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Tenet Healthcare
(NYSE:THC)
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Rating:70Outperform
Price Target:
$287.00
▲(5.56% Upside)
Action:Reiterated
Date:09/23/26
The score is driven primarily by improving financial performance—strong recent growth, solid margins, and meaningful free cash flow—partly offset by still-elevated leverage and uneven cash conversion. Valuation is supportive due to the low P/E, while technicals are neutral-to-slightly positive (uptrend vs longer-term averages but weaker vs the 20-day). The latest earnings call adds confidence via raised guidance and higher free cash flow expectations, tempered by payer mix and reimbursement/regulatory risks.
Positive Factors
Raised operating outlook
Management’s raised revenue and EBITDA outlook, supported by reported fundamental outperformance in both segments, indicates durable operating momentum. Higher expectations improve the company’s ability to fund investments, absorb industry pressures, and strengthen earnings power over the next several quarters.
Negative Factors
Elevated leverage
Tenet’s sizable debt burden remains a material constraint despite improving equity and leverage from prior years. High leverage can keep interest and refinancing obligations significant, reduce flexibility during reimbursement or volume pressure, and limit how much cash can be directed toward growth.
Read all positive and negative factors
Positive Factors
Negative Factors
Raised operating outlook
Management’s raised revenue and EBITDA outlook, supported by reported fundamental outperformance in both segments, indicates durable operating momentum. Higher expectations improve the company’s ability to fund investments, absorb industry pressures, and strengthen earnings power over the next several quarters.
Read all positive factors
Tenet Healthcare Key Performance Indicators (KPIs)
Any
Total Hospitals
Indicates the number of hospitals operated, reflecting the scale of operations and market presence. A larger network can drive higher revenue and provide competitive advantages in negotiating with insurers and suppliers.
Indicates the number of hospitals operated, reflecting the scale of operations and market presence. A larger network can drive higher revenue and provide competitive advantages in negotiating with insurers and suppliers.
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The Fly
The FlyTenet Healthcare (THC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$21.45B
Dividend YieldN/A
Average Volume (3M)675.99K
Price to Earnings (P/E)10.2
Beta (1Y)0.87
Revenue Growth5.43%
EPS Growth65.86%
CountryUS
Employees88,500
SectorHealthcare
Sector Strength45
IndustryMedical - Care Facilities
Share Statistics
EPS (TTM)26.12
Shares Outstanding80,519,000
10 Day Avg. Volume589,283
30 Day Avg. Volume675,992
Financial Highlights & Ratios
PEG Ratio-0.24
Price to Book (P/B)4.25
Price to Sales (P/S)0.84
P/FCF Ratio7.08
Enterprise Value/Market Cap1.44
Enterprise Value/Revenue1.41
Enterprise Value/Gross Profit5.26
Enterprise Value/Ebitda6.09
Forecast
1Y Price Target
$284.82Price Target Upside4.76% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering18
EPS Forecast (FY)21.21
Revenue Forecast (FY)$22.23B
Tenet Healthcare Business Overview & Revenue Model
Company Description
Tenet Healthcare Corporation operates as a broad-ranging provider of health solutions. The company organizes its operations across three main divisions: Hospital Operations and Other, Ambulatory Care, and Conifer. Within its network of acute care ...
How the Company Makes Money
Tenet Healthcare primarily makes money by providing healthcare services that are reimbursed by commercial insurers, government payors (e.g., Medicare and Medicaid), and patients (self-pay). Its revenue model is largely fee-for-service: Tenet bills...
Tenet Healthcare Earnings Call Summary
Earnings Call Date:Jul 23, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 29, 2026
Earnings Call Sentiment Positive
The call conveyed solid operational and financial outperformance: strong revenue and EBITDA growth, a robust EPS increase, raised full-year guidance, substantial free cash flow, improved leverage and active capital deployment (notably large share repurchases and anticipated USPI M&A). These positives were offset by material payer mix challenges—chiefly a significant decline in exchange enrollment and revenues, localized state impacts, modest ASC case volume weakness, and regulatory/reimbursement uncertainty. Management emphasized that expense actions, technology and clinical improvements and portfolio positioning have thus far mitigated the headwinds and supported an upward revision to guidance.Positive Updates
Revenue and EBITDA Outperformance
Second quarter net operating revenues of $5.6 billion and consolidated adjusted EBITDA of $1.304 billion, representing an adjusted EBITDA margin of 23.2% and consolidated adjusted EBITDA growth of 16.3% year-over-year.
Negative Updates
Exchange Enrollment and Revenue Declines
Exchange revenues declined ~17% YoY in Q2 2026 (exchange admissions down ~13.5%), representing about 5.5% of consolidated net operating revenues and creating roughly a $65 million revenue headwind in Q2; highest impacts observed in Florida, Arizona, Michigan, South Carolina and Texas.
Read all updates
Q2-2026 Updates
Positive
Negative
Revenue and EBITDA Outperformance
Second quarter net operating revenues of $5.6 billion and consolidated adjusted EBITDA of $1.304 billion, representing an adjusted EBITDA margin of 23.2% and consolidated adjusted EBITDA growth of 16.3% year-over-year.
