Universal Health Services (UHS) stock is surging 5.36% in pre-market trading on Tuesday, following the company's impressive third-quarter earnings report released after market close on Monday. The healthcare services provider significantly exceeded analyst expectations and raised its full-year 2025 guidance, fueling investor optimism.

For the third quarter, Universal Health reported adjusted earnings per share of $5.69, substantially beating the analyst consensus estimate of $4.84. This represents a significant increase from the same period last year. The company's quarterly revenue also outperformed expectations, coming in at $4.495 billion, surpassing estimates and marking a 13.42% year-over-year growth. The strong performance was attributed to steady demand for medical care services and a $90 million pre-tax reimbursement from a newly approved Medicaid state-directed payment program in Washington, D.C.

Adding to the positive sentiment, Universal Health raised its full-year 2025 outlook. The company now expects revenue in the range of $17.31 billion to $17.45 billion, up from previous estimates. Additionally, the adjusted EPS forecast was increased, surpassing analyst expectations. In a further show of confidence, Universal Health announced an increase to its stock repurchase program by $1.5 billion, potentially providing additional support for the stock price in the future. The strong results and optimistic outlook have prompted several analysts to raise their price targets for UHS stock.