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Tenet Healthcare
(NYSE:THC)
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Rating:73Outperform
Price Target:
$287.00
▲(23.07% Upside)
Action:Reiterated
Date:07/25/26
The score is driven primarily by strong operating results and cash generation alongside raised full-year guidance. Valuation is also supportive with a low P/E. Offsetting these positives are balance-sheet leverage risk and some near-term technical stretch (RSI > 70), plus operational/regulatory headwinds highlighted on the earnings call (exchange enrollment pressure and reimbursement uncertainty).
Positive Factors
Robust cash generation
Consistent multi-billion operating and free cash flow provides durable internal funding for capital expenditure, debt paydown, buybacks and M&A. FCF covering ~75% of net income supports financial flexibility and operational resiliency over the next several quarters.
Negative Factors
Elevated leverage and large absolute debt
Substantial absolute debt and elevated leverage constrain strategic optionality and increase sensitivity to interest costs or cash-flow variation. Although improving, leverage still limits flexibility for aggressive investment or unexpected shocks in the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Robust cash generation
Consistent multi-billion operating and free cash flow provides durable internal funding for capital expenditure, debt paydown, buybacks and M&A. FCF covering ~75% of net income supports financial flexibility and operational resiliency over the next several quarters.
Read all positive factors
Tenet Healthcare Key Performance Indicators (KPIs)
Any
Revenue by Segment
Breaks down income from different business areas, offering insight into which segments are driving growth and profitability. This can reveal strategic focus areas and potential vulnerabilities in the business model.
Breaks down income from different business areas, offering insight into which segments are driving growth and profitability. This can reveal strategic focus areas and potential vulnerabilities in the business model.
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The Fly
The FlyTenet Healthcare (THC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$22.62B
Dividend YieldN/A
Average Volume (3M)1.35M
Price to Earnings (P/E)10.1
Beta (1Y)0.99
Revenue Growth5.43%
EPS Growth65.86%
CountryUS
Employees99,000
SectorHealthcare
Sector Strength45
IndustryMedical - Care Facilities
Share Statistics
EPS (TTM)26.12
Shares Outstanding86,137,000
10 Day Avg. Volume1,714,656
30 Day Avg. Volume1,354,110
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$269.88Price Target Upside15.73% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering16
EPS Forecast (FY)20.04
Revenue Forecast (FY)$22.21B
Tenet Healthcare Business Overview & Revenue Model
Company Description
Tenet Healthcare Corporation (THC) is a U.S.-based healthcare services company that operates acute care and specialty hospitals and provides outpatient care through its ambulatory surgery center network. The company delivers inpatient and outpatie...
How the Company Makes Money
Tenet primarily makes money by providing healthcare services that are reimbursed by third-party payors and patients. Its main revenue streams include: (1) Hospital operations: Revenue is generated from inpatient admissions, emergency department vi...
Tenet Healthcare Earnings Call Summary
Earnings Call Date:Jul 23, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 03, 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 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 |
|---|---|---|---|---|---|---|---|
73 Outperform | $22.62B | 10.05 | 50.63% | ― | 5.43% | 65.86% | |
72 Outperform | $11.51B | 19.08 | 25.35% | 0.67% | 10.05% | 23.59% | |
71 Outperform | $10.06B | 6.74 | 20.61% | 0.51% | 10.05% | 28.53% | |
70 Outperform | $15.37B | 23.59 | -133.12% | ― | 6.68% | 2.79% | |
66 Neutral | $13.17B | 13.19 | 7.16% | 3.52% | 7.24% | 67.43% | |
62 Neutral | $92.77B | 13.96 | -112.87% | 0.78% | 7.31% | 25.54% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
THC
Tenet Healthcare
257.62
96.73
60.12%
DVA
DaVita
240.96
96.39
66.67%
FMS
Fresenius Medical Care
24.86
-0.24
-0.95%
HCA
HCA Healthcare
408.18
55.51
15.74%
EHC
Encompass Health
113.80
4.62
4.23%
UHS
Universal Health
168.16
3.43
2.08%
Tenet Healthcare Corporate Events
Executive/Board ChangesShareholder Meetings
Tenet Healthcare Shareholders Back Board, Pay and Auditor
Positive
May 29, 2026
At its 2026 Annual Meeting of Shareholders held on May 27, 2026, Tenet Healthcare shareholders elected all nominated directors to the board, with each to serve until the next annual meeting or until a successor is chosen. The vote tallies showed s...
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.