THC · Tenet Healthcare Corporation

Tenet Healthcare delivered robust Q1 2026 results, with GAAP net income surging to $702 million or $8.01 per diluted share from $406 million or $4.27 in Q1 2025, driven by a $413 million revenue gain ($314 million after-tax) from the early CommonSpirit Health contract conclusion and $40 million in previously deferred revenue recognition. Adjusted EBITDA held steady at $1.162 billion despite payer mix headwinds from lower exchange admissions, supported by same-facility revenue growth and expense discipline; the 21.6% margin reflects operational resilience. In Ambulatory Care (USPI), revenues rose 10.6% to $1.320 billion, with same-facility system-wide net patient service revenues up 5.3% on 5.6% higher revenue per case from acuity and service mix shifts, lifting Adjusted EBITDA 6.1% to $484 million. Hospital segment revenues edged up 0.5% to $4.048 billion, but Adjusted EBITDA declined to $678 million from $707 million due to absent prior-year $40 million Medicaid supplemental revenue and payer mix issues, partially offset by efficiencies and the $40 million CommonSpirit deferred revenue. Balance sheet strength improved with net debt to Adjusted EBITDA at 2.24x and adjusted free cash flow of $978 million enabling $318 million in share repurchases. Management reaffirmed FY 2026 guidance, signaling confidence in 3.0%-6.0% Ambulatory same-facility growth and 1.0%-2.0% Hospital admission increases amid high-acuity strategy execution and inorganic expansion. CEO Saum Sutaria highlighted disciplined operations, strong cash flow, and physician partnership innovation.