Tenet Healthcare (THC) AI Stock Analysis

• Market Cap: $20.15B
• Dividend Yield: N/A
• Average Volume (3M): 1.04M
• Price to Earnings (P/E): 14.7
• Beta (1Y): 1.05
• Revenue Growth: -0.56%
• EPS Growth: -53.50%
• Country: US
• Employees: 98,000
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Care Facilities
• EPS (TTM): 4.70
• Shares Outstanding: 86,963,000
• 10 Day Avg. Volume: 1,383,341
• 30 Day Avg. Volume: 1,044,349
• PEG Ratio: -0.24
• Price to Book (P/B): 4.28
• Price to Sales (P/S): 0.85
• P/FCF Ratio: 7.13
• Enterprise Value/Market Cap: 1.51
• Enterprise Value/Revenue: 1.43
• Enterprise Value/Gross Profit: 2.56
• Enterprise Value/Ebitda: 6.83
• 1Y Price Target: $260.45
• Price Target Upside: 13.29% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 11
• EPS Forecast (FY): 16.9
• Revenue Forecast (FY): $22.03B

• Rating: 69 Neutral
• Price Target: $248.00 ▲(7.87% Upside)
• Action: Reiterated Date: 02/13/26
• Date: Action: Reiterated 02/13/26

The score is driven primarily by strong recent cash flow and an established uptrend in the stock, offset by leverage and less durable profitability, plus 2026 guidance risk from a potentially significant exchange-enrollment headwind and related uncertainty.

Positive Factors

Strong free cash flow generation

Tenet's 2025 cash generation materially improved (OCF to ~$3.54B; FCF ~$2.53B and ~71% conversion), providing durable internal funding for capex, M&A, buybacks and debt paydown. Robust FCF reduces dependence on markets and underpins multi-year strategic flexibility.

Strategic Conifer transaction reduces liabilities

Regaining full Conifer ownership trims ~$885M of liabilities, accelerates cash timing ~ $1.9B and adds ~ $1.0–$1.1B NPV benefit. That structural move boosts balance sheet flexibility, frees capital for tech/automation investments, and scales revenue-cycle capabilities beyond Tenet.

High-margin USPI ASC growth platform

USPI delivers sustainably higher margins (40%+), strong same-facility revenue and double-digit ASC joint-replacement volume growth. The asset-light ASC/ambulatory strategy diversifies revenue, supports margin resilience, and provides a repeatable M&A/de novo roll‑out pathway.

Negative Factors

High leverage and sizable debt load

With roughly $13.2B of debt and a debt-to-equity around 3.1x, Tenet's capital structure leaves limited room for earnings shocks. Elevated leverage increases interest and covenant sensitivity, constrains strategic optionality, and raises risk if reimbursement or volumes weaken.

Policy headwind from exchange premium credit expiry

Expiration of enhanced exchange premium tax credits is a structural payer-policy change management expects will cut exchange enrollment ~20%, creating an estimated ~$250M EBITDA drag. That shifts payer mix, pressures hospital margins and is largely outside company control.

Enrollment effectuation and modest hospital volume growth

Uncertainty over how former exchange enrollees will obtain coverage (some shifting to other plans or becoming uninsured) creates lasting volatility in volumes, payer mix and bad debt. Modest hospital admissions guidance (1%–2%) limits organic growth and increases reliance on cost and M&A levers.

