| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 88 | 10.2x | 17.8x | Top tier | |
Growth | 62 | 5.4% | 7.1% | Around median | |
Quality | 92 | 20.6% | 4.5% | Top tier | |
Safety | 58 | 2.3x | 2.6x | Around median | |
Capital Return | 71 | — | 2.12% | Top tier | |
Momentum | 84 | 42.2% | 2.9% | Top tier | |
Sentiment | 45 | 13 | 3 | Around median |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Tenet Healthcare Corporation operates a healthcare system that combines its hospital segment and the USPI ambulatory surgery segment, alongside Conifer's revenue and collection operations. Hospital growth depends on increasing higher-acuity cases and emergency, surgical, and Medicaid patient care services, while USPI focuses on shifting appropriate procedures to ambulatory surgery centers and expanding orthopedics, urology, robotics, general surgery, bariatrics, cardiology, gastroenterology, and ophthalmology specialties.
In Q2 FY2026, net operating revenue reached $5.6 billion, net income according to EDGAR data was approximately $826 million, and diluted earnings per share according to the same data was $9.84. This equates to a calculated net income margin of approximately 14.8%, while adjusted EBITDA reached $1.304 billion at a margin of 23.2% and year-over-year growth of 16.3%, and adjusted diluted earnings per share rose 52% to $6.12.
The hospital segment generated adjusted EBITDA of $762 million, representing approximately 58% of the total, at a margin of 18% and year-over-year growth of 22%. USPI generated $542 million, representing approximately 42% of the total, at a margin of 39% and growth of 8.8%, while same-facility revenue increased 5% and net revenue per case rose 6.3% despite a 1.2% decline in case volume. FY2025 revenue was approximately $21.3 billion, net income was $1.4 billion, and earnings per share was $15.49, highlighting the scale of the improvement recorded in FY2026 results through Q2.
Analyst consensus rates THC as “Buy,” with an average price target of $284.77 and a wide range of $242 to $308. The average target is slightly above the 52-week range high of $283.05, while the low end falls within the 52-week range of $157.58–$283.05; this dispersion reflects meaningful differences in assessments of the sustainability of margins and growth in the face of declining insurance exchange revenue and regulatory uncertainty.
Figures in the text are as of 2026-08-28; the live price is shown at the top of the page.
Net operating revenue reached $5.6 billion, while adjusted EBITDA was $1.304 billion at a margin of 23.2% and year-over-year growth of 16.3%. Hospitals generated adjusted EBITDA of $762 million, up 22%, while USPI generated $542 million, up 8.8%. Results were supported by increased higher-acuity cases, 2.6% growth in adjusted admissions at same-facility hospitals, expense management, automation, and artificial intelligence.
USPI generated an adjusted EBITDA margin of 39% in Q2 FY2026, with same-facility revenue growth of 5% and net revenue per case growth of 6.3%. Joint replacement procedures at same-facility centers increased 10%, and the segment expanded in higher-acuity robotics, urology, bariatrics, cardiology, gastroenterology, and retinal procedures. Tenet expects acquisition spending in this segment to exceed $300 million during FY2026.
Insurance exchange revenue declined 17% year over year in Q2 FY2026, while related admissions decreased 13.5%. This resulted in approximately $65 million of revenue pressure, and this revenue represented approximately 5.5% of consolidated net operating revenue. Management observed that approximately 80%–100% of the decline in exchange cases shifted to uninsured patients, with a greater impact in Florida, Arizona, Michigan, South Carolina, and Texas.
Automated analysis for informational purposes only — not investment advice.
The company expects net operating revenue of $21.9–$22.5 billion and adjusted EBITDA of $4.83–$5.03 billion in FY2026. USPI is expected to generate adjusted EBITDA of $2.16–$2.22 billion, while the hospital segment's range is $2.67–$2.81 billion. The company also raised adjusted free cash flow guidance after noncontrolling interests to a range of $1.825–$2.055 billion, including approximately $150 million of tax payments related to the Conifer transaction.
Tenet generated adjusted free cash flow of $444 million in Q2 FY2026 and held $2.1 billion in cash as of June 30, 2026, with no outstanding borrowings under its credit facility. The company spent $1.36 billion to repurchase approximately 7 million shares in the first half, including $1.04 billion to purchase 5.7 million shares in Q2. Its stated priorities are USPI acquisitions, growth in higher-acuity hospital services, share repurchases, and evaluating debt repayment or refinancing.
Management said on July 24, 2026, that the redistribution of 340B reimbursements under the outpatient hospital services proposal could be material, but it had not completed its impact assessment. Financially, insurance exchange revenue declined 17% and caused approximately $65 million of pressure in Q2 FY2026, alongside a corresponding increase in uninsured patients. Results also included $92 million of favorable Medicaid revenue related to prior years, requiring investors to distinguish underlying improvement from nonrecurring items when evaluating the sustainability of earnings.
