Tenet Healthcare (THC) AI Stock Analysis

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Tenet Healthcare

(NYSE:THC)

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Outperform 73 (OpenAI - 4o)

Rating:73Outperform

Price Target:

$228.00

▲(11.08% Upside)

Tenet Healthcare's overall stock score is driven by strong earnings performance and positive technical indicators, reflecting a bullish outlook. The company's strategic focus on growth and operational excellence is evident, although profitability and cash flow management remain areas for improvement. Policy uncertainties present potential risks, but the raised guidance and robust M&A activity underscore management's confidence in future performance.

Positive Factors

Revenue Growth

Strong revenue growth indicates robust expansion and market demand, enhancing the company's ability to invest in future growth and innovation.

Debt Reduction

Significant debt reduction improves financial stability and flexibility, allowing for strategic investments and reducing financial risk.

M&A Activity

Robust M&A activity supports strategic expansion and diversification, enhancing competitive positioning and market reach.

Negative Factors

Profitability Challenges

Decreasing profit margins indicate pressure on profitability, which could affect long-term financial health and investment capacity.

Cash Flow Decline

Declining cash flow growth may limit the company's ability to fund operations and strategic initiatives, impacting long-term sustainability.

Policy Uncertainty

Policy uncertainties could affect revenue streams and operational planning, posing risks to financial performance and strategic objectives.

Tenet Healthcare (THC) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$18.04B

Dividend YieldN/A

Average Volume (3M)1.02M

Price to Earnings (P/E)14.1

Beta (1Y)1.11

Revenue Growth-0.56%

EPS Growth-53.50%

CountryUS

Employees98,000

SectorHealthcare

Sector Strength45

IndustryMedical - Care Facilities

Share Statistics

EPS (TTM)3.70

Shares Outstanding87,885,000

10 Day Avg. Volume1,195,756

30 Day Avg. Volume1,023,076

Financial Highlights & Ratios

PEG Ratio<0.01

Price to Book (P/B)2.93

Price to Sales (P/S)0.59

P/FCF Ratio10.96

Enterprise Value/Market Cap1.82

Enterprise Value/Revenue1.58

Enterprise Value/Gross Profit2.82

Enterprise Value/Ebitda7.89

Forecast

1Y Price Target

$235.06

Price Target Upside14.52% Upside

Rating ConsensusStrong Buy

Number of Analyst Covering17

EPS Forecast (FY)15.98

Revenue Forecast (FY)$21.24B

Tenet Healthcare Business Overview & Revenue Model

Company DescriptionTenet Healthcare Corporation (THC) is a leading healthcare services company based in the United States, primarily engaged in the operation of general acute care hospitals, surgical hospitals, and ancillary services. Tenet operates a network of hospitals and outpatient facilities, providing a wide range of healthcare services, including emergency care, surgical services, and diagnostic services, as well as rehabilitation and other specialized treatments. The company operates in various segments, including hospital operations, ambulatory care, and other healthcare services, aiming to deliver high-quality care while enhancing patient outcomes.

How the Company Makes MoneyTenet Healthcare generates revenue primarily through the provision of healthcare services, which includes patient care services in its hospitals, surgical centers, and outpatient facilities. The company earns money from patient admissions, surgeries, diagnostic tests, and ancillary services, billed primarily through third-party payers such as Medicare, Medicaid, and private insurance companies. Key revenue streams include inpatient and outpatient services, which account for a significant portion of their earnings. Additionally, Tenet has partnerships with various healthcare organizations and payers that contribute to its revenue, as well as investments in value-based care initiatives that align reimbursement with patient outcomes. The company's ability to manage operational efficiency and cost structures also plays a crucial role in its overall profitability.

Tenet Healthcare Key Performance Indicators (KPIs)

Any

Total Hospitals

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.

Chart InsightsTenet Healthcare's total number of hospitals has decreased significantly since 2020, with a notable drop in 2024. Despite this reduction, the company has reported strong financial performance in early 2025, with robust revenue and EBITDA growth. The strategic focus on ambulatory space M&A and operational excellence is likely compensating for the reduced hospital count. However, uncertainties in healthcare policy, particularly around Medicaid, could pose challenges. The company's cautious approach to 2025 guidance reflects these uncertainties, despite a promising start to the fiscal year.

