2026, on a same facility basis, adjusted admissions increased by 1.4% and adjusted patient days increased by 1.9%, as compared to the comparable period of 2025. At these facilities, during the first six months of 2026, net revenue per adjusted admission increased by 4.6% while net revenue per adjusted patient day increased by 4.2%, as compared to the comparable period of 2025. Net revenues generated from our acute care services, on a same facility basis, increased by 8.2% during the first six months of 2026, as compared to the comparable period of 2025.

Behavioral Health Care Services – Three and six-month periods ended June 30, 2026 and 2025:

During the second quarter of 2026, at our behavioral health care facilities on a same facility basis, adjusted admissions increased by 0.5% while adjusted patient days increased by 1.4%, as compared to the second quarter of 2025. At these facilities, during the second quarter of 2026, net revenue per adjusted admission increased by 7.1% and net revenue per adjusted patient day increased by 6.1%, as compared to the second quarter of 2025. Net revenues generated from our behavioral health care services, on a same facility basis, increased by 7.4% during the second quarter of 2026, as compared to the second quarter of 2025.

During the first six months of 2026, at our behavioral health care facilities on a same facility basis, adjusted admissions increased by 0.9% while adjusted patient days increased by 1.5%, as compared to the comparable period of 2025. At these facilities, during the first six months of 2026, net revenue per adjusted admission increased by 6.6% and net revenue per adjusted patient day increased by 6.0%, as compared to the comparable period of 2025. Net revenues generated from our behavioral health care services, on a same facility basis, increased by 7.4% during the first six months of 2026, as compared to the comparable period of 2025.

Net Cash Provided by Operating Activities and Credit Agreement Amendment/Capital Resources:

Net Cash Provided by Operating Activities:

During the six-month period ended June 30, 2026, our net cash provided by operating activities was $845 million as compared to $909 million during the first six months of 2025. The $64 million net decrease in our net cash provided by operating activities consisted of: (i) an unfavorable change of $207 million in other working capital accounts due primarily to the timing of accounts payable disbursements; (ii) a favorable change of $86 million in accrued and deferred income taxes; (iii) a favorable change of $53 million resulting from an increase in net income plus/minus depreciation and amortization expense, stock-based compensation expense and gain on sales of assets and businesses; (iv) a favorable change of $47 million in accrued insurance expense, net of payments made in settlement of self-insured claims; (v) an unfavorable change of $45 million in accounts receivable, and; (vi) other combined net favorable changes of $2 million.

Credit Agreement Amendment/Capital Resources:

As of June 30, 2026, pursuant to the terms of our $1.5 billion revolving credit facility, we had $1.272 billion of available borrowing capacity, net of outstanding borrowings ($225 million) and letters of credit. Also as of June 30, 2026, as part of our credit agreement, we had $400 million of borrowing capacity pursuant to a delayed draw term loan A which is expected to be drawn upon the closing of our acquisition of Talkspace, Inc. (expected to be finalized during the third quarter of 2026). The maturity date for our $1.5 billion revolving credit facility and our $400 million delayed draw term loan A is September 26, 2029.

In July, 2026, and as previously disclosed on Form 8-K as filed with the Securities and Exchange Commission on July 21, 2026, we amended our credit agreement to add a new $700 million delayed draw term loan A which, if we elect to utilize, would be funded on or prior to September 30, 2026, with a maturity date 364 days after the initial funding. Potential future borrowings pursuant to this facility would be used for general corporate purposes, including, should we elect, repayment at maturity of our $700 million, 1.650% Senior Secured Notes due on September 1, 2026.

Stock Repurchase Program:

In connection with our stock repurchase program, shares of our Class B Common Stock may be repurchased, from time to time as conditions allow, on the open market or in negotiated private transactions.

Pursuant to this program, during the second quarter of 2026, we have repurchased 1.890 million shares at an aggregate cost of approximately $320.3 million (average price of approximately $169 per share). During the first six months of 2026, we have repurchased 2.565 million shares at an aggregate cost of approximately $447.5 million (average price of approximately $174 per share).

As of June 30, 2026, we had an aggregate available repurchase authorization of approximately $977.6 million pursuant to our stock repurchase program.

Revised 2026 Operating Results Forecast:

Based upon the operating trends, changes in reimbursements related to certain Medicaid supplemental payment programs and financial results experienced during the first six months of 2026, as indicated on the Revised Forecast table below, we are revising our operating results forecast range for consolidated net revenues; adjusted earnings before interest, taxes, depreciation & amortization, and the impacts of other income/expense and net income attributable to noncontrolling interests ("Adjusted EBITDA, net of NCI"), and adjusted net income attributable to UHS per diluted share ("Adjusted EPS-diluted") for the year ended December 31, 2026.

As discussed above, our operating results for the three and six-month periods ended June 30, 2026 included a favorable net pre-tax impact of $100 million (net of related provider taxes) recorded in connection with the Florida Medicaid managed care directed payment program applicable to the period of October 1, 2024 through September 30, 2025. Since CMS has not yet approved the increased size of this program for periods beyond September 30, 2025, no incremental benefit related to this program has been included in our revised 2026 operating results forecast beyond amounts included in our operating results during the three and six-month periods ended June 30, 2026.

