Tenet Healthcare Reports Strong Q3 2026 Results and Raises Full-Year Outlook

Tenet Healthcare Corp ($THC) Q3 2026 Financial Results Summary

Tenet Healthcare Corporation filed Form 8-K under Item 2.02 furnishing its financial results for the third quarter ended September 30, 2026, accompanied by an upward revision to its full-year 2026 guidance.

Key Financial Highlights

• Consolidated Net Operating Revenues: $5.631 billion for Q3 2026, up 6.5% compared to $5.289 billion in Q3 2025.
• GAAP Net Income: $1.000 billion available to common shareholders ($12.41 per diluted share), compared to $342 million ($3.86 per diluted share) in Q3 2025.
• Adjusted Diluted EPS: Rose 79.5% year-over-year to $6.64 compared to $3.70 in Q3 2025.
• Consolidated Adjusted EBITDA: $1.355 billion, representing a 23.3% increase compared to $1.099 billion in Q3 2025, yielding an Adjusted EBITDA margin of 24.1%.

Segment Performance

• Ambulatory Care (USPI): Net operating revenues increased 7.5% to $1.371 billion, with segment Adjusted EBITDA rising 9.1% to $537 million (39.2% margin). Same-facility system-wide net patient revenue per case grew 6.1%.
• Hospital Operations and Services: Net operating revenues increased to $4.260 billion (vs. $4.014 billion in Q3 2025). Segment Adjusted EBITDA reached $818 million, up from $607 million in the prior-year period. Same-hospital admissions grew 2.8% and adjusted admissions grew 3.2%.

Contract Termination & Transition Adjustments

• Early conclusion and transition of revenue cycle management agreements with CommonSpirit Health (Conifer) led to timing-related cumulative catch-up adjustments: $233 million in contract termination revenue and $97 million in net operating revenues, alongside $50 million of transition efficiencies, yielding a net favorable impact of $147 million to Q3 2026 Adjusted EBITDA.

Capital Allocation & Balance Sheet

• Share Repurchases: Repurchased 970,000 common shares for $255 million in Q3 2026 (7.99 million shares for $1.615 billion year-to-date).
• Leverage: Net debt to Adjusted EBITDA ratio improved to 2.11x at September 30, 2026, compared to 2.33x at June 30, 2026.

Full-Year 2026 Outlook Revisions

• Adjusted EBITDA: Raised by $195 million at the midpoint to a new range of $5.050 billion to $5.200 billion.
• Adjusted Free Cash Flow: Increased by $100 million to a new range of $2.825 billion to $3.125 billion.