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1. Company Snapshot

1.a. Company Description

Tenet Healthcare Corporation operates as a diversified healthcare services company.The company operates in three segments: Hospital Operations and Other, Ambulatory Care, and Conifer.Its general hospitals offer acute care services, operating and recovery rooms, radiology and respiratory therapy services, clinical laboratories, and pharmacies.


The company also provides intensive and critical care, and coronary care units; cardiovascular, digestive disease, neurosciences, musculoskeletal, and obstetrics services; outpatient services, including physical therapy; cardiothoracic surgery, complex spinal surgery, neonatal intensive care, and neurosurgery services; quaternary care services in heart and kidney transplants; and limb-salvaging vascular procedure, acute level 1 trauma, intravascular stroke care, minimally invasive cardiac valve replacement, imaging, and telemedicine access services.In addition, it operates ambulatory surgery and urgent care centers, imaging centers, surgical hospitals, off-campus emergency departments, and micro-hospitals; and offers healthcare business process services in the areas of hospital and physician revenue cycle management, patient communications and engagement support, and value-based care solutions to hospitals, health systems, physician practices, employers, and other customers.As of February 09, 2022, the company operated 60 hospitals; and approximately 550 other healthcare facilities, including surgical hospitals, ambulatory surgery centers, urgent care and imaging centers, and other care sites and clinics.


Tenet Healthcare Corporation was incorporated in 1975 and is headquartered in Dallas, Texas.

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1.b. Last Insights on THC

Tenet Healthcare's recent performance was driven by strong Q4 2025 earnings, beating revenue and EPS estimates. The company's Ambulatory Care segment drove growth with a 13.8% revenue increase and robust EBITDA. A $1.9B transaction with CommonSpirit will reduce net debt and grant full ownership of Conifer. Additionally, the company has been rated as a "Moderate Buy" by analysts, with 16 buy ratings and 1 strong buy rating. Cerity Partners LLC and Creative Planning have also increased their stakes in the company, signaling confidence in its prospects.

1.c. Company Highlights

2. Tenet Healthcare's 2025 Earnings: A Strong Performance Amidst Growth Initiatives

Tenet Healthcare Corporation reported a robust financial performance in 2025, with net operating revenues reaching $21.3 billion and consolidated adjusted EBITDA of $4.57 billion, representing a 14% growth over 2024. The full-year adjusted EBITDA margin improved by 200 basis points to 21.4%. The company's actual EPS of $4.7 beat estimates of $4.08, underscoring the strength of its operational performance. USPI's adjusted EBITDA grew 12% to $2.026 billion, driven by same-facility revenue growth of 7.5%, while the Hospital segment's adjusted EBITDA increased by 16% to $2.54 billion.

Publication Date: Feb -15

📋 Highlights

Segment Performance and Growth Initiatives

The company's investments in growth initiatives yielded significant results, with nearly $350 million invested in 2025, adding 35 facilities to its portfolio. Tenet expects continued growth in 2026, projecting full-year adjusted EBITDA of $4.485 billion to $4.785 billion. The guidance assumes same-hospital admission growth of 1% to 2% and same-facility USPI revenue growth of 3% to 6%. The company's focus on process improvement, optimization, and technology, including AI, is expected to drive continued margin improvement.

Valuation and Cash Flow Generation

Tenet Healthcare's valuation metrics indicate a reasonable pricing, with a P/E Ratio of 14.44, EV/EBITDA of 6.85, and Free Cash Flow Yield of 12.46%. The company generated $2.53 billion of free cash flow in 2025 and repurchased 8.8 million shares for $1.386 billion. The leverage ratio as of December 31, 2025, was 2.25 times EBITDA, indicating a manageable debt burden.

Outlook and Challenges

The company's guidance for 2026 is subject to certain challenges, including the expiration of enhanced exchange tax credits, which is expected to result in a $250 million impact on adjusted EBITDA. However, excluding this headwind, 2026 adjusted EBITDA is expected to grow 10% at the midpoint. Tenet Healthcare's management is confident in its ability to navigate these challenges and drive growth through its initiatives.

Share Buybacks and Capital Allocation

The company is taking an active approach to buybacks, especially at the current valuation multiple, given its stronger balance sheet and free cash flow generation. Tenet aims to operate like a company that trades at a higher multiple and will deploy its balance sheet to demonstrate confidence in its ability to operate.

3. NewsRoom

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Amitell Capital Pte Ltd Sells 8,550 Shares of Tenet Healthcare Corporation $THC

Feb -26

Source: defenseworld.net

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Tenet Healthcare Corporation $THC Shares Acquired by Fox Run Management L.L.C.

