Tenet Healthcare (NYSE:THC) Issues Quarterly Earnings Results

Tenet Healthcare (NYSE:THC) announced its quarterly earnings results on Thursday. The company reported $4.82 EPS for the quarter, topping the consensus estimate of $4.21 by $0.61, FiscalAI reports. The company had revenue of $5.37 billion during the quarter, compared to analyst estimates of $5.39 billion. Tenet Healthcare had a return on equity of 25.55% and a net margin of 7.94%.The firm’s revenue was up 2.6% on a year-over-year basis. During the same period in the prior year, the firm posted $4.36 earnings per share. 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 Up 3.5%

Shares of THC stock traded up $6.11 during trading hours on Friday, reaching $183.23. The company had a trading volume of 3,327,802 shares, compared to its average volume of 1,400,520. The company has a debt-to-equity ratio of 1.96, a quick ratio of 1.68 and a current ratio of 1.36. Tenet Healthcare has a twelve month low of $145.27 and a twelve month high of $247.21. The company has a market capitalization of $16.05 billion, a P/E ratio of 11.83, a price-to-earnings-growth ratio of 1.32 and a beta of 1.30. The stock’s fifty day simple moving average is $207.31 and its 200 day simple moving average is $204.17.

Insider Activity at Tenet Healthcare

In related news, insider R. Scott Ramsey sold 8,017 shares of the stock in a transaction dated Monday, March 2nd. The stock was sold at an average price of $232.70, for a total value of $1,865,555.90. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, EVP Thomas W. Arnst sold 24,000 shares of the stock in a transaction dated Monday, March 2nd. The shares were sold at an average price of $234.04, for a total value of $5,616,960.00. Following the completion of the transaction, the executive vice president directly owned 8,012 shares of the company’s stock, valued at $1,875,128.48. This represents a 74.97% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders sold 46,517 shares of company stock valued at $10,943,111. Insiders own 0.81% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of THC. Triumph Capital Management purchased a new position in Tenet Healthcare in the third quarter valued at about $25,000. Canada Pension Plan Investment Board bought a new position in Tenet Healthcare during the 2nd quarter worth approximately $35,000. Meeder Asset Management Inc. lifted its holdings in Tenet Healthcare by 146.2% during the 4th quarter. Meeder Asset Management Inc. now owns 192 shares of the company’s stock worth $38,000 after buying an additional 114 shares during the last quarter. Geneos Wealth Management Inc. lifted its holdings in Tenet Healthcare by 50.9% during the 2nd quarter. Geneos Wealth Management Inc. now owns 264 shares of the company’s stock worth $46,000 after buying an additional 89 shares during the last quarter. Finally, Wilkerson Advisory Group LLC bought a new position in Tenet Healthcare during the 4th quarter worth approximately $62,000. Hedge funds and other institutional investors own 95.44% of the company’s stock.

Tenet Healthcare News Roundup

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

• Positive Sentiment: Q1 earnings beat and solid profitability — Tenet reported $4.82 EPS, well ahead of consensus, and showed healthy margins and ROE; investors favor the earnings beat even though revenue was roughly in-line. Tenet Healthcare (THC) Q1 Earnings Top Estimates
• Positive Sentiment: Strategic growth via ASC acquisitions — Tenet deployed ~$125M to acquire seven ambulatory surgery centers in Q1 and signals more M&A in the outpatient space, supporting revenue diversification and higher-margin outpatient growth. Tenet deployed $125M on 7 ASC acquisitions in Q1, eyes more deals
• Positive Sentiment: Operational momentum in procedures and robotics — The company is seeing double‑digit joint replacement growth and expanding robotic programs across ASCs/hospitals, evidence that its outpatient acuity push is producing revenue mix benefits longer term. Double-digit joint replacement growth
• Neutral Sentiment: Analysts trimmed price targets but kept Buy/Outperform/Overweight ratings — Multiple firms cut PTs (RBC to $236, Guggenheim to $252, Wells Fargo to $213, KeyCorp to $225) while retaining positive ratings, which gives the stock continued sell‑side endorsement but signals more conservative valuation assumptions. Analyst price target coverage (Benzinga summaries) TickerReport coverage
• Neutral Sentiment: Market commentary and investor takeaways — Several pieces are advising investors to weigh analyst views and the company’s outpatient strategy at current levels; these articles are shaping investor positioning rather than delivering new fundamental news. Seeking Alpha: Investor commentary
• Negative Sentiment: Revenue softness and admissions‑mix headwinds — Management flagged admissions mix and external disruptions as reasons revenue missed expectations modestly; that weak revenue signal tempers the EPS beat and is the main near-term risk. Tenet Healthcare Blames Admissions Mix For Soft Q1 Sales

Wall Street Analyst Weigh In

Several equities research analysts have commented on the company. Guggenheim dropped their price target on Tenet Healthcare from $283.00 to $252.00 and set a “buy” rating for the company in a research note on Friday. Wells Fargo & Company dropped their price target on Tenet Healthcare from $265.00 to $213.00 and set an “overweight” rating for the company in a research note on Friday. Jefferies Financial Group upped their price target on Tenet Healthcare from $250.00 to $265.00 and gave the stock a “buy” rating in a research note on Thursday, February 12th. Leerink Partners upped their price target on Tenet Healthcare from $255.00 to $264.00 and gave the stock an “outperform” rating in a research note on Friday, February 20th. Finally, Mizuho increased their target price on Tenet Healthcare from $235.00 to $265.00 and gave the company an “outperform” rating in a research note on Thursday, March 12th. One analyst has rated the stock with a Strong Buy rating, eighteen have issued a Buy rating and three have issued a Hold rating to the company’s stock. According to data from MarketBeat, the company presently has an average rating of “Moderate Buy” and an average target price of $241.94.

Tenet Healthcare Company Profile

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.