UNIVERSAL HEALTH SERVICES INC 8-K

What Happened
Universal Health Services, Inc. (UHS) filed an 8‑K on Feb. 26, 2026 noting a press release dated Feb. 25, 2026 (Exhibit 99.1) regarding results of operations and financial condition, and disclosing a major development in litigation involving its wholly‑owned subsidiary, UHS of Delaware, Inc. A jury verdict from a Sept. 26, 2025 trial had imposed approximately $4.7 million in compensatory damages and $500 million in punitive damages against UHS of Delaware, Inc. On Feb. 25, 2026 the trial judge issued a verbal order granting a new trial based on juror misconduct; the court indicated the prior verdict will likely be vacated and a new trial scheduled. Plaintiffs may appeal the judge’s order.

Key Details

• Press release: Exhibit 99.1 filed Feb. 25, 2026 (reported under Item 2.02).
• Trial verdict (Sept. 26, 2025): ~$4.7 million compensatory damages and $500 million punitive damages against UHS of Delaware, Inc.
• Feb. 25, 2026: Judge granted a new trial due to juror misconduct; prior verdict expected to be vacated and retrial scheduled; plaintiffs may appeal.
• Financial reserve: UHS recorded an $18 million legal reserve in Q3 2025 for this matter. Under Nevada law punitive damages would be expected to be reduced to a maximum of about $14 million, and Nevada Supreme Court precedent could further reduce that amount.

Why It Matters
This filing updates investors that while a large punitive jury award existed, a judicial order for a new trial materially changes near‑term legal exposure and the likelihood of collecting the prior verdict. The company has already recorded an $18 million reserve, but if the matter is ultimately decided against UHS and significant damages are reinstated, it could have a material adverse effect on the company’s financial condition. Investors should note both the reduced statutory cap on punitive damages under Nevada law and the ongoing appellate or retrial proceedings as potential drivers of future financial impact and legal expenses.