Our revised 2026 forecasted range of adjusted net income attributable to UHS, and adjusted EPS-diluted, exclude certain items as described below because we do not believe we can forecast those items with sufficient accuracy. Adjusted EBITDA net of NCI, is a non-GAAP financial measure and should not be considered a measure of financial performance under GAAP. We believe Adjusted EBITDA net of NCI is helpful to our investors as a measure of our operating performance. Please see the Supplemental Non-GAAP Disclosures – Revised 2026 Operating Results Forecast schedule as included herein for additional information and a reconciliation of our revised 2026 forecasted range of adjusted net income attributable to UHS to our revised 2026 forecasted range of Adjusted EBITDA net of NCI.

The tables below include our full year revised 2026 operating results forecast, as well as our original 2026 operating results forecast which was previously disclosed on February 25, 2026.

Net revenues

$18.501 billion

$18.762 billion

$18.417 billion

$18.789 billion

Adjusted EBITDA, net of NCI

$2.610 billion

$2.717 billion

$2.641 billion

$2.789 billion

Adjusted EPS – diluted

$22.28 per share

$23.65 per share

$22.64 per share

$24.52 per share

• The midpoint of our revised 2026 forecasted net revenues represents an increase of 0.2% as compared to the midpoint of our original 2026 forecasted net revenues.

• The midpoint of our revised 2026 forecasted Adjusted EBITDA net of NCI, represents a decrease of 1.9% as compared to the midpoint of our original 2026 forecasted Adjusted EBITDA net of NCI.

• The midpoint of our revised 2026 forecasted Adjusted EPS-diluted represents a decrease of 2.6% as compared to our original 2026 Adjusted EPS-diluted.

• As previously disclosed, during the full year of 2026, we expect to spend approximately $950 million to $1.1 billion on capital expenditures which includes expenditures for capital equipment, construction of new facilities, and renovations and expansions to our existing hospitals.

Because we do not believe we can forecast certain items with sufficient accuracy, our revised 2026 forecasted range of Adjusted EBITDA net of NCI, net income attributable to UHS, and Adjusted EPS-diluted, exclude the impact of future items, if applicable, that are nonrecurring or non-operational in nature including items such as changes in the value of certain non-marketable securities (in connection with our minority ownership in a healthcare generative artificial intelligence company), the impact of ASU 2016-09, and other potential material items that are nonrecurring or non-operational in nature including, but not limited to, impairments of goodwill, long-lived and intangible assets, reserves for various matters including settlements, legal judgments and lawsuits, costs related to extinguishment of debt, gains/losses on sales of assets and businesses, potential impacts of non-ordinary acquisitions, divestitures, joint ventures or other strategic transactions, other amounts that may be reflected in the current or prior year financial statements that relate to prior periods, and the impact of share repurchases that differ from our forecasted assumptions. It is also subject to certain conditions including those as set forth below in General Information, Forward-Looking Statements and Risk Factors and Non-GAAP Financial Measures.

Conference call information:

We will hold a conference call for investors and analysts at 9:00 a.m. eastern time on July 28, 2026. A live webcast of the call will be available on our website at www.uhs.com. To participate via telephone, please register in advance at this link. Upon registration, all telephone participants will receive a confirmation email detailing how to join the conference call, including the dial-in number along with a unique passcode and registrant ID that can be used to access the call. Supplemental financial disclosures related to our financial results are available on our website.

General Information, Forward-Looking Statements and Risk Factors and Non-GAAP Financial Measures:

Headquartered in King of Prussia, PA, UHS is one of the nation's largest and most respected providers of hospital and healthcare services, with annual revenues of approximately $17.4 billion during 2025. Through its subsidiaries, UHS employs more than 102,000 employees and, as of June 30, 2026, operated 30 inpatient acute care facilities, 346 inpatient behavioral health facilities and approximately 170 outpatient and other facilities, an insurance offering, a physician network and various related services located in 40 states, Washington, D.C., Puerto Rico and the United Kingdom. Since our founding in 1979, UHS has grown steadily into a premier Fortune 500® corporation perennially recognized by multiple esteemed national rating entities. Our strategy includes investing in talented staff, facilities, technology and innovation across broad care continuums to deliver favorable patient outcomes and contribute to the overall health and wellbeing of the patients we are privileged to serve. A wholly-owned subsidiary of UHS also acts as the advisor to Universal Health Realty Income Trust, a real estate investment trust (NYSE: UHT). For additional information, please visit www.uhs.com.

