Universal Health Services shares tumbled 5.12% in after-hours trading on Monday, as investors focused on the hospital operator’s reduced full-year profit guidance rather than its better-than-expected second-quarter revenue.

The company reported adjusted earnings of $5.98 per share for Q2, edging past the consensus estimate of $5.96, while net revenue rose 8.3% to $4.64 billion, topping forecasts of $4.58 billion. However, Universal Health cut its fiscal 2026 adjusted EPS outlook to a range of $22.28 to $23.65, down from the prior $22.64 to $24.52, citing changes in Medicaid supplemental payment programs. The downward revision reflected uncertainties around reimbursements that support care for low-income patients, an issue that has also pressured peers amid broader concerns over uncompensated-care costs.

The guidance cut overshadowed solid operational gains, including a 2.9% rise in same-facility acute care admissions and a 7.1% jump in behavioral health net revenue per admission. The post-market selloff erased earlier gains, underscoring market sensitivity to the profitability headwinds tied to evolving Medicaid reimbursement policies.