Results
Tenet Reports Strong Third Quarter 2026 Results;
Raises 2026 Financial Outlook
Net income available to common shareholders in third quarter 2026 was $1.000 billion, or $12.41 per diluted share compared to $342 million, or $3.86 in third quarter 2025
Adjusted diluted earnings per share 1 increased 79.5% to $6.64 in third quarter 2026 compared to $3.70 in third quarter 2025
7Third quarter 2026 Consolidated Adjusted EBITDA 1 increased 23.3% over third quarter 2025 to $1.355 billion; Third quarter 2026 Adjusted EBITDA margin was 24.1%
Third quarter 2026 Ambulatory Care Adjusted EBITDA of $537 million increased 9.1% over third quarter 2025
FY 2026 Adjusted EBITDA Outlook is now expected to be in the range of $5.05 billion to $5.20 billion, a $195 million increase at the midpoint of the range; FY 2026 Adjusted Free Cash Flow outlook now expected to be in the range of $2.825 billion to $3.125 billion, a $100 million increase
DALLAS — October 29, 2026 — Tenet Healthcare Corporation (Tenet) (NYSE: THC) today announced its results for the quarter ended September 30, 2026.
8"Our outperformance in the third quarter of 2026 was driven by sustained strength in same-store revenue growth and effective expense management," said Saum Sutaria, M.D., Chairman and Chief Executive Officer of Tenet.
"Our focus on patient-centered care, support for physician partners, technology-enabled growth and operating initiatives continue to deliver strong margins and free cash flow."
Page 1
Tenet’s results for third quarter 2026 versus third quarter 2025 are as follows:
Net income available to the Company’s common shareholders in third quarter 2026 was $1.000 billion, or $12.41 per diluted share, versus $342 million, or $3.86 per diluted share, in third quarter 2025.
The Company had previously entered into certain agreements with CommonSpirit Health, related to Conifer Health Solutions, LLC ("Conifer"), whereby the parties agreed, in part, to the early conclusion and transition of our revenue cycle management services by December 31, 2026, (collectively, the "RCM Agreements").
The transition of certain revenue cycle management services under the RCM Agreements occurred during the third quarter of 2026 and will be substantially complete by October 30, 2026.
3As a result of this revised timeline, during the three months ended September 30, 2026, we recognized cumulative catch-up adjustments that increased revenue from contract termination by $233 million and net operating revenues by $97 million.
These are timing-related adjustments and as such, do not impact total or full year 2026 expectations for revenue from contract termination or net operating revenues associated with the RCM Agreements.
5In addition, we recognized a benefit of approximately $50 million during the three months ended September 30, 2026 due to various transition activities, including efficiencies from the revised timeline described above.
4This, combined with the $97 million timing-related adjustment to net operating revenue mentioned above, resulted in a favorable net impact to Adjusted EBITDA of $147 million in the third quarter of 2026.
Adjusted EBITDA 1 was $1.355 billion in third quarter 2026 compared to $1.099 billion in third quarter 2025, reflecting strong same facility revenue growth and disciplined expense management partially offset by unfavorable payer mix due to lower exchange admissions.
1Results also include the $147 million favorable net impact described above.
Page 2
Balance Sheet and Cash Flows
Net cash flows provided by operating activities for the nine months ended September 30, 2026 were $3.507 billion versus $2.809 billion for the nine months ended September 30, 2025.
The Company generated adjusted free cash flow 1 of $2.524 billion for the nine months ended September 30, 2026 versus $2.247 billion for the nine months ended September 30, 2025.
In the three months ended September 30, 2026, the Company repurchased 970,000 shares of common stock for $255 million.
In the nine months ended September 30, 2026, the Company repurchased 7.99 million shares of common stock for $1.615 billion.
In September 2026, the Company completed a private placement of $2.0 billion in aggregate principal amount of newly issued 6.250% senior notes maturing in 2034.
The Company used the net proceeds from the sale of the notes, after payment of fees and expenses, to finance, together with cash on hand, the redemption of all $1.5 billion aggregate principal amount then outstanding of its 5.125% senior secured first lien notes due in 2027 and the partial redemption of $500 million outstanding of its 6.125% senior notes due in 2028.
The Company’s ratio of net debt to Adjusted EBITDA 1 was 2.11x at September 30, 2026 compared to 2.33x at June 30, 2026 and 2.25x at December 31, 2025.
Page 3
Ambulatory Care (Ambulatory) Segment
Tenet’s Ambulatory business segment is comprised of the operations of United Surgical Partners International (USPI).
As of September 30, 2026, USPI had interests in 535 ambulatory surgery centers (406 consolidated) and 25 surgical hospitals (seven consolidated) in 37 states.
Third quarter 2026 net operating revenues increased 7.5% compared to third quarter 2025 driven by strong growth in consolidated same-facility net patient service revenues, acquisitions of facilities, and increased service lines.
Surgical business same-facility system-wide net patient service revenues increased 4.5% in third quarter 2026 compared to third quarter 2025, with cases down 1.5% and net revenue per case up 6.1%.
Net revenue per case growth was driven by higher acuity and favorable service mix.