This press release contains forward-looking statements based on current management expectations. Numerous factors, including those disclosed herein, those related to healthcare industry trends and those detailed in our filings with the Securities and Exchange Commission (as set forth in Item 2-Forward Looking Statements and Risk Factors in our Form 10-Q for the quarter ended March 31, 2026 and in Item 1A - Risk Factors, and Item 7-Forward-Looking Statements and Risk Factors, in our Form 10-K for the year ended December 31, 2025), may cause the results to differ materially from those anticipated in the forward-looking statements. These statements are subject to risks and uncertainties and therefore actual results may differ materially. Readers should not place undue reliance on such forward-looking statements which reflect management's view only as of the date hereof. We undertake no obligation to revise or update any forward-looking statements, or to make any other forward-looking statements, whether as a result of new information, future events or otherwise.

Many of the factors that could affect our future results are beyond our control or ability to predict, including, but not limited to:

• A significant portion of our revenues are derived from federal and state government programs including the Medicare and Medicaid programs. Payments from these programs are subject to statutory and regulatory changes, administrative rulings, interpretations and determinations, requirements for utilization review, and federal and state funding restrictions. Changes to these programs could materially affect program payments which could materially impact our results of operations. In addition, we receive substantial reimbursement from multiple states in connection with various supplemental Medicaid payment programs. Failure to renew these programs beyond their scheduled termination dates, failure of the public hospitals to provide the necessary Inter-Governmental Transfers for the states' share of the Medicaid disproportionate share hospital programs, and the failure of our hospitals that currently receive supplemental Medicaid revenues to qualify for future funds under these programs could cause our actual results of operations for the year ended December 31, 2026 to differ materially from our revised 2026 operating results forecast.

• Legislation adopted on July 4, 2025, attaches work and community service requirements to eligibility for Medicaid benefits that will have the effect of limiting Medicaid enrollment and expenditures. That legislation also places limits on provider fees used to increase federal Medicaid funding to states and eliminated certain exchange premium tax credits beyond 2025. As these provisions become effective over the next several years, they may be expected to reduce our revenues and likely increase the level of uncompensated care provided by our facilities.

• The increase in interest rates during the past few years has increased our interest expense significantly thereby reducing our free cash flow. As such, although interest rates have moderated more recently, the effects of increased borrowing rates have adversely impacted our results of operations, financial condition and cash flows. We cannot predict future changes to interest rates, however, significant increases in our borrowing rates could have a material unfavorable impact on our future results of operations and our ability to access the capital markets on favorable terms.

• Changes in laws or policies governing the terms of foreign trade, and in particular, increased trade restrictions, tariffs or taxes on imports from where our products or materials are made (either directly or through our suppliers) could have an impact on our competitive position, business operations and financial results.

• The outcome of known and unknown litigation, liabilities and other claims asserted against us and/or our subsidiaries, including, but not limited to, the matters related to Cumberland Hospital for Children and Adolescents, located in New Kent, Virginia, which was previously disclosed in various filings including, most recently, our Form 10-Q for the quarterly period ended March 31, 2026. Although we can make no assurances regarding the ultimate outcome of these matters, or what damages will ultimately be awarded, the final resolution of these matters could have a material adverse effect on the Company.

• The ability to successfully complete, integrate and realize the benefit and synergies from our proposed acquisition of Talkspace, Inc.

We believe that adjusted net income attributable to UHS, adjusted net income attributable to UHS per diluted share, EBITDA net of NCI and Adjusted EBITDA net of NCI, which are non-GAAP financial measures ("GAAP" is Generally Accepted Accounting Principles in the United States of America), are helpful to our investors as measures of our operating performance. In addition, we believe that, when applicable, comparing and discussing our financial results based on these measures, as calculated, is helpful to our investors since it neutralizes the effect of material items impacting our net income attributable to UHS, such as, changes in the value of certain non-marketable securities (in connection with our minority ownership in a healthcare generative artificial intelligence company), the impact of ASU 2016-09, and other potential material items that are nonrecurring or non-operational in nature including, but not limited to, impairments of goodwill, long-lived and intangible assets, reserves for various matters including settlements, legal judgments and lawsuits, costs related to extinguishment of debt, gains/losses on sales of assets and businesses, potential impacts of non-ordinary acquisitions, divestitures, joint ventures or other strategic transactions, and other amounts that may be reflected in the current or prior year financial statements that relate to prior periods. To obtain a complete understanding of our financial performance these measures should be examined in connection with net income attributable to UHS, as determined in accordance with GAAP, and as presented in the condensed consolidated financial statements and notes thereto in this report or in our filings with the Securities and Exchange Commission including our Report on Form 10-Q for the quarter ended March 31, 2026 and our Report on Form 10-K for the year ended December 31, 2025. Since the items included or excluded from these measures are significant components in understanding and assessing financial performance under GAAP, these measures should not be considered to be alternatives to net income as a measure of our operating performance or profitability. Since these measures, as presented, are not determined in accordance with GAAP and are thus susceptible to varying calculations, they may not be comparable to other similarly titled measures of other companies. Investors are encouraged to use GAAP measures when evaluating our financial performance.

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Consolidated Statements of Income

(in thousands, except per share amounts)

(unaudited)

Three months

Six months

ended June 30,

ended June 30,

2026

2025

2026

2025

Net revenues

$4,638,012

$4,283,816

$9,133,194

$8,383,536

Operating charges:

Salaries, wages and benefits

2,140,309

2,014,951

4,228,538

3,966,055

Other operating expenses

1,351,958

1,162,566

2,635,886

2,268,318

Supplies expense

423,257

418,785

849,800

821,666

Depreciation and amortization

167,338

152,004

322,764

300,349

Lease and rental expense

38,475

35,240

76,671

72,053

4,121,337

3,783,546

8,113,659

7,428,441

Income from operations

516,675

500,270

1,019,535

955,095

Interest expense, net

39,912

35,364

77,045

75,420

Other (income) expense, net

(2,363)

(8,479)

(5,752)

(14,138)

Income before income taxes

479,126

473,385

948,242

893,813

Provision for income taxes

114,536

110,773

224,974

209,573

Net income

364,590

362,612

723,268

684,240

Less: Net income (loss) attributable to

noncontrolling interests ("NCI")

6,143

9,394

16,139

14,342

Net income attributable to UHS

$358,447

$353,218

$707,129

$669,898

Basic earnings per share attributable to UHS (a)

$6.01

$5.49

$11.71

$10.36

Diluted earnings per share attributable to UHS (a)

$5.98

$5.43

$11.63

$10.23

Footnotes to Consolidated Statements of Income

(in thousands, except per share amounts)

(unaudited)

Three months

Six months

ended June 30,

ended June 30,

2026

2025

2026

2025

Basic and diluted:

Net income attributable to UHS - basic and diluted

$358,447

$353,218

$707,129

$669,898

Weighted average number of common shares - basic

59,657

64,356

60,364

64,663

Basic earnings per share attributable to UHS:

$6.01

$5.49

$11.71

$10.36

Weighted average number of common shares

59,657

64,356

60,364

64,663

Add: Other share equivalents

253

635

425

851

Weighted average number of common shares and equiv. - diluted

59,910

64,991

60,789

65,514

Diluted earnings per share attributable to UHS:

$5.98

$5.43

$11.63

$10.23

Schedule of Non-GAAP Supplemental Information ("Supplemental Schedule")

For the Three Months ended June 30, 2026 and 2025

(in thousands, except per share amounts)

(unaudited)

Three months ended

% Net

Three months ended

% Net

June 30, 2026

revenues

June 30, 2025

revenues

Net income attributable to UHS

$358,447

$353,218

Depreciation and amortization

167,338

152,004

Interest expense, net

39,912

35,364

Provision for income taxes

114,536

110,773

EBITDA net of NCI

$680,233

14.7%

$651,359

15.2%

Other (income) expense, net

(2,363)

(8,479)

Adjusted EBITDA net of NCI

$677,870

14.6%

$642,880

15.0%

Net revenues

$4,638,012

$4,283,816

Three months ended

Three months ended

June 30, 2026

June 30, 2025

Per

Per

Amount

Diluted Share

Amount

Diluted Share

Net income attributable to UHS

$358,447

$5.98

$353,218

$5.43

Plus/minus after-tax adjustments:

Unrealized gain on equity securities

-

-

(4,534)

(0.07)

Impact of ASU 2016-09, net

-

-

(796)

(0.01)

Subtotal adjustments

-

-

(5,330)

(0.08)

Adjusted net income

$358,447

$5.98

$347,888

$5.35

Schedule of Non-GAAP Supplemental Information ("Supplemental Schedule")

For the Six Months ended June 30, 2026 and 2025

(in thousands, except per share amounts)

(unaudited)

Six months ended

% Net

Six months ended

% Net

June 30, 2026

revenues

June 30, 2025

revenues

Net income attributable to UHS

$707,129

$669,898

Depreciation and amortization

322,764

300,349

Interest expense, net

77,045

75,420

Provision for income taxes

224,974

209,573

EBITDA net of NCI

$1,331,912

14.6%

$1,255,240

15.0%

Other (income) expense, net

(5,752)

(14,138)

Adjusted EBITDA net of NCI

$1,326,160

14.5%

$1,241,102

14.8%

Net revenues

$9,133,194

$8,383,536

Six months ended

Six months ended

June 30, 2026

June 30, 2025

Per

Per

Amount

Diluted Share

Amount

Diluted Share

Net income attributable to UHS

$707,129

$11.63

$669,898

$10.23

Plus/minus after-tax adjustments:

Unrealized gain on equity securities

-

-

(1,249)

(0.02)

Impact of ASU 2016-09, net

(2,164)

(0.03)

(1,257)

(0.02)

Subtotal adjustments

(2,164)

(0.03)

(2,506)

(0.04)

Adjusted net income attributable to UHS

$704,965

$11.60

$667,392

$10.19

Condensed Consolidated Balance Sheets

(in thousands)

(unaudited)

Assets

Current assets:

Cash and cash equivalents

$

138,800

$

137,797

Accounts receivable, net

2,801,108

2,602,434

Supplies

234,094

232,110

Other current assets

505,323

435,574

Total current assets

3,679,325

3,407,915

Property and equipment

13,830,293

13,489,811

Less: accumulated depreciation

(6,687,668)

