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Tenet Healthcare
(NYSE:THC)
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Rating:68Neutral
Price Target:
$189.00
▼(-3.89% Downside)
Action:Reiterated
Date:05/30/26
The score is driven by strong financial performance (revenue and cash flow momentum) and an attractive low P/E, partially offset by weak technicals (price below key moving averages with bearish momentum). Earnings-call commentary supports the outlook via reaffirmed guidance and capital returns, though notable volume/payer and policy headwinds temper the rating.
Positive Factors
Cash generation & liquidity
Sustained, sizable free cash flow and nearly $3.0B cash provide durable financing optionality for M&A, buybacks, and debt refinancing. This liquidity cushion reduces near-term refinancing risk and supports capital priorities even if volumes or payer mix soften over the next several quarters.
Negative Factors
Exchange enrollment and payer-mix headwinds
Declining exchange enrollments and effectuation uncertainty reduce higher-paying commercial-like volumes and lower revenue per admission. A persistent enrollment shortfall materially depresses revenue and margin mix over months, challenging near-term growth and offsetting some operational gains.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation & liquidity
Sustained, sizable free cash flow and nearly $3.0B cash provide durable financing optionality for M&A, buybacks, and debt refinancing. This liquidity cushion reduces near-term refinancing risk and supports capital priorities even if volumes or payer mix soften 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.
Data provided by:
The Fly
The FlyTenet Healthcare (THC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$16.47B
Dividend YieldN/A
Average Volume (3M)1.47M
Price to Earnings (P/E)9.9
Beta (1Y)0.95
Revenue Growth4.56%
EPS Growth27.14%
CountryUS
Employees98,000
SectorHealthcare
Sector Strength45
IndustryMedical - Care Facilities
Share Statistics
EPS (TTM)19.39
Shares Outstanding86,137,000
10 Day Avg. Volume1,449,772
30 Day Avg. Volume1,468,875
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 Cap1.56
Enterprise Value/Revenue1.19
Enterprise Value/Gross Profit2.79
Enterprise Value/Ebitda5.25
Forecast
1Y Price Target
$243.57Price Target Upside23.87% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering14
EPS Forecast (FY)18.01
Revenue Forecast (FY)$21.99B
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 makes money primarily by delivering healthcare services and collecting reimbursement from third-party payers and patients. A major revenue stream comes from its hospital operations, where it earns service revenue for inpatient adm...
Tenet Healthcare Earnings Call Summary
Earnings Call Date:Apr 30, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 24, 2026
Earnings Call Sentiment Positive
The call conveyed solid financial and operational performance in Q1 — strong revenue, EBITDA, cash generation, USPI M&A activity, and demonstrated productivity/AI gains — while acknowledging notable near-term headwinds from exchange enrollment declines, lower respiratory volumes, payer disputes and some market-specific Medicaid softness. Management beat expectations for the quarter, maintained financial discipline (deleveraging and share repurchases), and reaffirmed full-year guidance while signaling they will monitor exchange effectuation and regulatory developments. Overall, positive operational momentum and financial strength outweighed the headwinds described.Positive Updates
Strong Top-Line and Profitability
Reported Q1 2026 net operating revenues of $5.4 billion and consolidated adjusted EBITDA of $1.162 billion, yielding an adjusted EBITDA margin of 21.6%.
Negative Updates
Exchange Enrollment and Payer Mix Pressure
Same-store exchange admissions were down ~10% YoY; exchange revenues represented ~6% of consolidated revenues in Q1, a ~9% decline from Q1 2025. Management expects exchange-related headwinds of roughly $250 million for 2026 (full year).
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Top-Line and Profitability
Reported Q1 2026 net operating revenues of $5.4 billion and consolidated adjusted EBITDA of $1.162 billion, yielding an adjusted EBITDA margin of 21.6%.
