Tenet Healthcare (NYSE:THC) Issues Earnings Results

Tenet Healthcare (NYSE:THC) issued its earnings results on Thursday. The company reported $4.82 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $4.19 by $0.63, FiscalAI reports. Tenet Healthcare had a net margin of 6.60% and a return on equity of 26.33%. The company had revenue of $5.37 billion during the quarter, compared to analyst estimates of $5.40 billion. During the same quarter last year, the business posted $4.36 EPS. The company’s revenue for the quarter was up 2.6% on a year-over-year basis. Tenet Healthcare updated its FY 2026 guidance to 16.380-18.68 EPS.

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

• Tenet reported a strong start to 2026 with $5.4 billion of net operating revenues and $1.162 billion of consolidated adjusted EBITDA (21.6% margin), beating management’s prior expectations for the quarter.
• USPI momentum drove outperformance — $484 million adjusted EBITDA (36.7% margin), 5.3% same?facility revenue growth, double?digit ASC joint replacement volume growth, and $125 million deployed to acquire seven ASCs plus three de novos.
• Hospital operations delivered $678 million adjusted EBITDA (16.7% margin) as expense initiatives, AI and automation, and active cost flexing offset headwinds from payer mix shifts and seasonal volume changes.
• Payer mix pressure remains a key risk — same?store exchange admissions were down about 10% year?over?year and management continues to assume a ~$250 million full?year headwind from exchange subsidy expirations.
• Management reaffirmed full?year 2026 guidance (10% adjusted EBITDA growth at the midpoint after normalizing for nonrecurring items), highlighted strong free cash flow ($978 million in Q1) and share repurchases ($318 million), but noted they have not yet incorporated Q1 outperformance into updated guidance.

Tenet Healthcare Stock Performance

NYSE:THC traded down $3.08 during midday trading on Thursday, reaching $177.02. The stock had a trading volume of 3,311,799 shares, compared to its average volume of 1,265,857. The stock has a market capitalization of $15.51 billion, a P/E ratio of 11.43, a PEG ratio of 1.35 and a beta of 1.49. Tenet Healthcare has a 1-year low of $140.28 and a 1-year high of $247.21. The company has a debt-to-equity ratio of 2.18, a current ratio of 1.76 and a quick ratio of 1.68. The firm’s fifty day simple moving average is $207.31 and its 200-day simple moving average is $204.17.

Tenet Healthcare News Summary

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

• Positive Sentiment: Strong M&A deployment — Tenet invested roughly $125M to buy seven ASCs in Q1, signaling an aggressive ambulatory expansion strategy that can lift margins and volume over time. Tenet deployed $125M on 7 ASC acquisitions in Q1, eyes more deals
• Positive Sentiment: Procedure mix improvement — Tenet’s ASC acuity push is producing double?digit joint replacement growth and it now runs 150+ robotic surgery programs, supporting higher?margin outpatient volumes. Double-digit joint replacement growth, 150+ robotic surgery programs: Tenet’s ASC acuity push is paying off
• Positive Sentiment: Operational resilience — Management credited “old?fashioned discipline” for navigating Q1 volume volatility, suggesting the company can protect margins through execution. Tenet Healthcare met Q1’s volume curveballs with ‘old-fashioned discipline’
• Neutral Sentiment: Earnings vs revenue mix — Tenet reported Q1 EPS of $4.82 (beat) but revenue of $5.37B missed estimates; management released FY?2026 EPS guidance of roughly $16.38–$18.68 (around consensus) and revenue guidance modestly below consensus — the range leaves upside and downside for investors. Tenet Healthcare (THC) Q1 Earnings Top Estimates
• Negative Sentiment: Payer/admissions mix pressure — Management attributed softer sales to an unfavorable admissions and payer mix plus external disruptions, which trimmed revenue growth and is the main reason the stock is down despite the EPS beat. Tenet Healthcare Blames Admissions Mix For Soft Q1 Sales

Insider Buying and Selling at Tenet Healthcare

In other Tenet Healthcare news, EVP Paola M. Arbour sold 6,500 shares of the firm’s stock in a transaction that occurred on Wednesday, March 11th. The stock was sold at an average price of $238.43, for a total value of $1,549,795.00. Following the sale, the executive vice president owned 29,291 shares of the company’s stock, valued at $6,983,853.13. This trade represents a 18.16% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, EVP Thomas W. Arnst sold 8,000 shares of the company’s stock in a transaction that occurred on Monday, March 9th. The stock was sold at an average price of $238.85, for a total value of $1,910,800.00. Following the transaction, the executive vice president owned 12 shares of the company’s stock, valued at approximately $2,866.20. This trade represents a 99.85% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 46,517 shares of company stock worth $10,943,111 over the last ninety days. Company insiders own 0.81% of the company’s stock.

Hedge Funds Weigh In On Tenet Healthcare

Several large investors have recently bought and sold shares of the stock. Wellington Management Group LLP grew its position in Tenet Healthcare by 1,114.2% in the 4th quarter. Wellington Management Group LLP now owns 1,135,801 shares of the company’s stock worth $225,706,000 after purchasing an additional 1,042,260 shares during the last quarter. Boston Partners lifted its stake in shares of Tenet Healthcare by 38.8% in the third quarter. Boston Partners now owns 3,147,555 shares of the company’s stock valued at $638,958,000 after buying an additional 880,413 shares during the period. AQR Capital Management LLC increased its stake in Tenet Healthcare by 62.3% during the third quarter. AQR Capital Management LLC now owns 1,876,423 shares of the company’s stock valued at $380,989,000 after acquiring an additional 720,160 shares during the period. Alliancebernstein L.P. raised its holdings in Tenet Healthcare by 375.7% in the 2nd quarter. Alliancebernstein L.P. now owns 790,254 shares of the company’s stock valued at $139,085,000 after acquiring an additional 624,125 shares in the last quarter. Finally, 8 Knots Management LLC bought a new stake in shares of Tenet Healthcare in the 2nd quarter worth approximately $48,498,000. 95.44% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

THC has been the topic of a number of recent research reports. KeyCorp boosted their target price on Tenet Healthcare from $225.00 to $250.00 and gave the company an “overweight” rating in a research note on Thursday, February 12th. Leerink Partners lifted their price target on Tenet Healthcare from $255.00 to $264.00 and gave the company an “outperform” rating in a report on Friday, February 20th. Wells Fargo & Company restated an “overweight” rating and issued a $265.00 price objective on shares of Tenet Healthcare in a report on Monday, February 16th. Jefferies Financial Group lifted their target price on shares of Tenet Healthcare from $250.00 to $265.00 and gave the company a “buy” rating in a research note on Thursday, February 12th. Finally, Cantor Fitzgerald restated an “overweight” rating on shares of Tenet Healthcare in a research note on Wednesday, March 4th. One investment analyst has rated the stock with a Strong Buy rating, eighteen have issued a Buy rating and three have given a Hold rating to the company’s stock. According to data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $250.56.

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.