Tenet Healthcare Crushes Q2 Estimates, Raises 2026 Outlook
THC sits 56% above its 52-week low of $146.6.
Summary
Tenet Healthcare delivered a massive Q2 beat, with revenue of $5.63B topping the $5.42B consensus and adjusted EPS of $6.12 nearly 50% above the $4.22 estimate. Same-facility patient revenue growth, higher acuity service mix, and disciplined expense management drove the outperformance. Management raised full-year 2026 guidance across the board: adjusted EBITDA now seen at $4.83B-$5.03B, adjusted free cash flow at $2.725B-$3.025B (up $225M at the midpoint), and net operating revenue at $21.9B-$22.5B. The board also authorized a $2B increase to the share buyback program, signaling strong confidence in cash generation. This follows the Q1 beat and guidance raise in April, reinforcing a pattern of accelerating operational momentum. The stock, which closed at $195.35 on July 22, now trades at just 11x forward earnings with a median analyst target of $241.78, leaving significant room for multiple expansion if execution continues.
At the time of this announcement, THC was trading at $228.00 on NYSE in the Life Sciences sector, with a market capitalization of approximately $17.1B. The 52-week trading range was $146.60 to $247.21. This news item was assessed with positive market sentiment and an importance score of 9 out of 10. Source: Reuters.