(6,481,714)

7,142,625

7,008,097

Other assets:

Goodwill

3,981,713

3,990,213

Deferred income taxes

63,719

70,517

Right of use assets-operating leases

365,758

374,239

Deferred charges

9,908

9,272

Other

692,438

667,340

Total Assets

$

15,935,486

$

15,527,593

Liabilities and Stockholders' Equity

Current liabilities:

Current maturities of long-term debt

$

771,910

$

748,158

Accounts payable and other liabilities

2,451,182

2,416,276

Operating lease liabilities

70,861

73,237

Federal and state taxes

3,703

1,930

Total current liabilities

3,297,656

3,239,601

Other noncurrent liabilities

559,955

527,827

Operating lease liabilities noncurrent

339,467

340,715

Deferred income taxes

3,233

5,649

Long-term debt

4,079,937

4,004,393

Redeemable noncontrolling interest

73,603

70,620

UHS common stockholders' equity

7,513,812

7,275,792

Noncontrolling interest

67,823

62,996

Total equity

7,581,635

7,338,788

Total Liabilities and Stockholders' Equity

$

15,935,486

$

15,527,593

Consolidated Statements of Cash Flows

(in thousands)

(unaudited)

Net income

$723,268

$684,240

Adjustments to reconcile net income to net

cash provided by operating activities:

Depreciation & amortization

322,764

300,349

Stock-based compensation expense

45,413

45,707

(Gain) loss on sales of assets and businesses

(5,578)

2,833

Changes in assets & liabilities, net of effects from

acquisitions and dispositions:

Accounts receivable

(137,907)

(92,636)

Accrued interest

(29)

(4,532)

Accrued and deferred income taxes

29,759

(55,913)

Other working capital accounts

(182,146)

25,324

Other assets and deferred charges

(18,466)

(22,404)

Other, net

10,753

16,143

Accrued insurance expense, net of commercial premiums paid

157,435

94,696

Payments made in settlement of self-insurance claims, net of commercial insurance reimbursements

(100,335)

(84,781)

Net cash provided by operating activities

844,931

909,026

Property and equipment additions

(444,790)

(505,040)

Proceeds received from sales of assets and businesses

15,732

2,980

Acquisition of businesses and property

(4,857)

(8,314)

Inflows (outflows) from foreign exchange contracts that hedge our net U.K. investment

12,011

(66,402)

Costs incurred for purchase and development of enterprise resource planning application

(9,964)

0

Decrease (increase) in capital reserves of commercial insurance subsidiary

56

(462)

Net cash used in investing activities

(431,812)

(577,238)

Repayments of long-term debt

(201,745)

(18,548)

Additional borrowings

300,040

94,601

Financing costs

(1,410)

0

Repurchase of common shares

(484,601)

(378,542)

Dividends paid

(24,760)

(26,434)

Issuance of common stock

8,659

8,137

Profit distributions to noncontrolling interests

(11,889)

(9,621)

Purchase of ownership interests by minority members, net

4,324

11,336

Net cash used in financing activities

(411,382)

(319,071)

Effect of exchange rate changes on cash and cash equivalents

(676)

3,931

Increase in cash, cash equivalents and restricted cash

1,061

16,648

Cash, cash equivalents and restricted cash, beginning of period

271,322

224,752

Cash, cash equivalents and restricted cash, end of period

$272,383

$241,400

Interest paid

$74,460

$77,448

Income taxes paid, net of refunds

$197,419

$251,786

Noncash purchases of property and equipment

$80,646

$148,887

Supplemental Statistical Information

(unaudited)

% Change

% Change

3 Months ended

6 Months ended

6/30/2026

6/30/2026

Revenues

8.2%

8.2%

Adjusted Admissions

2.9%

1.4%

Adjusted Patient Days

3.1%

1.9%

Revenue Per Adjusted Admission

3.0%

4.6%

Revenue Per Adjusted Patient Day

2.8%

4.2%

Revenues

7.4%

7.4%

Adjusted Admissions

0.5%

0.9%

Adjusted Patient Days

1.4%

1.5%

Revenue Per Adjusted Admission

7.1%

6.6%

Revenue Per Adjusted Patient Day

6.1%

6.0%

Second Quarter Ended

Six Months Ended

6/30/2026

6/30/2025

6/30/2026

6/30/2025

Revenues

$4,638,012

$4,283,816

$9,133,194

$8,383,536

EBITDA net of NCI

$680,233

$651,359

$1,331,912

$1,255,240

EBITDA Margin net of NCI

14.7%

15.2%

14.6%

15.0%

Adjusted EBITDA net of NCI

$677,870

$642,880

$1,326,160

$1,241,102

Adjusted EBITDA Margin net of NCI

14.6%

15.0%

14.5%

14.8%

Cash Flow From Operations

$443,303

$548,978

$844,931

$909,026

Capital Expenditures

$227,633

$266,014

$444,790

$505,040

Days Sales Outstanding

56

50

Debt

$4,851,847

$4,582,897

UHS' Shareholders Equity

$7,513,812

$7,030,048

Debt / Total Capitalization

39.2%

39.5%

Debt / EBITDA net of NCI (2)

1.73

1.91

Debt / Adjusted EBITDA net of NCI (2)

1.81

1.92

Debt / Cash From Operations (2)

2.70

2.41

(1) Prior year amounts related to certain facilities previously included in our Behavioral Health Care Services' results have been reclassified into our Acute Care Hospital Services' results as of January 1, 2025 to conform with current year presentation.

