Tenet Healthcare (NYSE:THC) Announces Quarterly Earnings Results

Tenet Healthcare (NYSE:THC) released its earnings results on Wednesday. The company reported $4.70 earnings per share (EPS) for the quarter, topping the consensus estimate of $4.08 by $0.62, FiscalAI reports. Tenet Healthcare had a return on equity of 25.11% and a net margin of 6.49%.The business had revenue of $5.53 billion for the quarter, compared to analyst estimates of $5.47 billion. During the same quarter in the prior year, the company posted $3.44 earnings per share. Tenet Healthcare’s revenue was up 8.9% on a year-over-year basis. Tenet Healthcare updated its FY 2026 guidance to 16.190-18.470 EPS.

Here are the key takeaways from Tenet Healthcare’s conference call:

• Tenet reported a strong 2025 with $21.3 billion of net operating revenues and $4.566 billion of consolidated adjusted EBITDA (14% y/y), driving a 210 bps margin improvement to 21.4% and finishing nearly $500 million above the midpoint of prior expectations.
• 2026 guidance calls for consolidated adjusted EBITDA of $4.485B–$4.785B (USPI: $2.13B–$2.23B; hospitals: $2.355B–$2.555B), which Tenet says normalizes to roughly 10% growth at the midpoint after adjustments and one?time items.
• Management is assuming a material headwind from the expiration of enhanced exchange premium tax credits — roughly a 20% reduction in enrollment and an estimated $250 million EBITDA impact (primarily in hospitals) in 2026.
• The USPI ambulatory business remains a growth engine — same?facility revenues up ~7% in 2025, adjusted EBITDA of $2.026 billion, double?digit ASC joint replacement growth, and ~$350 million invested with 35 added facilities and an active M&A/de?novo pipeline for 2026.
• Tenet highlighted strong cash generation and capital deployment — $2.53 billion free cash flow in 2025, $2.8 billion cash on hand, leverage ~2.25x, a Conifer transaction that management values at roughly a $1.1 billion after?tax NPV benefit, and continued, opportunistic share repurchases.

Tenet Healthcare Stock Up 17.0%

Shares of THC opened at $225.86 on Thursday. The company has a market capitalization of $19.85 billion, a PE ratio of 15.48, a PEG ratio of 0.82 and a beta of 1.44. The stock’s 50-day moving average price is $198.00 and its two-hundred day moving average price is $193.90. The company has a current ratio of 1.71, a quick ratio of 1.64 and a debt-to-equity ratio of 2.27. Tenet Healthcare has a 12 month low of $109.82 and a 12 month high of $229.00.

Key Headlines Impacting Tenet Healthcare

Here are the key news stories impacting Tenet Healthcare this week:

• Positive Sentiment: Q4 beat — Tenet reported $4.70 EPS vs. consensus ~ $4.05 and ~8.9% revenue growth for Q4, driving the upside to earnings and margins. Tenet Reports Strong Fourth Quarter and FY 2025 Results; Provides 2026 Financial Outlook
• Positive Sentiment: Guidance and targets — Management gave FY?2026 EPS guidance of $16.19–$18.47 and an adjusted EBITDA target of $4.485B–$4.785B, signaling confidence in cash flow and margin improvement. Tenet Healthcare outlines $4.485B–$4.785B 2026 adjusted EBITDA target amid structural cost initiatives and M&A focus
• Positive Sentiment: Market reaction — Earnings and the outlook drove the stock to new 52?week/all?time highs as investors piled into shares after the print. Tenet Healthcare (NYSE:THC) Hits New 1-Year High on Better-Than-Expected Earnings
• Positive Sentiment: Revenue scale and secular demand — FY revenue topped $21.3B and management cited sustained demand for acute care and surgical services, supporting durable top-line growth. Tenet caps ‘strong’ year as revenue exceeds $21.3B — 7 things to know
• Neutral Sentiment: Earnings call nuance — Management balanced growth ambitions with cost initiatives and an M&A focus; the call highlighted execution plans but also acknowledged operational risks. Tenet Healthcare Earnings Call Balances Growth and Risks
• Neutral Sentiment: Full transcript and slides available — Useful for investors who want management detail on assumptions behind guidance and capital allocation. Tenet Healthcare (THC) Q4 2025 Earnings Transcript
• Negative Sentiment: Valuation and momentum risk — A rapid post?earnings surge (~17% in some coverage) raises near?term valuation and pullback risk for traders; some analysts note investors should weigh the rally against multiple expansion. Tenet Healthcare Remains Compelling Even After A 17.3% Post-Earnings Surge
• Negative Sentiment: Operational risk — Prior analyst concerns about lower hospital patient days and sensitivity to surgical volumes remain potential headwinds if demand softens. Will Lower Patient Days Affect Tenet Healthcare’s Q4 Earnings?