Third quarter 2026 Adjusted EBITDA increased 9.1% compared to third quarter 2025, due to strong growth in same-facility net patient service revenues, disciplined expense management, and contributions from acquisitions.
Page 4
Hospital Operations and Services (Hospital) Segment
Tenet’s Hospital business segment is primarily comprised of acute care and specialty hospitals, imaging centers, ancillary outpatient facilities, micro-hospitals and physician practices.
It also provides comprehensive end-to-end and focused point services, including hospital and physician revenue cycle management, patient communications and engagement support and value-based care solutions.
Third quarter 2026 net operating revenues increased 6.1% from third quarter 2025 driven by an increase in adjusted admissions as well as continued pricing strength, partially offset by unfavorable payer mix due to lower exchange admissions.
6In addition, third quarter 2026 net operating revenues include a timing-related benefit of $97 million associated with the RCM Agreements as described on page 2.
Same-hospital net patient service revenue per adjusted admission increased 0.2% year-over-year for third quarter 2026 primarily due to strength in commercial employer net patient revenues offset by unfavorable payer mix related to lower exchange admissions.
Adjusted EBITDA in third quarter 2026 was $818 million compared to $607 million in third quarter 2025, reflecting strong growth in same-hospital revenue and disciplined expense management, partially offset by unfavorable payer mix due to lower exchange admissions.
2Results also include the net favorable impact of $147 million from transition activities described on page 2.
In the third quarter of 2026, the Hospital segment recognized a $32 million favorable pre-tax impact associated with additional Medicaid supplemental revenues related to prior years.
Third quarter 2025 results included a $38 million favorable pre-tax impact for additional Medicaid supplemental revenues related to prior years.
Page 5
2026 Outlook 1
Tenet’s Outlook for full year 2026 (consolidated and by segment) follows.
Contract termination revenue recognized from the early conclusion of the RCM Agreements is not included in net operating revenues.
Page 6
Ambulatory Segment ($ in millions)FY 2026 Outlook
Net operating revenues$5,530 to $5,670
Adjusted EBITDA$2,160 to $2,220
NCI$865 to $895
Adjusted EBITDA less NCI$1,295 to $1,325
Changes versus prior year 6 :
Same-facility system-wide revenuesUp 3.0% to 6.0%
Hospital Segment ($ in millions)FY 2026 Outlook
Net operating revenues 7$16,520 to $16,780
Adjusted EBITDA$2,890 to $2,980
NCI$45 to $65
Changes versus prior year 6 :
Inpatient admissionsUp 1.0% to 2.0%
Adjusted admissionsUp 1.0% to 2.0%
Tables and discussions throughout this earnings release include certain financial measures, including those related to our full year 2026 Outlook, that are not in accordance with accounting principles generally accepted in the United States of America (GAAP).
Reconciliations of GAAP measures to the Adjusted (non-GAAP) measures used are detailed in Tables #1-6 included at the end of this earnings release.
Management’s reasoning for the use of these non-GAAP measures and descriptions of the various non-GAAP measures are included in the Non-GAAP Financial Measures section of this earnings release.
Same-facility system-wide revenues and statistical information include the results of the facilities in which the Ambulatory segment has an investment that are not consolidated by Tenet.
To help analyze the segment’s results of operations, management uses system-wide measures, which include revenues and cases of both consolidated and unconsolidated facilities.
For 2026, same-hospital revenues and statistical data include those for hospitals and hospital-affiliated outpatient centers operated by the Company’s Hospital segment continuously from January 1, 2025 through September 30, 2026.
Amounts associated with physician practices are excluded.
Adjusted admissions represent actual patient admissions adjusted to include outpatient services provided by facilities in our Hospital segment by multiplying actual patient admissions by the sum of gross inpatient revenues and outpatient revenues, then dividing that result by gross inpatient revenues.
Income tax expense is calculated by multiplying 24% (the federal corporate tax rate of 21% plus an estimate of state taxes) by the sum of: pretax income less NCI expense plus permanent differences, and non-deductible interest expense.
Change versus prior year is presented on a same-facility system-wide basis for USPI Ambulatory surgical cases and on a same-hospital basis for hospital statistics.
Contract termination revenue recognized from the early conclusion of the RCM Agreements is not included in net operating revenues.
Tenet Healthcare Corporation (NYSE: THC) is a diversified healthcare services company headquartered in Dallas.
Our care delivery network includes United Surgical Partners International, the largest ambulatory platform in the country, which operates ambulatory surgery centers and surgical hospitals.
We also operate a national portfolio of acute care and specialty hospitals, other outpatient facilities, a network of leading employed physicians and a global business center in Manila, Philippines.
Our Conifer Health Solutions subsidiary provides revenue cycle management and value-based care services to hospitals, health systems, physician practices, employers and other clients.
Across the Tenet enterprise, we are united by our mission to deliver quality, compassionate care in the communities we serve.
For more information, please visit www.tenethealth.com.
Will McDowellOlivia E. Nadler
The Company believes the non-GAAP measures described below are useful to investors and analysts because they present additional information on the Company’s financial performance.
