Tenet Healthcare Corp (THC)

Price$265.05Cached quoteAs of 2026-09-05 12:02 UTC

AI: Fair-priced

Price checkThe shares look reasonably priced because strong cash generation offsets debt and policy risks.

At the observed market price, Tenet’s equity value is about $22.4 billion. Management expects 2026 adjusted earnings per share of $20.30-$21.69, putting the shares at about 12.8-13.7 times adjusted earnings; adjusted means unusual items are removed. Its adjusted free cash flow forecast is $2.725-$3.025 billion, but that measure excludes $900-$970 million of distributions to outside owners of joint ventures. After those payments, the implied cash multiple is roughly 10.6-12.8 times. Reported earnings look cheaper, but they include $1.65 billion of non-recurring contract-termination revenue. That balance supports a Fair-priced verdict.

Big pictureRevenue and cash flow are improving, but some recent profit comes from one-time items.

Revenue rose from $17.64 billion in 2020 to $21.31 billion in 2025. Operating cash flow has been less smooth: $1.08 billion in 2022, $2.37 billion in 2023, $2.05 billion in 2024, and $3.54 billion in 2025. Free cash flow—cash left after running the business and capital spending—therefore improved, but not in a straight line. In the first half of 2026, operating cash flow reached $2.23 billion versus $1.75 billion a year earlier, while adjusted free cash flow slipped slightly to $1.42 billion from $1.47 billion. That mix argues for durability, not perfection.

Business strengthThe core business is stronger, while debt and heavy goodwill still limit downside protection.

At June 2026, Tenet held $2.17 billion of cash against $13.25 billion of debt. Net debt, meaning debt minus cash, was roughly $10.9 billion, and management put it at 2.33 times its adjusted operating earnings measure. The company also had $1.9 billion of unused revolving credit and no borrowings on that facility. Shares outstanding fell from 95.1 million at year-end 2024 to 80.5 million by June 2026; first-half buybacks totaled $1.36 billion versus $69 million of stock-based pay. Still, $11.44 billion of goodwill exceeds common equity, so tangible asset backing is weak.

What could change the storyMargins, insurance coverage, and buybacks will decide whether today’s valuation proves attractive.

Second-quarter 2026 showed the upside case: the ambulatory business produced $542 million of adjusted operating earnings on $1.388 billion of revenue, about 39%, while hospitals produced $762 million on $4.240 billion, about 18%, up from 15.6% a year earlier. But surgery-center cases fell 1.2%, so growth leaned on higher revenue per case and acquisitions. The bear case is payer mix: uninsured-care costs rose to $132 million from $104 million, expired marketplace subsidies are reducing coverage, and 2027 Medicaid changes could trim supplemental payments. The current valuation needs recent profitability, manageable coverage losses, and continued buybacks.

AI: News

Second-quarter beat and raiseTenet beat expectations, improved hospital profitability, and raised its full-year cash outlook.

On July 23, 2026, Tenet reported second-quarter net operating revenue of $5.628 billion and adjusted operating earnings of $1.304 billion, up 16.3% from a year earlier. It lifted full-year adjusted operating earnings guidance by $295 million at the midpoint and adjusted free cash flow guidance by $225 million. The next trading session, the shares closed about 16.6% higher. The timing strongly suggests the results mattered, although a one-day move cannot prove a single cause.

Buyback authorization expandedThe board added major repurchase capacity after Tenet had already retired millions of shares.

Announced with the July 23 results, the board added $2.0 billion to the repurchase program, leaving $2.13 billion authorized. Tenet had already repurchased 7.02 million shares for $1.36 billion during the first half of 2026, while stock-based compensation expense was $69 million. At the observed market value, the remaining authorization equals roughly 9% of the company’s equity value. Repurchases are discretionary, but if continued near recent levels they can materially raise each remaining shareholder’s claim on future earnings.

Conifer contract resetTenet regained full Conifer ownership, gained cash payments, and lost a major future customer.

On February 2, 2026, Tenet disclosed that CommonSpirit would pay about $1.9 billion over three years to end its Conifer services contract early, while Conifer redeemed CommonSpirit’s 23.8% stake for about $540 million. Tenet said the transaction would reduce certain minority-interest and other liabilities by about $885 million. The trade-off is important: 2026 reported profit includes large termination revenue, while CommonSpirit’s services end after 2026, so investors must separate one-time value from the recurring Conifer business.

