UHS · 10-Q · 2026Q2 · Full report

Operating Margin Drivers

UNIVERSAL HEALTH SERVICES INC · 2026-08-07 · Importance 37 · Surprise 32

Consolidated second-quarter operating income increased 3.3% to $517 million, but operating margin declined to 11.1% from 11.7% as operating expenses grew 8.9%, faster than revenue. Six-month operating income increased 6.7% to $1.020 billion, while operating margin decreased to 11.2% from 11.4%. Same Facility acute care pretax income increased 7.4% to $246 million in the second quarter and 10.7% to $549 million for six months. All acute care pretax income was flat at $228 million in the second quarter because losses at the newly opened Alan B. Miller Medical Center offset Same Facility improvement.

Key facts

• For the three months ended June 30, 2026, income from operations was $516,675 (11.1% of Net Revenues) and income before income taxes was $479,126 (10.3% of Net Revenues). source
• Income before income taxes increased by $6 million, or 1%, to $479 million for the three months ended June 30, 2026 compared to $473 million for the three months ended June 30, 2025. source
• Net income attributable to UHS increased by $5 million, or 2%, to $358,447 (7.7% of Net Revenues) for the three months ended June 30, 2026 compared to $353,218 (8.2% of Net Revenues) for the three months ended June 30, 2025. source
• For the six months ended June 30, 2026, income before income taxes increased by $54 million, or 6%, to $948,242 compared to $893,813 for the six months ended June 30, 2025. source
• Income from operations for All Acute Care Hospital Services for the three months ended June 30, 2026: $227,966 (8.7% of Net Revenues); for the six months ended June 30, 2026: $514,581 (9.9% of Net Revenues). source
• Income before income taxes increased by $24 million, or 5.0%, to $515 million, or 9.9% of net revenues during the first six months of 2026, compared to $491 million, or 10.3% of net revenues in the comparable period of 2025. source
• Income before income taxes for Acute Care Hospital Services on a Same Facility basis for the three months ended June 30, 2026: $245,813 (9.8% of Net Revenues) compared to $228,893 (9.9%) for the three months ended June 30, 2025. source