Analyst Upgrades and Downgrades

Several analysts have weighed in on THC shares. Cantor Fitzgerald lifted their price objective on shares of Tenet Healthcare from $190.00 to $245.00 and gave the stock an “overweight” rating in a research note on Wednesday, October 29th. Morgan Stanley restated an “overweight” rating and issued a $247.00 price target on shares of Tenet Healthcare in a research report on Thursday, December 18th. Truist Financial reissued a “buy” rating and issued a $240.00 target price (up from $225.00) on shares of Tenet Healthcare in a report on Monday, November 3rd. JPMorgan Chase & Co. increased their price target on shares of Tenet Healthcare from $200.00 to $230.00 and gave the stock an “overweight” rating in a research report on Thursday, November 13th. Finally, Guggenheim raised their target price on Tenet Healthcare from $238.00 to $257.00 and gave the company a “buy” rating in a report on Tuesday, December 2nd. One equities research analyst has rated the stock with a Strong Buy rating, sixteen have assigned a Buy rating and three have assigned a Hold rating to the company. According to data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $233.88.

Insider Activity at Tenet Healthcare

In other news, Director Nadja West sold 2,178 shares of the business’s stock in a transaction that occurred on Monday, December 15th. The shares were sold at an average price of $197.47, for a total value of $430,089.66. Following the transaction, the director owned 28,480 shares in the company, valued at approximately $5,623,945.60. The trade was a 7.10% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. 0.81% of the stock is currently owned by corporate insiders.

Institutional Trading of Tenet Healthcare

A number of large investors have recently bought and sold shares of THC. Qtron Investments LLC lifted its stake in shares of Tenet Healthcare by 202.2% in the 4th quarter. Qtron Investments LLC now owns 3,076 shares of the company’s stock valued at $611,000 after purchasing an additional 2,058 shares during the period. Nuveen LLC increased its holdings in Tenet Healthcare by 12.0% in the fourth quarter. Nuveen LLC now owns 1,155,677 shares of the company’s stock worth $229,656,000 after purchasing an additional 124,223 shares in the last quarter. MIdWestOne Financial Group Inc. lifted its stake in Tenet Healthcare by 35.4% in the fourth quarter. MIdWestOne Financial Group Inc. now owns 5,676 shares of the company’s stock valued at $1,128,000 after buying an additional 1,483 shares during the period. Picton Mahoney Asset Management grew its position in shares of Tenet Healthcare by 144.4% during the 4th quarter. Picton Mahoney Asset Management now owns 3,121 shares of the company’s stock worth $620,000 after buying an additional 1,844 shares during the period. Finally, Meeder Asset Management Inc. lifted its position in shares of Tenet Healthcare by 146.2% during the 4th quarter. Meeder Asset Management Inc. now owns 192 shares of the company’s stock valued at $38,000 after acquiring an additional 114 shares during the period. 95.44% of the stock is currently owned by institutional investors and hedge funds.

About Tenet Healthcare

Tenet Healthcare Corporation (NYSE: THC) is a diversified American healthcare services company that owns and operates acute care hospitals and a broad range of outpatient facilities. Its portfolio includes general acute-care hospitals, specialty hospitals, ambulatory surgery centers, urgent care and diagnostic imaging centers, and other ancillary service locations. Tenet’s operations are oriented around delivering inpatient and outpatient clinical care across multiple medical specialties, with an emphasis on surgical services, emergency care, and advanced diagnostics.

In addition to facility-based care, Tenet provides integrated services designed to support clinical operations and improve patient access and care coordination.