Read all positive updates
Company Guidance
Management reaffirmed full‑year 2026 guidance and said it will not update the outlook now despite Q1 outperformance, noting normalized 2026 adjusted EBITDA is expected to grow about 10% at the midpoint after excluding non‑recurring 2025 items and the premium tax credit expiration headwind; they expect Q2 consolidated adjusted EBITDA to be 24–25% of full‑year consolidated adjusted EBITDA at the midpoint (USPI also 24–25% of its full‑year EBITDA), reminded investors that Q1 represented ~22% of USPI’s full‑year EBITDA and 27.5% of Hospital full‑year EBITDA, and reaffirmed adjusted free cash flow after NCI of $1.6–$1.83 billion (which includes ~ $150 million of Conifer‑related tax payments; excluding that tax payment yields a midpoint of about $1.865 billion); capital priorities include a $250 million annual USPI M&A target (already invested $125 million in Q1 for seven ASC acquisitions), continued share repurchases (1.35 million shares for $318 million in Q1), potential debt retirement/refinancing, and the company cites $2.97 billion cash on hand, no draws on the credit facility, leverage of 2.24x EBITDA (2.83x EBITDA less NCI) and no significant maturities until late 2027.Tenet Healthcare Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
62
Positive
Cash Flow
81
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 21.45B | 21.31B | 20.66B | 20.55B | 19.17B | 19.48B |
| Gross Profit | 9.18B | 17.53B | 8.21B | 7.80B | 7.05B | 7.27B |
| EBITDA | 4.88B | 4.48B | 6.89B | 3.39B | 3.08B | 3.67B |
| Net Income | 1.70B | 1.41B | 3.20B | 611.00M | 411.00M | 914.00M |
Balance Sheet | ||||||
| Total Assets | 31.20B | 29.68B | 28.94B | 28.31B | 27.16B | 27.58B |
| Cash, Cash Equivalents and Short-Term Investments | 2.97B | 2.88B | 3.02B | 1.23B | 858.00M | 2.36B |
| Total Debt | 13.21B | 13.17B | 14.33B | 15.00B | 15.08B | 15.65B |
| Total Liabilities | 22.35B | 20.70B | 20.39B | 22.80B | 22.55B | 23.32B |
| Stockholders Equity | 4.81B | 4.22B | 4.17B | 1.61B | 1.14B | 1.03B |
Cash Flow | ||||||
| Free Cash Flow | 3.35B | 2.53B | 1.12B | 1.62B | 321.00M | 910.00M |
| Operating Cash Flow | 4.37B | 3.54B | 2.05B | 2.37B | 1.08B | 1.57B |
| Investing Cash Flow | -1.41B | -1.27B | 3.43B | -969.00M | -808.00M | -714.00M |
| Financing Cash Flow | -2.99B | -2.40B | -3.69B | -1.03B | -1.78B | -936.00M |
Tenet Healthcare Technical Analysis
Positive
196.64
Price Trends
181.34
Positive
197.51
Negative
198.48
Negative
Market Momentum
2.45
Negative
61.81
Neutral
91.58
Negative
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 196.64 is above the 20-day moving average (MA) of 176.25, above the 50-day MA of 181.34, and below the 200-day MA of 198.48, indicating a neutral trend. The MACD of 2.45 indicates Negative momentum. The RSI at 61.81 is Neutral, neither overbought nor oversold. The STOCH value of 91.58 is Negative, 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 |
|---|---|---|---|---|---|---|---|
72 Outperform | $10.06B | 16.68 | 25.35% | 0.65% | 10.05% | 23.59% | |
72 Outperform | $9.11B | 6.24 | 20.93% | 0.35% | 10.42% | 33.92% | |
70 Outperform | $14.64B | 22.47 | -133.12% | ― | 6.68% | 2.79% | |
68 Neutral | $16.47B | 9.86 | 40.55% | ― | 4.56% | 27.14% | |
66 Neutral | $12.13B | 12.22 | 7.16% | 3.29% | 7.24% | 67.43% | |
58 Neutral | $87.24B | 13.44 | -123.20% | 0.61% | 6.71% | 29.32% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
THC
Tenet Healthcare
191.20
18.98
11.02%
DVA
DaVita
228.03
85.47
59.95%
FMS
Fresenius Medical Care
22.86
-4.69
-17.02%
HCA
HCA Healthcare
393.24
17.75
4.73%
EHC
Encompass Health
101.39
-16.64
-14.10%
UHS
Universal Health
150.58
-33.10
-18.02%
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...
Executive/Board Changes
Tenet Healthcare Announces CIO Retirement and Transition Plan
Neutral
Apr 10, 2026
On April 9, 2026, Tenet Healthcare announced that Executive Vice President and Chief Information Officer Paola Arbour will retire from her CIO role effective December 31, 2026, and then remain with the company on a part-time, non-executive basis t...
Executive/Board Changes
Tenet Healthcare announces new senior vice president controller
Positive
Mar 31, 2026
Tenet Healthcare has adjusted the retirement timeline for its Senior Vice President and Controller, R. Scott Ramsey, who will now retire effective April 30, 2026, instead of March 31, 2026, and remain employed on a part-time basis through March 31...
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.