Financial Performance Highlights - Consolidated Adjusted EBITDA reached $1.099 billion, exceeding the high end of the Q3 outlook[7] - Consolidated Adjusted EBITDA Margin was 20.8%[8] - Adjusted Diluted EPS grew by 26%[8] Segment Performance - Ambulatory Adjusted EBITDA grew by 12% with an 8.3% increase in same-facility revenue and a 38.6% Adjusted EBITDA margin; 13 facilities were added[8] - Hospitals Adjusted EBITDA grew by 13% with 7.5% same-hospital revenue growth and 1.4% same-hospital adjusted admissions growth; Adjusted EBITDA margin was 15.1%[8] Financial Outlook - FY 2025 Adjusted EBITDA outlook increased by $50 million, now expected to be between $4.47 billion and $4.57 billion[9] - FY 2025 Free Cash Flow – NCI outlook increased by $250 million, now expected to be between $1.495 billion and $1.695 billion[9] - Net operating revenues for 2025 are projected to be between $21.15 billion and $21.35 billion[10] USPI Performance - USPI's net revenue for 2025 is estimated at $5.125 billion, reflecting a CAGR of 15.5%[15] - USPI's Adjusted EBITDA for 2025 is estimated at $2.020 billion, reflecting a CAGR of 14.5%[16] - USPI has a consistent track record of approximately 40% Adjusted EBITDA margins[17] Capital Deployment - Approximately 7.8 million shares were repurchased YTD for $1.2 billion[31] - $290 million was spent on M&A YTD, including the acquisition of 11 ambulatory centers and the opening of 2 de novo centers in Q3 2025[32] Cash Flow and Leverage - Q3 2025 Free Cash Flow was $778 million ($567 million Free Cash Flow-NCI)[30] - The EBITDA Leverage Ratio is 2.30x (2.93x EBITDA-NCI)[30]

Core Insights - Tenet Healthcare (THC) reported quarterly earnings of $3.7 per share, exceeding the Zacks Consensus Estimate of $3.33 per share, and up from $2.93 per share a year ago, representing an earnings surprise of +11.11% [1] - The company achieved revenues of $5.29 billion for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 1.02% and showing an increase from $5.12 billion year-over-year [2] - Tenet shares have increased approximately 71.3% year-to-date, significantly outperforming the S&P 500's gain of 16.9% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $4.13 on revenues of $5.39 billion, and for the current fiscal year, it is $15.82 on revenues of $21.16 billion [7] - The estimate revisions trend for Tenet was mixed prior to the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The Medical - Hospital industry, to which Tenet belongs, is currently ranked in the top 16% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Group 1 - The article does not provide any relevant content regarding company or industry insights [1]

