Tenet Healthcare Q3 adjusted EBITDA rises to $1.36B
The revised outlook sets full-year Adjusted EBITDA at $5.05 billion to $5.20 billion and adjusted free cash flow at $2.825 billion to $3.125 billion.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Form Type
8-K
Rhea-AI Filing Summary
Tenet Healthcare Corporation (THC) reported third-quarter 2026 net operating revenues of $5.631 billion, up 6.5% from $5.289 billion, and net income available to common shareholders of $1.000 billion, versus $342 million a year earlier. Adjusted EBITDA was $1.355 billion, up 23.3%; adjusted diluted EPS was $6.64, up 79.5% from $3.70. Adjusted EBITDA included a $147 million favorable impact from RCM transition activities and timing adjustments.
RCM catch-up adjustments increased revenue from contract termination by $233 million and net operating revenues by $97 million; Tenet said they do not affect full-year expectations for revenue from contract termination or RCM-related net operating revenues. Together, the $97 million adjustment and an approximately $50 million transition benefit resulted in the $147 million Adjusted EBITDA impact. The transition was expected to be substantially complete by October 30, 2026. FY 2026 outlook is $5.05 billion to $5.20 billion adjusted EBITDA and $2.825 billion to $3.125 billion adjusted free cash flow, with midpoint increases of $195 million and $100 million.
In September, Tenet issued $2.0 billion of 6.250% senior notes due 2034; net proceeds and cash on hand funded redemption of all $1.5 billion then outstanding of 5.125% notes due 2027 and partial redemption of $500 million of 6.125% notes due 2028.
4 points · 1 major0 major · 0 points
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Hollow bars mark forward-looking points. How the balance works
Positive
- Major point. Forward-looking: it has not happened yet and may not happen.FY 2026 adjusted EBITDA outlook midpoint increased $195 million.
- Moderate pointThird-quarter net operating revenues increased 6.5% to $5.631 billion.
- Moderate pointThird-quarter Adjusted EBITDA rose 23.3% to $1.355 billion.
- Moderate pointAdjusted diluted EPS increased 79.5% to $6.64.
Negative
- None.
Filing Explained
Tenet reports completed common-stock repurchases of 970,000 shares for
8-K Event Classification
2 items: 2.02, 9.01
2 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, or exhibit attachments filed with this report.
Key Figures
Net operating revenues: $5.631 billion
Net income available to common shareholders: $1.000 billion
Adjusted EBITDA: $1.355 billion
+4 more
7 metrics
Net operating revenues
$5.631 billion
Third quarter 2026; up 6.5% from $5.289 billion in third quarter 2025.
Net income available to common shareholders
$1.000 billion
Third quarter 2026; $342 million in third quarter 2025.
Adjusted EBITDA
$1.355 billion
Third quarter 2026; up 23.3% from $1.099 billion in third quarter 2025.
Adjusted diluted earnings per share
$6.64 per share
Third quarter 2026; up 79.5% from $3.70 in third quarter 2025.
Net cash provided by operating activities
$3.507 billion
Nine months ended September 30, 2026; compared with $2.809 billion for the nine months ended September 30, 2025.
FY 2026 Adjusted EBITDA outlook
$5.05 billion to $5.20 billion
Outlook range; midpoint increased by $195 million.
FY 2026 Adjusted Free Cash Flow outlook
$2.825 billion to $3.125 billion
Outlook range; increased by $100 million.
Key Terms
Adjusted EBITDA, Adjusted diluted earnings per share, Adjusted free cash flow, Same-facility system-wide net patient service revenues, +1 more
5 terms
Adjusted EBITDA financial
"Adjusted EBITDA margin was 24.1%"
Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.
Adjusted free cash flow financial
"Adjusted free cash flow outlook now expected"
Adjusted free cash flow is the amount of money a company generates from its operations after accounting for essential expenses and investments, like maintaining or upgrading equipment. It shows how much cash is truly available to grow the business, pay debts, or return to shareholders, helping investors see the company's financial health more clearly.
Same-facility system-wide net patient service revenues financial
"Same-facility system-wide net patient service revenues increased 4.5%"
Revenue from contract termination financial
"revenue from contract termination by $233 million"
Earnings Snapshot
Net operating revenues: $5.631 billion · Guidance included
Third quarter 2026, ended September 30, 2026
Net operating revenues
$5.631 billion
6.5% increase from $5.289 billion in third quarter 2025
Net income available to common shareholders
$1.000 billion
Compared with $342 million in third quarter 2025
Adjusted EBITDA
$1.355 billion
23.3% increase from $1.099 billion in third quarter 2025
Adjusted diluted earnings per share
$6.64
79.5% increase from $3.70 in third quarter 2025
Guidance
FY 2026 outlook: Adjusted EBITDA of $5.05 billion to $5.20 billion, a $195 million increase at the midpoint; Adjusted Free Cash Flow of $2.825 billion to $3.125 billion, a $100 million increase.
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
How did Tenet (THC) perform in Q3 2026?
Third-quarter net operating revenues were $5.631 billion, up 6.5% from $5.289 billion a year earlier. Net income available to common shareholders was $1.000 billion versus $342 million; Adjusted EBITDA was $1.355 billion, up 23.3%, and adjusted diluted EPS was $6.64, up 79.5%.
What is Tenet's FY 2026 adjusted EBITDA and free cash flow outlook?
Tenet's FY 2026 outlook is adjusted EBITDA of $5.05 billion to $5.20 billion, a $195 million increase at the midpoint, and adjusted free cash flow of $2.825 billion to $3.125 billion, a $100 million increase.
How did the RCM transition affect Tenet's third-quarter results?
Cumulative catch-up adjustments increased third-quarter revenue from contract termination by $233 million and net operating revenues by $97 million. Tenet also recognized an approximately $50 million benefit from transition activities. Together, the $97 million adjustment and transition benefit resulted in a $147 million favorable net impact to Adjusted EBITDA.
How many facilities did USPI have interests in?
As of September 30, 2026, USPI had interests in 535 ambulatory surgery centers, including 406 consolidated, and 25 surgical hospitals, including seven consolidated, in 37 states.
AI-generated analysis. How Rhea-AI works. Not financial advice.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_______________
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
_______________
Date of Report: October 29, 2026
(Date of earliest event reported)
_______________
(Exact name of registrant as specified in its charter)
| (State of Incorporation) | (Commission File Number) | (IRS Employer Identification Number) | ||||||||||||
(Address of principal executive offices, including zip code)
(469 ) 893-2200
(Registrant’s telephone number, including area code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |||||
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
Emerging Growth Company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
| Item 2.02. | Results of Operations and Financial Condition. | ||||
The information contained herein is being furnished pursuant to Item 2.02 of Form 8-K, “Results of Operations and Financial Condition.” This information shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
On October 29, 2026 , Tenet Healthcare Corporation (the “Company”) issued a press release reporting the financial results of the Company for the quarter ended September 30, 2026. A copy of the press release is attached to this report as Exhibit 99.1 and incorporated herein by reference.
| Item 9.01. | Financial Statements and Exhibits. | ||||
(d)Exhibits
| Exhibit No. | Description | |||||||
| 99.1 | Press Release issued on October 29, 2026 | |||||||
| 104 | Cover Page Interactive Data File (embedded within the inline XBRL document) | |||||||
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| TENET HEALTHCARE CORPORATION | ||||||||
Date: | By: | /s/ J. MICHAEL GROOMS | ||||||
| J. Michael Grooms | ||||||||
| Senior Vice President, Controller | ||||||||
Exhibit 99.1
Tenet Reports Strong Third Quarter 2026 Results;
Raises 2026 Financial Outlook
•Net income available to common shareholders in third quarter 2026 was $1.000 billion, or $12.41 per diluted share compared to $342 million, or $3.86 in third quarter 2025
•Adjusted diluted earnings per share1 increased 79.5% to $6.64 in third quarter 2026 compared to $3.70 in third quarter 2025
•Third quarter 2026 Consolidated Adjusted EBITDA1 increased 23.3% over third quarter 2025 to $1.355 billion; Third quarter 2026 Adjusted EBITDA margin was 24.1%
•Third quarter 2026 Ambulatory Care Adjusted EBITDA of $537 million increased 9.1% over third quarter 2025
•FY 2026 Adjusted EBITDA Outlook is now expected to be in the range of $5.05 billion to $5.20 billion, a $195 million increase at the midpoint of the range; FY 2026 Adjusted Free Cash Flow outlook now expected to be in the range of $2.825 billion to $3.125 billion, a $100 million increase
DALLAS — October 29, 2026 — Tenet Healthcare Corporation (Tenet) (NYSE: THC) today announced its results for the quarter ended September 30, 2026.
