Universal Health Services (0LJL.L) Q3 2025 Earnings Report

Universal Health Services Inc. delivered a resilient QQ3 2025 quarterly performance with revenue of $4.495B, marking a year-over-year rise of 13.4% and a quarter-over-quarter increase of about 4.9%. The company posted a solid gross margin of 90.78% and an operating margin of 11.61%, supported by an EBITDA of $699.4M and an operating income of $521.7M. Net income reached $373.0M, translating to an EPS of $5.80 (diluted $5.74), underscoring continued earnings power amid favorable volume trends and favorable mix. Cash generation remains a standout trait, with operating cash flow per share of $20.04 and free cash flow per share of $8.64, contributing to a robust balance sheet despite modest cash on hand relative to total liquidity.\n\nThe quarter reflects persistent demand for acute care and behavioral health services, with efficiency gains and disciplined cost management contributing to margin resilience. While the negative cash conversion cycle signals favorable working capital dynamics driven by extended payables and payer mix, liquidity remains prudent given debt and capital expenditure requirements typical of a large hospital operator. The results reinforce UHS’s position as a leading network in the healthcare services space, with visible upside from volume momentum and operational leverage, offset by ongoing labor cost pressures and regulatory considerations.