Start here if you're new
what it is
Tenet runs 49 hospitals and 675-plus outpatient sites, then gets paid by insurers, Medicare, Medicaid, and patients.
how it gets paid
Last year Tenet Healthcare made $21.3B in revenue. managed care was the main engine at $15.0B, or 70% of sales.
why it's growing
Revenue grew 3.1% last year. The report was strong and the in-house outlook for 2026 was higher than most parties expected.
what just happened
Tenet's latest quarter landed at $4.70 in EPS, ahead of the $4.02 estimate by 16.92%.
At a glance
B+ balance sheet — decent shape, but not bulletproof
55/100 earnings predictability — expect surprises
13.8x trailing p/e — the market's not buying it — or you found a deal
13.0% return on capital — nothing to write home about
xvary composite: 72/100 — average
What they do
Tenet runs 49 hospitals and 675-plus outpatient sites, then gets paid by insurers, Medicare, Medicaid, and patients.
Healthcare is local. If your insurer already covers a Tenet facility near your home, you usually stay in that network. Tenet also spreads care across 49 hospitals and 675-plus outpatient sites, which helps it keep patients inside its system and supports a 20.0% operating margin (operating margin → profit after running the business → so what: this is high for a hospital operator).
How they make money
$21.3B
annual revenue · their business grew +3.1% last year
managed care
$15.0B
medicare
$2.7B
medicaid
$2.7B
other payers
$1.0B
The products that matter
operates acute care hospitals
acute care hospitals
49 hospitals
these 49 hospitals anchor the network that helped generate $21.3B in revenue last year.
core infrastructure
runs outpatient and surgery sites
ambulatory and outpatient facilities
675+ facilities
the 675+ additional facilities matter because outpatient care lets a hospital system expand capacity without building another full hospital.
scale engine
Key numbers
$13.1B
long-term debt
That debt equals 39% of capital. You are buying earnings strength with a real balance-sheet leash attached.
20.0%
operating margin
Operating margin → profit after day-to-day costs → so what: Tenet is converting healthcare demand into actual operating profit.
$16.78
2025 EPS
EPS rose from $11.94 in 2024 to $16.78 in 2025. That is why the stock rerated.
13.8x
trailing p/e
P/E → how many dollars you pay for one dollar of earnings → so what: this is not an expensive multiple for 37% past earnings growth.
Financial health
B+
strength
- balance sheet grade B+ — solid but not elite
- risk rank 3 — safer than 50% of stocks
- price stability 30 / 100
- long-term debt $13.1B (39% of capital)
- net profit margin 7.1% — keeps 7 cents of every dollar in revenue
- return on equity 36% — $0.36 profit for every $1 investors have put in
B+ — functional but not a standout on the balance sheet.
Total return vs. market
You invested $10,000 in THC 3 years ago → it's now worth $38,470.
The index would have given you $13,880.
source: institutional data · total return
What just happened
beat estimates
Tenet's latest quarter landed at $4.70 in EPS, ahead of the $4.02 estimate by 16.92%.
The company finished 2025 with momentum. Full-year EPS climbed to $16.78 from $11.94 in 2024, while management's 2026 outlook came in above what most analysts expected.
$15.8B
revenue
$4.70
eps
20.0%
operating margin
the number that mattered
The key number was the $4.70 quarterly EPS print, because it beat the $4.02 estimate by 16.92% and confirmed the earnings surge was still intact.
-
shares of tenet healthcare are trading at all-time heights.on the day that fourth-quarter 2025 results were announced, the stock closed north of the $235 line.
-
the report was strong and the in-house outlook for 2026 was higher than most parties expected.
-
this news was the driving force behind the quotation’s run-up.
-
the company closed out 2025 on the right foot.
-
revenues for the december period came in at $5.527 billion, an all-time quarterly record that bested already lofty expectations by about $50 million.
source: company earnings report, 2026
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What could go wrong
the #1 risk is government reimbursement pressure on hospital and outpatient care.
med
government reimbursement pressure
medicare and medicaid rates matter when you run 49 hospitals and 675+ other care sites. rate pressure hits revenue first and margins immediately after.
6.9% net margin leaves limited room for a payer squeeze
med
leverage and refinancing risk
$13.1B of long-term debt equals 39% of capital. that does not mean distress today. it does mean the balance sheet gets less forgiving if operating trends soften.
debt amplifies both the 36% ROE headline and the downside if earnings slip
med
cost inflation across labor and operations
hospital businesses do not need a dramatic cost shock to feel pain. with a 6.9% net margin, wage pressure or supply inflation can erase a meaningful chunk of profit.
thin margins make execution errors expensive
$13.1B in debt and a 6.9% net margin mean this story works best when reimbursement holds and operating discipline stays tight.
source: institutional data · regulatory filings · risk analysis
Pay attention to
metric
operating margin
19.2% operating margin is doing a lot of work here. if it slips while revenue stays near +3%, the earnings story gets less impressive fast.
trend
EPS growth versus revenue growth
last year was +3.1% revenue growth against +41% EPS growth. watch whether that gap stays wide or starts closing.
risk
reimbursement and cost pressure
a 6.9% net margin means policy changes, labor costs, and other operating pressure do not need to be dramatic to matter.
calendar
next earnings report
watch for Q1 2026 results in late April or early May. this is where management has to prove 2025 was not just a clean quarter string.
Analyst rankings
short-term outlook
top 5%
momentum score 1 — the highest rating. in human-speak: analysts think this stock has better near-term odds than almost everything else they cover.
risk profile
average
stability score 3 — typical risk profile. not defensive, not chaos.
chart momentum
top 20%
technical score 2 — the trend is still your friend, even after the run.
earnings predictability
55 / 100
good enough to model, noisy enough to surprise. hospitals do that.
source: institutional data
Institutional activity
institutions have been net buying for 3 consecutive quarters — 325 buyers vs. 315 sellers in 3q2025. total institutional holdings: 85.1M shares. net buying for 3 quarters.
source: institutional data
Price targets
3-5 year target range
$156
$367
$231
current price
$262
target midpoint · +13% from current · 3-5yr high: $310 (+35% · 8% ann'l return)
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