Data provided by:

Main Street Data

Tenet Healthcare Earnings Call Summary

Earnings Call Date:Oct 28, 2025

(Q2-2025)

% Change Since: |

Next Earnings Date:Feb 05, 2026

Earnings Call Sentiment Positive

The earnings call was generally positive, highlighting strong financial performance and growth in key segments like USPI and hospitals. The company raised its full-year guidance, supported by robust fundamentals. However, challenges such as volume deceleration and increased denials and disputes were noted, but they were outweighed by the positive aspects.

Q2-2025 Updates

Positive Updates

Strong Financial Performance

Second quarter 2025 net operating revenues reached $5.3 billion with a consolidated adjusted EBITDA of $1.121 billion, marking a 19% increase over 2024. The adjusted EBITDA margin improved by 280 basis points to 21.3%.

USPI Growth

USPI generated $498 million in adjusted EBITDA, an 11% growth over the previous quarter. Same facility revenues grew by 7.7%, with a 12.6% increase in total joint replacements in ASCs.

Hospital Segment Performance

Hospital segment adjusted EBITDA grew 25% to $623 million with same-store hospital admissions up 1.6%. Revenue per adjusted admission increased by 5.2%.

Share Repurchase Program Expansion

Tenet Healthcare has deployed $1.1 billion to repurchase 7.2 million shares in the first half of 2025. The board authorized a $1.5 billion increase in the share repurchase program.

Raised Full-Year Guidance

The company raised its full-year 2025 adjusted EBITDA guidance to a range of $4.4 to $4.54 billion, an increase of $395 million or 10% at the midpoint.

Negative Updates

Volume Deceleration

There was a noted deceleration in both inpatient and adjusted admissions volumes, leading to a 50 basis point reduction in volume guidance.

Increased Denials and Disputes

The company reported an increase in denials and disputes post-COVID, describing some of the activities as not acceptable and requiring adaptation through technology.

Company Guidance

During the second quarter of 2025, Tenet Healthcare Corporation reported robust financial outcomes, with net operating revenues reaching $5.3 billion and consolidated adjusted EBITDA of $1.121 billion, marking a 19% increase over the previous year. The adjusted EBITDA margin improved by 280 basis points to 21.3%, supported by strong same-store growth and efficient operations. USPI contributed significantly, with a $498 million adjusted EBITDA, reflecting an 11% increase over the prior year. Same facility revenues rose by 7.7%, highlighted by a 12.6% growth in total joint replacements in ASCs. The hospital segment also saw a 25% growth in adjusted EBITDA to $623 million, with same-store hospital admissions increasing by 1.6% and revenue per adjusted admission rising by 5.2%. The organization enhanced its full-year 2025 adjusted EBITDA guidance to a range of $4.4 to $4.54 billion, indicating an approximate 10% increase from previous guidance. The company also reduced its overhead by downsizing its hospital portfolio and authorized a $1.5 billion increase in its share repurchase program, demonstrating a commitment to shareholder value through disciplined financial management and strategic capital allocation.

Tenet Healthcare Financial Statement Overview

Summary

Tenet Healthcare demonstrates strong revenue growth and improved leverage, indicating a positive trajectory in expansion and financial stability. However, challenges in profitability and cash flow growth suggest areas for improvement. The company is well-positioned in the medical care facilities industry, with opportunities to enhance profitability and cash flow management.

Income Statement

Positive

Tenet Healthcare shows a strong revenue growth trajectory with a TTM revenue growth rate of 80.7%, indicating robust expansion. However, the net profit margin has decreased from 15.5% in 2024 to 7.6% in TTM, suggesting some pressure on profitability. The gross profit margin improved significantly in TTM, indicating better cost management. Overall, the income statement reflects strong growth but with some profitability challenges.

Balance Sheet

Positive

The balance sheet shows a significant improvement in the debt-to-equity ratio, dropping from 3.43 in 2024 to 0.02 in TTM, indicating a substantial reduction in leverage. However, the return on equity has decreased from 76.7% in 2024 to 37.3% in TTM, reflecting reduced efficiency in generating returns from equity. The equity ratio remains stable, suggesting a balanced asset structure.