"Our outperformance in the third quarter of 2026 was driven by sustained strength in same-store revenue growth and effective expense management," said Saum Sutaria, M.D., Chairman and Chief Executive Officer of Tenet. "Our focus on patient-centered care, support for physician partners, technology-enabled growth and operating initiatives continue to deliver strong margins and free cash flow."
Page 1
Tenet’s results for third quarter 2026 versus third quarter 2025 are as follows:
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
| ($ in millions, except per share results) | 2026 | 2025 | 2026 | 2025 | ||||||||||
Net operating revenues7 | $5,631 | $5,289 | $16,627 | $15,783 | ||||||||||
| Net income available to Tenet common shareholders | $1,000 | $342 | $2,528 | $1,036 | ||||||||||
| Net income available to Tenet common shareholders per diluted share | $12.41 | $3.86 | $30.08 | $11.28 | ||||||||||
Adjusted EBITDA1 | $1,355 | $1,099 | $3,821 | $3,383 | ||||||||||
Adjusted diluted earnings per share1 | $6.64 | $3.70 | $17.50 | $12.10 | ||||||||||
•Net income available to the Company’s common shareholders in third quarter 2026 was $1.000 billion, or $12.41 per diluted share, versus $342 million, or $3.86 per diluted share, in third quarter 2025.
•The Company had previously entered into certain agreements with CommonSpirit Health, related to Conifer Health Solutions, LLC ("Conifer"), whereby the parties agreed, in part, to the early conclusion and transition of our revenue cycle management services by December 31, 2026, (collectively, the "RCM Agreements").
•The transition of certain revenue cycle management services under the RCM Agreements occurred during the third quarter of 2026 and will be substantially complete by October 30, 2026. As a result of this revised timeline, during the three months ended September 30, 2026, we recognized cumulative catch-up adjustments that increased revenue from contract termination by $233 million and net operating revenues by $97 million. These are timing-related adjustments and as such, do not impact total or full year 2026 expectations for revenue from contract termination or net operating revenues associated with the RCM Agreements.
•In addition, we recognized a benefit of approximately $50 million during the three months ended September 30, 2026 due to various transition activities, including efficiencies from the revised timeline described above. This, combined with the $97 million timing-related adjustment to net operating revenue mentioned above, resulted in a favorable net impact to Adjusted EBITDA of $147 million in the third quarter of 2026.
•Adjusted EBITDA1 was $1.355 billion in third quarter 2026 compared to $1.099 billion in third quarter 2025, reflecting strong same facility revenue growth and disciplined expense management partially offset by unfavorable payer mix due to lower exchange admissions. Results also include the $147 million favorable net impact described above.
Page 2
Balance Sheet and Cash Flows
•Net cash flows provided by operating activities for the nine months ended September 30, 2026 were $3.507 billion versus $2.809 billion for the nine months ended September 30, 2025.
•The Company generated adjusted free cash flow1 of $2.524 billion for the nine months ended September 30, 2026 versus $2.247 billion for the nine months ended September 30, 2025.
•In the three months ended September 30, 2026, the Company repurchased 970,000 shares of common stock for $255 million. In the nine months ended September 30, 2026, the Company repurchased 7.99 million shares of common stock for $1.615 billion.
•In September 2026, the Company completed a private placement of $2.0 billion in aggregate principal amount of newly issued 6.250% senior notes maturing in 2034. The Company used the net proceeds from the sale of the notes, after payment of fees and expenses, to finance, together with cash on hand, the redemption of all $1.5 billion aggregate principal amount then outstanding of its 5.125% senior secured first lien notes due in 2027 and the partial redemption of $500 million outstanding of its 6.125% senior notes due in 2028.
•The Company’s ratio of net debt to Adjusted EBITDA1 was 2.11x at September 30, 2026 compared to 2.33x at June 30, 2026 and 2.25x at December 31, 2025.
Page 3
Ambulatory Care (Ambulatory) Segment
Tenet’s Ambulatory business segment is comprised of the operations of United Surgical Partners International (USPI). As of September 30, 2026, USPI had interests in 535 ambulatory surgery centers (406 consolidated) and 25 surgical hospitals (seven consolidated) in 37 states.
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
Ambulatory segment results ($ in millions) | 2026 | 2025 | 2026 | 2025 | ||||||||||
| Revenues | ||||||||||||||
| Net operating revenues | $1,371 | $1,275 | $4,079 | $3,739 | ||||||||||
Same-facility system-wide net patient service revenues2 | $2,224 | $2,129 | $6,515 | $6,196 | ||||||||||
| Changes versus the Prior-Year Period | ||||||||||||||
| Same-facility system-wide net patient service revenues | 4.5 | % | 8.3 | % | 5.1 | % | 7.5 | % | ||||||
| Same-facility system-wide net patient service revenue per case | 6.1 | % | 6.1 | % | 6.0 | % | 7.7 | % | ||||||
Same-facility system-wide surgical cases2 | (1.5) | % | 2.1 | % | (0.8) | % | (0.2) | % | ||||||
Same-facility system-wide surgical cases on same-business day basis2 | (1.5) | % | 2.1 | % | (0.8) | % | 0.4 | % | ||||||
| Adjusted EBITDA, Margins and NCI | ||||||||||||||
| Adjusted EBITDA | $537 | $492 | $1,563 | $1,446 | ||||||||||
| Adjusted EBITDA margin | 39.2 | % | 38.6 | % | 38.3 | % | 38.7 | % | ||||||
| Adjusted EBITDA less NCI | $327 | $292 | $948 | $874 | ||||||||||
•Third quarter 2026 net operating revenues increased 7.5% compared to third quarter 2025 driven by strong growth in consolidated same-facility net patient service revenues, acquisitions of facilities, and increased service lines.
•Surgical business same-facility system-wide net patient service revenues increased 4.5% in third quarter 2026 compared to third quarter 2025, with cases down 1.5% and net revenue per case up 6.1%. Net revenue per case growth was driven by higher acuity and favorable service mix.
•Third quarter 2026 Adjusted EBITDA increased 9.1% compared to third quarter 2025, due to strong growth in same-facility net patient service revenues, disciplined expense management, and contributions from acquisitions.
Page 4
Hospital Operations and Services (Hospital) Segment
Tenet’s Hospital business segment is primarily comprised of acute care and specialty hospitals, imaging centers, ancillary outpatient facilities, micro-hospitals and physician practices. It also provides comprehensive end-to-end and focused point services, including hospital and physician revenue cycle management, patient communications and engagement support and value-based care solutions.
