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THC's Q3 adjusted EPS jumped 79.5% to $6.64, beating estimates by 44.4%, while revenues rose 6.5% to $5.6B.
Hospital EBITDA surged 34.8% to $818M, fueled by higher admissions, pricing strength and disciplined costs.
THC raised its 2026 adjusted EPS outlook to $22.05-$23.01 and EBITDA guidance to $5.05-$5.2B.
Tenet Healthcare Corporation (THC - Free Report) reported third-quarter 2026 adjusted earnings per share (EPS) of $6.64, which surpassed the Zacks Consensus Estimate by 44.4%. The bottom line increased 79.5% year over year.
Net operating revenues advanced 6.5% year over year to $5.6 billion. The top line surpassed the consensus mark by 2.9%.
The strong quarterly results were driven by growth in same-facility revenues and disciplined expense management. Higher patient acuity and favorable service mix supported the Ambulatory segment, while the Hospital segment benefited from higher admissions, continued pricing strength and disciplined expense management. However, an unfavorable payer mix due to lower exchange admissions partly offset the gains.
Tenet Healthcare Corporation Price, Consensus and EPS Surprise
Adjusted net income of $535 million climbed 63.1% year over year.
Adjusted EBITDA increased 23.3% year over year to $1.4 billion, driven by strong same-facility revenue growth and disciplined expense management, partially offset by an unfavorable payer mix due to fewer exchange admissions. Results also included the previously described $147 million favorable net impact. The figure also exceeded our estimate of $1.2 billion. Adjusted EBITDA margin improved 330 basis points year over year to 24.1%.
Salaries, wages and benefits decreased 1.4% year over year to $2.2 billion in the third quarter, while supply costs rose 5.6% and net other operating expenses increased 5.8%.
Q3 Segmental Details
Ambulatory Care: The segment’s net operating revenues increased 7.5% year over year to $1.4 billion in the quarter, driven by strong growth in consolidated same-facility net patient service revenues, facility acquisitions and expanded service lines. The metric was in line with our estimate.
Adjusted EBITDA increased 9.1% year over year to $537 million, in line with our estimate. Adjusted EBITDA margin increased 60 basis points year over year to 39.2%.
Hospital Operations and Services: The segment’s net operating revenues increased 6.1% year over year to $4.3 billion, driven by higher adjusted admissions and continued pricing strength, partially offset by an unfavorable payer mix due to fewer exchange admissions. The metric beat our model estimate by 5.6%.
Adjusted EBITDA increased 34.8% year over year to $818 million in the quarter, driven by strong same-hospital revenue growth and disciplined expense management. Adjusted EBITDA margin improved 410 basis points year over year to 19.2%.
THC’s Q3 Financial Update
Tenet Healthcare exited the third quarter with cash and cash equivalents of $2.7 billion, which declined from the 2025-end level of $2.9 billion. Total assets of $31.6 billion rose from the 2025-end figure of $29.7 billion.
Long-term debt, net of the current portion, amounted to $13.1 billion, down marginally from the level as of Dec. 31, 2025. The current portion of long-term debt totaled $164 million.
Total shareholders’ equity of $5.4 billion increased from the 2025-end level of $4.2 billion.
THC generated $1.3 billion of net cash from operations, up 21.1% year over year. Free cash flows increased 39.2% year over year to $1.1 billion in the quarter.
THC’s Share Repurchase Update
THC continued returning capital to shareholders, repurchasing approximately 970,000 shares for $255 million in the third quarter of 2026. As of Sept. 30, 2026, the company had $1.9 billion remaining under its share repurchase authorization.
THC's 2026 Outlook
Net operating revenues are now projected between $22.05 billion and $22.45 billion compared with the previous outlook of $21.9-$22.5 billion and reported 2025 figure of $21.3 billion. Hospital segment revenues are expected between $16.5 billion and $16.8 billion compared with the prior outlook of $16.4-$16.8 billion. The Ambulatory Care segment's revenue guidance remains unchanged at $5.5-$5.7 billion.
Adjusted EBITDA is now expected to be between $5.05 billion and $5.2 billion, up from the prior guidance of $4.83-$5.03 billion and $4.6 billion reported in 2025. The company also raised its adjusted EBITDA margin outlook to 22.9-23.2% from 22.1-22.4%. At the midpoint, the revised guidance implies an improvement over the 2025 margin of 21.4%. Adjusted EPS for 2026 is now anticipated to be in the range of $22.05-$23.01, up from the earlier guidance of $20.30-$21.69.
