Universal Health Services, Inc. Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next

Universal Health Services, Inc. (NYSE:UHS) just released its latest third-quarter results and things are looking bullish. It was overall a positive result, with revenues beating expectations by 3.2% to hit US$4.5b. Universal Health Services also reported a statutory profit of US$5.86, which was an impressive 24% above what the analysts had forecast. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

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Taking into account the latest results, the current consensus from Universal Health Services' 16 analysts is for revenues of US$18.1b in 2026. This would reflect a reasonable 6.8% increase on its revenue over the past 12 months. Per-share earnings are expected to increase 6.5% to US$23.03. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$18.1b and earnings per share (EPS) of US$21.97 in 2026. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

Check out our latest analysis for Universal Health Services

The consensus price target rose 6.2% to US$238, suggesting that higher earnings estimates flow through to the stock's valuation as well. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on Universal Health Services, with the most bullish analyst valuing it at US$302 and the most bearish at US$190 per share. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's pretty clear that there is an expectation that Universal Health Services' revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 5.4% growth on an annualised basis. This is compared to a historical growth rate of 7.6% over the past five years. Compare this to the 157 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 5.4% per year. So it's pretty clear that, while Universal Health Services' revenue growth is expected to slow, it's expected to grow roughly in line with the industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Universal Health Services' earnings potential next year. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Universal Health Services going out to 2027, and you can see them free on our platform here.

You still need to take note of risks, for example - Universal Health Services has 1 warning sign we think you should be aware of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.