10-Q · April 30, 2026
Tenet Healthcare's Q1 2026 results show a strong performance with net income of $702 million and EPS of $4.82, significantly beating estimates of $4.17. Total revenue reached $5.368 billion, marginally above…
Earnings analysis · 10-Q
THC earnings analysis
Filed October 29, 2026 · Our reading of the company's report
The latest report
Tenet reported Q3 revenue of $5.631 billion and adjusted diluted EPS of $6.64, both ahead of consensus, with EPS up approximately 72% year over year. Adjusted EBITDA rose 23.3% to $1.355 billion, and management raised…
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Tenet reported Q3 revenue of $5.631 billion and adjusted diluted EPS of $6.64, both ahead of consensus, with EPS up approximately 72% year over year. Adjusted EBITDA rose 23.3% to $1.355 billion, and management raised FY2026 adjusted EBITDA and adjusted free cash flow outlooks. Sequential EPS declined from $9.84 in Q2, and results benefited from a $147 million RCM transition impact while payer mix remained a headwind. The balance sheet carries $13.341 billion of fixed-rate long-term debt, but the filing reported no material changes to previously disclosed risk factors.
Reported figures
- Earnings per share
- $6.64
- Gross margin
- 100.0%
What stood out
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Revenue grew year over year and beat estimates
Revenue was $5.631 billion, up approximately 5.3% from $5.35 billion in Q3 2025 and slightly below the prior quarter's $5.63 billion. Revenue exceeded the $5.502 billion consensus estimate by approximately $129 million.
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Adjusted EPS materially beat consensus
Adjusted diluted EPS was $6.64, up from $3.86 in Q3 2025, a year-over-year increase of approximately 72%. EPS exceeded the $4.66 consensus estimate by $1.98.
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EBITDA expanded and outlook was raised
Adjusted EBITDA increased 23.3% to $1.355 billion, according to the reported quarterly results. The EBITDA outlook was raised to $5.050-$5.200 billion for FY2026.
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Cash-flow outlook improved
FY2026 adjusted free cash flow outlook increased by $100 million to $2.825-$3.125 billion, indicating stronger expected cash generation despite free cash flow for the reported quarter not being disclosed in the provided filing text.
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Share repurchases continued
The company repurchased 970 thousand shares during August and September 2026: 511 thousand at an average price of $260.16 and 459 thousand at $265.71. Remaining authorization was $1.875 billion at September 30, 2026.
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No material control deficiencies reported
Management concluded that disclosure controls were effective as of September 30, 2026, and reported no changes in internal control over financial reporting that materially affected, or were reasonably likely to materially affect, controls during the quarter.
What to watch
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Large fixed-rate debt burden
Fixed-rate long-term debt totaled $13.341 billion at September 30, 2026, with a fair value of $12.886 billion. The average effective interest rate was 5.8%, creating refinancing and interest-cost exposure.
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Significant future debt maturities
Debt maturities include $1.931 billion due in 2028, $1.464 billion in 2029, $3.493 billion in 2030 and $6.269 billion thereafter, concentrating substantial obligations beyond the near term.
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RCM benefit and payer mix headwinds
The reported quarter included a $147 million favorable impact from revenue-cycle-management transition activities, while unfavorable payer mix remained a partial offset. This creates a risk that reported earnings will not fully recur at the same level.
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Regulatory and litigation exposure
The company stated that there were no material changes to the risk factors in its December 31, 2025 Form 10-K. The absence of an update does not eliminate ongoing exposure to lawsuits, claims and regulatory investigations in its highly regulated healthcare operations.
Management's outlook
Management raised FY2026 outlook: adjusted EBITDA to $5.050-$5.200 billion, an increase of $195 million at the midpoint, and adjusted free cash flow to $2.825-$3.125 billion, an increase of $100 million. Net operating revenue outlook is $22.050-$22.450 billion and adjusted diluted EPS outlook is $22.05-$23.01.
Earlier filings 1
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.