Research · Sep 3, 2026
[THC] Tenet Healthcare Thesis 2026: Ambulatory Surgery Centers Drive Outpatient Earnings Leadership
Tenet Healthcare Corporation FY25 revenue $21.31B (+3%); GAAP op income $3.51B (-41% on tough PY divestiture comp); NI $1.41B (-56%); EPS $15.49 (-53% from $32.70 FY24). Consolidated adjusted EBITDA $4.57B (+14% YoY). USPI segment: adjusted EBITDA $2.026B (+12%); same facility revenues +7.5%; double-digit same-store volume growth in total joint replacements in ASCs; ~9.5% of total revenues. Hospital segment: adjusted EBITDA $2.54B (+16%); same-store revenues per adjusted admission +5.3%; ~11.9% of total revenues. FCF $2.53B (+127%). M&A + de novo activity invested ~$350M and added 35 facilities; strong pipeline for 2026. Buyback $1.44B FY25 (+114% YoY); past 3 years repurchased ~22% of outstanding shares (~$2.5B retired). Total debt $13.17B (-8%). FY26 guide: consolidated adjusted EBITDA $4.485-$4.785B; USPI $2.13-$2.23B; Hospital $2.355-$2.555B. Anticipates impact from expiration of enhanced premium tax credits assuming 20% reduction in overall exchange enrollment. Risks: premium tax credit expiration, labor environment, Medicare + Medicaid reimbursement, USPI M&A pace, antitrust scrutiny on USPI scale, hurricane / weather (FL/TX concentration), cybersecurity.