Universal Health Services (UHS)
NYSEHealth CareMedical - Care FacilitiesSnapshot 2026-09-04
$169.65+0.26%
Close 2026-09-04 · 1-day change
NYSEHealth CareMedical - Care FacilitiesSnapshot 2026-09-04
Warn: Primary pillar under pressure — Maintain EPS near $23.4 per share in fiscal 2026: FY26 EPS guidance mid $22.97 vs target $23.4.
UHS grows revenue about 6% a year to $18.6 billion in 2026. EPS stays strong near $23.4 per share. The company manages capital spending near $1 billion. New care models and payment increases help growth.
Legal issues and executive departures may hurt management and reputation. Revenue growth could slow below 6%. Capital spending might rise above forecast. These risks could weaken earnings.
The price is about 52% below our fair value near $341. Analysts expect about 6% revenue growth. Our fair value is well above the Street median of $204.
Breaks if: capex exceeds $1.1B in FY26
Breaks if: EPS falls below $21.5 in FY26
Breaks if: major legal rulings or executive departures hurt management
This is not a price target or investment advice.
A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.
This investment represents a durable compounder with a focus on growth in the healthcare sector. The current thesis state is intact, supported by strong recent financial performance, although management has shown volatility.
The market currently prices UHS as cheap compared to its peers, with a notable expectations gap. This suggests that investors may not fully anticipate the potential for revenue and earnings growth despite recent strong results.
Fundamentals are likely to show continued revenue growth, as management has consistently prioritized increasing revenue and maintaining growth. However, there is an elevated risk level that could impact performance if broader economic conditions worsen.
The long-term thesis hinges on management's ability to raise guidance in upcoming quarters and the performance of sector bellwethers. Additionally, macroeconomic factors, such as employment trends, could significantly influence UHS's performance.
The most important moves since the prior daily snapshot.
Mixed, the news cuts both ways. The latest earnings beat supports the revenue growth outlook. However, the company cut its 2026 forecast due to Medicaid reimbursement uncertainty. This uncertainty poses a challenge to maintaining revenue growth.
as of 2026-09-04
Review the evidence to watch, what would become a concern, and what would make it less concerning.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Breaks if: revenue falls below $17.3B in FY26
UHS aims to increase its revenue forecast for the fiscal year 2026.
Overall, UHS appears to have a solid foundation for growth, but it faces heightened risks that could affect its trajectory. Not investment advice.