UHS · 10-Q · 2026Q2 · Full report

Interest Rate Environment

UNIVERSAL HEALTH SERVICES INC · 2026-08-07 · Importance 30 · Surprise 40

UHS’s average effective cost of borrowings under its revolving credit facility, term loan A and senior notes declined to 3.9% in the second quarter of 2026 from 4.1% in the comparable 2025 quarter, while average borrowings increased to $4.61 billion from $4.34 billion. Net interest expense increased 13% year over year to $40 million in the second quarter of 2026, and six-month net interest expense was $77 million. Borrowings under the Credit Agreement bear interest at either ABR or term SOFR plus leverage-based margins, with applicable margins of 0.25% for ABR loans and 1.25% for SOFR loans as of June 30, 2026.