Universal Health Services Reports 9.6% Revenue Growth to $4.28 Billion in Q2 2025

Universal Health Services, Inc. (UHS) reported a significant increase in financial performance for the second quarter of 2025, with net revenues reaching $4.28 billion, a 9.6% increase from $3.91 billion in the same period last year. The company's net income attributable to UHS rose to $353.2 million, up 22% from $289.2 million in the prior year. This growth was primarily driven by an 8.4% increase in revenues from existing acute care and behavioral health services, alongside contributions from newly opened facilities, including the Cedar Hill Regional Medical Center in Washington, D.C.

In the first half of 2025, UHS's total revenues increased by 8.2% to $8.38 billion, compared to $7.75 billion in the first half of 2024. The company reported a net income of $669.9 million for the six months ending June 30, 2025, reflecting a 22% increase from $551 million in the same period of the previous year. The increase in revenues was attributed to higher patient volumes and the opening of new facilities, which contributed approximately $70 million in combined net revenues.

Operationally, UHS managed 367 inpatient facilities and 61 outpatient facilities across 39 states, Washington, D.C., the United Kingdom, and Puerto Rico as of June 30, 2025. The company reported an average occupancy rate of 66.3% for its acute care hospitals and 73.8% for its behavioral health facilities. The average length of stay in acute care facilities was 4.7 days, while behavioral health facilities reported an average stay of 13.6 days. The company also noted a slight increase in salaries, wages, and benefits expenses, which rose to 47.0% of net revenues in Q2 2025, down from 47.5% in Q2 2024.

UHS's strategic developments included the acquisition of businesses and property totaling $8 million in the first half of 2025, alongside capital expenditures of approximately $505 million for renovations and new projects. The company also reported a decrease in interest expenses, which fell to $35.4 million in Q2 2025 from $48.9 million in Q2 2024, attributed to a reduction in the average cost of borrowings. The company’s total debt stood at approximately $4.6 billion as of June 30, 2025, with a debt-to-capitalization ratio of 40%.

Looking ahead, UHS anticipates continued growth driven by its expansion efforts and the ongoing demand for healthcare services. However, the company faces potential challenges from legislative changes affecting Medicaid funding and reimbursement rates, particularly with the recent enactment of the One Big Beautiful Bill Act, which may limit Medicaid enrollment and expenditures. UHS remains focused on managing operational costs and enhancing service delivery to maintain its competitive position in the healthcare market.