Tenet Raises Full-Year Adjusted Ebitda Outlook Again

The Tip Desk · October 29, 2026 · 3 min read

Third-quarter Adjusted EBITDA reached $1.355 billion, and the company lifted its 2026 Adjusted EBITDA range to $5.05 billion to $5.20 billion.

Tenet Healthcare Corporation (THC) reported third-quarter 2026 Adjusted EBITDA of $1.355 billion, a 23.3% increase from a year earlier, after a 16.3% year-over-year rise in the second quarter. The Adjusted EBITDA margin expanded to 24.1%.

Net income available to common shareholders was $1.000 billion, or $12.41 a share, compared with $342 million, or $3.86 a share, a year earlier. Adjusted diluted earnings were $6.64 a share. Net operating revenues were $5.631 billion.

Chairman and Chief Executive Officer Saum Sutaria said the outperformance was driven by sustained strength in same-store revenue growth and effective expense management. The company said Adjusted EBITDA reflected strong same-facility revenue growth and disciplined expense management, partially offset by unfavorable payer mix from lower exchange admissions.

A large part of the profit lift was timing. Under agreements with CommonSpirit Health covering Conifer Health Solutions revenue-cycle work, Tenet recognized cumulative catch-up adjustments that increased revenue from contract termination by $233 million and net operating revenues by $97 million. The company said those were timing-related and did not change full-year 2026 expectations for that revenue. It also recognized about $50 million of transition benefits, for a $147 million favorable net impact to Adjusted EBITDA.

The Hospital Operations and Services segment posted Adjusted EBITDA of $818 million, including that $147 million net favorable RCM impact, and a 19.2% margin. Hospital net operating revenues were $4.260 billion, including the $97 million timing benefit. Adjusted admissions rose 3.2%. Same-hospital net patient service revenue per adjusted admission increased 0.2%. The segment also recorded a $32 million favorable pre-tax impact from additional Medicaid supplemental revenues related to prior years. The company said Hospital Adjusted EBITDA reflected strong same-hospital revenue growth and disciplined expense management, partially offset by the same payer-mix headwind.

Ambulatory Care Adjusted EBITDA was $537 million, with a 39.2% margin. Ambulatory net operating revenues were $1.371 billion. Same-facility system-wide net patient service revenue growth was 4.5% in the third quarter of 2026, compared with 8.3% in the third quarter of 2025. Surgical cases fell 1.5% and net revenue per case rose 6.1%, which the company attributed to higher acuity and favorable service mix. United Surgical Partners International had interests in 535 ambulatory surgery centers and 25 surgical hospitals as of September 30.

For the full year, Tenet now expects Adjusted EBITDA of $5.05 billion to $5.20 billion, a $195 million increase at the midpoint from the range it set after the second quarter. Adjusted free cash flow is now expected at $2.825 billion to $3.125 billion. Full-year net operating revenues are expected at $22.050 billion to $22.450 billion, excluding contract-termination revenue. Diluted income is expected at $35.82 to $37.08 a share.

Net cash from operations for the nine months ended September 30 was $3.507 billion. Adjusted free cash flow was $2.524 billion. In the third quarter the company repurchased 970,000 shares for $255 million. It completed a $2.0 billion private placement of 6.250% senior notes due 2034 and used the proceeds, with cash on hand, to redeem $1.5 billion of 5.125% first-lien notes due 2027 and partially redeem $500 million of 6.125% notes due 2028. Net debt to Adjusted EBITDA was 2.11x at September 30.