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
Hospital segment results ($ in millions) | 2026 | 2025 | 2026 | 2025 | ||||||||||
Revenues | ||||||||||||||
Net operating revenues7 | $4,260 | $4,014 | $12,548 | $12,044 | ||||||||||
Same-hospital net patient service revenues3 | $3,571 | $3,453 | $10,678 | $10,385 | ||||||||||
Same-Hospital Volume Changes versus the Prior-Year Period | ||||||||||||||
Admissions | 2.8 | % | 1.5 | % | 1.8 | % | 2.5 | % | ||||||
Adjusted admissions4 | 3.2 | % | 1.4 | % | 2.1 | % | 1.6 | % | ||||||
Outpatient visits (including outpatient ER visits) | 0.1 | % | (1.5) | % | (0.9) | % | (1.4) | % | ||||||
Emergency Room visits (inpatient and outpatient) | 4.0 | % | (2.0) | % | 0.9 | % | (1.8) | % | ||||||
Hospital surgeries | (1.1) | % | 0.7 | % | (0.9) | % | (0.8) | % | ||||||
| Adjusted EBITDA | ||||||||||||||
Adjusted EBITDA | $818 | $607 | $2,258 | $1,937 | ||||||||||
Adjusted EBITDA margin | 19.2 | % | 15.1 | % | 18.0 | % | 16.1 | % | ||||||
•Third quarter 2026 net operating revenues increased 6.1% from third quarter 2025 driven by an increase in adjusted admissions as well as continued pricing strength, partially offset by unfavorable payer mix due to lower exchange admissions. In addition, third quarter 2026 net operating revenues include a timing-related benefit of $97 million associated with the RCM Agreements as described on page 2.
•Same-hospital net patient service revenue per adjusted admission increased 0.2% year-over-year for third quarter 2026 primarily due to strength in commercial employer net patient revenues offset by unfavorable payer mix related to lower exchange admissions.
•Adjusted EBITDA in third quarter 2026 was $818 million compared to $607 million in third quarter 2025, reflecting strong growth in same-hospital revenue and disciplined expense management, partially offset by unfavorable payer mix due to lower exchange admissions. Results also include the net favorable impact of $147 million from transition activities described on page 2.
•In the third quarter of 2026, the Hospital segment recognized a $32 million favorable pre-tax impact associated with additional Medicaid supplemental revenues related to prior years. Third quarter 2025 results included a $38 million favorable pre-tax impact for additional Medicaid supplemental revenues related to prior years.
Page 5
2026 Outlook1
Tenet’s Outlook for full year 2026 (consolidated and by segment) follows. Contract termination revenue recognized from the early conclusion of the RCM Agreements is not included in net operating revenues.
CONSOLIDATED ($ in millions, except per share amounts) | FY 2026 Outlook | |||||||
Net operating revenues7 | $22,050 to $22,450 | |||||||
| Net income available to Tenet common shareholders | $2,973 to $3,078 | |||||||
| Adjusted EBITDA | $5,050 to $5,200 | |||||||
| Adjusted EBITDA margin | 22.9% to 23.2% | |||||||
| Diluted income per common share | $35.82 to $37.08 | |||||||
| Adjusted net income | $1,830 to $1,910 | |||||||
| Adjusted diluted earnings per share | $22.05 to $23.01 | |||||||
| Equity in earnings of unconsolidated affiliates | $265 to $275 | |||||||
| Depreciation and amortization | $865 to $915 | |||||||
| Interest expense | $815 to $825 | |||||||
Income tax expense5 | $1,135 to $1,170 | |||||||
| Net income available to NCI | $910 to $960 | |||||||
| Weighted average diluted common shares | ~83 million | |||||||
| Net cash provided by operating activities | $3,885 to $4,315 | |||||||
| Adjusted net cash provided by operating activities | $3,525 to $3,925 | |||||||
| Capital expenditures | $700 to $800 | |||||||
| Free cash flow | $3,185 to $3,515 | |||||||
| Adjusted free cash flow | $2,825 to $3,125 | |||||||
| NCI cash distributions | $900 to $970 | |||||||
Page 6
Ambulatory Segment ($ in millions) | FY 2026 Outlook | ||||
| Net operating revenues | $5,530 to $5,670 | ||||
| Adjusted EBITDA | $2,160 to $2,220 | ||||
| NCI | $865 to $895 | ||||
| Adjusted EBITDA less NCI | $1,295 to $1,325 | ||||
Changes versus prior year6: | |||||
| Same-facility system-wide revenues | Up 3.0% to 6.0% | ||||
Hospital Segment ($ in millions) | FY 2026 Outlook | ||||
Net operating revenues7 | $16,520 to $16,780 | ||||
| Adjusted EBITDA | $2,890 to $2,980 | ||||
| NCI | $45 to $65 | ||||
Changes versus prior year6: | |||||
| Inpatient admissions | Up 1.0% to 2.0% | ||||
| Adjusted admissions | Up 1.0% to 2.0% | ||||
Management’s Webcast Discussion of Results
Tenet management will discuss the Company’s third quarter 2026 results in a webcast scheduled for 10:00 a.m. Eastern Time (9:00 a.m. Central Time) on October 29, 2026. Investors can access the webcast through the Company’s website at www.tenethealth.com/investors.
The slide presentation associated with the webcast referenced above, a copy of this earnings press release, and a related supplemental financial disclosures document will be available on the Company’s Investor Relations website on October 29, 2026.
Page 7
Cautionary Statement
This release contains “forward-looking statements” - that is, statements that relate to future, not past, events. In this context, forward-looking statements often address the Company’s expected future business and financial performance and financial condition, and often contain words such as “expect,” “anticipate,” “assume,” “believe,” “budget,” “estimate,” “forecast,” “intend,” “plan,” “predict,” “project,” “seek,” “see,” “target,” or “will.” Forward-looking statements by their nature address matters that are, to different degrees, uncertain. Particular uncertainties that could cause the Company’s actual results to be materially different than those expressed in the Company’s forward-looking statements include, but are not limited to the factors disclosed under “Forward-Looking Statements” and “Risk Factors” in our Form 10-K for the year ended December 31, 2025 and other filings with the Securities and Exchange Commission.
Footnotes
1.Tables and discussions throughout this earnings release include certain financial measures, including those related to our full year 2026 Outlook, that are not in accordance with accounting principles generally accepted in the United States of America (GAAP). Reconciliations of GAAP measures to the Adjusted (non-GAAP) measures used are detailed in Tables #1-6 included at the end of this earnings release. Management’s reasoning for the use of these non-GAAP measures and descriptions of the various non-GAAP measures are included in the Non-GAAP Financial Measures section of this earnings release.
2.Same-facility system-wide revenues and statistical information include the results of the facilities in which the Ambulatory segment has an investment that are not consolidated by Tenet. To help analyze the segment’s results of operations, management uses system-wide measures, which include revenues and cases of both consolidated and unconsolidated facilities.
3.For 2026, same-hospital revenues and statistical data include those for hospitals and hospital-affiliated outpatient centers operated by the Company’s Hospital segment continuously from January 1, 2025 through September 30, 2026. Amounts associated with physician practices are excluded.
4.Adjusted admissions represent actual patient admissions adjusted to include outpatient services provided by facilities in our Hospital segment by multiplying actual patient admissions by the sum of gross inpatient revenues and outpatient revenues, then dividing that result by gross inpatient revenues.
5.Income tax expense is calculated by multiplying 24% (the federal corporate tax rate of 21% plus an estimate of state taxes) by the sum of: pretax income less NCI expense plus permanent differences, and non-deductible interest expense.
6.Change versus prior year is presented on a same-facility system-wide basis for USPI Ambulatory surgical cases and on a same-hospital basis for hospital statistics.