Investors, analysts, Company management and the Company’s Board of Directors utilize these non-GAAP measures, in addition to GAAP measures, to track the Company’s financial and operating performance and compare the Company’s performance to its peer companies, which use similar non-GAAP financial measures in their presentations and earnings releases.
The Human Resources Committee of the Company’s Board of Directors also uses certain of these measures to evaluate management’s performance for the purpose of determining incentive compensation.
Additional information regarding the purpose and utility of specific non-GAAP measures used in this release is set forth below.
Adjusted EBITDA is defined by the Company as net income available (loss attributable) to Tenet common shareholders before (1) the cumulative effect of changes in accounting principles, (2) net loss attributable (income available) to noncontrolling interests, (3) income (loss) from discontinued operations, net of tax, (4) income tax benefit (expense), (5) gain (loss) from early extinguishment of debt, (6) other non-operating income (expense), net, (7) interest expense, (8) litigation and investigation benefit (costs), net of insurance recoveries, (9) net gains (losses) on sales, consolidation and deconsolidation of facilities, (10) impairment and restructuring charges and acquisition-related costs, (11) depreciation and amortization, (12) income (loss) from divested and closed businesses (i.e., health plan businesses) and (13) revenue from contract termination.
Revenue from contract termination represents the present value of the $1.9 billion of consideration related to the early termination of Conifer’s revenue cycle services agreement with CommonSpirit (as further described in the Company’s Form 8-K dated February 2, 2026), net of amortization of an associated contract asset.
Litigation and investigation benefit (costs) excluded do not include ordinary course of business malpractice and other litigation and related expenses.
Adjusted diluted earnings (loss) per share is defined by the Company as Adjusted net income available (loss attributable) to Tenet common shareholders, divided by the weighted average diluted shares outstanding in the reporting period.
Adjusted net income available (loss attributable) to Tenet common shareholders is defined by the Company as net income available (loss attributable) to Tenet common shareholders before (1) income (loss) from discontinued operations, net of tax, (2) gain (loss) from early extinguishment of debt, (3) litigation and investigation benefit (costs), net of insurance recoveries, (4) net gains (losses) on sales, consolidation and deconsolidation of facilities, (5) impairment and restructuring charges and acquisition-related costs, (6) income (loss) from divested and closed businesses (i.e., health plan businesses), (7) revenue from contract termination and (8) the associated impact of these items on taxes and noncontrolling interests.
Revenue from contract termination represents the present value of the $1.9 billion of consideration related to the early termination of Conifer’s revenue cycle services agreement with CommonSpirit (as further described in the Company’s Form 8-K dated February 2, 2026), net of amortization of an associated contract asset.
Litigation and investigation benefit (costs) excluded do not include ordinary course of business malpractice and other litigation and related expenses.
Free Cash Flow is defined by the Company as (1) net cash provided by (used in) operating activities, less (2) purchases of property and equipment.
Adjusted Free Cash Flow is defined by the Company as (1) Adjusted net cash provided by (used in) operating activities, less (2) purchases of property and equipment.
Adjusted net cash provided by (used in) operating activities is defined by the Company as cash provided by (used in) operating activities prior to (1) payments for restructuring charges, acquisition-related costs and litigation costs and settlements, (2) net cash provided by (used in) operating activities from discontinued operations and (3) cash received for contract termination defined above.
The Company believes that Adjusted EBITDA is a useful measure, in part, because certain investors and analysts use both historical and projected Adjusted EBITDA, in addition to other GAAP and non-GAAP measures, as factors in determining the estimated fair value of shares of the Company’s common stock.
Company management also regularly reviews the Adjusted EBITDA performance for each operating segment.
The Company does not use Adjusted EBITDA to measure liquidity, but instead to measure operating performance.
The Company uses, and believes investors use, Free Cash Flow and Adjusted Free Cash Flow as supplemental non-GAAP measures to analyze cash flows generated from the Company’s operations.
The Company believes these measures are useful to investors in evaluating its ability to fund distributions paid to noncontrolling interests or for acquisitions, purchasing equity interests in joint ventures or repaying debt.
These non-GAAP measures may not be comparable to similarly titled measures reported by other companies.
Because these measures exclude many items that are included in the Company’s financial statements, they do not provide a complete measure of the Company’s operating performance.
For example, the Company’s definitions of Free Cash Flow and Adjusted Free Cash Flow do not include other important uses of cash including (1) cash used to purchase businesses or joint venture interests, or (2) any items that are classified as Cash Flows from Financing Activities on the Company’s Consolidated Statement of Cash Flows, including items such as (i) cash used to repay borrowings, or (ii) distributions paid to noncontrolling interests.
Accordingly, investors are encouraged to use GAAP measures when evaluating the Company’s financial performance.
See corresponding reconciliations of the non-GAAP financial measures referred to above to the most comparable GAAP financial measures in Tables #1 - 6 below.
Financial Statements and Reconciliations
Third Quarter Earnings Release
Table of Contents
DescriptionPage
20 boilerplate lines (safe-harbor disclaimer, contacts, call details) are set aside.