THCHospitals and ambulatory surgery centers
Tenet Healthcare
Not investment advice. Kevin may own this stock. How we value stocks
By Kevin Amado
Updated
- Price
- $292.97
- Analysts view
- Bullish
- Discount category
- Close to intrinsic value
- Pick status
- Research only
- Next earnings
- Earnings Feb 10 · · estimated
- Market cap
- $23B
- Shares of Oct 23, 2026
- P/E (trailing)
- 8.5
- Price of Nov 12, 2026
- EPS (trailing)
- $34.29
- 12 months to Sep 30, 2026
- 52-week range
- $157.58 – $301.44
- To Nov 12, 2026
- Beta
- 1.20
- Vs S&P 500, 5 years monthly, to Oct 30, 2026
- Average volume
- 786K
- 3 months, to Nov 12, 2026
Check the numbers:ExchangeGoogle FinanceYahoo FinanceSEC filings
In short
- Thesis
- The market weighs the fast earnings growth of Tenet in ambulatory surgery and hospitals against Medicaid payment limits and lower exchange volumes, and 2027 earnings that hold up can lift its value.
- Gap
- Can close. The premium depends on 2027 earnings: the Q4 2026 report with the 2027 outlook, expected in February 2027, shows how Medicaid payment limits and lower exchange volumes affect earnings.
Company guidance: 2026 adjusted EBITDA $5.05 billion to $5.20 billion; adjusted diluted EPS $22.05 to $23.01 (, Q3 2026 results release (8-K))
Price history
About
Tenet Healthcare Corporation (Tenet) is a healthcare services company based in Dallas, Texas. Its Hospital Operations segment ran 51 hospitals in eight states and 135 outpatient facilities at September 30, 2026. Its Ambulatory Care segment is United Surgical Partners International (USPI), which held interests in 535 surgery centers, 406 of them consolidated, and 25 surgical hospitals in 37 states. Net operating revenues were $5,631 million in Q3 2026 and $16,627 million for nine months.
Saum Sutaria, M.D., is Chairman and Chief Executive Officer. The common stock trades on the NYSE in US dollars. Tenet files 10-K and 10-Q reports.
Thesis
The price of Tenet reflects fast earnings growth in 2026, and it depends on whether 2027 earnings can hold as payment rules change. Adjusted EBITDA rose 23.3% to $1,355 million in Q3 2026, and management raised its 2026 outlook for adjusted EBITDA to $5.05 billion to $5.20 billion. USPI, the surgery center business, grew adjusted EBITDA 9.1% to $537 million. Tenet bought back 7.99 million shares for $1.615 billion in nine months.
Q3 included a net favorable $147 million from the early end of the revenue cycle contract with CommonSpirit Health. For the price to hold or rise, four things must be true. Same-facility revenue must keep growing as exchange admissions fall. USPI must keep growing as surgical cases are flat to lower.
Medicaid payment limits that start in 2027 must cost less than Tenet's cost savings. Tenet must keep buying back shares while net debt stays near 2 times adjusted EBITDA. The Q4 2026 report, expected in February 2027, and the 2027 outlook are the next tests.
Checkpoints
- Feb 10, 2027 · est.PendingQ4 2026 results and 2027 outlookAdjusted EBITDA for 2026 is in the raised range of $5.05 billion to $5.20 billion and the 2027 outlook shows earnings above 2026, and this passes; a lower outlook fails.
- 2027 · est.PendingMedicaid payment limits startTenet shows that the cost of the new Medicaid rules is smaller than its savings and growth, and this passes; a large cut in supplemental payments fails.
Recent events
- October 30, 2026Tenet said that the transition of its revenue cycle management services for CommonSpirit Health will be substantially complete by this date, earlier than the end of 2026. In Q3 2026 it booked catch-up revenue from contract termination of $233 million and a net favorable $147 million to adjusted EBITDA.
- October 29, 2026Tenet reported Q3 2026 results. Net income available to common shareholders was $1.000 billion, or $12.41 per diluted share. Adjusted diluted earnings per share rose 79.5% to $6.64. It raised its 2026 outlook for adjusted EBITDA to $5.05 billion to $5.20 billion and for adjusted free cash flow to $2.825 billion to $3.125 billion.
- September 22, 2026Tenet filed an 8-K for its private placement of $2.0 billion of 6.250% senior notes due 2034. It used the proceeds and cash to redeem all $1.5 billion of its 5.125% senior secured first lien notes due 2027 and $500 million of its 6.125% senior notes due 2028.
