Highlights

  • Net income available to common shareholders was $826 million, or $9.84 per diluted share, in the second quarter of 2026.
  • Net operating revenues were $5,628 million, compared with $5,271 million, and the quarter included $413 million of revenue from contract termination.
  • Adjusted EBITDA was $1,304 million for the quarter, made up of $762 million in Hospital Operations and $542 million in Ambulatory Care.
  • Management raised 2026 adjusted EBITDA guidance to a range of $4.83 billion to $5.03 billion on its July 24, 2026 call.

Tenet Healthcare Corporation (NYSE: THC) shares were trading at USD 259.51 on October 27, 2026, down 3.51%, with a relative volume at time of 4.18. The hospital and ambulatory care operator filed its Form 10-Q for the quarter ended June 30, 2026 on July 29, 2026, after reporting second quarter results and raising its 2026 outlook on July 24, 2026.

Tenet is a Nevada corporation with principal executive offices at 14201 Dallas Parkway in Dallas, Texas. Its business has two segments. Hospital Operations includes acute care and specialty hospitals, employed physicians, outpatient facilities and the revenue cycle management business Conifer Health Solutions. At June 30, 2026 its subsidiaries operated 50 hospitals in eight states and 135 outpatient facilities. The Ambulatory Care segment, through USPI, held interests in 538 ambulatory surgery centers and 26 surgical hospitals in 37 states. The fiscal year ends December 31.

Second Quarter Results

Net operating revenues were $5,628 million, up 6.8% from $5,271 million in the second quarter of 2025. Hospital Operations revenues were $4,240 million and Ambulatory Care revenues were $1,388 million. The company recognized $413 million of revenue related to the termination of the revenue cycle management agreement between CommonSpirit Health, formerly Catholic Health Initiatives, and Conifer.

Operating income was $1,501 million, compared with $823 million. Net income was $1,045 million, of which $219 million was available to noncontrolling interests. Net income available to Tenet common shareholders was $826 million, compared with $288 million, and diluted earnings per share were $9.84, compared with $3.14. Income tax expense was $295 million.

Expenses also rose. Salaries, wages and benefits were $2,231 million, supplies were $984 million, and other operating expenses, net were $1,174 million. Impairment and restructuring charges, and acquisition-related costs were $31 million, and litigation and investigation costs were $3 million. Interest expense was $204 million.

On volumes, total admissions rose 2.8% and adjusted admissions rose 3.2%, while charity and uninsured admissions rose 19.2%. Total surgeries decreased 0.1%. Ambulatory Care consolidated cases rose 5.3%. On the call, management said exchange revenues declined 17% from the second quarter of 2025.

Cash Flow, Debt and Capital

Net cash provided by operating activities was $2.226 billion for the six months ended June 30, 2026, compared with $1.751 billion, and included contract termination payments received of $540 million. Capital expenditures were $348 million, and the company anticipates $700 million to $800 million for 2026. Net cash used in financing activities was $2.419 billion.

Senior unsecured and senior secured notes outstanding totaled $12.662 billion, with maturities from November 2027 through November 2033. The company had no borrowings under its Credit Agreement, which provided up to $1.900 billion. It repurchased 7.021 million shares in the six months, and $2.130 billion was available under the repurchase program at June 30, 2026. On the call, management said the board authorized a $2 billion increase to the program.

2026 Outlook

On the July 24, 2026 call, management said it expects 2026 net operating revenues of $21.9 billion to $22.5 billion and adjusted EBITDA of $4.83 billion to $5.03 billion. It expects USPI adjusted EBITDA of $2.16 billion to $2.22 billion and hospital adjusted EBITDA of $2.67 billion to $2.81 billion. Management said it expects adjusted free cash flow after noncontrolling interests of $1.825 billion to $2.055 billion, which includes about $150 million of tax payments from the Conifer transaction. It also said it expects to spend more than $300 million on acquisitions in 2026 and expects exchange trends seen in the second quarter to roughly continue through the rest of the year.