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. During the quarter, we also benefit from the approval of the Florida DPP program for 2025, which was not contemplated in our original outlook. These new beds represent a 2.5% increase to our same facility bed capacity and position us to respond to strong demand in these communities. Within our behavioral health segments, we continue to make strong progress in our integration planning for the pending Talkspace acquisition, which we expect to close in mid-August of this year.
We have a 46-year track record of strong quality and safety performance across both our behavioral health and acute care divisions. The recent dislocation in our share price represents a compelling opportunity to deploy capital and retire UHS shares at heavily discounted levels. Given the strength of our balance sheet and the confidence we have in our ability to generate cash flow, we intend to remain highly active with our share repurchase program at these levels. I want to emphasize that our strategy remains steadfast: to invest in high-growth markets, expand access to care, operate efficiently, and create long-term value for patients, employees, and shareholders.
I remain very optimistic about our long-term outlook, given the quality and strength of our portfolio, the experience of our management team, and the underlying demand characteristics of the markets that we serve. The company reported adjusted EPS of $5.98 for the Q2 of 2026, representing growth of 12% on a year-over-year basis. Q2 adjusted EBITDA less NCI was $678 million, representing growth of 5% on a year-over-year basis. At the segment level, on a same-facility basis, adjusted admissions at our acute care hospitals increased 2.9% as compared to the Q2 of 2025.
| Metric | Period | Current guidance |
|---|---|---|
| Full-year adjusted EBITDA less NCI | FY2026 | $2.61B-$2.72B ($2.66B midpoint; -~$50M) |
| Full-year revenue growth | FY2026 | ~7% at the midpoint |
| Full-year EPS growth | FY2026 | ~6% at the midpoint |
| Acute-care same-facility adjusted admissions growth | FY2026 | 1.5%-2.5% (midpoint 50 bps lower) |
| Behavioral same-facility adjusted patient-day growth | FY2026 | 1.0%-2.0% (midpoint 100 bps lower) |
| Exchange pre-tax impact | FY2026 | ~$85M (upper half) |
| Medicaid supplemental net benefit | FY2026 | ~$1.5B (+~$150M) |
| Full-year share repurchases | FY2026 | will meet or exceed $800M-$900M |
| Metric | YoY | Note |
|---|---|---|
| Adjusted EPS | $5.98 (+12%) | Operational improvement plus accelerated buybacks. |
| Adjusted EBITDA less NCI | $678M (+5%) | Acute and behavioral revenue growth and expense management, aided by the Florida DPP benefit but offset by ~$63M of adverse items. |
| Acute-care same-facility net revenue | +8.2% (+5.9% ex-health plan) | Volume rebound plus 3.0% revenue per adjusted admission growth; health plan revenue grew ~35%. |
| Acute-care same-facility adjusted admissions | +2.9% | Broad-based volume rebound; higher-acuity urology, neurology and cardiology strength. |
| Acute-care same-facility segment EBITDA | +8.2% (+6.3% ex out-of-period) | Volume and rate growth with well-managed labor and supply costs. |
| Behavioral same-facility net revenue | +7.4% | 6.1% revenue per adjusted patient day and 1.4% adjusted patient-day growth. |
| Behavioral same-facility segment EBITDA | +9.0% (+5.7% ex out-of-period) | Rate growth and moderating headcount/labor cost growth. |
| Acute-care surgeries (same-facility) | -0.8% | Continued outpatient/ASC shift, though improved sequentially from Q1. |
| Operating cash flow | $44.3M (down from $549M) | Timing of payments; net leverage 1.8x with $139M cash and $4.85B total debt. |
| Topic | Previous mention | Current period | Trend |
|---|---|---|---|
| Talkspace acquisition / outpatient behavioral | Pending acquisition | Expected to close mid-August; integration planning advanced; creates the first end-to-end behavioral continuum (inpatient, in-person outpatient, national virtual) with a panel of 6,000+ therapists to capture step-down and geographically constrained patients and accelerate outpatient growth over 12-18 months. | — |
| De novo hospital ramps | Cedar Hill (DC) and Palm Beach Gardens opening | Cedar Hill ramping slower than expected (physician-base buildup) but improved ~$15M YoY, targeted to break even by year-end; Palm Beach Gardens opened in May with in-line ~$15M Q2 start-up losses, on track with original guidance. | — |
| Capacity expansion / capital allocation | Organic growth emphasis | Added 177 beds at three existing high-demand facilities (Lakewood Ranch FL, Henderson NV, Rancho Springs CA) expected to ramp fast; continued investment in ~40 freestanding EDs (5-10 more in development), ASCs, and behavioral Thousand Branches clinics; active buybacks amid share dislocation. | — |
| Medicaid supplemental payments & OBBBA | Reliant on state DPP/supplemental programs | Full-year net supplemental benefit raised to ~$1.5B (Florida DPP a driver); preparing for OBBBA-driven Medicaid reimbursement reductions starting 2028 via expense management, revenue-cycle initiatives and a shift toward less Medicaid-centric outpatient/behavioral services (more Medicare/managed-care centric). | — |
| Health-insurance exchange headwind | Anticipated volume decline | Exchange volumes fell ~15% (below the >25% original forecast) but nearly all lost coverage converted directly to self-pay/uninsured rather than employer/commercial coverage, raising the full-year impact estimate to ~$85M (upper half of range). | — |
| Professional & general liability / malpractice | Rising reserves | ~$28M reserve increase in the quarter reflecting an industry-wide rise in claim severity (not UHS-specific), using third-party actuarial estimates; managing via risk-management programs while the industry lobbies for tort reform. | — |
| Professional fees / physician subsidies | Sharp 2023-2024 increases | Now running at an inflationary-to-slightly-higher ~7-9% annual increase, managed by hiring hospital-based physicians, rebidding contracts and limiting expensive locums coverage. | — |