Universal Health ServicesUHS -0.30%85 Gross Margin % is 90.51% as of Mar. 2026, which is 1% above its 10-year median of 89.21. GuruFocus rates UHS with a GF Score™ of 85/100 and a GF Value™ of $228.22 (Significantly Undervalued). Among 631 Healthcare Providers & Services companies, Universal Health Services ranks better than 94.14% on this metric.
UHS's Gross Margin % is ranked better than 94.14% of 631
companies
in the Healthcare Providers & Services industry
Industry Median: 40.09
vs UHS: 90.53
Universal Health Services had a gross margin of 90.51% for the quarter that ended in Mar. 2026 => Durable competitive advantage
Universal Health Services (NYSE:UHS) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Universal Health Services had a gross margin of 90.51% for the quarter that ended in Mar. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Universal Health Services Gross Margin % Related Terms
Universal Health Services Gross Margin % Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Medical Care Facilities subindustry, Universal Health Services's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Universal Health Services Gross Margin % vs Healthcare Providers & Services Industry
For the Healthcare Providers & Services industry and Healthcare sector, Universal Health Services's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Universal Health Services's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Universal Health Services (UHS) has a Gross Margin % of 90.51% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Universal Health Services and its competitors. This is near median its historical median of 89.21. Over the past decade, Universal Health Services' Gross Margin % has ranged from 88.71 to 90.53. According to the industry distribution chart, Universal Health Services ranks #37 out of 631 companies in the Healthcare Providers & Services industry, placing it in the top 5.9%.
Is Universal Health Services' Gross Margin % too high?
Universal Health Services' current Gross Margin % of 90.51% is near median its 10-year median of 89.21. Over the past 10 years, this metric has ranged from a low of 88.71 to a high of 90.53. The Healthcare Providers & Services industry median Gross Margin % is 40.09. Universal Health Services' value of 90.51% is 125.8% above this industry median. Based on the distribution chart, Universal Health Services ranks #37 out of 631 companies in the Healthcare Providers & Services industry, which is in the top quartile — a strong position relative to peers. Overall, Universal Health Services has a GF Score™ of 85/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Universal Health Services' Gross Margin % compare to ENSG and EHC?
According to the Healthcare Providers & Services industry distribution chart, Universal Health Services ranks #37 out of 631 companies for Gross Margin %. This places Universal Health Services in the top 6% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 40.09. Universal Health Services' value of 90.51% is 125.8% above this benchmark. Historically, Universal Health Services' own Gross Margin % has ranged from 88.71 to 90.53 over the past decade. While the company's 10-year median is 89.21 vs. the industry median of 40.09, Universal Health Services has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Healthcare Providers & Services company?
The median Gross Margin % among Healthcare Providers & Services companies is 40.09, based on 631 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Universal Health Services's current Gross Margin % of 90.51% is 125.8% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Universal Health Services and its competitors. For the Healthcare Providers & Services industry, the median Gross Margin % is 40.09 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Universal Health Services's current Gross Margin % is 90.51%, which is near median its own 10-year median of 89.21. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Universal Health Services stock overvalued right now?
Based on GuruFocus' analysis, Universal Health Services (UHS) is currently considered Significantly Undervalued. The stock's GF Value™ is $228.22, compared to a current price of $145.41 — trading 36.3% below its estimated fair value. The current Gross Margin % is 90.51%, which is near median its 10-year median of 89.21 and 125.8% above the Healthcare Providers & Services industry median of 40.09. Universal Health Services' overall GF Score™ is 85/100. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Universal Health Services (UHS), the current Gross Margin % is 90.51% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Universal Health Services (UHS) Overvalued in 2026?
Based on GuruFocus' analysis, Universal Health Services stock appears to be undervalued.
The current stock price of $145.41 is trading 36.3% below its estimated GF Value™ of $228.22.
GuruFocus considers Universal Health Services to be Significantly Undervalued.
Key valuation signals for UHS:
Gross Margin %: 90.51% (near median its 10-year median of 89.21)
GF Value™: $228.22 vs. price of $145.41 (36.3% below fair value)
Industry Position: 125.8% above the Healthcare Providers & Services median (#37 of 631)
No single metric tells the full story. See the UHS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Universal Health Services Inc offers healthcare services through its behavioral health centers, acute care hospitals, and related outpatient facilities. As of late 2025, the company operated 346 inpatient behavioral health centers, 29 acute care hospitals, and many supportive outpatient facilities. Its operations are concentrated in the U.S, particularly in Nevada (21% of 2025 operating profits), Texas (19%), and California (13%), although it does have some exposure to the UK behavioral health market (6% of 2025 sales) too. While its acute care services account for over 55% of revenue, the behavioral health centers sport higher margins and account for over 55% of pretax profits.
85GF Score
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