7.Contract termination revenue recognized from the early conclusion of the RCM Agreements is not included in net operating revenues.
Page 8
About Tenet Healthcare
Tenet Healthcare Corporation (NYSE: THC) is a diversified healthcare services company headquartered in Dallas. Our care delivery network includes United Surgical Partners International, the largest ambulatory platform in the country, which operates ambulatory surgery centers and surgical hospitals. We also operate a national portfolio of acute care and specialty hospitals, other outpatient facilities, a network of leading employed physicians and a global business center in Manila, Philippines. Our Conifer Health Solutions subsidiary provides revenue cycle management and value-based care services to hospitals, health systems, physician practices, employers and other clients. Across the Tenet enterprise, we are united by our mission to deliver quality, compassionate care in the communities we serve. For more information, please visit www.tenethealth.com.
Contact Information
| Investor Contact | Media Contact | |||||||
| Will McDowell | Olivia E. Nadler | |||||||
| 469-893-2387 | 469-893-6352 | |||||||
| william.mcdowell@tenethealth.com | mediarelations@tenethealth.com | |||||||
Page 9
Non-GAAP Financial Measures
The Company believes the non-GAAP measures described below are useful to investors and analysts because they present additional information on the Company’s financial performance. Investors, analysts, Company management and the Company’s Board of Directors utilize these non-GAAP measures, in addition to GAAP measures, to track the Company’s financial and operating performance and compare the Company’s performance to its peer companies, which use similar non-GAAP financial measures in their presentations and earnings releases. The Human Resources Committee of the Company’s Board of Directors also uses certain of these measures to evaluate management’s performance for the purpose of determining incentive compensation. Additional information regarding the purpose and utility of specific non-GAAP measures used in this release is set forth below.
•Adjusted EBITDA is defined by the Company as net income available (loss attributable) to Tenet common shareholders before (1) the cumulative effect of changes in accounting principles, (2) net loss attributable (income available) to noncontrolling interests, (3) income (loss) from discontinued operations, net of tax, (4) income tax benefit (expense), (5) gain (loss) from early extinguishment of debt, (6) other non-operating income (expense), net, (7) interest expense, (8) litigation and investigation benefit (costs), net of insurance recoveries, (9) net gains (losses) on sales, consolidation and deconsolidation of facilities, (10) impairment and restructuring charges and acquisition-related costs, (11) depreciation and amortization, (12) income (loss) from divested and closed businesses (i.e., health plan businesses) and (13) revenue from contract termination. Revenue from contract termination represents the present value of the $1.9 billion of consideration related to the early termination of Conifer’s revenue cycle services agreement with CommonSpirit (as further described in the Company’s Form 8-K dated February 2, 2026), net of amortization of an associated contract asset. Litigation and investigation benefit (costs) excluded do not include ordinary course of business malpractice and other litigation and related expenses.
•Adjusted diluted earnings (loss) per share is defined by the Company as Adjusted net income available (loss attributable) to Tenet common shareholders, divided by the weighted average diluted shares outstanding in the reporting period.
•Adjusted net income available (loss attributable) to Tenet common shareholders is defined by the Company as net income available (loss attributable) to Tenet common shareholders before (1) income (loss) from discontinued operations, net of tax, (2) gain (loss) from early extinguishment of debt, (3) litigation and investigation benefit (costs), net of insurance recoveries, (4) net gains (losses) on sales, consolidation and deconsolidation of facilities, (5) impairment and restructuring charges and acquisition-related costs, (6) income (loss) from divested and closed businesses (i.e., health plan businesses), (7) revenue from contract termination and (8) the associated impact of these items on taxes and noncontrolling interests. Revenue from contract termination represents the present value of the $1.9 billion of consideration related to the early termination of Conifer’s revenue cycle services agreement with CommonSpirit (as further described in the Company’s Form 8-K dated February 2, 2026), net of amortization of an associated contract asset. Litigation and investigation benefit (costs) excluded do not include ordinary course of business malpractice and other litigation and related expenses.
•Free Cash Flow is defined by the Company as (1) net cash provided by (used in) operating activities, less (2) purchases of property and equipment.
•Adjusted Free Cash Flow is defined by the Company as (1) Adjusted net cash provided by (used in) operating activities, less (2) purchases of property and equipment.
•Adjusted net cash provided by (used in) operating activities is defined by the Company as cash provided by (used in) operating activities prior to (1) payments for restructuring charges, acquisition-related costs and litigation costs and settlements, (2) net cash provided by (used in) operating activities from discontinued operations and (3) cash received for contract termination defined above.
The Company believes that Adjusted EBITDA is a useful measure, in part, because certain investors and analysts use both historical and projected Adjusted EBITDA, in addition to other GAAP and non-GAAP measures, as factors in determining the estimated fair value of shares of the Company’s common stock. Company management also regularly reviews the Adjusted EBITDA performance for each operating segment. The Company does not use Adjusted EBITDA to measure liquidity, but instead to measure operating performance.
The Company uses, and believes investors use, Free Cash Flow and Adjusted Free Cash Flow as supplemental non-GAAP measures to analyze cash flows generated from the Company’s operations. The Company believes these measures are useful to investors in evaluating its ability to fund distributions paid to noncontrolling interests or for acquisitions, purchasing equity interests in joint ventures or repaying debt.
These non-GAAP measures may not be comparable to similarly titled measures reported by other companies. Because these measures exclude many items that are included in the Company’s financial statements, they do not provide a complete measure of the Company’s operating performance. For example, the Company’s definitions of Free Cash Flow and Adjusted Free Cash Flow do not include other important uses of cash including (1) cash used to purchase businesses or joint venture interests, or (2) any items that are classified as Cash Flows from Financing Activities on the Company’s Consolidated Statement of Cash Flows, including items such as (i) cash used to repay borrowings, or (ii) distributions paid to noncontrolling interests. Accordingly, investors are encouraged to use GAAP measures when evaluating the Company’s financial performance.
See corresponding reconciliations of the non-GAAP financial measures referred to above to the most comparable GAAP financial measures in Tables #1 - 6 below.
