$THC · TENET HEALTHCARE CORP
Tenet Healthcare reported Q3 2026 results with net income available to common shareholders of $1.000 billion ($12.41/diluted share) versus $342 million ($3.86) in Q3 2025. Adjusted diluted EPS was $6.64, up 79.5% YoY, and Consolidated Adjusted EBITDA reached $1.355 billion (+23.3% YoY). Results included a $147 million favorable net impact from accelerated RCM transition timing with CommonSpirit. The company raised its FY2026 Adjusted EBITDA outlook to $5.05–$5.20 billion (a $195M midpoint increase) and Adjusted Free Cash Flow to $2.825–$3.125 billion (a $100M increase).
- Q3 2026 net income available to common shareholders was $1.000 billion ($12.41/diluted share) vs $342 million ($3.86) in Q3 2025.
- Adjusted diluted EPS rose 79.5% YoY to $6.64; Consolidated Adjusted EBITDA grew 23.3% to $1.355 billion.
- Q3 results included a $147 million favorable net impact from RCM Agreements transition timing and efficiencies.
- FY2026 Adjusted EBITDA guidance raised to $5.05B–$5.20B, a $195M increase at the midpoint; Adjusted Free Cash Flow outlook raised by $100M.
- Company repurchased 7.99 million shares for $1.615 billion in the first nine months of 2026; net debt/Adjusted EBITDA improved to 2.11x.
Extended-hours trading shows THC at $271.89, +1.26% vs the regular close of $268.50, reflecting a positive initial reaction to the beat-and-raise quarter. The $21.62B market cap company delivered a 79.5% adjusted EPS surge and a guidance raise, though $147M of the EBITDA beat was timing-related from the CommonSpirit RCM transition.
A 79.5% adjusted EPS surge, a $195M guidance raise, and $1.615B in buybacks make this a standout quarter — but $147M of the beat is timing-related, demanding scrutiny of core run-rate earnings.
Tenet's results reflect the broader hospital sector trend of strong pricing and higher acuity driving revenue per case (+6.1% surgical, +0.2% hospital per adjusted admission), even as surgical case volumes declined 1.5%. The Ambulatory segment's 39.2% Adjusted EBITDA margin underscores the shift toward higher-margin outpatient settings.
$147 million of the Q3 Adjusted EBITDA beat came from timing-related RCM transition adjustments that do not recur; unfavorable payer mix from lower exchange admissions partially offset revenue growth. The $1.9 billion CommonSpirit contract termination revenue stream concludes by year-end 2026.