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Financial statements

	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015	2014	2013	2012	2011	2010	2009	2008
Revenue	$21.31B	$20.68B	$20.56B	$19.17B	$19.48B	$17.64B	$18.48B	$18.31B	$20.61B	$21.07B	—	—	—	—	—	—	—	—
Operating expenses	$14.09B	$14.11B	$14.53B	$13.49B	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Operating income	$3.51B	$5.96B	$2.51B	$2.33B	$2.87B	$1.99B	$1.54B	$1.64B	$1.11B	$1.25B	$1.08B	$925.0M	$663.0M	$749.0M	$653.0M	$634.0M	$538.0M	$311.0M
Operating margin	16.46%	28.81%	12.21%	12.17%	14.73%	11.28%	8.32%	8.94%	5.40%	5.92%	—	—	—	—	—	—	—	—
EBITDA	$4.37B	$6.77B	$3.38B	$3.17B	$3.73B	$2.85B	$2.39B	$2.44B	$1.98B	$2.10B	$1.87B	$1.77B	$1.21B	$1.18B	$1.05B	$1.01B	$924.0M	$682.0M
EBITDA margin	20.51%	32.76%	16.44%	16.55%	19.12%	16.13%	12.92%	13.32%	9.62%	9.95%	—	—	—	—	—	—	—	—
Net income	$2.37B	$4.06B	$1.31B	$1.00B	$1.48B	$768.0M	$171.0M	$459.0M	−$320.0M	$176.0M	$78.0M	$76.0M	−$104.0M	$133.0M	$94.0M	$1.12B	$181.0M	$25.0M
Net profit margin	11.11%	19.66%	6.38%	5.22%	7.58%	4.35%	0.93%	2.51%	−1.55%	0.84%	—	—	—	—	—	—	—	—
Basic EPSper basic share	$15.61	$33.02	$6.01	$3.84	$8.55	$3.80	-$2.08	$1.02	-$7.00	-$1.93	-$1.41	$0.12	-$1.32	$1.35	$0.49	$9.24	$1.52	$0.20
Diluted EPSper diluted share	$15.49	$32.70	$5.71	$3.79	$8.42	$3.75	-$2.08	$1.00	-$7.00	-$1.93	-$1.41	$0.12	-$1.32	$1.30	$0.48	$8.16	$1.48	$0.20

Review official source filings ↗

Owners

Reported shareholders

Reference date Jun 30, 2026

10.86%of listed shares

BlackRock, Inc.8.74M shares · Jun 30, 2026

View holders

Top 20 reported holders of THC
Holder	% owned
BlackRock, Inc.	10.86%8.74M shares
PRICE T ROWE ASSOCIATES INC /MD/	9.88%7.96M shares
Boston Partners	5.51%4.43M shares
VANGUARD PORTFOLIO MANAGEMENT LLC	5.26%4.24M shares
FMR LLC	4.96%3.99M shares
VANGUARD CAPITAL MANAGEMENT LLC	4.84%3.89M shares
STATE STREET CORP	3.42%2.75M shares
GLENVIEW CAPITAL MANAGEMENT, LLC	2.78%2.24M shares
GEODE CAPITAL MANAGEMENT, LLC	2.34%1.88M shares
CITADEL ADVISORS LLC	2.19%1.77M shares
ARROWSTREET CAPITAL, LIMITED PARTNERSHIP	2.12%1.71M shares
AMERIPRISE FINANCIAL INC	2.07%1.66M shares
DIMENSIONAL FUND ADVISORS LP	1.80%1.45M shares
Invesco Ltd.	1.76%1.42M shares
VICTORY CAPITAL MANAGEMENT INC	1.54%1.24M shares
NORGES BANK	1.51%1.21M shares
AQR CAPITAL MANAGEMENT LLC	1.33%1.07M shares
ALLIANCEBERNSTEIN L.P.	1.13%910.27K shares
MANNING & NAPIER ADVISORS LLC	1.12%901.65K shares
BANK OF AMERICA CORP /DE/	1.06%854.86K shares

Percentages use 80.51M shares of this listed class outstanding on Jun 30, 2026.

Gray completes the 100% scale. Reported positions may overlap; holders have different reporting dates.

Source: SEC Form 13F ↗Updated Sep 29, 2026 · Quarterly data

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys0$0.00 disclosed value

Sells (SEC code S)59$71.73M disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
May 28, 2026Form 4	KERREY J ROBERTDirector	SellCommon Stock	361	$177.52	$64.1K	16.8K
May 28, 2026Form 4	KERREY J ROBERTDirector	SellCommon Stock	905	$176.89	$160.1K	17.2K
May 28, 2026Form 4	KERREY J ROBERTDirector	SellCommon Stock	713	$175.13	$124.9K	18.1K
May 28, 2026Form 4	KERREY J ROBERTDirector	SellCommon Stock	1.7K	$173.97	$294.0K	18.8K
May 28, 2026Form 4	KERREY J ROBERTDirector	SellCommon Stock	2.0K	$173.12	$340.9K	20.5K

Review ownership filings at SEC.gov ↗

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Tenet Healthcare Corp (THC)

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