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Here's Why Tenet Healthcare Shares are Attracting Investors Now
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Key Takeaways
Tenet Healthcare benefits from higher-acuity demand and stronger commercial employer revenues.
USPI revenues rose 9.3% to $1.4 billion, supported by acquisitions and de novo ambulatory centers.
THC raised its 2026 EBITDA outlook while balancing growth investments, buybacks and debt refinancing.
Tenet Healthcare Corporation (THC - Free Report) is benefiting from higher-acuity services, strong commercial revenues and the continued expansion of its ambulatory care platform, USPI. Shares of THC have risen 20.3% over the past six months, outperforming the industry’s growth of 8.2%.
THC, with a market cap of $21.2 billion, provides healthcare services primarily through general hospitals and related healthcare facilities. The company operates through two reportable segments: Hospital Operations and Services, and Ambulatory Care. Its forward 12-month P/E ratio of 12.62X is higher than the industry average of 11X.
Courtesy of solid prospects, THC currently carries a Zacks Rank #2 (Buy) and a Growth Score of B.
Let’s delve deeper.
Where Do THC’s Estimates Stand?
The Zacks Consensus Estimate for Tenet Healthcare’s 2026 earnings is pegged at $21.04 per share, indicating a 25.4% year-over-year rise. The consensus mark for revenues is pinned at $22.2 billion, indicating 4.2% year-over-year growth. Furthermore, it beat earnings estimates in each of the past four quarters, with an average surprise of 22.7%.
Tenet Healthcare Corporation Price, Consensus and EPS Surprise
Tenet Healthcare is benefiting from continued demand for higher-acuity services across its hospital network. In the second quarter of 2026, same-hospital adjusted admissions increased 2.6% year over year, while same-hospital net patient service revenues per adjusted admission rose 3.3%. The increase was primarily driven by stronger commercial employer net patient revenues and higher Medicaid supplemental revenues, partly offset by an unfavorable payer mix resulting from lower exchange admissions.
The United Surgical Partners International (“USPI”) ambulatory business remains a key growth engine. The segment’s revenues grew 9.3% to $1.4 billion, while surgical business same-facility system-wide net patient service revenues grew 5%. USPI is widening its presence through acquisitions and de novo centers, alongside expansion in orthopedics, urology, robotics, bariatrics and cardiovascular procedures. The United Surgical Partners had interests in 538 ambulatory surgery centers and 26 surgical hospitals in 37 states as of June 30, 2026. The company expects to exceed $300 million of ambulatory M&A spending in 2026.
It also continues to advance technology-enabled cost initiatives, including automation and AI, to improve productivity and strengthen its cost structure. Conifer’s strong cash collection performance is supporting Tenet Healthcare’s free cash flow conversion, providing additional flexibility to fund growth investments. THC has also raised its 2026 adjusted EBITDA outlook to $4.83-$5.03 billion and continues to balance business investments with share repurchases and debt refinancing.
In the second quarter of 2026, the company repurchased shares worth $1 billion. Its board of directors also expanded the share repurchase authorization by $2 billion. As of July 23, 2026, it had approximately $2.1 billion remaining under its share repurchase authorization. Additionally, THC's return on assets of 5.6% is higher than the industry average of 4.4%, indicating that the company is generating superior returns from its asset base.
THC’s Key Risks
There are some factors, however, that investors should keep a careful eye on.
Despite the company’s cost-management program, expenses have trended upward. The operating expenses rose 2.1% year over year in the second quarter of 2026. Elevated labor costs, higher medical supplies and increased patient acuity are likely to sustain this trend, potentially limiting margin expansion and weighing on profitability.
The Zacks Consensus Estimate for UnitedHealth Group’s current-year earnings of $19.82 per share has witnessed two upward revisions in the past 30 days, with no movement in the opposite direction. UNH beat earnings estimates in three of the trailing four quarters and missed once, with the average surprise being 12.1%. The consensus estimate for current-year revenues is pegged at $446.8 billion.
The Zacks Consensus Estimate for Globus Medical’s current-year earnings of $4.99 per share has witnessed one upward revision in the past 30 days, against no movement in the opposite direction. GMED beat earnings estimates in each of the trailing four quarters, with the average surprise being 27.9%. The consensus estimate for current-year revenues is pegged at $3.2 billion, suggesting 8.8% year-over-year growth.
The Zacks Consensus Estimate for Centene’s current-year earnings of $4.89 per share has witnessed nine upward revisions in the past 60 days, against no movement in the opposite direction. CNC beat earnings estimates in each of the trailing four quarters, with an average surprise of 151.3%. The consensus estimate for current-year revenues is pegged at $196.3 billion, suggesting 0.8% year-over-year growth.
