Tenet Healthcare Corporation (THC) AI Stock Analysis

Tenet Healthcare Corporation operates through three segments: Hospital Operations and Other, Ambulatory Care, and Conifer. Its network of general hospitals provides comprehensive acute care services, including surgical facilities, clinical laboratories, radiology, respiratory therapy, and pharmacies. The company offers specialized units in intensive care, cardiovascular medicine, neurosciences, and obstetrics, as well as complex procedures like organ transplants and acute trauma care. In addition to general hospitals, it runs ambulatory surgery and urgent care centers, micro-hospitals, and imaging facilities. Through its Conifer subsidiary, the company provides healthcare business process solutions such as revenue cycle management and value-based care support.

Over the past five fiscal years, Tenet Healthcare increased revenue at a 3.9% compound annual growth rate, expanding from $19.48B in FY2021 to $21.31B in FY2025. Annual net income rose from $914.0M in FY2021 to $1.41B in FY2025, after a high of $3.20B in FY2024 when operating margin reached 28.8%. In FY2025, operating margin settled at 16.1% with gross margin at 82.3%, generating diluted earnings per share of $16.78. Momentum continued into the latest quarter ending June 30, 2026, where quarterly revenue grew 6.8% year-over-year and quarterly earnings climbed 213.4%. Trailing twelve-month revenue reached $21.81B with earnings per share of $25.40.

As of June 30, 2026, Tenet Healthcare held $2.17B in cash and short-term investments against total debt of $13.25B, resulting in net debt of $11.08B. The company closed the quarter with a current ratio of 1.41 and a debt-to-equity ratio of 2.84 based on $4.66B in shareholders' equity. Cash generation remained positive, producing $3.54B in operating cash flow and $2.53B in free cash flow during FY2025. Tenet directed capital back into operations and equity, spending $1.01B on capital expenditures and $1.44B on share buybacks in FY2025, contributing to a 22.9% reduction in share count over five years.

Tenet Healthcare trades at a trailing price-to-earnings ratio of 10.5x and a forward price-to-earnings ratio of 12.5x, representing a significant discount to the median of its US-listed Healthcare peers at 24.6x and 17.3x, respectively. The company carries an enterprise value to EBITDA multiple of 5.7x, compared to the peer median of 12.0x, and a price-to-sales multiple of 1.0x versus 4.1x for peers. Over the trailing 12 months, Tenet shares gained 34.2%, outperforming the 16.8% return of the S&P 500 benchmark. Over a five-year period, its 320.5% return also surpassed the S&P 500 return of 83.0%.

Wall Street analysts hold a positive outlook on Tenet Healthcare, with 14 Strong Buy, 5 Buy, and 4 Hold ratings. The consensus mean price target is $286.41, representing a 7.2% premium over the last close of $267.25 on October 16, 2026. For the current fiscal year ending December 31, 2026, consensus estimates project revenue of $22.42B and earnings per share of $21.22, reflecting 26.5% earnings growth. Over the last four quarters, the company beat earnings estimates in all 4 periods. The company's next earnings report is scheduled for October 29, 2026.

This page is an AI-written research summary of Tenet Healthcare Corporation (THC). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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