Tenet Healthcare (NYSE:THC) Releases Earnings Results, Beats Expectations By $0.62 EPS

Tenet Healthcare (NYSE:THC) released its earnings results on Wednesday. The company reported $4.70 earnings per share for the quarter, beating analysts’ consensus estimates of $4.08 by $0.62, FiscalAI reports. The company had revenue of $5.53 billion for the quarter, compared to analysts’ expectations of $5.47 billion. Tenet Healthcare had a net margin of 6.49% and a return on equity of 25.11%. Tenet Healthcare’s revenue for the quarter was up 8.9% on a year-over-year basis. During the same quarter in the previous year, the company earned $3.44 EPS. Tenet Healthcare updated its FY 2026 guidance to 16.190-18.470 EPS.

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

• Tenet reported a strong 2025 with $21.3 billion of net operating revenues and $4.566 billion of consolidated adjusted EBITDA (14% y/y), driving a 210 bps margin improvement to 21.4% and finishing nearly $500 million above the midpoint of prior expectations.
• 2026 guidance calls for consolidated adjusted EBITDA of $4.485B–$4.785B (USPI: $2.13B–$2.23B; hospitals: $2.355B–$2.555B), which Tenet says normalizes to roughly 10% growth at the midpoint after adjustments and one‑time items.
• Management is assuming a material headwind from the expiration of enhanced exchange premium tax credits — roughly a 20% reduction in enrollment and an estimated $250 million EBITDA impact (primarily in hospitals) in 2026.
• The USPI ambulatory business remains a growth engine — same‑facility revenues up ~7% in 2025, adjusted EBITDA of $2.026 billion, double‑digit ASC joint replacement growth, and ~$350 million invested with 35 added facilities and an active M&A/de‑novo pipeline for 2026.
• Tenet highlighted strong cash generation and capital deployment — $2.53 billion free cash flow in 2025, $2.8 billion cash on hand, leverage ~2.25x, a Conifer transaction that management values at roughly a $1.1 billion after‑tax NPV benefit, and continued, opportunistic share repurchases.

Tenet Healthcare Trading Up 2.3%

NYSE THC traded up $5.22 during trading hours on Thursday, hitting $231.57. 325,499 shares of the company were exchanged, compared to its average volume of 998,129. The stock has a market cap of $20.35 billion, a PE ratio of 15.87, a price-to-earnings-growth ratio of 0.82 and a beta of 1.44. Tenet Healthcare has a 52 week low of $109.82 and a 52 week high of $234.00. The stock has a 50-day moving average price of $198.00 and a 200 day moving average price of $193.90. The company has a quick ratio of 1.64, a current ratio of 1.71 and a debt-to-equity ratio of 2.27.

Trending Headlines about Tenet Healthcare

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

• Positive Sentiment: Q4 beat — Tenet reported $4.70 EPS vs. ~$4.08 consensus and revenue of $5.53B (up ~8.9% YoY), driving the immediate positive market reaction. Tenet Reports Strong Fourth Quarter and FY 2025 Results; Provides 2026 Financial Outlook
• Positive Sentiment: Raised targets and guidance — management set FY2026 EPS guidance (16.190–18.470) and a revenue range ($21.5B–$22.3B) and outlined a $4.485B–$4.785B adjusted-EBITDA target supported by structural cost initiatives and an M&A focus, supporting upside to margins and cash flow. Tenet outlines 2026 adjusted EBITDA target
• Positive Sentiment: Demand tailwinds — hospital and surgery volumes, plus ambulatory growth, were cited as drivers of higher profit and full-year revenue topping $21.3B, giving confidence that core volumes are recovering. Tenet Healthcare Quarterly Profit Surges As Hospital, Surgery Demand Grows
• Positive Sentiment: Market response — investors pushed the stock to multi‑month/1‑year highs following the report and commentary, reflecting strong investor appetite for the combination of growth, margin expansion and cash generation. Tenet Healthcare Hits New 1-Year High on Better-Than-Expected Earnings
• Neutral Sentiment: Management tone — the earnings call balanced growth opportunities with operational risks and emphasized execution on cost programs and selective M&A; investors should monitor execution versus targets. Tenet Healthcare Earnings Call Balances Growth and Risks
• Neutral Sentiment: Full call and materials available — transcripts and the slide deck provide details for modeling 2026 assumptions and the EBITDA bridge; review them if you’re updating estimates. Tenet Healthcare Corp (THC) Q4 2025 Earnings Call Highlights
• Negative Sentiment: Volume risk — some analysts flagged that lower hospital patient days could pressure margins if volumes soften; although Q4 beat, watch upcoming patient‑day trends and payor mix. Will Lower Patient Days Affect Tenet Healthcare’s Q4 Earnings?
• Negative Sentiment: Balance-sheet and execution risk — Tenet carries meaningful leverage (debt/equity ~2.3), so rising interest rates, execution misses on cost/M&A or slower cash flow could amplify downside.

