Tenet Healthcare (NYSE:THC) Announces Earnings Results

Tenet Healthcare (NYSE:THC) released its earnings results on Thursday. The company reported $6.64 earnings per share for the quarter, topping analysts’ consensus estimates of $4.68 by $1.96, FiscalAI reports. The firm had revenue of $6.28 billion during the quarter, compared to analyst estimates of $5.49 billion. Tenet Healthcare had a net margin of 10.27% and a return on equity of 26.76%. The business’s revenue was up 6.5% on a year-over-year basis. During the same quarter in the previous year, the business earned $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 Stock Performance

Tenet Healthcare stock traded down $1.01 during trading hours on Thursday, hitting $267.49. The stock had a trading volume of 990,937 shares, compared to its average volume of 1,116,550. The company has a 50-day moving average of $264.84 and a two-hundred day moving average of $219.63. The company has a quick ratio of 1.35, a current ratio of 1.41 and a debt-to-equity ratio of 2.00. Tenet Healthcare has a fifty-two week low of $157.58 and a fifty-two week high of $283.05. The company has a market cap of $21.54 billion, a PE ratio of 10.31, a price-to-earnings-growth ratio of 1.02 and a beta of 1.20.

Analysts Set New Price Targets

Several equities analysts recently weighed in on the company. Robert W. Baird boosted their price objective on Tenet Healthcare from $210.00 to $280.00 and gave the stock a “neutral” rating in a research report on Tuesday, July 28th. Cantor Fitzgerald reaffirmed an “overweight” rating on shares of Tenet Healthcare in a report on Friday, October 2nd. Wall Street Zen raised shares of Tenet Healthcare from a “buy” rating to a “strong-buy” rating in a research report on Saturday, October 17th. Zacks Research cut shares of Tenet Healthcare from a “strong-buy” rating to a “hold” rating in a research note on Tuesday, September 29th. Finally, Morgan Stanley increased their price target on shares of Tenet Healthcare from $254.00 to $274.00 and gave the company an “overweight” rating in a report on Monday, July 27th. Eighteen research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average target price of $280.21.

Insider Activity at Tenet Healthcare

In other news, Director J. Robert Kerrey sold 12,010 shares of the business’s stock in a transaction that occurred on Monday, September 14th. The stock was sold at an average price of $263.72, for a total transaction of $3,167,277.20. Following the sale, the director directly owned 4,794 shares in the company, valued at approximately $1,264,273.68. The trade was a 71.47% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, EVP Lisa Foo sold 24,000 shares of the company’s stock in a transaction on Monday, August 31st. The shares were sold at an average price of $266.32, for a total value of $6,391,680.00. Following the completion of the transaction, the executive vice president owned 8,053 shares of the company’s stock, valued at $2,144,674.96. The trade was a 74.88% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 106,484 shares of company stock worth $28,898,063 in the last three months. Company insiders own 0.97% of the company’s stock.

Tenet Healthcare Company Profile

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.