Tenet Healthcare Business Overview & Revenue Model

Company Description

Tenet Healthcare Corporation operates as a diversified healthcare services company. The company operates in three segments: Hospital Operations and Other, Ambulatory Care, and Conifer. Its general hospitals offer acute care services, operating and recovery rooms, radiology and respiratory therapy services, clinical laboratories, and pharmacies. The company also provides intensive and critical care, and coronary care units; cardiovascular, digestive disease, neurosciences, musculoskeletal, and obstetrics services; outpatient services, including physical therapy; cardiothoracic surgery, complex spinal surgery, neonatal intensive care, and neurosurgery services; quaternary care services in heart and kidney transplants; and limb-salvaging vascular procedure, acute level 1 trauma, intravascular stroke care, minimally invasive cardiac valve replacement, imaging, and telemedicine access services. In addition, it operates ambulatory surgery and urgent care centers, imaging centers, surgical hospitals, off-campus emergency departments, and micro-hospitals; and offers healthcare business process services in the areas of hospital and physician revenue cycle management, patient communications and engagement support, and value-based care solutions to hospitals, health systems, physician practices, employers, and other customers. As of February 09, 2022, the company operated 60 hospitals; and approximately 550 other healthcare facilities, including surgical hospitals, ambulatory surgery centers, urgent care and imaging centers, and other care sites and clinics. Tenet Healthcare Corporation was incorporated in 1975 and is headquartered in Dallas, Texas.

How the Company Makes Money

Tenet Healthcare generates revenue through a multifaceted model primarily centered around patient services. The company earns money by billing for medical services rendered in its hospitals and outpatient facilities, including surgeries, emergency care, diagnostic tests, and various specialty services. Key revenue streams include reimbursements from government programs such as Medicare and Medicaid, as well as private insurance payments. Additionally, Tenet engages in partnerships and joint ventures with other healthcare entities, which can provide additional revenue through shared services and facilities. The company's performance is also influenced by factors such as patient volumes, the mix of insured versus uninsured patients, and the regulatory environment impacting healthcare reimbursement.

Tenet Healthcare Financial Statement Overview

Summary

Strong cash generation (2025 operating cash flow ~$3.54B; free cash flow ~$2.53B) and steady revenue growth support the score, but it is held back by a still debt-heavy balance sheet (debt-to-equity ~3.1x) and a sharp 2025 profitability step-down versus 2024.

Income Statement

Revenue has grown steadily from $17.6B (2020) to $21.3B (2025), with strong gross margin improvement over time (~35% to ~41%). Profitability has been volatile: net margin peaked in 2024 (~15.5%) but fell sharply in 2025 (~6.6%), and operating profitability also compressed materially from 2024 to 2025. Overall, the business shows solid scale and generally improving gross economics, but recent-year earnings normalization adds risk to the trajectory.

Balance Sheet

Leverage remains the key constraint: total debt is high at ~$13.2B (2025) against ~$4.2B of equity (debt-to-equity ~3.1x), though this is a significant improvement versus 2020–2022 when equity was very thin and leverage was extreme. Asset base is sizable (~$29.7B, 2025), and equity has been rebuilt over the period, but the capital structure is still debt-heavy and leaves less room for earnings volatility.

Cash Flow

Cash generation is a clear strength: operating cash flow improved to ~$3.54B in 2025 from ~$2.05B in 2024, and free cash flow increased to ~$2.53B with very strong year-over-year growth. Free cash flow conversion versus accounting profit is reasonable in 2025 (free cash flow running at ~71% of net income). The main watch item is that cash flow has been uneven across years, but the latest year shows strong rebuilding of cash earnings.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	21.31B	20.66B	20.55B	19.17B	19.48B
Gross Profit	8.82B	8.21B	7.80B	7.05B	7.27B
EBITDA	4.30B	6.89B	3.39B	3.08B	3.67B
Net Income	1.41B	3.20B	611.00M	411.00M	914.00M
Balance Sheet
Total Assets	29.68B	28.94B	28.31B	27.16B	27.58B
Cash, Cash Equivalents and Short-Term Investments	2.88B	3.02B	1.23B	858.00M	2.36B
Total Debt	13.17B	14.33B	15.00B	15.08B	15.65B
Total Liabilities	20.70B	20.39B	22.80B	22.55B	23.32B
Stockholders Equity	4.22B	4.17B	1.61B	1.14B	1.03B
Cash Flow
Free Cash Flow	2.53B	1.12B	1.62B	321.00M	910.00M
Operating Cash Flow	3.54B	2.05B	2.37B	1.08B	1.57B
Investing Cash Flow	-1.27B	3.43B	-969.00M	-808.00M	-714.00M
Financing Cash Flow	-2.40B	-3.69B	-1.03B	-1.78B	-936.00M

