Zacks Research Has Negative Forecast for UHS FY2027 Earnings

Key Points

• Zacks Research cut its FY2027 EPS forecast for Universal Health Services to $22.69 from $24.25 and maintains a “Strong Sell” rating.
• Analyst sentiment overall is more neutral: MarketBeat reports a consensus “Hold” rating and an average price target of $202.60; six analysts rate UHS a Buy, 11 a Hold and one a Sell.
• UHS beat quarterly earnings and revenue estimates, reporting EPS of $5.22 and revenue of $4.73 billion, up 5.3% year over year. However, Medicaid supplemental payment reductions are cited as a potential $175 million–$200 million headwind in 2027.

Universal Health Services, Inc. (NYSE:UHS - Free Report) - Equities researchers at Zacks Research reduced their FY2027 EPS estimates for Universal Health Services in a research report issued on Tuesday, November 10th. Zacks Research analyst Team now forecasts that the health services provider will earn $22.69 per share for the year, down from their previous forecast of $24.25. Zacks Research has a "Strong Sell" rating on the stock. The consensus estimate for Universal Health Services' current full-year earnings is $22.57 per share. Zacks Research also issued estimates for Universal Health Services' FY2028 earnings at $24.63 EPS.

A number of other equities analysts have also recently issued reports on UHS. Royal Bank Of Canada lifted their target price on Universal Health Services from $183.00 to $207.00 and gave the stock a "sector perform" rating in a report on Wednesday. The Goldman Sachs Group reduced their target price on Universal Health Services from $242.00 to $190.00 and set a "neutral" rating for the company in a report on Thursday, July 30th. Wells Fargo & Company increased their price target on Universal Health Services from $166.00 to $170.00 and gave the company an "equal weight" rating in a research report on Monday, November 2nd. Weiss Ratings upgraded Universal Health Services from a "hold (c)" rating to a "hold (c+)" rating in a research report on Wednesday, October 14th. Finally, Guggenheim dropped their price target on Universal Health Services from $209.00 to $201.00 and set a "buy" rating on the stock in a research note on Thursday, October 29th. Six equities research analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the company presently has an average rating of "Hold" and a consensus target price of $202.60.

Universal Health Services Stock Performance

UHS opened at $196.53 on Thursday. The firm has a market cap of $11.58 billion, a PE ratio of 8.22, a P/E/G ratio of 2.05 and a beta of 1.11. The company has a quick ratio of 1.28, a current ratio of 1.37 and a debt-to-equity ratio of 0.73. The business has a fifty day simple moving average of $180.22 and a 200-day simple moving average of $176.91. Universal Health Services has a fifty-two week low of $140.08 and a fifty-two week high of $246.32.

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 earnings per share (EPS) for the quarter, topping the consensus estimate of $5.19 by $0.03. The firm had revenue of $4.73 billion for the quarter, compared to analyst estimates of $4.71 billion. Universal Health Services had a net margin of 7.96% and a return on equity of 18.39%. The firm's quarterly revenue was up 5.3% compared to the same quarter last year. During the same quarter in the previous year, the business posted $5.69 earnings per share.

Hedge Funds Weigh In On Universal Health Services

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Elevation Wealth Partners LLC lifted its holdings in shares of Universal Health Services by 503.1% in the second quarter. Elevation Wealth Partners LLC now owns 193 shares of the health services provider's stock valued at $29,000 after purchasing an additional 161 shares in the last quarter. Provenance Wealth Advisors LLC purchased a new position in shares of Universal Health Services during the third quarter valued at $44,000. Team Financial Group LLC purchased a new position in shares of Universal Health Services during the third quarter valued at $46,000. Signature Equity Partners LLC grew its holdings in shares of Universal Health Services by 1,183.3% during the third quarter. Signature Equity Partners LLC now owns 308 shares of the health services provider's stock valued at $54,000 after buying an additional 284 shares in the last quarter. Finally, Global Retirement Partners LLC raised its position in Universal Health Services by 94.4% during the third quarter. Global Retirement Partners LLC now owns 418 shares of the health services provider's stock valued at $73,000 after buying an additional 203 shares during the period. 86.05% of the stock is currently owned by hedge funds and other institutional investors.

Universal Health Services News Summary

Here's some of the latest news about UHS:

• Positive Sentiment: Royal Bank of Canada raised its price target to $207 from $183, implying about 5.3% upside from the cited $196.53 share price. Its rating remains “Sector Perform,” so the higher target suggests modest potential rather than a bullish upgrade. Royal Bank of Canada rating information
• Negative Sentiment: Medicaid supplemental payment reductions are expected to create a $175 million–$200 million headwind in 2027, posing a risk to future earnings. Universal Health Services: 3 Key Takeaways for Long-Term Investors
• Negative Sentiment: Zacks Research cut its EPS estimates across multiple upcoming quarters and for FY2026, including lowering its FY2026 forecast to $22.57 from $23.07, and maintained a “Strong Sell” rating. The repeated estimate cuts point to weaker analyst expectations. Universal Health Services analyst estimates

About Universal Health Services

Universal Health Services, Inc. NYSE: UHS is a healthcare company that owns and operates hospitals and other healthcare facilities. Its services span acute care, behavioral healthcare and outpatient treatment. The company's facilities provide services such as inpatient and outpatient medical care, emergency services, psychiatric treatment, substance-use-disorder care and rehabilitation. UHS serves communities across the United States and also has operations in the United Kingdom and Puerto Rico.

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