Page 10
Tenet Healthcare Corporation
Financial Statements and Reconciliations
Third Quarter Earnings Release
Table of Contents
| Description | Page | ||||
Consolidated Statements of Operations | 12 | ||||
Consolidated Balance Sheets | 14 | ||||
Consolidated Statements of Cash Flows | 15 | ||||
Segment Reporting | 16 | ||||
Table #1 – Reconciliations of Net Income to Adjusted Net Income | 17 | ||||
Table #2 – Reconciliations of Net Income to Adjusted EBITDA | 18 | ||||
Table #3 – Reconciliations of Net Cash Provided by Operating Activities to Free Cash Flow and Adjusted Free Cash Flow | 19 | ||||
Table #4 – Reconciliations of Outlook Net Income to Outlook Adjusted Net Income | 20 | ||||
Table #5 – Reconciliations of Outlook Net Income to Outlook Adjusted EBITDA | 21 | ||||
Table #6 – Reconciliations of Outlook Net Cash Provided by Operating Activities to Outlook Free Cash Flow and Outlook Adjusted Free Cash Flow | 22 | ||||
Page 11
TENET HEALTHCARE CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
| (Dollars in millions, except per share amounts) | Three Months Ended September 30, | |||||||||||||||||||||||||||||||
| 2026 | % | 2025 | % | Change | ||||||||||||||||||||||||||||
| Net operating revenues | $ | 5,631 | 100.0 | % | $ | 5,289 | 100.0 | % | 6.5 | % | ||||||||||||||||||||||
| Revenue from contract termination | 646 | 11.5 | % | — | — | % | 100.0 | % | ||||||||||||||||||||||||
| Equity in earnings of unconsolidated affiliates | 64 | 1.1 | % | 64 | 1.2 | % | — | % | ||||||||||||||||||||||||
| Operating expenses: | ||||||||||||||||||||||||||||||||
| Salaries, wages and benefits | 2,173 | 38.6 | % | 2,204 | 41.7 | % | (1.4) | % | ||||||||||||||||||||||||
| Supplies | 983 | 17.5 | % | 931 | 17.6 | % | 5.6 | % | ||||||||||||||||||||||||
| Other operating expenses, net | 1,184 | 21.0 | % | 1,119 | 21.2 | % | 5.8 | % | ||||||||||||||||||||||||
| Depreciation and amortization | 217 | 3.8 | % | 218 | 4.1 | % | ||||||||||||||||||||||||||
| Impairment and restructuring charges, and acquisition-related costs | 37 | 0.7 | % | 23 | 0.4 | % | ||||||||||||||||||||||||||
| Litigation and investigation costs (benefit) | 6 | 0.1 | % | (11) | (0.2) | % | ||||||||||||||||||||||||||
| Net gains on sales, consolidation and deconsolidation of facilities | (9) | (0.2) | % | (20) | (0.4) | % | ||||||||||||||||||||||||||
| Operating income | 1,750 | 31.1 | % | 889 | 16.8 | % | ||||||||||||||||||||||||||
| Interest expense | (203) | (206) | ||||||||||||||||||||||||||||||
| Other non-operating income, net | 37 | 29 | ||||||||||||||||||||||||||||||
| Loss from early extinguishment of debt | (5) | — | ||||||||||||||||||||||||||||||
| Income before income taxes | 1,579 | 712 | ||||||||||||||||||||||||||||||
| Income tax expense | (360) | (133) | ||||||||||||||||||||||||||||||
| Net income | 1,219 | 579 | ||||||||||||||||||||||||||||||
| Less: Net income available to noncontrolling interests | 219 | 237 | ||||||||||||||||||||||||||||||
| Net income available to Tenet Healthcare Corporation common shareholders | $ | 1,000 | $ | 342 | ||||||||||||||||||||||||||||
| Earnings per share available to Tenet Healthcare Corporation common shareholders: | ||||||||||||||||||||||||||||||||
| Basic | $ | 12.48 | $ | 3.89 | ||||||||||||||||||||||||||||
| Diluted | $ | 12.41 | $ | 3.86 | ||||||||||||||||||||||||||||
| Weighted average shares and dilutive securities outstanding (in thousands): | ||||||||||||||||||||||||||||||||
| Basic | 80,134 | 87,951 | ||||||||||||||||||||||||||||||
| Diluted | 80,600 | 88,610 | ||||||||||||||||||||||||||||||
Page 12
TENET HEALTHCARE CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
| (Dollars in millions, except per share amounts) | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||
| 2026 | % | 2025 | % | Change | ||||||||||||||||||||||||||||
| Net operating revenues | $ | 16,627 | 100.0 | % | $ | 15,783 | 100.0 | % | 5.3 | % | ||||||||||||||||||||||
| Revenue from contract termination | 1,472 | 8.9 | % | — | — | % | 100.0 | % | ||||||||||||||||||||||||
| Equity in earnings of unconsolidated affiliates | 180 | 1.1 | % | 181 | 1.1 | % | (0.6) | % | ||||||||||||||||||||||||
| Operating expenses: | ||||||||||||||||||||||||||||||||
| Salaries, wages and benefits | 6,578 | 39.6 | % | 6,483 | 41.1 | % | 1.5 | % | ||||||||||||||||||||||||
| Supplies | 2,928 | 17.6 | % | 2,770 | 17.6 | % | 5.7 | % | ||||||||||||||||||||||||
| Other operating expenses, net | 3,480 | 20.9 | % | 3,328 | 21.0 | % | 4.6 | % | ||||||||||||||||||||||||
| Depreciation and amortization | 661 | 4.0 | % | 632 | 4.0 | % | ||||||||||||||||||||||||||
| Impairment and restructuring charges, and acquisition-related costs | 92 | 0.6 | % | 66 | 0.4 | % | ||||||||||||||||||||||||||
| Litigation and investigation costs | 36 | 0.2 | % | 34 | 0.2 | % | ||||||||||||||||||||||||||
| Net gains on sales, consolidation and deconsolidation of facilities | (43) | (0.2) | % | (4) | — | % | ||||||||||||||||||||||||||
| Operating income | 4,547 | 27.3 | % | 2,655 | 16.8 | % | ||||||||||||||||||||||||||
| Interest expense | (612) | (616) | ||||||||||||||||||||||||||||||
| Other non-operating income, net | 121 | 80 | ||||||||||||||||||||||||||||||
| Loss from early extinguishment of debt | (5) | — | ||||||||||||||||||||||||||||||
| Income before income taxes | 4,051 | 2,119 | ||||||||||||||||||||||||||||||
| Income tax expense | (881) | (396) | ||||||||||||||||||||||||||||||
| Net income | 3,170 | 1,723 | ||||||||||||||||||||||||||||||
| Less: Net income available to noncontrolling interests | 642 | 687 | ||||||||||||||||||||||||||||||
| Net income available to Tenet Healthcare Corporation common shareholders | $ | 2,528 | $ | 1,036 | ||||||||||||||||||||||||||||
| Earnings per share available to Tenet Healthcare Corporation common shareholders: | ||||||||||||||||||||||||||||||||
| Basic | $ | 30.28 | $ | 11.37 | ||||||||||||||||||||||||||||
| Diluted | $ | 30.08 | $ | 11.28 | ||||||||||||||||||||||||||||
| Weighted average shares and dilutive securities outstanding (in thousands): | ||||||||||||||||||||||||||||||||
| Basic | 83,486 | 91,109 | ||||||||||||||||||||||||||||||
| Diluted | 84,053 | 91,805 | ||||||||||||||||||||||||||||||
Page 13
TENET HEALTHCARE CORPORATION
CONSOLIDATED BALANCE SHEETS
(Unaudited)
| (Dollars in millions) | September 30, 2026 | December 31, 2025 | ||||||||||||
| ASSETS | ||||||||||||||
| Current assets: | ||||||||||||||
| Cash and cash equivalents | $ | 2,674 | $ | 2,883 | ||||||||||
| Accounts receivable | 2,595 | 2,565 | ||||||||||||
| Inventories of supplies, at cost | 340 | 348 | ||||||||||||
| Assets held for sale | 62 | 62 | ||||||||||||
| Other current assets | 2,757 | 1,991 | ||||||||||||
Total current assets | 8,428 | 7,849 | ||||||||||||
| Investments and other assets | 3,958 | 2,883 | ||||||||||||
| Deferred income taxes | 49 | 84 | ||||||||||||
| Property and equipment, at cost, less accumulated depreciation and amortization | 6,290 | 6,315 | ||||||||||||
| Goodwill | 11,641 | 11,198 | ||||||||||||
| Other intangible assets, at cost, less accumulated amortization | 1,226 | 1,348 | ||||||||||||