View the Zacks #1 Rank List
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Here's Why Tenet Healthcare Shares are Attracting Investors Now
Key Takeaways
Tenet Healthcare Corporation (THC - Free Report) is benefiting from higher-acuity services, strong commercial revenues and the continued expansion of its ambulatory care platform, USPI. Shares of THC have risen 20.3% over the past six months, outperforming the industry’s growth of 8.2%.
THC, with a market cap of $21.2 billion, provides healthcare services primarily through general hospitals and related healthcare facilities. The company operates through two reportable segments: Hospital Operations and Services, and Ambulatory Care. Its forward 12-month P/E ratio of 12.62X is higher than the industry average of 11X.
Courtesy of solid prospects, THC currently carries a Zacks Rank #2 (Buy) and a Growth Score of B.
Let’s delve deeper.
Where Do THC’s Estimates Stand?
The Zacks Consensus Estimate for Tenet Healthcare’s 2026 earnings is pegged at $21.04 per share, indicating a 25.4% year-over-year rise. The consensus mark for revenues is pinned at $22.2 billion, indicating 4.2% year-over-year growth. Furthermore, it beat earnings estimates in each of the past four quarters, with an average surprise of 22.7%.
Tenet Healthcare Corporation Price, Consensus and EPS Surprise
Tenet Healthcare Corporation price-consensus-eps-surprise-chart | Tenet Healthcare Corporation Quote
THC’s Growth Drivers
Tenet Healthcare is benefiting from continued demand for higher-acuity services across its hospital network. In the second quarter of 2026, same-hospital adjusted admissions increased 2.6% year over year, while same-hospital net patient service revenues per adjusted admission rose 3.3%. The increase was primarily driven by stronger commercial employer net patient revenues and higher Medicaid supplemental revenues, partly offset by an unfavorable payer mix resulting from lower exchange admissions.
The United Surgical Partners International (“USPI”) ambulatory business remains a key growth engine. The segment’s revenues grew 9.3% to $1.4 billion, while surgical business same-facility system-wide net patient service revenues grew 5%. USPI is widening its presence through acquisitions and de novo centers, alongside expansion in orthopedics, urology, robotics, bariatrics and cardiovascular procedures. The United Surgical Partners had interests in 538 ambulatory surgery centers and 26 surgical hospitals in 37 states as of June 30, 2026. The company expects to exceed $300 million of ambulatory M&A spending in 2026.
It also continues to advance technology-enabled cost initiatives, including automation and AI, to improve productivity and strengthen its cost structure. Conifer’s strong cash collection performance is supporting Tenet Healthcare’s free cash flow conversion, providing additional flexibility to fund growth investments. THC has also raised its 2026 adjusted EBITDA outlook to $4.83-$5.03 billion and continues to balance business investments with share repurchases and debt refinancing.
In the second quarter of 2026, the company repurchased shares worth $1 billion. Its board of directors also expanded the share repurchase authorization by $2 billion. As of July 23, 2026, it had approximately $2.1 billion remaining under its share repurchase authorization. Additionally, THC's return on assets of 5.6% is higher than the industry average of 4.4%, indicating that the company is generating superior returns from its asset base.
THC’s Key Risks
There are some factors, however, that investors should keep a careful eye on.
Despite the company’s cost-management program, expenses have trended upward. The operating expenses rose 2.1% year over year in the second quarter of 2026. Elevated labor costs, higher medical supplies and increased patient acuity are likely to sustain this trend, potentially limiting margin expansion and weighing on profitability.
Other Stocks to Consider
Some other top-ranked stocks in the Medical space are UnitedHealth Group Incorporated (UNH - Free Report) , Globus Medical, Inc. (GMED - Free Report) and Centene Corporation (CNC - Free Report) , each currently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for UnitedHealth Group’s current-year earnings of $19.82 per share has witnessed two upward revisions in the past 30 days, with no movement in the opposite direction. UNH beat earnings estimates in three of the trailing four quarters and missed once, with the average surprise being 12.1%. The consensus estimate for current-year revenues is pegged at $446.8 billion.
The Zacks Consensus Estimate for Globus Medical’s current-year earnings of $4.99 per share has witnessed one upward revision in the past 30 days, against no movement in the opposite direction. GMED beat earnings estimates in each of the trailing four quarters, with the average surprise being 27.9%. The consensus estimate for current-year revenues is pegged at $3.2 billion, suggesting 8.8% year-over-year growth.
The Zacks Consensus Estimate for Centene’s current-year earnings of $4.89 per share has witnessed nine upward revisions in the past 60 days, against no movement in the opposite direction. CNC beat earnings estimates in each of the trailing four quarters, with an average surprise of 151.3%. The consensus estimate for current-year revenues is pegged at $196.3 billion, suggesting 0.8% year-over-year growth.