Tenet Healthcare (NYSE:THC) Issues 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 (EPS) for the quarter, topping analysts’ consensus estimates of $4.68 by $1.96, FiscalAI reports. Tenet Healthcare had a return on equity of 26.76% and a net margin of 10.27%. The firm had revenue of $6.28 billion for the quarter, compared to analyst estimates of $5.49 billion. During the same period last year, the company earned $3.70 EPS. The firm’s quarterly revenue was up 6.5% on a year-over-year basis.

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

NYSE:THC opened at $269.73 on Friday. The company has a current ratio of 1.41, a quick ratio of 1.35 and a debt-to-equity ratio of 2.00. The firm has a market capitalization of $21.72 billion, a price-to-earnings ratio of 10.40, a PEG ratio of 1.02 and a beta of 1.20. The firm’s fifty day simple moving average is $264.85 and its 200 day simple moving average is $219.97. Tenet Healthcare has a twelve month low of $157.58 and a twelve month high of $283.05.

Insider Transactions at Tenet Healthcare

In other news, Director Richard J. Mark sold 10,000 shares of the company’s 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 completion of 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 ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director J. Robert Kerrey sold 12,010 shares of the firm’s stock in a transaction dated Monday, September 14th. The shares were sold at an average price of $263.72, for a total value of $3,167,277.20. Following the sale, the director 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. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 106,484 shares of company stock worth $28,898,063 in the last quarter. 0.97% of the stock is owned by corporate insiders.

Analyst Upgrades and Downgrades

A number of equities analysts have weighed in on THC shares. Morgan Stanley lifted 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. Robert W. Baird increased their target price on Tenet Healthcare from $210.00 to $280.00 and gave the stock a “neutral” rating in a research report on Tuesday, July 28th. UBS Group boosted their price target on Tenet Healthcare from $288.00 to $308.00 and gave the company a “buy” rating in a research report on Monday, July 27th. The Goldman Sachs Group restated a “buy” rating and set a $305.00 price target on shares of Tenet Healthcare in a research note on Tuesday, July 28th. Finally, Raymond James Financial restated an “outperform” rating and issued a $285.00 price objective on shares of Tenet Healthcare in a report on Friday, August 14th. Eighteen analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the stock. Based on data from MarketBeat, Tenet Healthcare has a consensus rating of “Moderate Buy” and a consensus target price of $280.21.

Key Headlines Impacting Tenet Healthcare

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

• Positive Sentiment: Tenet reported third-quarter adjusted earnings of $6.64 per share, well above the roughly $4.68 consensus estimate and up from $3.70 a year earlier. Revenue rose 6.5% year over year to $6.28 billion, also exceeding expectations of $5.49 billion. Tenet Healthcare sails past Q3 earnings estimates, boosts 2026 guidance
• Positive Sentiment: Management raised its 2026 financial guidance, including its earnings-per-share and EBITDA outlook, signaling confidence that operational momentum and cost discipline can continue. THC Q3 Earnings Beat on Hospital Strength, 2026 EPS View Raised
• Positive Sentiment: Strong hospital performance was identified as a key earnings driver. Tenet also reported a 26.76% return on equity and a 10.27% net margin, reinforcing the case for improved profitability. Tenet Reports Strong Third Quarter 2026 Results; Raises 2026 Financial Outlook
• Neutral Sentiment: The earnings beat was substantial, but investors may scrutinize the quality and sustainability of the quarter’s earnings, including the contribution from nonrecurring items and unusually strong hospital results. Tenet Healthcare Q3 2026: A 42% EPS Beat With an Asterisk
• Neutral Sentiment: Tenet’s shares already trade near their 52-week high, while the company carries significant leverage with a debt-to-equity ratio of 2.00. Those factors could limit further gains if execution or guidance disappoints.

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.