Total assets | $ | 31,592 | $ | 29,677 | ||||||||||
| LIABILITIES AND EQUITY | ||||||||||||||
| Current liabilities: | ||||||||||||||
| Current portion of long-term debt | $ | 164 | $ | 79 | ||||||||||
| Accounts payable | 1,387 | 1,360 | ||||||||||||
| Accrued compensation and benefits | 873 | 858 | ||||||||||||
| Professional and general liability reserves | 317 | 276 | ||||||||||||
| Accrued interest payable | 213 | 81 | ||||||||||||
| Income tax payable | 22 | — | ||||||||||||
| Other current liabilities | 2,342 | 1,809 | ||||||||||||
Total current liabilities | 5,318 | 4,463 | ||||||||||||
| Long-term debt, net of current portion | 13,079 | 13,092 | ||||||||||||
| Professional and general liability reserves | 979 | 951 | ||||||||||||
| Defined benefit plan obligations | 238 | 245 | ||||||||||||
| Deferred income taxes | 529 | 240 | ||||||||||||
| Other long-term liabilities | 1,855 | 1,713 | ||||||||||||
Total liabilities | 21,998 | 20,704 | ||||||||||||
| Commitments and contingencies | ||||||||||||||
| Redeemable noncontrolling interests in equity of consolidated subsidiaries | 2,179 | 2,956 | ||||||||||||
| Equity: | ||||||||||||||
| Shareholders’ equity: | ||||||||||||||
| Common stock | 8 | 8 | ||||||||||||
| Additional paid-in capital | 5,236 | 4,914 | ||||||||||||
| Accumulated other comprehensive loss | (178) | (181) | ||||||||||||
| Retained earnings | 6,943 | 4,415 | ||||||||||||
| Common stock in treasury, at cost | (6,565) | (4,936) | ||||||||||||
| Total shareholders’ equity | 5,444 | 4,220 | ||||||||||||
Noncontrolling interests | 1,971 | 1,797 | ||||||||||||
| Total equity | 7,415 | 6,017 | ||||||||||||
Total liabilities and equity | $ | 31,592 | $ | 29,677 | ||||||||||
Page 14
TENET HEALTHCARE CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
| Nine Months Ended | ||||||||||||||
| September 30, | ||||||||||||||
| (Dollars in millions) | 2026 | 2025 | ||||||||||||
| Net income | $ | 3,170 | $ | 1,723 | ||||||||||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||
| Depreciation and amortization | 661 | 632 | ||||||||||||
| Deferred income tax expense | 324 | 51 | ||||||||||||
| Stock-based compensation expense | 104 | 79 | ||||||||||||
| Impairment and restructuring charges, and acquisition-related costs | 92 | 66 | ||||||||||||
| Litigation and investigation costs | 36 | 34 | ||||||||||||
| Net gains on sales, consolidation and deconsolidation of facilities | (43) | (4) | ||||||||||||
| Loss from early extinguishment of debt | 5 | — | ||||||||||||
| Equity in earnings of unconsolidated affiliates, net of distributions received | (11) | (13) | ||||||||||||
| Amortization of debt discount and debt issuance costs | 16 | 18 | ||||||||||||
| Other items, net | (11) | (5) | ||||||||||||
| Changes in cash from operating assets and liabilities: | ||||||||||||||
| Accounts receivable | (11) | 68 | ||||||||||||
| Inventories and other current assets | 211 | (58) | ||||||||||||
| Income taxes | 63 | 15 | ||||||||||||
| Accounts payable, accrued expenses and other current liabilities | (1,042) | 237 | ||||||||||||
| Other long-term liabilities | 46 | 50 | ||||||||||||
| Payments for restructuring charges, acquisition-related costs, and litigation costs and settlements | (103) | (84) | ||||||||||||
| Net cash provided by operating activities | 3,507 | 2,809 | ||||||||||||
| Cash flows from investing activities: | ||||||||||||||
| Purchases of property and equipment | (546) | (646) | ||||||||||||
| Purchases of businesses or joint venture interests, net of cash acquired | (201) | (266) | ||||||||||||
| Proceeds from sales of facilities and other assets | 11 | 18 | ||||||||||||
| Proceeds from sales of marketable securities and long-term investments | 66 | 74 | ||||||||||||
| Purchases of marketable securities and long-term investments | (122) | (69) | ||||||||||||
| Other items, net | (26) | 3 | ||||||||||||
| Net cash used in investing activities | (818) | (886) | ||||||||||||
| Cash flows from financing activities: | ||||||||||||||
| Repayments of borrowings | (2,087) | (90) | ||||||||||||
| Proceeds from borrowings | 2,041 | 21 | ||||||||||||
| Repurchases of common stock | (1,615) | (1,188) | ||||||||||||
| Debt issuance costs | (22) | — | ||||||||||||
| Distributions paid to noncontrolling interests | (614) | (585) | ||||||||||||
| Proceeds from the sale of noncontrolling interests | 33 | 27 | ||||||||||||
| Purchases of noncontrolling interests | (583) | (88) | ||||||||||||
| Repayments of advances from managed care payers | — | (33) | ||||||||||||
| Taxes paid related to net share settlement, net of proceeds from shares issued under stock‑based compensation plans | (84) | (47) | ||||||||||||
| Other items, net | 33 | 16 | ||||||||||||
| Net cash used in financing activities | (2,898) | (1,967) | ||||||||||||
| Net decrease in cash and cash equivalents | (209) | (44) | ||||||||||||
| Cash and cash equivalents at beginning of period | 2,883 | 3,019 | ||||||||||||
| Cash and cash equivalents at end of period | $ | 2,674 | $ | 2,975 | ||||||||||
| Supplemental disclosures: | ||||||||||||||
| Interest paid, net of capitalized interest | $ | (464) | $ | (499) | ||||||||||
| Income tax payments, net | $ | (493) | $ | (329) | ||||||||||
Page 15
TENET HEALTHCARE CORPORATION
SEGMENT REPORTING
(Unaudited)
| Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||
| September 30, | September 30, | |||||||||||||||||||||||||
| (Dollars in millions) | 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||||
| Net operating revenues: | ||||||||||||||||||||||||||
| Ambulatory Care | $ | 1,371 | $ | 1,275 | $ | 4,079 | $ | 3,739 | ||||||||||||||||||
| Hospital Operations and Services | 4,260 | 4,014 | 12,548 | 12,044 | ||||||||||||||||||||||
| Total | $ | 5,631 | $ | 5,289 | $ | 16,627 | $ | 15,783 | ||||||||||||||||||
| Equity in earnings of unconsolidated affiliates: | ||||||||||||||||||||||||||
| Ambulatory Care | $ | 64 | $ | 63 | $ | 179 | $ | 176 | ||||||||||||||||||
| Hospital Operations and Services | — | 1 | 1 | 5 | ||||||||||||||||||||||
| Total | $ | 64 | $ | 64 | $ | 180 | $ | 181 | ||||||||||||||||||
| Adjusted EBITDA: | ||||||||||||||||||||||||||
| Ambulatory Care | $ | 537 | $ | 492 | $ | 1,563 | $ | 1,446 | ||||||||||||||||||
| Hospital Operations and Services | 818 | 607 | 2,258 | 1,937 | ||||||||||||||||||||||
| Total | $ | 1,355 | $ | 1,099 | $ | 3,821 | $ | 3,383 | ||||||||||||||||||
| Adjusted EBITDA margins: | ||||||||||||||||||||||||||
| Ambulatory Care | 39.2 | % | 38.6 | % | 38.3 | % | 38.7 | % | ||||||||||||||||||
| Hospital Operations and Services | 19.2 | % | 15.1 | % | 18.0 | % | 16.1 | % | ||||||||||||||||||
| Total | 24.1 | % | 20.8 | % | 23.0 | % | 21.4 | % | ||||||||||||||||||
| Capital expenditures: | ||||||||||||||||||||||||||
| Ambulatory Care | $ | 40 | $ | 38 | $ | 110 | $ | 90 | ||||||||||||||||||
| Hospital Operations and Services | 158 | 242 | 436 | 556 | ||||||||||||||||||||||
| Total | $ | 198 | $ | 280 | $ | 546 | $ | 646 | ||||||||||||||||||
Page 16