(2) Latest 4 quarters.

Acute Care Hospital Services

For the Three and Six Months ended

June 30, 2026 and 2025

(in thousands)

(unaudited)

Net revenues

$2,507,889

100.0%

$2,318,826

100.0%

$4,977,934

100.0%

$4,600,657

100.0%

Operating charges:

Salaries, wages and benefits

991,733

39.5%

938,594

40.5%

1,944,568

39.1%

1,852,423

40.3%

Other operating expenses

779,029

31.1%

672,172

29.0%

1,507,181

30.3%

1,310,771

28.5%

Supplies expense

362,131

14.4%

361,093

15.6%

727,628

14.6%

709,917

15.4%

Depreciation and amortization

103,112

4.1%

96,458

4.2%

198,793

4.0%

191,359

4.2%

Lease and rental expense

25,959

1.0%

24,240

1.0%

52,697

1.1%

49,584

1.1%

Subtotal-operating expenses

2,261,964

90.2%

2,092,557

90.2%

4,430,867

89.0%

4,114,054

89.4%

Income from operations

245,925

9.8%

226,269

9.8%

547,067

11.0%

486,603

10.6%

Interest expense, net

1,301

0.1%

(1,613)

(0.1)%

2,287

0.0%

649

0.0%

Other (income) expense, net

(1,189)

(0.0)%

(1,011)

(0.0)%

(3,744)

(0.1)%

(9,583)

(0.2)%

Income before income taxes

$245,813

9.8%

$228,893

9.9%

$548,524

11.0%

$495,537

10.8%

Net revenues

$2,609,999

100.0%

$2,403,837

100.0%

$5,220,135

100.0%

$4,761,651

100.0%

Operating charges:

Salaries, wages and benefits

999,864

38.3%

938,708

39.1%

1,972,710

37.8%

1,854,232

38.9%

Other operating expenses

885,882

33.9%

757,549

31.5%

1,745,729

33.4%

1,474,211

31.0%

Supplies expense

363,494

13.9%

361,097

15.0%

731,432

14.0%

709,789

14.9%

Depreciation and amortization

106,623

4.1%

96,459

4.0%

202,941

3.9%

191,362

4.0%

Lease and rental expense

26,170

1.0%

24,240

1.0%

52,742

1.0%

49,584

1.0%

Subtotal-operating expenses

2,382,033

91.3%

2,178,053

90.6%

4,705,554

90.1%

4,279,178

89.9%

Income from operations

227,966

8.7%

225,784

9.4%

514,581

9.9%

482,473

10.1%

Interest expense, net

1,301

0.0%

(1,613)

(0.1)%

2,287

0.0%

649

0.0%

Other (income) expense, net

(985)

(0.0)%

(916)

(0.0)%

(3,117)

(0.1)%

(9,183)

(0.2)%

Income before income taxes

$227,650

8.7%

$228,313

9.5%

$515,411

9.9%

$491,007

10.3%

We believe that providing our results on a "Same Facility" basis (which is a non-GAAP measure), which includes the operating results for facilities and businesses operated in both the current year and prior year periods, is helpful to our investors as a measure of our operating performance. Our Same Facility results also neutralize (if applicable), the effect of material items that are nonrecurring or non-operational in nature including items such as, but not limited to, reserves for various matters, settlements, legal judgments and lawsuits, cost related to extinguishment of debt, gains/losses on sales of assets and businesses, impairments of goodwill, long-lived and intangible assets and other amounts that may be reflected in the current or prior year financial statements that relate to prior periods. Our Same Facility basis results exclude from net revenues and other operating expenses, provider tax assessments incurred in each period. However, these provider tax assessments are included in net revenues and other operating expenses as reflected in the table under All Acute Care Hospital Services. The provider tax assessments had no impact on the income before income taxes as reflected on the above tables since the amounts offset between net revenues and other operating expenses. To obtain a complete understanding of our financial performance, the Same Facility results should be examined in connection with our net income as determined in accordance with GAAP and as presented herein and the condensed consolidated financial statements and notes thereto as contained in our Form 10-K for the year ended December 31, 2025 and our Form 10-Q for the quarter ended March 31, 2026.

Prior year amounts related to certain facilities previously included in our Behavioral Health Care Services' results have been reclassified into our Acute Care Hospital Services' results as of January 1, 2025 to conform with current year presentation.