Net cash provided by operating activities is now expected to be between $3.9 billion and $4.3 billion, while free cash flow is projected to be in the range of $3.19-$3.52 billion. Capital expenditures are estimated to remain between $700 million and $800 million.
Here are some stocks from the broader Medical space that have also reported their quarterly results: HCA Healthcare, Inc. (HCA - Free Report) , Elevance Health, Inc. (ELV - Free Report) and UnitedHealth Group Incorporated (UNH - Free Report) . Here's how they have performed:
HCA Healthcare reported third-quarter 2026 adjusted earnings per share of $7.22, which beat the Zacks Consensus Estimate of $6.74. The bottom line advanced 3.7% year over year. Revenues rose 3.6% year over year to $19.8 billion. The top line beat the Zacks Consensus Estimate of $19.4 billion. HCA’s quarterly results benefited from higher same-facility admissions and solid emergency room visit growth. However, declining inpatient and outpatient surgeries, along with elevated operating expenses, partially offset these positives.
Elevance Health reported third-quarter 2026 adjusted earnings per share of $6.99, which surpassed the Zacks Consensus Estimate by 50%. However, the bottom line increased 15.9% year over year. Operating revenues advanced 0.7% year over year to $50.4 billion. The top line beat the consensus mark by 4%. ELV’s quarterly results benefited from higher premium yields in the Health Benefits segment and increased CarelonRx product revenues. However, lower medical membership and elevated operating expenses partly offset the gains.
UnitedHealth Group reported third-quarter 2026 adjusted earnings per share of $4.69, which beat the Zacks Consensus Estimate of $4.12. The bottom line rose 60.6% year over year. Revenues declined 0.4% year over year to $112.7 billion. The top line beat the consensus mark by 1.2%. UNH’s third-quarter results benefited from disciplined medical cost management, pricing discipline and improved operating efficiency. Higher earnings at UnitedHealthcare, Optum Insight and Optum Health supported the quarterly performance. However, declining Medicare Advantage and Medicaid membership, lower Optum Health revenues and reduced prescription volumes at Optum Rx remained concerns.
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THC Q3 Earnings Beat on Hospital Strength, 2026 EPS View Raised
Key Takeaways
Tenet Healthcare Corporation (THC - Free Report) reported third-quarter 2026 adjusted earnings per share (EPS) of $6.64, which surpassed the Zacks Consensus Estimate by 44.4%. The bottom line increased 79.5% year over year.
Net operating revenues advanced 6.5% year over year to $5.6 billion. The top line surpassed the consensus mark by 2.9%.
The strong quarterly results were driven by growth in same-facility revenues and disciplined expense management. Higher patient acuity and favorable service mix supported the Ambulatory segment, while the Hospital segment benefited from higher admissions, continued pricing strength and disciplined expense management. However, an unfavorable payer mix due to lower exchange admissions partly offset the gains.
Tenet Healthcare Corporation Price, Consensus and EPS Surprise
Tenet Healthcare Corporation price-consensus-eps-surprise-chart | Tenet Healthcare Corporation Quote
Inside THC’s Q3 Performance
Adjusted net income of $535 million climbed 63.1% year over year.
Adjusted EBITDA increased 23.3% year over year to $1.4 billion, driven by strong same-facility revenue growth and disciplined expense management, partially offset by an unfavorable payer mix due to fewer exchange admissions. Results also included the previously described $147 million favorable net impact. The figure also exceeded our estimate of $1.2 billion. Adjusted EBITDA margin improved 330 basis points year over year to 24.1%.
Salaries, wages and benefits decreased 1.4% year over year to $2.2 billion in the third quarter, while supply costs rose 5.6% and net other operating expenses increased 5.8%.
Q3 Segmental Details
Ambulatory Care: The segment’s net operating revenues increased 7.5% year over year to $1.4 billion in the quarter, driven by strong growth in consolidated same-facility net patient service revenues, facility acquisitions and expanded service lines. The metric was in line with our estimate.
Adjusted EBITDA increased 9.1% year over year to $537 million, in line with our estimate. Adjusted EBITDA margin increased 60 basis points year over year to 39.2%.