TENET HEALTHCARE CORPORATION
Additional Supplemental Non-GAAP disclosures
Table #1 – Reconciliations of Net Income Available to Tenet Healthcare Corporation Common Shareholders to Adjusted Net Income Available to Common Shareholders
(Unaudited)
| Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||
| September 30, | September 30, | |||||||||||||||||||||||||
| (Dollars in millions, except per share amounts) | 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||||
| Net income available to Tenet Healthcare Corporation common shareholders | $ | 1,000 | $ | 342 | $ | 2,528 | $ | 1,036 | ||||||||||||||||||
| Less: | ||||||||||||||||||||||||||
| Revenue from contract termination | 646 | — | 1,472 | — | ||||||||||||||||||||||
| Impairment and restructuring charges, and acquisition-related costs | (37) | (23) | (92) | (66) | ||||||||||||||||||||||
| Litigation and investigation benefit (costs) | (6) | 11 | (36) | (34) | ||||||||||||||||||||||
| Net gains on sales, consolidation and deconsolidation of facilities | 9 | 20 | 43 | 4 | ||||||||||||||||||||||
| Loss from early extinguishment of debt | (5) | — | (5) | — | ||||||||||||||||||||||
| Tax and noncontrolling interests impact of above items | (142) | 6 | (325) | 21 | ||||||||||||||||||||||
| Adjusted net income available to common shareholders | $ | 535 | $ | 328 | $ | 1,471 | $ | 1,111 | ||||||||||||||||||
| Diluted earnings per share | $ | 12.41 | $ | 3.86 | $ | 30.08 | $ | 11.28 | ||||||||||||||||||
| Less: | ||||||||||||||||||||||||||
| Revenue from contract termination | 8.01 | — | 17.51 | — | ||||||||||||||||||||||
| Impairment and restructuring charges, and acquisition-related costs | (0.46) | (0.26) | (1.09) | (0.72) | ||||||||||||||||||||||
| Litigation and investigation benefit (costs) | (0.07) | 0.12 | (0.43) | (0.37) | ||||||||||||||||||||||
| Net gains on sales, consolidation and deconsolidation of facilities | 0.11 | 0.23 | 0.51 | 0.04 | ||||||||||||||||||||||
| Loss from early extinguishment of debt | (0.06) | — | (0.06) | — | ||||||||||||||||||||||
| Tax and noncontrolling interests impact of above items | (1.76) | 0.07 | (3.86) | 0.23 | ||||||||||||||||||||||
| Adjusted diluted earnings per share | $ | 6.64 | $ | 3.70 | $ | 17.50 | $ | 12.10 | ||||||||||||||||||
| Weighted average basic shares outstanding (in thousands) | 80,134 | 87,951 | 83,486 | 91,109 | ||||||||||||||||||||||
| Weighted average dilutive shares outstanding (in thousands) | 80,600 | 88,610 | 84,053 | 91,805 | ||||||||||||||||||||||
Page 17
TENET HEALTHCARE CORPORATION
Additional Supplemental Non-GAAP disclosures
Table #2 – Reconciliations of Net Income Available to Tenet Healthcare Corporation Common Shareholders to Adjusted EBITDA
(Unaudited)
| Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||
| September 30, | September 30, | |||||||||||||||||||||||||
| (Dollars in millions) | 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||||
| Net income available to Tenet Healthcare Corporation common shareholders | $ | 1,000 | $ | 342 | $ | 2,528 | $ | 1,036 | ||||||||||||||||||
| Less: | ||||||||||||||||||||||||||
| Net income available to noncontrolling interests | (219) | (237) | (642) | (687) | ||||||||||||||||||||||
| Net income | 1,219 | 579 | 3,170 | 1,723 | ||||||||||||||||||||||
| Income tax expense | (360) | (133) | (881) | (396) | ||||||||||||||||||||||
| Loss from early extinguishment of debt | (5) | — | (5) | — | ||||||||||||||||||||||
| Other non-operating income, net | 37 | 29 | 121 | 80 | ||||||||||||||||||||||
| Interest expense | (203) | (206) | (612) | (616) | ||||||||||||||||||||||
| Operating income | 1,750 | 889 | 4,547 | 2,655 | ||||||||||||||||||||||
| Revenue from contract termination | 646 | — | 1,472 | — | ||||||||||||||||||||||
| Depreciation and amortization | (217) | (218) | (661) | (632) | ||||||||||||||||||||||
| Impairment and restructuring charges, and acquisition-related costs | (37) | (23) | (92) | (66) | ||||||||||||||||||||||
| Litigation and investigation benefit (costs) | (6) | 11 | (36) | (34) | ||||||||||||||||||||||
| Net gains on sales, consolidation and deconsolidation of facilities | 9 | 20 | 43 | 4 | ||||||||||||||||||||||
| Adjusted EBITDA | $ | 1,355 | $ | 1,099 | $ | 3,821 | $ | 3,383 | ||||||||||||||||||
| Net operating revenues | $ | 5,631 | $ | 5,289 | $ | 16,627 | $ | 15,783 | ||||||||||||||||||
| Net income available to Tenet Healthcare Corporation common shareholders as a % of net operating revenues | 17.8 | % | 6.5 | % | 15.2 | % | 6.6 | % | ||||||||||||||||||
| Adjusted EBITDA as a % of net operating revenues (Adjusted EBITDA margin) | 24.1 | % | 20.8 | % | 23.0 | % | 21.4 | % | ||||||||||||||||||
Page 18
TENET HEALTHCARE CORPORATION
Additional Supplemental Non-GAAP disclosures
Table #3 – Reconciliations of Net Cash Provided by Operating Activities to
Free Cash Flow and Adjusted Free Cash Flow
(Unaudited)
| 2026 | |||||||||||
| (Dollars in millions) | Q3 | YTD | |||||||||
| Net cash provided by operating activities | $ | 1,281 | $ | 3,507 | |||||||
| Purchases of property and equipment | (198) | (546) | |||||||||
| Free cash flow | $ | 1,083 | $ | 2,961 | |||||||
| Net cash used in investing activities | $ | (298) | $ | (818) | |||||||
| Net cash used in financing activities | $ | (479) | $ | (2,898) | |||||||
| Net cash provided by operating activities | $ | 1,281 | $ | 3,507 | |||||||
| Less: | |||||||||||
| Payments for restructuring charges, acquisition-related costs, and litigation costs and settlements | (19) | (103) | |||||||||
| Cash received for contract termination | — | 540 | |||||||||
| Adjusted net cash provided by operating activities | 1,300 | 3,070 | |||||||||
| Purchases of property and equipment | (198) | (546) | |||||||||
| Adjusted free cash flow | $ | 1,102 | $ | 2,524 | |||||||
| 2025 | ||||||||||||||
| (Dollars in millions) | Q3 | YTD | ||||||||||||
| Net cash provided by operating activities | $ | 1,058 | $ | 2,809 | ||||||||||
| Purchases of property and equipment | (280) | (646) | ||||||||||||
| Free cash flow | $ | 778 | $ | 2,163 | ||||||||||
| Net cash used in investing activities | $ | (385) | $ | (886) | ||||||||||
| Net cash used in financing activities | $ | (323) | $ | (1,967) | ||||||||||
| Net cash provided by operating activities | $ | 1,058 | $ | 2,809 | ||||||||||
| Less: | ||||||||||||||
| Payments for restructuring charges, acquisition-related costs, and litigation costs and settlements | (3) | (84) | ||||||||||||
| Adjusted net cash provided by operating activities | 1,061 | 2,893 | ||||||||||||
| Purchases of property and equipment | (280) | (646) | ||||||||||||
| Adjusted free cash flow | $ | 781 | $ | 2,247 | ||||||||||
Page 19
TENET HEALTHCARE CORPORATION
Additional Supplemental Non-GAAP disclosures
Table #4 – Reconciliations of Outlook Net Income Available to Tenet Healthcare Corporation Common Shareholders to Outlook Adjusted Net Income Available to Common Shareholders
(Unaudited)
| FY 2026 | ||||||||||||||
| (Dollars in millions, except per share amounts) | Low | High | ||||||||||||