Show 1 older eventHide older events
- January 1, 2026Tenet redeemed the minority interest of Catholic Health Initiatives, now CommonSpirit Health, in Conifer. This cut its redeemable noncontrolling interests by $846 million and raised additional paid-in capital by $306 million.
Latest news and filings
- Last earnings
- October 29, 2026 (8-K on sec.gov)
- Next earnings
- Expected about February 10, 2027. The company has not confirmed the date.
- 10-QQuarterly report for the period ended Sep 30, 2026Filed · thc-20260930
- 8-KEarnings releaseFiled · Press release and exhibits
- 8-KNew material agreement and New debt or financial obligationFiled · Read it on sec.gov
- 8-KInvestor disclosure and Other company newsFiled · thc-20260908
- 10-QQuarterly report for the period ended Jun 30, 2026Filed · thc-20260630
- 8-KEarnings releaseFiled · Press release and exhibits
- 8-KShareholder vote resultsFiled · thc-20260527
- 10-QQuarterly report for the period ended Mar 31, 2026Filed · thc-20260331
- 8-KEarnings releaseFiled · Press release and exhibits
- 8-KChange of directors or officersFiled · thc-20260409
Risks
- Payment rules are changing. The 10-Q says that the One Big Beautiful Bill Act brings Medicaid work requirements, caps on state-directed payments and limits on provider taxes from 2027. Tenet cannot yet estimate the effect.
- Exchange volumes are falling. Enhanced premium tax credits for marketplace coverage ended at the end of 2025. Tenet reports lower exchange admissions and an unfavorable payer mix.
- Debt is large. Long-term debt was $13,079 million at September 30, 2026, and interest expense is guided to $815 million to $825 million for 2026. Net debt was 2.11 times adjusted EBITDA.
- Q3 results include timing items. The CommonSpirit transition added a net $147 million to Q3 adjusted EBITDA. The release says that the timing part does not change the full year, so Q4 will not show the same gain.
- Surgical cases are not growing. Same-facility system-wide surgical cases at USPI fell 1.5% in Q3 2026. Price per case rose 6.1%, but a longer fall in cases would slow growth.
Balance sheet
- Cash
- $2.7B
- Debt
- $13.2B
- Net debt
- $10.6B
Cash against debt
debt covered by cashnet debt $10.6B
When the debt is due
At September 30, 2026, Tenet had cash and cash equivalents of $2,674 million. Long-term debt was $13,079 million, and the current part was $164 million. The release gives a ratio of net debt to adjusted EBITDA of 2.11, against 2.25 at December 31, 2025. The senior secured revolving credit facility allows borrowings of up to $1.900 billion. In September 2026, Tenet issued $2.0 billion of 6.250% senior notes due 2034 and redeemed the 5.125% notes due 2027 and part of the 6.125% notes due 2028. Adjusted free cash flow was $2,524 million for nine months. Tenet repurchased 7.99 million shares for $1.615 billion in nine months.
Dividends
Tenet Healthcare does not pay a dividend.
Source: company filings and market data, read on November 13, 2026.
Questions about Tenet Healthcare
What does Tenet Healthcare do?
Tenet Healthcare Corporation (Tenet) is a healthcare services company based in Dallas, Texas. Its Hospital Operations segment ran 51 hospitals in eight states and 135 outpatient facilities at September 30, 2026. Its market cap is $23B at the current price of $292.97.
When does Tenet Healthcare report earnings next?
This is an estimate: Tenet Healthcare may report on February 10, 2027. It last reported results on October 29, 2026.
Is Tenet Healthcare stock below its intrinsic value?
Tenet Healthcare stock is close to intrinsic value. This is general information, not advice.
What changed recently at Tenet Healthcare?
The latest update is from October 30, 2026. Tenet said that the transition of its revenue cycle management services for CommonSpirit Health will be substantially complete by this date, earlier than the end of 2026.
What are the main risks for Tenet Healthcare?
Payment rules are changing. Exchange volumes are falling. Debt is large.
How much debt and cash does Tenet Healthcare have?
At September 30, 2026, Tenet Healthcare had $13.2B of debt and $2.7B of cash.
Does Tenet Healthcare pay a dividend?
No. Tenet Healthcare does not pay a dividend.
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