UBS Raises Universal Health Services Target to $320 on Strong Q4 Growth and 2026 Guidance
UBS raised Universal Health Services' price target to $320 from $302 and kept a Buy rating on expected continued earnings momentum. Universal Health Services reported Q4 2025 revenue up 9%, adjusted EBITDA net growth of 10% and EPS growth of 20%, and guided 2026 revenue of $18.4B–$18.8B.
1. UBS Raises Price Target to $320
UBS analyst AJ Rice increased Universal Health Services' price target to $320 from $302 and maintained a Buy rating, citing strong earnings momentum, stable pricing discipline and favorable volume growth trends across acute and behavioral health segments.
2. Robust Q4 and Full-Year 2025 Performance
In Q4 2025, Universal Health Services delivered 9% revenue growth, 10% adjusted EBITDA net of noncontrolling interests growth and 20% adjusted EPS expansion year-over-year. Full-year 2025 saw revenue up 10%, adjusted EBITDA net growth of 15% and adjusted EPS increase of 31%.
3. Significant Share Buybacks Completed
During 2025, UHS repurchased 4.65 million shares for $899 million, including 1.46 million shares in the fourth quarter. At year-end, the company had $1.425 billion of buyback authorization remaining and approximately $900 million available under its revolving credit facility.
4. 2026 Financial Outlook
The company projects 2026 revenue of $18.4 billion to $18.8 billion, adjusted EBITDA net of noncontrolling interests between $2.64 billion and $2.79 billion, and adjusted EPS of $22.64 to $24.52, driven by same-facility volume increases and disciplined pricing strategies.