Hospital Operations and Services: The segment’s net operating revenues increased 6.1% year over year to $4.3 billion, driven by higher adjusted admissions and continued pricing strength, partially offset by an unfavorable payer mix due to fewer exchange admissions. The metric beat our model estimate by 5.6%.
Adjusted EBITDA increased 34.8% year over year to $818 million in the quarter, driven by strong same-hospital revenue growth and disciplined expense management. Adjusted EBITDA margin improved 410 basis points year over year to 19.2%.
THC’s Q3 Financial Update
Tenet Healthcare exited the third quarter with cash and cash equivalents of $2.7 billion, which declined from the 2025-end level of $2.9 billion. Total assets of $31.6 billion rose from the 2025-end figure of $29.7 billion.
Long-term debt, net of the current portion, amounted to $13.1 billion, down marginally from the level as of Dec. 31, 2025. The current portion of long-term debt totaled $164 million.
Total shareholders’ equity of $5.4 billion increased from the 2025-end level of $4.2 billion.
THC generated $1.3 billion of net cash from operations, up 21.1% year over year. Free cash flows increased 39.2% year over year to $1.1 billion in the quarter.
THC’s Share Repurchase Update
THC continued returning capital to shareholders, repurchasing approximately 970,000 shares for $255 million in the third quarter of 2026. As of Sept. 30, 2026, the company had $1.9 billion remaining under its share repurchase authorization.
THC's 2026 Outlook
Net operating revenues are now projected between $22.05 billion and $22.45 billion compared with the previous outlook of $21.9-$22.5 billion and reported 2025 figure of $21.3 billion. Hospital segment revenues are expected between $16.5 billion and $16.8 billion compared with the prior outlook of $16.4-$16.8 billion. The Ambulatory Care segment's revenue guidance remains unchanged at $5.5-$5.7 billion.
Adjusted EBITDA is now expected to be between $5.05 billion and $5.2 billion, up from the prior guidance of $4.83-$5.03 billion and $4.6 billion reported in 2025. The company also raised its adjusted EBITDA margin outlook to 22.9-23.2% from 22.1-22.4%. At the midpoint, the revised guidance implies an improvement over the 2025 margin of 21.4%. Adjusted EPS for 2026 is now anticipated to be in the range of $22.05-$23.01, up from the earlier guidance of $20.30-$21.69.
Net cash provided by operating activities is now expected to be between $3.9 billion and $4.3 billion, while free cash flow is projected to be in the range of $3.19-$3.52 billion. Capital expenditures are estimated to remain between $700 million and $800 million.
Tenet Healthcare currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
How Did Other Medical Companies Perform?
Here are some stocks from the broader Medical space that have also reported their quarterly results: HCA Healthcare, Inc. (HCA - Free Report) , Elevance Health, Inc. (ELV - Free Report) and UnitedHealth Group Incorporated (UNH - Free Report) . Here's how they have performed:
HCA Healthcare reported third-quarter 2026 adjusted earnings per share of $7.22, which beat the Zacks Consensus Estimate of $6.74. The bottom line advanced 3.7% year over year. Revenues rose 3.6% year over year to $19.8 billion. The top line beat the Zacks Consensus Estimate of $19.4 billion. HCA’s quarterly results benefited from higher same-facility admissions and solid emergency room visit growth. However, declining inpatient and outpatient surgeries, along with elevated operating expenses, partially offset these positives.
Elevance Health reported third-quarter 2026 adjusted earnings per share of $6.99, which surpassed the Zacks Consensus Estimate by 50%. However, the bottom line increased 15.9% year over year. Operating revenues advanced 0.7% year over year to $50.4 billion. The top line beat the consensus mark by 4%. ELV’s quarterly results benefited from higher premium yields in the Health Benefits segment and increased CarelonRx product revenues. However, lower medical membership and elevated operating expenses partly offset the gains.
UnitedHealth Group reported third-quarter 2026 adjusted earnings per share of $4.69, which beat the Zacks Consensus Estimate of $4.12. The bottom line rose 60.6% year over year. Revenues declined 0.4% year over year to $112.7 billion. The top line beat the consensus mark by 1.2%. UNH’s third-quarter results benefited from disciplined medical cost management, pricing discipline and improved operating efficiency. Higher earnings at UnitedHealthcare, Optum Insight and Optum Health supported the quarterly performance. However, declining Medicare Advantage and Medicaid membership, lower Optum Health revenues and reduced prescription volumes at Optum Rx remained concerns.