Cash Flow

Neutral

Cash flow analysis reveals a decline in free cash flow growth, with a negative growth rate of -3.9% in TTM. The operating cash flow to net income ratio is moderate at 0.54, indicating a reasonable conversion of income to cash. The free cash flow to net income ratio is healthy at 0.61, showing good cash generation relative to net income. Overall, cash flow stability is moderate with some areas for improvement.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	20.86B	20.66B	20.55B	19.17B	19.48B	17.64B
Gross Profit	11.66B	8.21B	7.80B	7.05B	7.27B	6.23B
EBITDA	4.17B	6.89B	3.39B	3.08B	3.67B	2.53B
Net Income	1.35B	3.20B	611.00M	411.00M	914.00M	399.00M
Balance Sheet
Total Assets	29.42B	28.94B	28.31B	27.16B	27.58B	27.11B
Cash, Cash Equivalents and Short-Term Investments	2.98B	3.02B	1.23B	858.00M	2.36B	2.45B
Total Debt	13.19B	14.33B	15.00B	15.08B	15.65B	15.72B
Total Liabilities	20.72B	20.39B	22.80B	22.55B	23.32B	24.22B
Stockholders Equity	4.01B	4.17B	1.61B	1.14B	1.03B	28.00M
Cash Flow
Free Cash Flow	1.50B	1.12B	1.62B	321.00M	910.00M	2.87B
Operating Cash Flow	2.48B	2.05B	2.37B	1.08B	1.57B	3.41B
Investing Cash Flow	-1.26B	3.43B	-969.00M	-808.00M	-714.00M	-1.61B
Financing Cash Flow	-2.34B	-3.69B	-1.03B	-1.78B	-936.00M	385.00M

Tenet Healthcare Technical Analysis

Technical Analysis Sentiment

Positive

Last Price205.26

Price Trends

50DMA

198.27

Positive

100DMA

184.03

Positive

200DMA

162.26

Positive

Market Momentum

MACD

2.68

Positive

RSI

52.92

Neutral

STOCH

42.71

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 205.26 is above the 20-day moving average (MA) of 204.19, above the 50-day MA of 198.27, and above the 200-day MA of 162.26, indicating a bullish trend. The MACD of 2.68 indicates Positive momentum. The RSI at 52.92 is Neutral, neither overbought nor oversold. The STOCH value of 42.71 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

Overall Rating

UnderperformOutperform

Sector (51)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
UHS	78 Outperform	$14.59B	10.89	19.97%	0.35%	10.21%	39.58%
HCA	77 Outperform	$108.76B	18.42	―	0.63%	6.82%	15.82%
THC	73 Outperform	$18.04B	14.07	34.51%	―	-0.56%	-53.50%
FMS	65 Neutral	$13.90B	17.42	5.31%	3.28%	4.09%	13.17%
EHC	62 Neutral	$11.60B	21.78	24.94%	0.55%	11.13%	27.53%
DVA	58 Neutral	$8.73B	12.74	―	―	5.14%	4.37%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

* Healthcare Sector Average

Performance Comparison

THC

Tenet Healthcare

205.26

38.41

23.02%

DVA

DaVita

123.69

-30.79

-19.93%

FMS

Fresenius Medical Care

24.00

3.01

14.34%

HCA

HCA Healthcare

476.61

121.51

34.22%

EHC

Encompass Health

115.27

12.65

12.33%

UHS

Universal Health

229.23

21.56

10.38%

Tenet Healthcare Corporate Events

Tenet Healthcare’s Q3 2025 Earnings Call Highlights Strong Growth

Oct 30, 2025

Tenet Healthcare’s recent earnings call for Q3 2025 revealed a generally positive sentiment, driven by strong financial results and growth across various segments. The company reported significant increases in revenue, EBITDA, and margins, prompting an upward revision of its full-year guidance. However, there were some concerns regarding potential policy changes that could affect future reimbursement rates.

Tenet Healthcare Reports Strong Q3 2025 Results

Oct 29, 2025

Tenet Healthcare Corporation is a diversified healthcare services company based in Dallas, operating a network of hospitals, outpatient facilities, and a large ambulatory platform through United Surgical Partners International.

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.Date of analysis: Oct 29, 2025