Tenet Healthcare Quarterly Profit Surges As Hospital, Surgery Demand Grows

Tenet Healthcare Corporation (NYSE:THC) reported fourth-quarter sales of $5.527 billion, up around 8.9% year over year.

The hospitals and healthcare facilities operator beat the consensus of $5.472 billion. It also reported adjusted earnings of $4.70 per share, up from $3.44 a year ago, beating the consensus of $4.05.

Adjusted EBITDA in the fourth quarter of 2025 was $1.183 billion compared to $1.048 billion a year ago. The upward momentum reflects strong growth in same-facility revenue, higher acuity, and disciplined expense management.

Segment Breakdown

Ambulatory segment revenues increased 13.8% to $1.43 billion, driven by strong growth in same-facility net patient services revenues, facility acquisitions, and increased service lines.

Surgical business same-facility system-wide net patient service revenues increased 7.2%. Cases are up 1.6%, and net revenue per case is up 5.5%. Net revenue per case growth was driven by higher acuity and a favorable payer mix.

Hospital Operations and Services revenues increased 7.3% to $4.09 billion, primarily due to favorable payer mix, higher acuity, and increased Medicaid supplemental revenues.

Same-hospital net patient service revenue per adjusted admission increased 7.5% year-over-year, primarily due to a favorable payer mix, increased Medicaid supplemental revenues, and our focus on growing higher-acuity services.

“2025 extended Tenet’s track record of strong revenue growth, disciplined operations, improved margins, and robust free cash flow generation,” said Saum Sutaria, chairman and CEO of Tenet.

Outlook

“We see continued demand for acute care and ambulatory surgical services in our markets and are confident in our ability to execute on our strategy, deliver quality results for our patients and physician partners, and achieve our full year 2026 expectations,” Sutaria said on Wednesday.

Tenet expects 2026 revenue guidance to be $21.5 billion to $22.3 billion, compared to the consensus of $22.21 billion.

The guidance includes Hospital segment sales of $16 billion to $16.6 billion and Ambulatory Segment sales of $5.5 billion to $5.7 billion.

The company forecasts adjusted earnings between $16.19 and $18.47, compared with a consensus of $16.45.

For 2026, adjusted EBITDA is expected to be in the range of $4.485 billion-$4.785 billion.

Ambulatory same-facility system-wide revenues are expected to increase by 3%-6%, with inpatient admissions increasing by 1%- 2%.

THC Price Action: Tenet shares are up 6.73% at $206.03 at the time of publication on Wednesday. The stock hit a high of $206.08 and a low of $186.50 during the day. The stock is 7.5% below its 52-week-high, according to Benzinga Pro data.

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