Tenet Healthcare — Third Quarter 2026 Earnings Summary

Financial Performance:

• Net income available to common shareholders for the quarter ended September 30, 2026, was $1.000 billion ($12.41 per diluted share), compared to $342 million ($3.86 per diluted share) in the same period in 2025.
• Adjusted diluted earnings per share increased 79.5% to $6.64 in Q3 2026 from $3.70 in Q3 2025.
• Consolidated Adjusted EBITDA rose 23.3% to $1.355 billion in Q3 2026 from $1.099 billion in Q3 2025, with an Adjusted EBITDA margin of 24.1%.
• Net operating revenues for Q3 2026 were $5.631 billion, up from $5.289 billion in Q3 2025.
• Revenue from contract termination was $646 million in Q3 2026, compared to $0 in Q3 2025.
• Net cash provided by operating activities for the nine months ended September 30, 2026, was $3.507 billion, versus $2.809 billion in the prior year period.
• Adjusted free cash flow for the nine months ended September 30, 2026, was $2.524 billion, compared to $2.247 billion in the prior year period.
• The ratio of net debt to Adjusted EBITDA was 2.11x at September 30, 2026, down from 2.25x at December 31, 2025.

Guidance and Future Outlook:

• FY 2026 Adjusted EBITDA outlook raised to a range of $5.05 billion to $5.20 billion, representing a $195 million increase at the midpoint.
• FY 2026 Adjusted Free Cash Flow outlook raised to a range of $2.825 billion to $3.125 billion, representing a $100 million increase.
• FY 2026 Net operating revenues are expected to be between $22.05 billion and $22.45 billion.
• FY 2026 Diluted income per common share is projected between $35.82 and $37.08.
• FY 2026 Adjusted diluted earnings per share is projected between $22.05 and $23.01.
• Ambulatory segment FY 2026 Adjusted EBITDA is forecast between $2.16 billion and $2.22 billion, with same-facility system-wide revenues expected to grow 3.0% to 6.0%.
• Hospital segment FY 2026 Adjusted EBITDA is forecast between $2.89 billion and $2.98 billion, with inpatient admissions expected to grow 1.0% to 2.0%.

Business Segments and Product Lines:

• Ambulatory Care: Adjusted EBITDA was $537 million in Q3 2026, up 9.1% from Q3 2025. Net operating revenues were $1.371 billion, up 7.5% year-over-year. Same-facility system-wide net patient service revenues increased 4.5%, driven by a 6.1% increase in net revenue per case, partially offset by a 1.5% decline in surgical cases.
• Hospital Operations and Services: Adjusted EBITDA was $818 million in Q3 2026, up from $607 million in Q3 2025. Net operating revenues were $4.260 billion, up 6.1% year-over-year. Same-hospital net patient service revenues grew driven by a 2.8% increase in admissions and 4.0% increase in ER visits, partially offset by a 1.1% decline in hospital surgeries.
• The Ambulatory segment includes 535 ambulatory surgery centers (406 consolidated) and 25 surgical hospitals (seven consolidated) across 37 states.
• Hospital segment results included a $32 million favorable pre-tax impact from additional Medicaid supplemental revenues related to prior years.

Market and Competitive Landscape:

• Results were driven by sustained strength in same-store revenue growth and effective expense management.
• Growth in the Ambulatory segment was supported by acquisitions of facilities and increased service lines.
• Hospital segment growth was supported by pricing strength and increased adjusted admissions.
• Unfavorable payer mix due to lower exchange admissions partially offset revenue growth in both segments.

Risks and Challenges:

• Unfavorable payer mix resulting from lower exchange admissions impacted revenue growth in the Hospital segment.
• The transition of revenue cycle management services under agreements with CommonSpirit Health was substantially complete by October 30, 2026, with timing-related adjustments recognized in Q3 2026.
• Forward-looking statements are subject to uncertainties including those disclosed in the company's Form 10-K for the year ended December 31, 2025.

Management Commentary and Tone:

• Saum Sutaria, M.D., Chairman and CEO, stated that outperformance was driven by "sustained strength in same-store revenue growth and effective expense management."
• Management highlighted that a focus on patient-centered care, support for physician partners, technology-enabled growth, and operating initiatives continue to deliver strong margins and free cash flow.

Other Key Points:

• In September 2026, Tenet completed a private placement of $2.0 billion in 6.250% senior notes maturing in 2034.
• Proceeds from the new notes were used to redeem all $1.5 billion of 5.125% senior secured first lien notes due in 2027 and partially redeem $500 million of 6.125% senior notes due in 2028.
• The company repurchased 970,000 shares of common stock for $255 million in Q3 2026, and 7.99 million shares for $1.615 billion in the first nine months of 2026.
• The transition of revenue cycle management services with CommonSpirit Health resulted in a $147 million favorable net impact to Adjusted EBITDA in Q3 2026, including a $97 million timing-related adjustment to net operating revenue and a $50 million benefit from transition activities.
• Contract termination revenue from the early conclusion of the RCM Agreements is not included in net operating revenues.