$THC · TENET HEALTHCARE CORP
Tenet Healthcare reported Q3 FY2026 results with net operating revenues of $5.631B (+6.5% YoY) and diluted EPS of $12.41, up from $3.86 a year ago. Operating income nearly doubled to $1.750B, boosted by $646M in revenue from the CHI contract termination under the January 2026 Omnibus Agreement. The company repurchased $1.615B in stock during the first nine months, shrinking the basic share count to 80.1M from 87.95M.
- Q3 diluted EPS of $12.41 vs $3.86 in prior-year quarter, driven by $646M revenue from CHI contract termination
- Net operating revenues rose 6.5% YoY to $5.631B; Hospital Operations +6.1%, Ambulatory Care +7.5%
- Nine-month net income available to common shareholders reached $2.528B vs $1.036B in prior year
- Share count dropped ~8.9% YoY (80.1M basic vs 87.95M) from aggressive buybacks; $1.615B repurchased YTD
- CHI Omnibus Agreement delivered $1.9B total consideration, with $540M offset against Conifer minority redemption
Extended-hours trading shows THC at $268.00, down 0.95% from the $270.57 regular close — a modest fade despite blowout headline numbers, likely reflecting that the $646M contract termination gain is non-recurring.
Operating income nearly doubled and nine-month EPS hit $30.08, but the CHI wind-down and surging uninsured admissions create a bifurcated story for 2027.
Tenet's 96.9% operating income growth and aggressive buyback pace outstrip peers HCA and UHS, though the CHI contract termination gain flatters the comparison. Ambulatory Care segment growth of 9.1% YTD reflects the industry shift toward outpatient settings.
Charity and uninsured admissions jumped 25.6% YoY on a same-hospital basis, with estimated costs for uninsured patients rising to $144M from $99M. The CHI MSA Agreement concludes December 31, 2026, removing a revenue stream.