Tenet Healthcare (NYSE:THC) Releases Quarterly Earnings Results, Beats Estimates By $1.96 EPS

Tenet Healthcare (NYSE:THC) issued its quarterly earnings results on Thursday. The company reported $6.64 earnings per share for the quarter, topping the consensus estimate of $4.68 by $1.96, FiscalAI reports. The business had revenue of $6.28 billion for the quarter, compared to analysts’ expectations of $5.49 billion. Tenet Healthcare had a net margin of 13.09% and a return on equity of 28.22%. The company’s revenue was up 6.5% compared to the same quarter last year. During the same quarter last year, the company posted $3.70 EPS.

Here are the key takeaways from Tenet Healthcare’s conference call:

• Third-quarter results exceeded expectations, with $5.6 billion in revenue, $1.355 billion in adjusted EBITDA and adjusted EPS up 80% year over year to $6.64. Excluding $147 million of one-time Conifer transition benefits, core adjusted EBITDA still grew 10%.
• Tenet raised 2026 adjusted EBITDA guidance by $195 million at the midpoint to $5.05 billion-$5.2 billion and increased adjusted free cash flow guidance to $1.925 billion-$2.155 billion after NCI.
• USPI adjusted EBITDA increased 9.1%, while same-facility revenue rose 4.5%; total joint replacement volume grew 12.8% as Tenet expands higher-acuity services and continues investing in acquisitions and de novo centers.
• Strong cash generation is supporting shareholder returns and balance-sheet flexibility. Tenet repurchased $255 million of stock in the quarter, bringing year-to-date buybacks to $1.615 billion, while leverage declined to 2.11 times EBITDA and there are no significant debt maturities until 2028.
• Exchange admissions and revenue fell 18% year over year and represented about 5.5% of consolidated revenue, while management is still assessing potential 2027 headwinds from exchange enrollment declines and Medicaid work requirements. The company also expects approximately $450 million of 2026 Conifer transition EBITDA contributions not to recur in 2027.

Tenet Healthcare Price Performance

Tenet Healthcare stock traded up $2.68 during mid-day trading on Friday, hitting $273.25. The stock had a trading volume of 1,209,391 shares, compared to its average volume of 668,083. The firm has a market capitalization of $22.00 billion, a P/E ratio of 7.92, a P/E/G ratio of 1.03 and a beta of 1.20. The company has a current ratio of 1.58, a quick ratio of 1.35 and a debt-to-equity ratio of 1.76. The firm’s 50 day moving average is $264.85 and its 200 day moving average is $220.34. Tenet Healthcare has a one year low of $157.58 and a one year high of $283.05.

Analysts Set New Price Targets

Several equities analysts recently weighed in on THC shares. Zacks Research downgraded Tenet Healthcare from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, September 29th. The Goldman Sachs Group restated a “buy” rating and issued a $305.00 price target on shares of Tenet Healthcare in a research report on Tuesday, July 28th. Mizuho set a $290.00 price objective on Tenet Healthcare in a research note on Monday, August 10th. Raymond James Financial reaffirmed an “outperform” rating and set a $285.00 price objective on shares of Tenet Healthcare in a research report on Friday, August 14th. Finally, Robert W. Baird boosted their price objective on Tenet Healthcare from $210.00 to $280.00 and gave the company a “neutral” rating in a research note on Tuesday, July 28th. Eighteen research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $280.16.

More Tenet Healthcare News

Here are the key news stories impacting Tenet Healthcare this week:

• Positive Sentiment: Tenet reported third-quarter earnings of $6.64 per share, well above the $4.68 consensus estimate, while revenue rose 6.5% year over year to $6.28 billion versus expectations of $5.49 billion. Strong hospital performance and cost discipline drove the earnings beat. Tenet Healthcare surpasses Q3 earnings and revenue estimates
• Positive Sentiment: Management raised its 2026 financial outlook and forecast adjusted EBITDA of $5.05 billion to $5.20 billion. Conifer transition-related items are expected to contribute to results, while improving hospital margins and higher-acuity services are strengthening the business outlook. Tenet forecasts 2026 adjusted EBITDA
• Positive Sentiment: Deutsche Bank raised its price target to $320 from $260 and maintained a Buy rating, signaling increased confidence in Tenet’s earnings momentum and valuation potential. Deutsche Bank raises Tenet price target
• Neutral Sentiment: Guggenheim modestly reduced its price target to $306 from $307 but retained a Buy rating, leaving its fundamental view constructive. Guggenheim Tenet Healthcare rating
• Negative Sentiment: Investors continue to face risks from payer pressure, uninsured patients and surgery-related headwinds. Commentary also noted that the headline earnings beat included transition-related benefits, which could make the results less representative of recurring performance. Tenet high-acuity strategy and third-quarter performance

Insider Buying and Selling at Tenet Healthcare

In other news, Director Nadja West sold 1,152 shares of the company’s stock in a transaction dated Wednesday, September 2nd. The stock was sold at an average price of $258.80, for a total value of $298,137.60. Following the completion of the transaction, the director owned 23,653 shares of the company’s stock, valued at $6,121,396.40. This represents a 4.64% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, Director Richard J. Mark sold 10,000 shares of the stock in a transaction dated Thursday, September 10th. The stock was sold at an average price of $263.42, for a total value of $2,634,200.00. Following the sale, the director owned 25,121 shares of the company’s stock, valued at $6,617,373.82. This represents a 28.47% decrease in their position. The SEC filing for this sale provides additional information. Over the last quarter, insiders sold 106,484 shares of company stock valued at $28,898,063. 0.97% of the stock is currently owned by corporate insiders.

About Tenet Healthcare

Tenet Healthcare Corp. (NYSE: THC) is a diversified healthcare services company headquartered in Dallas, Texas. Through its hospital operations and outpatient platforms, the company provides a range of medical services to patients across the United States.

Tenet operates acute care and specialty hospitals, ambulatory surgery centers, imaging facilities and other outpatient care sites. Its United Surgical Partners International subsidiary is a major provider of ambulatory surgery services and partners with physicians and health systems.