Read all positive updates
Company Guidance
Tenet raised its 2026 outlook, now forecasting consolidated net operating revenues of $21.9B–$22.5B (≈+$300M at the midpoint) and consolidated adjusted EBITDA of $4.83B–$5.03B (≈+$295M at the midpoint), driven by roughly $100M of H1 fundamental outperformance plus an expected additional $60M in H2; segment guidance calls for USPI adjusted EBITDA of $2.16B–$2.22B and hospital adjusted EBITDA of $2.67B–$2.81B (≈+$285M midpoint increase), with an expected $140M contribution from approved supplemental Medicaid programs (about $20M in H2); Tenet now expects >$300M of full‑year M&A spend, Q3 consolidated adjusted EBITDA to be ~23%–24% of full‑year EBITDA (at the midpoint) and Q3 USPI EBITDA to be ~24%–25% of full‑year USPI EBITDA (at the midpoint), and it raised adjusted free cash flow after NCI to $1.825B–$2.055B (≈+$225M midpoint), which excluding ~$150M of Conifer‑related tax payments implies roughly $2.1B at the midpoint.Tenet Healthcare Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
52
Neutral
Cash Flow
66
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 21.81B | 21.31B | 20.66B | 20.55B | 19.17B | 19.48B |
| Gross Profit | 5.86B | 17.53B | 8.21B | 7.80B | 7.05B | 7.27B |
| EBITDA | 5.06B | 4.48B | 6.89B | 3.39B | 3.08B | 3.67B |
| Net Income | 2.24B | 1.41B | 3.20B | 611.00M | 411.00M | 914.00M |
Balance Sheet | ||||||
| Total Assets | 30.68B | 29.68B | 28.94B | 28.31B | 27.16B | 27.58B |
| Cash, Cash Equivalents and Short-Term Investments | 2.17B | 2.88B | 3.02B | 1.23B | 858.00M | 2.36B |
| Total Debt | 13.25B | 13.17B | 14.33B | 15.00B | 15.08B | 15.65B |
| Total Liabilities | 21.98B | 20.70B | 20.39B | 22.80B | 22.55B | 23.32B |
| Stockholders Equity | 4.66B | 4.22B | 4.17B | 1.61B | 1.14B | 1.03B |
Cash Flow | ||||||
| Free Cash Flow | 3.02B | 2.53B | 1.12B | 1.62B | 321.00M | 910.00M |
| Operating Cash Flow | 4.01B | 3.54B | 2.05B | 2.37B | 1.08B | 1.57B |
| Investing Cash Flow | -1.29B | -1.27B | 3.43B | -969.00M | -808.00M | -714.00M |
| Financing Cash Flow | -3.18B | -2.40B | -3.69B | -1.03B | -1.78B | -936.00M |
Tenet Healthcare Technical Analysis
Positive
271.88
Price Trends
264.33
Positive
231.98
Positive
217.16
Positive
Market Momentum
2.58
Negative
54.01
Neutral
60.95
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For THC, the sentiment is Positive. The current price of 271.88 is above the 20-day moving average (MA) of 261.48, above the 50-day MA of 264.33, and above the 200-day MA of 217.16, indicating a bullish trend. The MACD of 2.58 indicates Negative momentum. The RSI at 54.01 is Neutral, neither overbought nor oversold. The STOCH value of 60.95 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for THC.
Tenet Healthcare Risk Analysis
Tenet Healthcare disclosed 25 risk factors in its most recent earnings report. Tenet Healthcare reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Tenet Healthcare Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $10.74B | 7.39 | 20.66% | 0.44% | 10.05% | 28.53% | |
70 Outperform | $21.45B | 10.20 | 50.63% | ― | 5.43% | 65.86% | |
64 Neutral | $1.65B | 21.73 | 5.21% | ― | 3.34% | -69.26% | |
62 Neutral | $98.48B | 15.32 | -112.87% | 0.67% | 7.31% | 25.54% | |
52 Neutral | $1.93B | -21.32 | -5.21% | ― | 3.99% | 51.58% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
42 Neutral | $389.19M | -1.22 | 20.91% | 0.70% | -5.25% | ― |
* Healthcare Sector Average
THC
Tenet Healthcare
272.32
69.97
34.58%
CYH
Community Health
2.85
-0.30
-9.52%
HCA
HCA Healthcare
465.75
36.68
8.55%
UHS
Universal Health
185.61
-20.29
-9.86%
SGRY
Surgery Partners
15.49
-5.57
-26.45%
ARDT
Ardent Health Partners, Inc.
12.12
-2.85
-19.04%
Tenet Healthcare Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Tenet Healthcare Issues New Senior Notes to Refinance Debt
Positive
Sep 22, 2026
On September 22, 2026, Tenet Healthcare Corporation issued $2 billion of 6.250% senior notes due 2034 under its existing indenture structure with The Bank of New York Mellon Trust Company as trustee. The company plans to use the net proceeds, toge...
Business Operations and StrategyPrivate Placements and Financing
Tenet Healthcare Announces Major 2034 Senior Notes Offering
Positive
Sep 8, 2026
On September 8, 2026, Tenet Healthcare announced a private placement offering of $1.5 billion in new senior notes due 2034, followed by an upsized and priced $2.0 billion issuance of 6.250% senior notes due 2034. The notes will be unsecured obliga...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.