Tenet Healthcare Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 229.90
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 229.9 is above the 20-day moving average (MA) of 205.24, above the 50-day MA of 201.33, and above the 200-day MA of 187.20, indicating a bullish trend. The MACD of 9.38 indicates Negative momentum. The RSI at 68.74 is Neutral, neither overbought nor oversold. The STOCH value of 88.11 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for THC.

Tenet Healthcare Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
UHS	76 Outperform	$14.70B	11.18	19.97%	0.35%	10.21%	39.58%
HCA	75 Outperform	$119.64B	18.89	―	0.61%	6.82%	15.82%
EHC	73 Outperform	$10.98B	19.69	25.13%	0.65%	11.13%	27.53%
THC	69 Neutral	$20.15B	14.72	33.54%	―	-0.56%	-53.50%
FMS	65 Neutral	$13.80B	17.42	5.31%	3.29%	4.09%	13.17%
DVA	63 Neutral	$9.87B	15.42	―	―	5.14%	4.37%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Tenet Healthcare Corporate Events

Tenet Regains Full Conifer Ownership in Strategic Deal

On February 2, 2026, Tenet Healthcare announced it had completed a strategic transaction with CommonSpirit Health that returns Conifer Health Solutions to full Tenet ownership, following an Omnibus Agreement signed on January 27, 2026. Under the deal, CommonSpirit will pay Tenet about $1.9 billion over three years, while Conifer will redeem CommonSpirit’s 23.8% equity stake via a $540 million payment effective January 1, 2026, and continue providing revenue cycle services to CommonSpirit through the end of 2026 on existing financial terms. The transaction reduces Tenet’s redeemable non-controlling interests and other liabilities by roughly $885 million, boosts additional paid-in capital by about $305 million, and gives Tenet more flexibility to invest in Conifer’s artificial intelligence, automation and global operating capabilities as it broadens its client base. Tenet also indicated that for the year ended December 31, 2025, its Adjusted EBITDA is expected to come in at the upper end of its $4.47 billion to $4.57 billion guidance range, driven by strong same-store revenue growth and disciplined cost control, underscoring the company’s momentum heading into 2026 as it restructures its relationship with CommonSpirit and refocuses Conifer on broader market opportunities.

The most recent analyst rating on (THC) stock is a Buy with a $252.00 price target. To see the full list of analyst forecasts on Tenet Healthcare stock, see the THC Stock Forecast page.

Tenet Healthcare Board Member Resigns, Board Size Reduced

On November 21, 2025, Stephen H. Rusckowski resigned from Tenet Healthcare Corporation’s board of directors, prompting the board to reduce its size from thirteen to twelve members.

The most recent analyst rating on (THC) stock is a Buy with a $240.00 price target. To see the full list of analyst forecasts on Tenet Healthcare stock, see the THC Stock Forecast page.

Tenet Healthcare Issues $2.25 Billion in New Notes

On November 18, 2025, Tenet Healthcare Corporation issued $1.5 billion in senior secured first lien notes due 2032 and $750 million in senior notes due 2033. The proceeds from these notes will be used to redeem existing debt, specifically $1.5 billion of 6.250% senior secured second lien notes due 2027 and $750 million of 6.125% senior notes due 2028. The issuance of these notes is part of Tenet’s strategic financial management, allowing the company to restructure its debt and potentially improve its financial flexibility. The notes come with covenants that restrict certain financial activities but also allow for exceptions, providing Tenet with operational leeway.

The most recent analyst rating on (THC) stock is a Buy with a $230.00 price target. To see the full list of analyst forecasts on Tenet Healthcare stock, see the THC Stock Forecast page.