Financial Performance - Net income available to common shareholders in Q3 2025 was $342 million, or $3.86 per diluted share, down from $472 million, or $4.89 per diluted share in Q3 2024[4] - Adjusted diluted earnings per share increased 26.3% to $3.70 in Q3 2025 compared to $2.93 in Q3 2024[3] - Operating income decreased to $889 million in Q3 2025, down from $1,089 million in Q3 2024, reflecting a decline in operating margin from 21.2% to 16.8%[34] - Basic earnings per share decreased to $3.89 in Q3 2025 from $4.93 in Q3 2024, a decline of 21.1%[34] - Net income available to Tenet Healthcare Corporation common shareholders for the nine months ended September 30, 2025, was $1,036 million, a decrease of 64.1% from $2,882 million in the same period of 2024[36] - Net income for the nine months ended September 30, 2025, was $1,723 million, compared to $3,492 million for the same period in 2024, indicating a decrease of 50.7%[40] Revenue and Growth - Net operating revenues for Q3 2025 were $5.289 billion, up from $5.126 billion in Q3 2024, representing a growth of 3.2%[4] - For the nine months ended September 30, 2025, net operating revenues were $15,783 million, a 1.2% increase from $15,602 million in the same period of 2024[36] - FY 2025 net operating revenues are projected to be between $21.150 billion and $21.350 billion[14] - Ambulatory Care Adjusted EBITDA for Q3 2025 was $492 million, reflecting a 12.1% increase over Q3 2024[3] - Ambulatory Care segment revenues for the three months ended September 30, 2025, reached $1,275 million, a 11.93% increase from $1,139 million in 2024[42] - Hospital Operations and Services segment revenues for the three months ended September 30, 2025, were $4,014 million, slightly up from $3,987 million in 2024, showing a growth of 0.68%[42] Cash Flow and Liquidity - Cash flows from operating activities for the nine months ended September 30, 2025, were $2.809 billion, compared to $2.378 billion for the same period in 2024[7] - Free cash flow for the nine months ended September 30, 2025, was $2.163 billion, up from $1.777 billion in the prior year[7] - Free cash flow for Q3 2025 was $778 million, a decrease of 6.2% from $829 million in Q3 2024[49] - Adjusted net cash provided by operating activities for Q3 2025 was $1,061 million, compared to $1,100 million in Q3 2024[49] - The company reported a net cash provided by operating activities of $2,809 million for the nine months ended September 30, 2025, compared to $2,378 million in 2024, an increase of 18.09%[40] - The company anticipates free cash flow for FY 2025 to be between $2,275 million and $2,525 million[61] Adjusted EBITDA and Margins - Consolidated Adjusted EBITDA in Q3 2025 rose 12.4% to $1.099 billion, with an Adjusted EBITDA margin of 20.8%[3] - Adjusted EBITDA for the three months ended September 30, 2025, was $1,099 million, up from $978 million in 2024, reflecting an increase of 12.34%[42] - Adjusted EBITDA is a key performance measure, with the company regularly reviewing it for each operating segment[25] - Adjusted EBITDA margin for FY 2025 is expected to be between 21.1% and 21.4% of net operating revenues[57] Debt and Equity - The company's ratio of net debt to Adjusted EBITDA improved to 2.30x at September 30, 2025, down from 2.45x at June 30, 2025[7] - Total shareholders' equity decreased to $4,014 million as of September 30, 2025, from $4,171 million on December 31, 2024, a decline of 3.77%[38] - Total current liabilities increased to $4,560 million as of September 30, 2025, compared to $4,310 million on December 31, 2024, marking an increase of 5.79%[38] Future Projections - The company expects FY 2025 Adjusted EBITDA to be in the range of $4.47 billion to $4.57 billion, a $50 million increase at the midpoint[3] - The company projects adjusted net income available to common shareholders for FY 2025 to be between $1,450 million and $1,480 million[52] - The projected diluted earnings per share for FY 2025 is estimated to be between $14.66 and $15.37[52] - Net cash provided by operating activities for FY 2025 is projected to be between $3,150 million and $3,500 million[61]

Oct 28, 2025 6:45 AM Eastern Daylight Time Tenet Reports Strong Third Quarter 2025 Results; Raises 2025 Financial Outlook Share DALLAS--(BUSINESS WIRE)--Tenet Healthcare Corporation (Tenet) (NYSE: THC) today announced its results for the quarter ended September 30, 2025. "Our high acuity service line focus and operational discipline enabled us to deliver strong same store revenue growth and attractive operational performance and free cash flow in the third quarter," said Saum Sutaria, M.D., Chairman and Chi ...

