Core Viewpoint - Tenet Healthcare reported strong Q3 2025 earnings, with adjusted EPS of $3.70, exceeding estimates by 11.1% and showing a year-over-year increase of 26.3% [2][3]. Financial Performance - Net operating revenues for Q3 2025 reached $5.3 billion, a 3.2% increase year over year, surpassing consensus estimates by 1% [2][3]. - Adjusted net income rose to $328 million, reflecting a 16.3% year-over-year growth [4]. - Adjusted EBITDA improved by 12.4% year over year to $1.1 billion, exceeding estimates [4]. - Total operating costs increased by 8.9% year over year to $4.5 billion, primarily due to higher supplies expenses [5]. Segment Performance - **Hospital Operations and Services**: - Net operating revenues were $4 billion, up 0.7% year over year, driven by improved same-hospital admissions and a favorable payer mix [6]. - Adjusted EBITDA for this segment climbed 12.6% year over year to $607 million [7]. - **Ambulatory Care**: - Net operating revenues increased by 11.9% year over year to $1.3 billion, supported by facility buyouts and service line expansions [8]. - Adjusted EBITDA reached $492 million, a 12.1% year-over-year increase [9]. Financial Position - As of September 30, 2025, Tenet had cash and cash equivalents of $3 billion, a decline of 1.5% from the end of 2024 [10]. - Total assets increased to $29.4 billion from $28.9 billion at the end of 2024 [10]. - Long-term debt slightly increased to $13.1 billion, while total shareholders' equity decreased by 3.8% to $4 billion [11]. Share Repurchase and Outlook - In Q3 2025, Tenet repurchased shares worth $93 million, with an authorization of approximately $1.7 billion remaining [12]. - The company raised its 2025 revenue outlook to $21.15-$21.35 billion, indicating a 2.8% growth from 2024 [13]. - Adjusted EBITDA is now expected to be between $4.47 billion and $4.57 billion, reflecting a 13% growth from 2024 [15]. Industry Context - Tenet is part of the Zacks Medical - Hospital industry, where Universal Health Services reported a 13.4% year-over-year revenue increase in its latest quarter [22]. - Universal Health Services has a Zacks Rank 1 (Strong Buy), contrasting with Tenet's Zacks Rank 3 (Hold) [20][23].

Core Insights - Tenet Healthcare reported revenue of $5.27 billion for the quarter ended June 2025, marking a year-over-year increase of 3.3% and exceeding the Zacks Consensus Estimate by 2.43% [1] - The earnings per share (EPS) for the same period was $4.02, a significant increase from $2.31 a year ago, representing a surprise of 41.55% over the consensus estimate of $2.84 [1] Financial Performance Metrics - Adjusted admissions were reported at 211.52 thousand, below the two-analyst average estimate of 223.82 thousand [4] - Net Operating revenues were $5.27 billion, surpassing the average estimate of $5.13 billion based on four analysts, with a year-over-year change of 3.3% [4] - Net Operating revenues from Ambulatory Care reached $1.27 billion, exceeding the estimated $1.23 billion and reflecting an 11.3% increase compared to the previous year [4] - Hospital Operations and Services generated $4 billion in revenue, compared to the average estimate of $3.92 billion, indicating a 1% year-over-year change [4] - Equity in earnings of unconsolidated affiliates was $61 million, slightly above the average estimate of $60.53 million [4] - Adjusted EBITDA for Hospital Operations and Services was reported at $623 million, exceeding the average estimate of $505.06 million [4] - Adjusted EBITDA for Ambulatory Care was $498 million, slightly above the average estimate of $496.33 million [4] Stock Performance - Tenet's shares have returned 3.3% over the past month, compared to a 5.9% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]