EarningsQ3 2026 Earnings Report
MX:THC Q3 2026 EPS Results
Actual EPS$124.74
Consensus EPS$87.85
Beat/MissBeat by +$36.90
One Year Ago EPS$69.51
MX:THC Q3 2026 Revenue Results
Actual Revenue$105.79B
Expected Revenue$103.12B
Beat/MissBeat by +$2.67B
YoY Revenue Growth+6.47%
Earnings Announcement Details
QuarterQ3 2026
Date10/29/2026
TimeBefore Open
Conference CallThursday, October 29, 2026
MX:THC Upcoming Earnings
Tenet Healthcare's next earnings date is estimated for February 11, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
MX:THC Q3 2026 Earnings Call
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Q3 2026 Earnings Slide Deck
Q3 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call was strongly positive overall. Tenet delivered substantial earnings, margin, cash flow, and share-repurchase performance; raised its 2026 revenue, EBITDA, and free cash flow guidance; and expressed confidence in core EBITDA growth for 2027. The principal challenges were exchange-related volume and coverage pressure, lower USPI case volumes, the nonrecurring nature of Conifer transition contributions, and uncertainty surrounding Medicaid work requirements, HR 1, and future regulatory conditions.Company Guidance
Strong Third-Quarter Financial Performance
Third-quarter net operating revenues were $5.6 billion and consolidated adjusted EBITDA was $1.355 billion. Adjusted diluted earnings per share increased 80% year over year to $6.40.
Core EBITDA Growth and Margin Strength
Excluding $147 million of adjusted EBITDA from one-time contract transition items, the core business continued its strong growth trajectory. Adjusted EBITDA margin was 21.8%, and adjusted EBITDA grew 11% year over year excluding the contract transition benefits. Management cited technology-enabled growth, expense management, and sustained expense efficiencies as contributors.
USPI EBITDA and Revenue Growth
USPI adjusted EBITDA increased 9.1% year over year to $537 million, with adjusted EBITDA margins of 39.2%. Same-facility system-wide revenue increased 4.5%, while net revenue per case increased 6.1%.
High-Acuity USPI Strategy Producing Joint-Procedure Growth
USPI's high-acuity strategy continued to yield benefits, including 12.8% same-store growth in total joint replacements in ASCs compared with the prior year. Management attributed growth to migration of cases from hospital outpatient departments to freestanding ASCs, surgeon protocols, and expanded access to higher-acuity service lines.
USPI Development and Acquisition Momentum
USPI invested more than $100 million in development during the third quarter, remains the preferred acquirer of assets in its space, and has an attractive pipeline of partnerships. Patient care has commenced at four de novo centers to date, and management said the third quarter was very successful for acquisitions, with the vast majority of deals not involving competitive processes.
Hospital Segment Volume and Margin Performance
Same-hospital adjusted admissions increased 3.2% in the quarter as demand remained healthy. Management cited strong margin performance from sustained expense efficiencies and said investments supporting the high-acuity strategy continued to drive incremental growth.
Raised 2026 Adjusted EBITDA Guidance
Tenet raised full-year 2026 adjusted EBITDA guidance to $5.05 billion to $5.2 billion, an increase of $195 million, or 4% at the midpoint, versus the guidance provided after the second quarter. More than 40% of the total guidance increase for the year is attributed to fundamental outperformance.
Raised Revenue and Free Cash Flow Guidance
2026 consolidated net operating revenue guidance increased to $22.05 billion to $22.45 billion, up $50 million at the midpoint from prior expectations. Adjusted free cash flow after NCI guidance increased to $1.925 billion to $2.155 billion, up $100 million at the midpoint; excluding $150 million of tax payments for the Conifer transaction, the midpoint would be $2.2 billion.
Strong Cash Flow Generation
Tenet generated $1.1 billion of adjusted free cash flow in the third quarter and $2.5 billion year to date. The company had $2.67 billion of cash on hand as of September 30, 2026, with no borrowings outstanding under its line of credit facility.
Debt Refinancing and Deleveraged Balance Sheet
Tenet issued $2 billion of senior unsecured notes maturing in 2034 and used the proceeds to retire $2 billion of notes that would have matured in 2027 and 2028. Management said the company now has no significant debt maturities until 2028. Leverage was 2.11x EBITDA, or 2.58x EBITDA less NCI.
Significant Share Repurchases
Tenet repurchased 970,000 shares for $255 million during the third quarter. Year to date, it repurchased 8 million shares for $1.615 billion, and management reiterated its commitment to returning free cash flow to shareholders through repurchases.
Positive Commercial Pricing and Contract Visibility
Commercial payer renewals continued to be favorable, with many renewals in the 3% to 5% range. Tenet was fully contracted for the current year and more than 90% contracted for the following year, providing management with good visibility.
Revenue-Yield and Technology Investments
Management said Conifer's revenue-yield performance remained strong, including efforts related to payer requests and denial activity. The company continues to invest in technology and Conifer capabilities, including AI and other tools intended to support revenue yield, patient outreach, case-cancellation reduction, authorization, charge capture, and operating-room scheduling.
Expense Efficiency and Operating Discipline
Management said the majority of the improvement in the salaries, wages, and benefits line came from efficiency efforts across Tenet rather than primarily from the Conifer transition. The company accelerated cost-control initiatives during the year, including the adoption of technology and AI tools.
2027 Core EBITDA Growth Expected Excluding Conifer Transitions
After excluding the impact of Conifer transition activities, management expects the enterprise to deliver overall adjusted EBITDA growth in 2027 under the currently known regulatory frameworks. Management also expects USPI to deliver same-store revenue growth, consistent margins, and further expansion of its ambulatory asset portfolio.
Diversified Ambulatory Growth Strategy
USPI plans to continue expanding beyond orthopedics into urology, general surgery, advanced body robotics, spine, and new cardiac centers. Management also plans to continue investing in hospital growth opportunities, higher-acuity services, USPI mergers and acquisitions, and de novo development.
Transfer Program Supports High-Acuity Hospital Strategy
Management described a sustainable transfer program that receives high-acuity patients from smaller suburban and rural communities and returns them to their home communities when appropriate. The strategy includes preserving intensive-care and emergency-department capacity and developing partnerships with referring communities.
Conifer Transaction Value
Management said the total value generated from the Conifer contract sale would increase to approximately 15x 2025 adjusted EBITDA minus NCI.
MX:THC Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed