Tenet Beats Q2 Earnings on Strong Patient Volumes, Hikes '25 EPS View

Core Insights - Tenet Healthcare Corporation (THC) reported strong second-quarter 2025 results with adjusted earnings per share (EPS) of $4.02, exceeding estimates by 41.6% and showing a year-over-year increase of 74% [1][10] - Net operating revenues rose 3.2% year over year to $5.3 billion, surpassing consensus estimates by 2.4% [1][10] Financial Performance - Adjusted net income for the quarter was $369 million, a 63.3% increase year over year [3] - Adjusted EBITDA improved 18.6% year over year to $1.1 billion, exceeding estimates [3] - Adjusted EBITDA margin increased by 280 basis points to 21.3% [3] Segment Performance - Hospital Operations and Services segment generated net operating revenues of $4 billion, a 0.9% year-over-year increase, beating estimates [5] - Ambulatory Care segment saw net operating revenues rise 11.3% year over year to $1.3 billion, also exceeding estimates [7] Cost and Expenses - Total operating costs increased 2.3% year over year to $4.5 billion, primarily due to higher supplies expenses [4] Cash Flow and Financial Position - Cash and cash equivalents stood at $2.6 billion, down 13.1% from the end of 2024 [9] - Net cash from operations for the first half of 2025 was $1.8 billion, a 31.4% increase year over year [12] Share Repurchase and Guidance - THC repurchased shares worth $747 million in Q2 2025 and increased the share repurchase program by $1.5 billion [13] - The company raised its 2025 adjusted EPS guidance to $15.55-$16.21, indicating a 33.7% rise from the previous year [18]