KeyCorp Issues Pessimistic Outlook for UHS Earnings

Key Points

• KeyCorp lowered its Q4 2026 EPS estimate for Universal Health Services to $5.67 from $5.84, while projecting FY2027 earnings of $22.24 per share.
• UHS slightly beat quarterly expectations with EPS of $5.22 versus $5.19 expected, and revenue of $4.73 billion versus $4.71 billion; revenue rose 5.3% year over year, although earnings declined from $5.69 a year earlier.
• Analyst sentiment remains cautious, with UHS carrying a consensus “Hold” rating and a $205.06 target price. The stock opened at $175.73, while institutional investors collectively own 86.05% of shares.

Universal Health Services, Inc. (NYSE:UHS - Free Report) - Analysts at KeyCorp reduced their Q4 2026 EPS estimates for shares of Universal Health Services in a research note issued to investors on Wednesday, October 28th. KeyCorp analyst M. Gillmor now expects that the health services provider will post earnings of $5.67 per share for the quarter, down from their prior forecast of $5.84. The consensus estimate for Universal Health Services' current full-year earnings is $22.63 per share. KeyCorp also issued estimates for Universal Health Services' FY2027 earnings at $22.24 EPS.

Universal Health Services (NYSE:UHS - Get Free Report) last posted its quarterly earnings results on Tuesday, October 27th. The health services provider reported $5.22 EPS for the quarter, topping analysts' consensus estimates of $5.19 by $0.03. Universal Health Services had a return on equity of 18.39% and a net margin of 7.96%. The business had revenue of $4.73 billion during the quarter, compared to analysts' expectations of $4.71 billion. During the same quarter last year, the company posted $5.69 earnings per share. Universal Health Services's quarterly revenue was up 5.3% on a year-over-year basis.

Several other equities research analysts have also weighed in on UHS. The Goldman Sachs Group cut their target price on Universal Health Services from $242.00 to $190.00 and set a "neutral" rating on the stock in a research report on Thursday, July 30th. Cantor Fitzgerald reissued a "neutral" rating on shares of Universal Health Services in a research report on Friday, October 2nd. Barclays decreased their price target on shares of Universal Health Services from $179.00 to $168.00 and set an "equal weight" rating for the company in a research note on Tuesday, July 28th. Weiss Ratings raised shares of Universal Health Services from a "hold (c)" rating to a "hold (c+)" rating in a research note on Wednesday, October 14th. Finally, Raymond James Financial reaffirmed a "market perform" rating on shares of Universal Health Services in a research note on Thursday. Six analysts have rated the stock with a Buy rating and twelve have given a Hold rating to the company. According to MarketBeat.com, Universal Health Services has an average rating of "Hold" and a consensus target price of $205.06.

Universal Health Services Trading Down 0.2%

Universal Health Services stock opened at $175.73 on Monday. The stock has a market capitalization of $10.36 billion, a PE ratio of 7.35, a price-to-earnings-growth ratio of 1.84 and a beta of 1.11. Universal Health Services has a one year low of $140.08 and a one year high of $246.32. The company has a debt-to-equity ratio of 0.73, a current ratio of 1.37 and a quick ratio of 1.28. The business's fifty day moving average is $177.35 and its 200 day moving average is $177.32.

Institutional Inflows and Outflows

A number of large investors have recently made changes to their positions in the stock. First Eagle Investment Management LLC lifted its holdings in shares of Universal Health Services by 2.9% in the second quarter. First Eagle Investment Management LLC now owns 4,554,670 shares of the health services provider's stock valued at $677,234,000 after purchasing an additional 130,389 shares in the last quarter. Pzena Investment Management LLC increased its holdings in Universal Health Services by 32.4% during the 3rd quarter. Pzena Investment Management LLC now owns 2,607,221 shares of the health services provider's stock worth $454,334,000 after purchasing an additional 637,894 shares in the last quarter. Dimensional Fund Advisors LP boosted its stake in Universal Health Services by 12.1% during the first quarter. Dimensional Fund Advisors LP now owns 1,781,262 shares of the health services provider's stock valued at $318,812,000 after buying an additional 192,351 shares during the period. Arrowstreet Capital Limited Partnership grew its holdings in shares of Universal Health Services by 1.7% during the 1st quarter. Arrowstreet Capital Limited Partnership now owns 1,226,577 shares of the health services provider's stock worth $219,520,000 after acquiring an additional 20,577 shares during the period. Finally, Allianz Asset Management GmbH grew its position in shares of Universal Health Services by 13.6% during the 2nd quarter. Allianz Asset Management GmbH now owns 377,986 shares of the health services provider's stock valued at $56,203,000 after acquiring an additional 45,310 shares during the period. 86.05% of the stock is owned by hedge funds and other institutional investors.

Key Headlines Impacting Universal Health Services

Here are the key news stories impacting Universal Health Services this week:

• Positive Sentiment: UHS’s outpatient expansion, a favorable shift toward surgical services and the integration of Talkspace could support future growth and diversify the company’s healthcare platform. UHS Q3 2026 deep dive: outpatient expansion, surgical mix shift, and Talkspace integration shape outlook
• Neutral Sentiment: Universal Health Services will present at the UBS Global Healthcare Conference on November 10. The event could provide updated commentary on demand, margins, guidance and its strategic initiatives, but it does not immediately change the company’s earnings outlook. Universal Health Services, Inc. to Present at The UBS Global Healthcare Conference
• Neutral Sentiment: Analyst opinions remain mixed, suggesting some investors see UHS’s valuation as attractive while others remain concerned about operating trends. A separate fair-value assessment resulted in a modest reduction, reinforcing the lack of a clear near-term consensus. Universal Health Services (UHS) Stock Sees Modest Fair Value Cut After Mixed Analyst Views
• Negative Sentiment: Third-quarter results were pressured by softer surgery volumes and ongoing challenges at hospitals. The resulting profit decline has pushed the company’s outlook toward the lower end of its guidance range, raising concerns about near-term earnings momentum. Softer surgery volumes, hospital woes dampened UHS’ Q3 earnings
• Negative Sentiment: Robert W. Baird lowered its price target from $166 to $156 and maintained a neutral rating. The downgrade adds pressure to the stock by signaling limited upside while investors wait for evidence that surgical demand and hospital performance are improving. Robert W. Baird stock recommendations

About Universal Health Services

Universal Health Services, Inc NYSE: UHS is a healthcare services company that owns and operates hospitals, outpatient facilities and other healthcare providers. Its operations are focused primarily on acute care and behavioral health services.

The company's acute care operations include general and specialty hospitals, ambulatory surgery centers, emergency departments, physician practices and other outpatient services. Its behavioral health business provides inpatient and outpatient treatment for mental health conditions, substance-use disorders and related needs.

Universal Health Services serves patients across the United States and Puerto Rico, with additional behavioral health operations in the United Kingdom.

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