UHS UNIVERSAL HEALTH SERVICES INC

Overview and Growth

In fiscal 2025, UNIVERSAL HEALTH SERVICES INC recorded $17.36B of revenue, net income of $1.49B, and an operating cash inflow of $1.86B. The $17.36B revenue base provides substantial context for the company’s earnings, cash generation, and capital requirements. Revenue was 9.7% above fiscal 2024 revenue of $15.83B, marking a year-over-year increase. On a per-share basis, diluted EPS was $23.10, which connects the reported earnings outcome with the company’s diluted share count. Diluted EPS increased by 37.3% from $16.82 in fiscal 2024, showing how the earnings change reached shareholders on a per-share basis. Revenue equaled 1.12x of total assets, indicating how much reported top-line activity the company produced relative to its period-end asset base.

Profitability

Operating income was $1.99B, the earnings remaining from reported operations after the company’s recognized operating cost structure. Relative to revenue, operating income represented 11.5%, showing how efficiently sales converted into operating profit. The bottom-line result was net income of $1.49B, after the operating, financing, tax, and other items recognized for the period. Net margin was 8.6%, meaning that this portion of revenue remained as net income after all recognized expenses. Pretax income was $1.97B, isolating the reported earnings outcome before the income-tax provision recognized for the fiscal year. Measured against revenue, pretax income equaled 11.4%, adding a pre-tax profitability layer between revenue and net income. The reported income-tax provision was $460.96M, the amount recognized between pretax income and the final net-income result. The income-tax provision equaled 23.4% of pretax income, showing the tax burden absorbed by the year’s earnings. Return on period-end equity was 20.3%, relating annual net income to the equity capital on the balance sheet.

Liquidity and Capital Structure

The company held $15.53B of assets against $8.12B of liabilities and $7.34B of equity, revealing how the asset base was financed. Current assets were $3.41B against $3.24B of current liabilities, framing the resources and obligations classified within the near-term balance-sheet horizon. Current assets covered current liabilities by 1.05x, leaving a positive buffer for near-term obligations. The company held $137.80M in cash and equivalents, a narrower liquidity measure than total current assets. The cash balance equaled 4.3% of current liabilities, showing how much near-term coverage came from cash alone. Borrowings totaled $4.75B, adding a fixed financing obligation alongside the company’s equity capital. Debt equaled 0.65x of book equity, describing the relative scale of borrowing and shareholder capital. Debt represented 30.6% of total assets, placing borrowing in the context of the company’s full resource base. Liabilities represented 52.3% of total assets, quantifying the liability-funded share of the company’s resource base. Measured against total assets, cash and equivalents represented 0.9%, a balance-sheet composition measure rather than a liquidity forecast. Compared with $14.47B in fiscal 2024, the current asset base moved 7.3% and finished higher.

Cash Flow and Earnings Quality

The company reported $1.86B of operating cash flow, a cash inflow that shows the cash generated by operations. Against net income, operating cash flow measured 1.25x, showing the relationship between accrual earnings and operating cash. Capital spending was $1.02B, absorbing part of the cash generated from operations before free cash flow. Capital spending absorbed 54.4% of operating cash flow, quantifying the share of cash from operations directed to investment. The combination of operating cash flow and capital spending produced $849.25M of positive free cash flow for the period. The free-cash-flow margin was 4.9%, measuring cash remaining after capital spending against revenue. Measured against total assets, free cash flow represented 5.5%, showing the cash productivity of the company’s assets.

Based on the annual report for the fiscal year ending Dec 31, 2025. Analysis generated Oct 21, 2026.