| Net income available to Tenet Healthcare Corporation common shareholders | $ | 2,973 | $ | 3,078 | ||||||||||
| Less: | ||||||||||||||
| Revenue from contract termination | 1,650 | 1,650 | ||||||||||||
Impairment and restructuring charges, acquisition-related costs, and litigation costs and settlements(1) | (180) | (150) | ||||||||||||
Net gains on sales, consolidation and deconsolidation of facilities(2) | 43 | 43 | ||||||||||||
Loss from early extinguishment of debt(2) | (5) | (5) | ||||||||||||
| Tax and noncontrolling interests impact of above items | (365) | (370) | ||||||||||||
| Adjusted net income available to common shareholders | $ | 1,830 | $ | 1,910 | ||||||||||
| Diluted earnings per share | $ | 35.82 | $ | 37.08 | ||||||||||
| Less: | ||||||||||||||
| Revenue from contract termination | 19.88 | 19.88 | ||||||||||||
Impairment and restructuring charges, acquisition-related costs, and litigation costs and settlements | (2.17) | (1.81) | ||||||||||||
| Net gains on sales, consolidation and deconsolidation of facilities | 0.52 | 0.52 | ||||||||||||
| Loss from early extinguishment of debt | (0.06) | (0.06) | ||||||||||||
| Tax and noncontrolling interests impact of above items | (4.40) | (4.46) | ||||||||||||
| Adjusted diluted earnings per share | $ | 22.05 | $ | 23.01 | ||||||||||
| Weighted average dilutive shares outstanding (in thousands) | 83,000 | 83,000 | ||||||||||||
| (1) The figures shown represent the Company's estimate for restructuring charges plus the actual year-to-date results for impairment and restructuring charges, acquisition-related costs, and litigation costs and settlements. The Company does not generally forecast impairment charges, acquisition-related costs, and litigation costs and settlements because it does not believe that it can forecast these items with sufficient accuracy since some of these items are indeterminable at the time the Company provides its financial Outlook. | ||||||||||||||
| (2) The Company does not generally forecast net gains (losses) on sales, consolidation and deconsolidation of facilities or gains (losses) from early extinguishment of debt because the Company does not believe that it can forecast these items with sufficient accuracy since it is indeterminable at the time the Company provides its financial Outlook. The figures shown relate to transactions that have already occurred in 2026. | ||||||||||||||
Page 20
TENET HEALTHCARE CORPORATION
Additional Supplemental Non-GAAP disclosures
Table #5 – Reconciliations of Outlook Net Income Available to Tenet Healthcare Corporation Common Shareholders to Outlook Adjusted EBITDA
(Unaudited)
| FY 2026 | ||||||||||||||
| (Dollars in millions) | Low | High | ||||||||||||
| Net income available to Tenet Healthcare Corporation common shareholders | $ | 2,973 | $ | 3,078 | ||||||||||
| Less: | ||||||||||||||
| Net income available to noncontrolling interests | (910) | (960) | ||||||||||||
| Income tax expense | (1,135) | (1,170) | ||||||||||||
| Interest expense | (825) | (815) | ||||||||||||
Loss from early extinguishment of debt(2) | (5) | (5) | ||||||||||||
| Other non-operating income, net | 150 | 200 | ||||||||||||
Net gains on sales, consolidation and deconsolidation of facilities(2) | 43 | 43 | ||||||||||||
Impairment and restructuring charges, acquisition-related costs, and litigation costs and settlements(1) | (180) | (150) | ||||||||||||
| Depreciation and amortization | (865) | (915) | ||||||||||||
| Revenue from contract termination | 1,650 | 1,650 | ||||||||||||
| Adjusted EBITDA | $ | 5,050 | $ | 5,200 | ||||||||||
| Net income available to Tenet Healthcare Corporation common shareholders | $ | 2,973 | $ | 3,078 | ||||||||||
| Net operating revenues | $ | 22,050 | $ | 22,450 | ||||||||||
| Net income available to Tenet Healthcare Corporation common shareholders as a % of net operating revenues | 13.5 | % | 13.7 | % | ||||||||||
| Adjusted EBITDA as a % of net operating revenues (Adjusted EBITDA margin) | 22.9 | % | 23.2 | % | ||||||||||
| (1) The figures shown represent the Company's estimate for restructuring charges plus the actual year-to-date results for impairment and restructuring charges, acquisition-related costs, and litigation costs and settlements. The Company does not generally forecast impairment charges, acquisition-related costs, and litigation costs and settlements because it does not believe that it can forecast these items with sufficient accuracy since some of these items are indeterminable at the time the Company provides its financial Outlook. | ||||||||||||||
| (2) The Company does not generally forecast net gains (losses) on sales, consolidation and deconsolidation of facilities or gains (losses) from early extinguishment of debt because the Company does not believe that it can forecast these items with sufficient accuracy since it is indeterminable at the time the Company provides its financial Outlook. The figures shown relate to transactions that have already occurred in 2026. | ||||||||||||||
Page 21
TENET HEALTHCARE CORPORATION
Additional Supplemental Non-GAAP disclosures
Table #6 – Reconciliations of Outlook Net Cash Provided by Operating Activities
to Outlook Free Cash Flow and Outlook Adjusted Free Cash Flow
to Outlook Free Cash Flow and Outlook Adjusted Free Cash Flow
(Unaudited)
| FY 2026 | ||||||||||||||
| (Dollars in millions) | Low | High | ||||||||||||
| Net cash provided by operating activities | $ | 3,885 | $ | 4,315 | ||||||||||
| Purchases of property and equipment | (700) | (800) | ||||||||||||
| Free cash flow | $ | 3,185 | $ | 3,515 | ||||||||||
| Net cash provided by operating activities | $ | 3,885 | $ | 4,315 | ||||||||||
| Less: | ||||||||||||||
Payments for restructuring charges, acquisition-related costs and litigation costs and settlements(1) | (180) | (150) | ||||||||||||
| Cash received for contract termination | 540 | 540 | ||||||||||||
Adjusted net cash provided by operating activities | 3,525 | 3,925 | ||||||||||||
| Purchases of property and equipment | (700) | (800) | ||||||||||||
Adjusted free cash flow(2) | $ | 2,825 | $ | 3,125 | ||||||||||
(1) The figures shown represent the Company's estimate for restructuring payments plus the actual year-to-date payments for restructuring charges, acquisition-related costs, and litigation costs or settlements. The Company does not generally forecast payments for acquisition-related costs, and litigation costs and settlements because it does not believe that it can forecast these items with sufficient accuracy since some of these items are indeterminable at the time the Company provides its financial Outlook. | ||||||||||||||
| (2) The Company’s definition of Adjusted Free Cash Flow does not include other important uses of cash including (1) cash used to purchase businesses or joint venture interests, or (2) any items that are classified as Cash Flows From Financing Activities on the Company’s Consolidated Statement of Cash Flows, including items such as (i) cash used to repay borrowings, and (ii) distributions paid to noncontrolling interests. | ||||||||||||||
Page 22