The All Acute Care Hospital Services table summarizes the results of operations for all our acute care operations during the periods presented. These amounts include: (i) our acute care results on a same facility basis, as indicated above; (ii) the impact of provider tax assessments which increased net revenues and other operating expenses but had no impact on income before income taxes, and; (iii) certain other amounts including the results of facilities acquired or opened during the last twelve months.

Behavioral Health Care Services

For the Three and Six Months ended

June 30, 2026 and 2025

(in thousands)

(unaudited)

Net revenues

$1,929,171

100.0%

$1,796,295

100.0%

$3,747,847

100.0%

$3,490,455

100.0%

Operating charges:

Salaries, wages and benefits

1,019,296

52.8%

959,030

53.4%

2,012,334

53.7%

1,878,820

53.8%

Other operating expenses

355,579

18.4%

325,595

18.1%

690,002

18.4%

645,195

18.5%

Supplies expense

57,889

3.0%

56,957

3.2%

116,345

3.1%

111,952

3.2%

Depreciation and amortization

56,764

2.9%

51,873

2.9%

111,920

3.0%

102,752

2.9%

Lease and rental expense

12,054

0.6%

10,412

0.6%

23,359

0.6%

21,290

0.6%

Subtotal-operating expenses

1,501,582

77.8%

1,403,867

78.2%

2,953,960

78.8%

2,760,009

79.1%

Income from operations

427,589

22.2%

392,428

21.8%

793,887

21.2%

730,446

20.9%

Interest expense, net

1,168

0.1%

1,104

0.1%

2,360

0.1%

2,179

0.1%

Other (income) expense, net

(983)

(0.1)%

(837)

(0.0)%

(1,866)

(0.0)%

(1,662)

(0.0)%

Income before income taxes

$427,404

22.2%

$392,161

21.8%

$793,393

21.2%

$729,929

20.9%

Net revenues

$2,025,065

100.0%

$1,877,273

100.0%

$3,907,217

100.0%

$3,616,337

100.0%

Operating charges:

Salaries, wages and benefits

1,040,604

51.4%

975,553

52.0%

2,041,698

52.3%

1,898,919

52.5%

Other operating expenses

443,752

21.9%

383,412

20.4%

835,650

21.4%

745,674

20.6%

Supplies expense

58,475

2.9%

58,289

3.1%

117,262

3.0%

113,437

3.1%

Depreciation and amortization

58,895

2.9%

53,170

2.8%

115,529

3.0%

104,322

2.9%

Lease and rental expense

12,212

0.6%

10,963

0.6%

23,727

0.6%

22,327

0.6%

Subtotal-operating expenses

1,613,938

79.7%

1,481,387

78.9%

3,133,866

80.2%

2,884,679

79.8%

Income from operations

411,127

20.3%

395,886

21.1%

773,351

19.8%

731,658

20.2%

Interest expense, net

1,273

0.1%

1,104

0.1%

2,545

0.1%

2,179

0.1%

Other (income) expense, net

(983)

(0.0)%

(837)

(0.0)%

(1,866)

(0.0)%

(1,662)

(0.0)%

Income before income taxes

$410,837

20.3%

$395,619

21.1%

$772,672

19.8%

$731,141

20.2%

We believe that providing our results on a "Same Facility" basis (which is a non-GAAP measure), which includes the operating results for facilities and businesses operated in both the current year and prior year periods, is helpful to our investors as a measure of our operating performance. Our Same Facility results also neutralize (if applicable), the effect of material items that are nonrecurring or non-operational in nature including items such as, but not limited to, reserves for various matters, settlements, legal judgments and lawsuits, cost related to extinguishment of debt, gains/losses on sales of assets and businesses, impairments of goodwill, long-lived and intangible assets and other amounts that may be reflected in the current or prior year financial statements that relate to prior periods. Our Same Facility basis results exclude from net revenues and other operating expenses, provider tax assessments incurred in each period. However, these provider tax assessments are included in net revenues and other operating expenses as reflected in the table under All Behavioral Health Care Services. The provider tax assessments had no impact on the income before income taxes as reflected on the above tables since the amounts offset between net revenues and other operating expenses. To obtain a complete understanding of our financial performance, the Same Facility results should be examined in connection with our net income as determined in accordance with GAAP and as presented herein and the condensed consolidated financial statements and notes thereto as contained in our Form 10-K for the year ended December 31, 2025 and our Form 10-Q for the quarter ended March 31, 2026.

Prior year amounts related to certain facilities previously included in our Behavioral Health Care Services' results have been reclassified into our Acute Care Hospital Services' results as of January 1, 2025 to conform with current year presentation.

The All Behavioral Health Care Services table summarizes the results of operations for all our behavioral health care facilities during the periods presented. These amounts include: (i) our behavioral health results on a same facility basis, as indicated above; (ii) the impact of provider tax assessments which increased net revenues and other operating expenses but had no impact on income before income taxes, and; (iii) certain other amounts including the results of facilities acquired or opened during the last twelve months.