Analyst Upgrades and Downgrades

Several analysts recently issued reports on THC shares. Wells Fargo & Company cut their target price on Tenet Healthcare from $252.00 to $229.00 and set an “overweight” rating for the company in a research report on Wednesday, January 7th. Wall Street Zen upgraded shares of Tenet Healthcare from a “buy” rating to a “strong-buy” rating in a research report on Saturday, January 31st. Cantor Fitzgerald upped their target price on shares of Tenet Healthcare from $190.00 to $245.00 and gave the stock an “overweight” rating in a research report on Wednesday, October 29th. JPMorgan Chase & Co. lifted their price target on shares of Tenet Healthcare from $200.00 to $230.00 and gave the company an “overweight” rating in a report on Thursday, November 13th. Finally, KeyCorp increased their price objective on shares of Tenet Healthcare from $225.00 to $250.00 and gave the company an “overweight” rating in a report on Thursday. One research analyst has rated the stock with a Strong Buy rating, sixteen have given a Buy rating and three have given a Hold rating to the company’s stock. According to MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average target price of $237.75.

Insider Buying and Selling at Tenet Healthcare

In related news, Director Nadja West sold 2,178 shares of the stock in a transaction on Monday, December 15th. The stock was sold at an average price of $197.47, for a total transaction of $430,089.66. Following the sale, the director owned 28,480 shares in the company, valued at approximately $5,623,945.60. This represents a 7.10% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. Corporate insiders own 0.81% of the company’s stock.

Institutional Investors Weigh In On Tenet Healthcare

Institutional investors have recently made changes to their positions in the company. Syon Capital LLC raised its stake in shares of Tenet Healthcare by 5.3% during the fourth quarter. Syon Capital LLC now owns 1,254 shares of the company’s stock valued at $249,000 after acquiring an additional 63 shares in the last quarter. Geneos Wealth Management Inc. raised its position in Tenet Healthcare by 50.9% during the 2nd quarter. Geneos Wealth Management Inc. now owns 264 shares of the company’s stock valued at $46,000 after purchasing an additional 89 shares in the last quarter. Meeder Asset Management Inc. grew its position in shares of Tenet Healthcare by 146.2% during the 4th quarter. Meeder Asset Management Inc. now owns 192 shares of the company’s stock worth $38,000 after buying an additional 114 shares in the last quarter. Triumph Capital Management purchased a new position in shares of Tenet Healthcare during the third quarter valued at $25,000. Finally, Zacks Investment Management lifted its stake in Tenet Healthcare by 0.6% in the third quarter. Zacks Investment Management now owns 22,594 shares of the company’s stock worth $4,588,000 after acquiring an additional 127 shares during the period. Institutional investors own 95.44% of the company’s stock.

About Tenet Healthcare

Tenet Healthcare Corporation (NYSE: THC) is a diversified American healthcare services company that owns and operates acute care hospitals and a broad range of outpatient facilities. Its portfolio includes general acute-care hospitals, specialty hospitals, ambulatory surgery centers, urgent care and diagnostic imaging centers, and other ancillary service locations. Tenet’s operations are oriented around delivering inpatient and outpatient clinical care across multiple medical specialties, with an emphasis on surgical services, emergency care, and advanced diagnostics.

In addition to facility-based care, Tenet provides integrated services designed to support clinical operations and improve patient access and care coordination.