Tenet Healthcare (THC)
NYSE:THC
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Tenet Healthcare
(NYSE:THC)
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Rating:62Neutral
Price Target:
$203.00
▲(7.88% Upside)
Action:ReiteratedDate:03/31/26
The score is supported primarily by strong cash generation and a constructive (but risk-aware) 2026 outlook from the earnings call, alongside a relatively modest P/E. The biggest offset is weak technical momentum (oversold and below major moving averages) and financial risk from still-elevated leverage and less durable profitability versus the prior year.
Positive Factors
Cash generation
Tenet generated materially stronger cash in 2025, with operating cash flow around $3.54B and free cash flow ~$2.53B. Durable cash conversion supports reinvestment in growth, ongoing capex, opportunistic buybacks and debt paydown, increasing financial optionality across the 2–6 month horizon.
Negative Factors
Elevated leverage
Balance sheet remains debt-heavy with roughly $13.2B of debt and about 3.1x debt-to-equity. Elevated leverage limits strategic flexibility, increases interest and refinancing risk, and makes earnings miss or volume shocks more likely to pressure credit metrics and investment capacity over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation
Tenet generated materially stronger cash in 2025, with operating cash flow around $3.54B and free cash flow ~$2.53B. Durable cash conversion supports reinvestment in growth, ongoing capex, opportunistic buybacks and debt paydown, increasing financial optionality across the 2–6 month horizon.
Read all positive factors
Tenet Healthcare (THC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$16.36B
Dividend YieldN/A
Average Volume (3M)982.48K
Price to Earnings (P/E)12.8
Beta (1Y)1.08
Revenue Growth-0.56%
EPS Growth-53.50%
CountryUS
Employees98,000
SectorHealthcare
Sector Strength45
IndustryMedical - Care Facilities
Share Statistics
EPS (TTM)4.70
Shares Outstanding86,963,000
10 Day Avg. Volume966,313
30 Day Avg. Volume982,480
Financial Highlights & Ratios
PEG Ratio-0.24
Price to Book (P/B)4.28
Price to Sales (P/S)0.85
P/FCF Ratio7.13
Enterprise Value/Market Cap1.65
Enterprise Value/Revenue1.27
Enterprise Value/Gross Profit2.27
Enterprise Value/Ebitda6.05
Forecast
1Y Price Target
$263.23Price Target Upside39.89% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering13
EPS Forecast (FY)16.99
Revenue Forecast (FY)$22.02B
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...
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 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 Earnings Call Summary
Earnings Call Date:Feb 11, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 30, 2026
Earnings Call Sentiment Positive
The call presented a strong operational and financial performance in 2025 — double-digit EBITDA growth, margin expansion, robust USPI and hospital segment results, substantial free cash flow, and active balance sheet management including buybacks and a value-creating Conifer transaction. Offsetting these positives are meaningful near-term headwinds and uncertainty from the expiration of enhanced exchange premium tax credits (management estimates a ~$250 million EBITDA hit and assumes ~20% enrollment reduction), normalization of prior-year supplemental payments, and modest hospital admission volume growth guidance for 2026. Management provided a constructive 2026 outlook that, after normalizing items and excluding the exchange headwind, implies ~10% EBITDA growth at the midpoint, but acknowledged material uncertainty that widens the guidance range.Positive Updates
Full-Year Revenue and EBITDA Growth
2025 net operating revenues of $21.3 billion and consolidated adjusted EBITDA of $4.566–4.57 billion, representing ~14% YoY EBITDA growth. Full-year adjusted EBITDA margin improved to 21.4%, up ~200–210 basis points vs. prior year.
Negative Updates
Exchange Premium Tax Credit Expiration Headwind
Management assumes a ~20% reduction in exchange enrollment exposure in 2026 and estimates a ~$250 million negative impact to 2026 adjusted EBITDA (primarily in the hospital segment) from expiration of enhanced premium tax credits.
Read all updates
Q4-2025 Updates
Positive
Negative
Full-Year Revenue and EBITDA Growth
2025 net operating revenues of $21.3 billion and consolidated adjusted EBITDA of $4.566–4.57 billion, representing ~14% YoY EBITDA growth. Full-year adjusted EBITDA margin improved to 21.4%, up ~200–210 basis points vs. prior year.
Read all positive updates
Company Guidance
Tenet guided 2026 consolidated net operating revenues of $21.5 billion to $22.3 billion and consolidated adjusted EBITDA of $4.485 billion to $4.785 billion, with USPI adjusted EBITDA of $2.13 billion to $2.23 billion and Hospital adjusted EBITDA of $2.355 billion to $2.555 billion; they expect same-facility USPI revenue growth of 3%–6% and same-hospital adjusted admissions growth of 1%–2% (adjusted admissions 1%–2%), and assume a 20% reduction in exchange enrollment that they estimate will create a ~$250 million EBITDA headwind (primarily hospitals). Management noted two normalizing items—$148 million of prior-year supplemental Medicaid payments in 2025 and a $40 million one-time favorable Conifer revenue adjustment in 2026—and said that, excluding the tax-credit headwind and normalizing items, 2026 adjusted EBITDA would grow about 10% at the midpoint; they expect Q1 to be ~24% of full-year consolidated EBITDA (USPI Q1 ~22% of its full-year). Tenet projects adjusted cash flow from operations of $3.2 billion–$3.6 billion, capex of $700 million–$800 million, adjusted free cash flow of $2.5 billion–$2.8 billion, and adjusted free cash flow after NCI of $1.6 billion–$1.83 billion (including ~$150 million of Conifer-related tax payments; excluding those taxes midpoint free cash flow less NCI = $1.865 billion), plans ~$250 million of USPI M&A in 2026, and will continue opportunistic share repurchases.Tenet Healthcare Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
48
Neutral
Cash Flow
78
Positive
| 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
Negative
188.17
Price Trends
212.66
Negative
206.88
Negative
195.27
Negative
Market Momentum
-9.30
Positive
29.58
Positive
27.94
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For THC, the sentiment is Negative. The current price of 188.17 is below the 20-day moving average (MA) of 209.35, below the 50-day MA of 212.66, and below the 200-day MA of 195.27, indicating a bearish trend. The MACD of -9.30 indicates Positive momentum. The RSI at 29.58 is Positive, neither overbought nor oversold. The STOCH value of 27.94 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
75 Outperform | $105.51B | 15.88 | -140.78% | 0.61% | 6.82% | 15.82% | |
70 Outperform | $10.79B | 9.31 | 21.03% | 0.35% | 10.21% | 39.58% | |
70 Outperform | $9.68B | 18.84 | 24.48% | 0.65% | 11.13% | 27.53% | |
63 Neutral | $9.72B | 10.44 | -160.63% | ― | 5.14% | 4.37% | |
62 Neutral | $16.36B | 12.83 | 34.82% | ― | -0.56% | -53.50% | |
60 Neutral | $12.93B | 12.07 | 7.13% | 3.29% | 4.09% | 13.17% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
THC
Tenet Healthcare
188.17
68.45
57.18%
DVA
DaVita
145.58
-1.03
-0.70%
FMS
Fresenius Medical Care
22.41
-0.38
-1.67%
HCA
HCA Healthcare
471.84
144.41
44.10%
EHC
Encompass Health
97.39
1.32
1.38%
UHS
Universal Health
176.70
5.71
3.34%
Tenet Healthcare Corporate Events
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...
Business Operations and StrategyFinancial DisclosuresM&A Transactions
Tenet Regains Full Conifer Ownership in Strategic Deal
Positive
Feb 2, 2026
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 d...
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.