Selected Hospital Statistics

For the Three Months ended

June 30, 2026 and 2025

(unaudited)

Hospitals owned and leased

30

28

7.1%

346

338

2.4%

Average licensed beds

7,434

7,159

3.8%

24,587

24,254

1.4%

Average available beds

7,262

6,987

3.9%

24,487

24,154

1.4%

Patient days

420,001

412,885

1.7%

1,631,375

1,620,819

0.7%

Average daily census

4,615.4

4,537.2

1.7%

17,927.2

17,811.2

0.7%

Occupancy-licensed beds

62.1%

63.4%

-2.0%

72.9%

73.4%

-0.7%

Occupancy-available beds

63.6%

64.9%

-2.1%

73.2%

73.7%

-0.7%

Admissions

88,649

87,278

1.6%

116,857

118,519

-1.4%

Length of stay

4.7

4.7

0.2%

14.0

13.7

2.1%

Inpatient revenue

$15,586,752

$13,886,867

12.2%

$3,302,515

$2,993,234

10.3%

Outpatient revenue

11,194,461

9,638,566

16.1%

326,489

294,989

10.7%

Total patient revenue

26,781,213

23,525,433

13.8%

3,629,004

3,288,223

10.4%

Other revenue

353,881

285,690

23.9%

96,736

93,542

3.4%

Gross revenue

27,135,094

23,811,123

14.0%

3,725,740

3,381,765

10.2%

Total deductions

24,525,095

21,407,286

14.6%

1,700,675

1,504,492

13.0%

Net revenue

$2,609,999

$2,403,837

8.6%

$2,025,065

$1,877,273

7.9%

Hospitals owned and leased

29

29

0.0%

334

334

0.0%

Average licensed beds

7,330

7,159

2.4%

23,703

23,652

0.2%

Average available beds

7,158

6,987

2.4%

23,603

23,552

0.2%

Patient days

419,710

412,885

1.7%

1,597,105

1,576,830

1.3%

Average daily census

4,612.2

4,537.2

1.7%

17,550.6

17,327.8

1.3%

Occupancy-licensed beds

62.9%

63.4%

-0.7%

74.0%

73.3%

1.1%

Occupancy-available beds

64.4%

64.9%

-0.8%

74.4%

73.6%

1.1%

Admissions

88,562

87,278

1.5%

114,911

114,433

0.4%

Length of stay

4.7

4.7

0.2%

13.9

13.8

0.9%

Prior year amounts related to certain facilities previously included in our Behavioral Health Care Services' results have been reclassified into our Acute Care Hospital Services' results as of January 1, 2025 to conform with current year presentation.

Selected Hospital Statistics

For the Six Months ended

June 30, 2026 and 2025

(unaudited)

Hospitals owned and leased

30

28

7.1%

346

338

2.4%

Average licensed beds

7,300

7,076

3.2%

24,579

24,170

1.7%

Average available beds

7,128

6,904

3.2%

24,479

24,070

1.7%

Patient days

851,080

841,922

1.1%

3,250,959

3,209,365

1.3%

Average daily census

4,702.1

4,651.5

1.1%

17,961.1

17,731.3

1.3%

Occupancy-licensed beds

64.4%

65.7%

-2.0%

73.1%

73.4%

-0.4%

Occupancy-available beds

66.0%

67.4%

-2.1%

73.4%

73.7%

-0.4%

Admissions

176,538

175,368

0.7%

234,348

234,869

-0.2%

Length of stay

4.8

4.8

0.4%

13.9

13.7

1.5%

Inpatient revenue

$31,549,934

$28,205,158

11.9%

$6,568,817

$5,838,122

12.5%

Outpatient revenue

22,007,439

18,966,362

16.0%

638,981

569,023

12.3%

Total patient revenue

53,557,373

47,171,520

13.5%

7,207,798

6,407,145

12.5%

Other revenue

691,138

566,133

22.1%

192,211

181,921

5.7%

Gross revenue

54,248,511

47,737,653

13.6%

7,400,009

6,589,066

12.3%

Total deductions

49,028,376

42,976,002

14.1%

3,492,792

2,972,729

17.5%

Net revenue

$5,220,135

$4,761,651

9.6%

$3,907,217

$3,616,337

8.0%

Hospitals owned and leased

29

29

0.0%

334

334

0.0%

Average licensed beds

7,177

7,076

1.4%

23,860

23,754

0.4%

Average available beds

7,005

6,904

1.5%

23,760

23,654

0.4%

Patient days

845,542

841,922

0.4%

3,190,451

3,147,427

1.4%

Average daily census

4,671.5

4,651.5

0.4%

17,626.8

17,389.1

1.4%

Occupancy-licensed beds

65.1%

65.7%

-1.0%

73.9%

73.2%

0.9%

Occupancy-available beds

66.7%

67.4%

-1.0%

74.2%

73.5%

0.9%

Admissions

175,342

175,368

0.0%

231,179

229,482

0.7%

Length of stay

4.8

4.8

0.4%

13.8

13.7

0.6%

Prior year amounts related to certain facilities previously included in our Behavioral Health Care Services' results have been reclassified into our Acute Care Hospital Services' results as of January 1, 2025 to conform with current year presentation.