New York City-based NYU Langone Health reported an operating income of $482.8 million on $15.4 billion in revenue for the fiscal year ended Aug. 31, 2025, maintaining a steady operating margin of 3.1%, according to financial documents published Nov. 17.
The financial results represent a 9.6% increase in operating revenue compared to the prior year, when the seven-hospital system posted a $431.4 million operating gain on $14 billion in revenue. Growth was driven by a 5% increase in inpatient discharges, a 10.8% increase in outpatient surgical volume and a 3.4% rise in emergency department visits, according to the system.
“NYU Langone Health continues to achieve exceptional outcomes in quality and safety, driving sustained growth and strong operational performance,” Joseph Lhota, executive vice president, vice dean, CFO and chief of staff, said in a statement provided to Becker’s. “This performance reflects the contributions from NYU Langone Hospitals, which achieved an operating margin of 7.5%, offset by the operating loss from the two medical schools.”
The NYU Langone Hospitals Obligated Group posted a $809.8 million operating gain on $10.8 billion in revenue for an operating margin of 7.5%, consistent with fiscal 2024. The NYU Grossman Schools of Medicine reported a loss of $329.2 million for a -5.1% operating margin, also in line with the previous year.
Expenses totaled $14.9 billion, up 9.6% year over year, primarily due to increases in salaries, pharmacy costs and medical supplies. Salaries and benefits accounted for 61.5% of operating expenses.
Cash and investments totaled $5.7 billion as of Aug. 31, up 13% from the previous year, bolstered by $1 billion in cash generated from operations and $469.4 million in investment earnings. Capital expenditures reached $1.3 billion for the year.
Mr. Lhota credited streamlined care practices, including consistently low lengths of stay and improved patient acuity, for enabling capacity growth without sacrificing quality or efficiency. “Maintaining operational efficiency, high quality, and patient safety remains a cornerstone of our financial strategy, reflecting our ongoing commitment to disciplined fiscal management and sustainable success,” he said.
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