Basic earnings per share are based on the weighted average number of common shares outstanding during the period. Diluted earnings per share are based on the weighted average number of common shares outstanding during the period adjusted to give effect to common stock equivalents.

The following table sets forth the computation of basic and diluted earnings per share for the periods indicated (in thousands, except per share data):


	Three months ended June 30,				Six months ended June 30,
	2026		2025		2026		2025
Basic and Diluted:
Net income attributable to UHS – basic and diluted	$	358,447	$	353,218	$	707,129	$	669,898

Weighted average number of common shares - basic		59,657		64,356		60,364		64,663
Net effect of dilutive stock options and grants based on the treasury stock method		253		635		425		851
Weighted average number of common shares and equivalents - diluted		59,910		64,991		60,789		65,514
Earnings per basic share attributable to UHS:	$	6.01	$	5.49	$	11.71	$	10.36
Earnings per diluted share attributable to UHS:	$	5.98	$	5.43	$	11.63	$	10.23

The “Net effect of dilutive stock options and grants based on the treasury stock method” for all periods presented above, excludes certain outstanding stock options applicable to each period since the effect would have been anti-dilutive. The excluded weighted-average stock options totaled 10,625 for the three-months ended June 30, 2026 and 5,313 for the six-months ended June 30, 2026. The excluded weighted-average stock options totaled 7,500 for both the three and six-months ended June 30, 2025. All classes of our common stock have the same dividend rights.

During the three-month periods ended June 30, 2026 and 2025, pre-tax compensation costs of approximately $18.6 million and $15.5 million, respectively, was recognized related to awards of restricted stock, restricted stock units ("RSUs") and performance based restricted stock units ("PBRSUs"). During the six-month periods ending June 30, 2026 and 2025, pre-tax compensation costs of $36.0 million and $27.3 million, respectively, was recognized related to awards of restricted stock, RSUs and PBRSUs.

In addition, during the three-month periods ended June, 2026 and 2025, pre-tax compensation costs of $3.7 million and $8.1 million, respectively, was recognized related to outstanding stock options. During the six-month periods ended June 30, 2026 and 2025, pre-tax compensation costs of $8.5 million and $17.5 million, respectively, was recognized related to outstanding stock options.

As of June 30, 2026 there was approximately $199.2 million of unrecognized compensation cost related to unvested options, restricted stock, RSUs and PBRSUs which is expected to be recognized over the remaining weighted average vesting period of 2.8 years. There were an aggregate of 554,228 RSUs, net of cancellations, granted during the first six months of 2026 under the 2020 Stock Incentive Plan, including 57,122 PBRSUs, with a weighted-average grant date fair value of $184.94 per share. The expense associated with stock-based compensation arrangements is a non-cash charge. In the condensed consolidated statements of cash flows, stock-based compensation expense is an adjustment to reconcile net income to cash provided by operating activities and aggregated to $45.4 million and $45.7 million during the six-month periods ended June 30, 2026 and 2025, respectively.