Feb -25

Source: defenseworld.net

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Citigroup Inc. Sells 29,416 Shares of Tenet Healthcare Corporation $THC

Feb -23

Source: defenseworld.net

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Larry Robbins Exits Universal Health Services Inc, Impacting Portfolio by -2.19%

Feb -17

Source: gurufocus.com

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Cibc World Market Inc. Decreases Position in Tenet Healthcare Corporation $THC

Feb -15

Source: defenseworld.net

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Alps Advisors Inc. Acquires New Position in Tenet Healthcare Corporation $THC

Feb -14

Source: defenseworld.net

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Tenet Healthcare Beats Q4 Earnings: But 2026 EBITDA Margin May Decline

Feb -12

Source: zacks.com

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Tenet Healthcare (NYSE:THC) Stock Price Up 11.8% Following Strong Earnings

Feb -12

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.37%)

6. Segments

Hospital Operations

Expected Growth: 4.73%

Tenet Healthcare Corporation's Hospital Operations segment growth of 4.73% is driven by increasing patient volumes, strategic acquisitions, and cost savings initiatives. Additionally, the company's focus on improving operational efficiencies, expanding its ambulatory care services, and investing in digital healthcare technologies have contributed to the segment's growth.

Ambulatory Care

Expected Growth: 8.15%

Tenet Healthcare's Ambulatory Care segment growth of 8.15% is driven by increasing demand for outpatient services, strategic acquisitions, and expansion of service lines. Additionally, the company's focus on value-based care and population health management, as well as investments in digital health and technology, contribute to the segment's growth.

7. Detailed Products

Hospital Services

Tenet Healthcare Corporation operates a network of hospitals that provide a range of medical services, including emergency care, surgical services, and rehabilitation programs.

Outpatient Services

Tenet offers outpatient services, including urgent care, imaging, and physical therapy, providing convenient and accessible care to patients.

Physician Services

Tenet partners with physicians to provide high-quality medical care, including primary care, specialty care, and surgical services.

Ambulatory Surgery Centers

Tenet operates ambulatory surgery centers that provide outpatient surgical services, including orthopedic, ophthalmology, and general surgery procedures.

Conifer Health Solutions

Conifer Health Solutions, a subsidiary of Tenet, provides revenue cycle management, patient engagement, and value-based care solutions to healthcare providers.

8. Tenet Healthcare Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

Tenet Healthcare Corporation faces moderate threat from substitutes, as patients have limited alternatives for hospital services, but some outpatient procedures can be substituted with ambulatory surgery centers or urgent care centers.

Bargaining Power Of Customers

Tenet Healthcare Corporation has a low bargaining power of customers, as individual patients have limited negotiating power, but large employers and insurance companies may have some bargaining power.

Bargaining Power Of Suppliers

Tenet Healthcare Corporation faces moderate bargaining power of suppliers, as it relies on a few large suppliers for medical equipment and pharmaceuticals, but has some negotiating power due to its large scale.

Threat Of New Entrants

Tenet Healthcare Corporation faces a low threat of new entrants, as entering the hospital industry requires significant capital investment and regulatory approvals, creating barriers to entry.

Intensity Of Rivalry

Tenet Healthcare Corporation operates in a highly competitive industry, with many hospitals and health systems competing for patients, physicians, and market share, leading to a high intensity of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 90.37%
Debt Cost 6.85%
Equity Weight 9.63%
Equity Cost 14.34%
WACC 7.58%
Leverage 938.18%

11. Quality Control: Tenet Healthcare Corporation passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Encompass Health

A-Score: 6.1/10

Value: 6.0

Growth: 5.1

Quality: 7.0

Yield: 2.0

Momentum: 8.0

Volatility: 8.7

1-Year Total Return ->

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Tenet Healthcare

A-Score: 5.5/10

Value: 6.7

Growth: 6.8

Quality: 5.5

Yield: 0.0

Momentum: 8.5

Volatility: 5.3

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Ensign Group

A-Score: 5.5/10

Value: 2.6

Growth: 7.4

Quality: 4.7

Yield: 0.0

Momentum: 9.0

Volatility: 9.0

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DaVita

A-Score: 4.8/10

Value: 8.0

Growth: 7.0

Quality: 4.7

Yield: 0.0

Momentum: 2.0

Volatility: 7.0

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Chemed

A-Score: 4.5/10

Value: 3.5

Growth: 6.0

Quality: 7.3

Yield: 0.0

Momentum: 2.0

Volatility: 8.3

1-Year Total Return ->

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Select Medical

A-Score: 4.4/10

Value: 7.7

Growth: 4.3

Quality: 4.0

Yield: 4.0

Momentum: 1.0

Volatility: 5.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

242.88$

Current Price

242.88$

Potential

-0.00%

Expected Cash-Flows