Tenet Healthcare Posts Adjusted EPS of $6.64 and Raises Full-Year Outlook
Key Facts
Tenet Healthcare reported third-quarter 2026 results, posting adjusted diluted earnings per share of $6.64, compared with analysts’ estimate of $4.67, according to Investing.com. Quarterly revenue was $5.63 billion, exceeding expectations of $5.49 billion. Year over year, net operating revenues rose to $5.631 billion from $5.289 billion in the third quarter of 2025. Net income available to common shareholders also increased to $1 billion, compared with $342 million a year earlier. The results show clear growth in profitability and revenue alongside the company’s higher financial outlook for the rest of the year.
The company said adjusted diluted EPS increased 79.5% year over year to $6.64. Adjusted EBITDA rose 23.3% to $1.355 billion, with a margin of 24.1%. CEO Saum Sutaria attributed the performance to “continued strong revenue growth in our facilities and effective expense management.” Activity data showed same-hospital admissions rose 2.8% from the same quarter a year earlier, while hospital surgeries fell 1.1%. In same-facility surgical operations, patient service revenue increased 4.5% despite a 1.5% decline in cases, as revenue per case rose 6.1%.
Tenet said strength in same-facility revenue and expense discipline partially offset an unfavorable payer mix resulting from lower enrollment through insurance exchanges. The quarter’s results also reflected contributions from the transition of revenue cycle management operations and timing adjustments, which added $147 million to adjusted EBITDA. The adjustments included $233 million in compensatory revenue related to a contract termination, a $97 million increase in net operating revenue, and a benefit of about $50 million from transition activities. The company said the timing adjustments did not change its full-year outlook for the relevant revenue cycle management revenue. It said the transition would be substantially complete by October 30, 2026, putting these temporary contributions in context when assessing the quarterly earnings improvement.
Tenet raised its 2026 adjusted EBITDA guidance range to between $5.05 billion and $5.20 billion, an increase of $195 million at the midpoint. It also raised its adjusted free cash flow outlook to between $2.825 billion and $3.125 billion, an increase of $100 million. Full-year adjusted diluted EPS is expected to range from $22.05 to $23.01, compared with analysts’ average estimate of $21.23. Annual revenue is expected to range from $22.05 billion to $22.45 billion, versus analyst consensus of $22.42 billion. The adjusted EPS outlook range therefore exceeded the consensus estimate, while the revenue range spans it.
On liquidity, net cash provided by operating activities was $3.507 billion in the nine months ended September 30, 2026, compared with $2.809 billion in the same period of 2025. The company repurchased 970 thousand common shares for $255 million in the third quarter. For the quarterly comparison, Tenet reported adjusted EPS of $6.12 and revenue of $5.63 billion in the second quarter; third-quarter EPS was therefore higher, while revenue matched the prior quarter’s figure. Before the results, Investing.com reported that 19 of 23 analysts rated the stock a buy, with an average price target of $286.41. These figures provide context on analyst views and capital allocation alongside the updated full-year outlook.
In premarket trading on October 29, the stock rose 2.05% after the results were announced, according to Investing.com. EL7 data showed a close of $268.5 on October 28, following $262.05 on October 27 and $268.95 on October 26. These prices do not support describing the stock’s move as a decline after the announcement; daily highs and lows are also unavailable in the approved figures here. The company had scheduled a webcast to discuss its third-quarter financial results for October 29, 2026, at 10:00 a.m. U.S. Eastern Time. The event followed the release of the figures, while the revised outlook sets out the company’s financial framework for the rest of 2026.