Core Insights - Tenet Healthcare Corporation (THC) is scheduled to report its third-quarter 2025 results on October 28, 2025, with earnings estimated at $3.33 per share and revenues of $5.24 billion, reflecting year-over-year increases of 13.7% and 2.2% respectively [1][6] Financial Performance - The earnings estimate for the third quarter has remained stable over the past 60 days, indicating a year-over-year increase of 13.7%, while the revenue estimate suggests a growth of 2.2% [2] - For the full year 2025, the revenue estimate stands at $21.16 billion, implying a rise of 2.4% year-over-year, and the earnings per share estimate is $15.82, indicating a significant jump of 33.2% year-over-year [3] Earnings Prediction - The current model does not predict an earnings beat for Tenet Healthcare, as it has an Earnings ESP of 0.00% and a Zacks Rank of 4 (Sell) [4] - The consensus estimate for adjusted patient admissions in total hospital operations suggests a 2.7% year-over-year growth, but on a same-hospital basis, there is a projected decrease of 5.7% [5] Segment Performance - The Ambulatory Care segment is expected to show strong performance, with operating revenues estimated to grow by 8.5% year-over-year, while the consensus indicates a 10.7% increase [7] - The Zacks Consensus Estimate for Hospital Operations and Services revenues is pegged at $3.99 billion, reflecting a slight increase of 0.2% from the previous year [8] Operational Challenges - Total hospital patient days are expected to decrease by 4.4% year-over-year, and the average length of stay is projected to decline by 8.8% [9][10] - Increased utilization is anticipated to lead to higher operating costs, contributing to uncertainty regarding an earnings beat [10]

Group 1 - Tenet Healthcare Inc. stock price is currently at $201.81, reflecting a 0.15% decrease in the current market session, but has increased by 4.52% over the past month and 28.04% over the past year [1] - The company's P/E ratio is 12.7, which is significantly lower than the industry average P/E ratio of 17.77 in the Health Care Providers & Services sector [6] - A lower P/E ratio may suggest that shareholders expect the stock to perform worse than its industry peers or that the stock is undervalued [6] Group 2 - The P/E ratio is a critical metric for long-term shareholders to evaluate market performance against historical earnings and industry standards [5] - While a low P/E ratio can indicate undervaluation, it may also reflect weak growth prospects or financial instability [9] - Investors should consider the P/E ratio alongside other financial metrics, industry trends, and qualitative factors for a comprehensive analysis of a company's financial health [9]

Core Insights - Tenet Healthcare Corporation (NYSE: THC) stock is reaching levels near both 52-week and all-time highs, last seen in September 2002, indicating strong market performance over two decades [1] Company Performance - The stock performance of Tenet Healthcare Corporation is highlighted as it approaches significant historical highs, suggesting positive investor sentiment and potential growth opportunities [1] Market Context - The current stock levels reflect a broader trend in the healthcare sector, where companies are experiencing increased investor interest and market activity [1]

Core Insights - Tenet Healthcare Corporation (NYSE: THC) stock is reaching levels near both 52-week and all-time highs, last seen in September 2002, indicating strong market performance over two decades [1] Company Performance - The stock performance of Tenet Healthcare Corporation is highlighted as it approaches significant historical highs, suggesting positive investor sentiment and potential growth opportunities [1]

Core Viewpoint - Tenet Healthcare (THC) has shown strong stock performance recently, with an 8.1% return over the past month, outperforming the S&P 500's 2.7% and the Zacks Medical - Hospital industry's 4.3% [1] Earnings Estimates - Tenet is expected to report earnings of $3.35 per share for the current quarter, reflecting a year-over-year increase of 14.3% [4] - The consensus earnings estimate for the current fiscal year is $15.54, indicating a year-over-year change of 30.8% [4] - For the next fiscal year, the consensus estimate is $15.96, showing a 2.7% increase from the previous year [5] Revenue Growth - The consensus sales estimate for the current quarter is $5.25 billion, representing a year-over-year change of 2.4% [10] - Estimated revenues for the current and next fiscal years are $21.15 billion and $22.14 billion, indicating changes of 2.4% and 4.6%, respectively [10] Recent Performance - In the last reported quarter, Tenet achieved revenues of $5.27 billion, a year-over-year increase of 3.3% [11] - The EPS for the same period was $4.02, compared to $2.31 a year ago, with a revenue surprise of 2.42% and an EPS surprise of 41.55% [11][12] Valuation - Tenet is graded A in the Zacks Value Style Score, indicating it is trading at a discount compared to its peers [16] - The evaluation of valuation multiples such as P/E, P/S, and P/CF suggests that Tenet's stock is fairly valued or undervalued relative to its historical values and peers [14][15] Conclusion - The Zacks Rank 2 for Tenet suggests potential outperformance in the near term, supported by strong earnings and revenue growth projections [17]