Tenet Healthcare Corp. reported fourth‑quarter 2025 results that surpassed consensus estimates, with net operating revenues of $5.53 billion—up 8.9% year‑over‑year and beating the $5.47 billion estimate by roughly 1.1%. Adjusted earnings per share rose to $4.70, a $0.65 or 16% beat over the $4.05 consensus estimate, while adjusted EBITDA reached $1.183 billion, up 12% (12.9% by some sources) from $1.048 billion a year earlier.
The ambulatory segment drove much of the revenue growth, generating $1.43 billion—up 13.8%—thanks to acquisitions of new facilities, expanded service lines, and a higher mix of same‑facility net patient services. The hospital operations segment grew 7.3% to $4.09 billion, supported by higher patient acuity and a favorable payer mix that lifted the same‑hospital net patient service revenue per adjusted admission by 7.5% YoY.
Margin expansion was evident across both segments. Adjusted EBITDA margin climbed to 21.4% from 20.1% a year earlier, driven by disciplined cost management, higher‑margin procedures, and a shift toward more profitable services. The hospital segment’s margin improved to 14.7% from 13.6%, while the ambulatory segment maintained a robust 27.5% margin, reflecting the company’s ability to capture higher‑acuity, higher‑margin work.
Management raised its full‑year 2026 revenue guidance to $21.5 billion–$22.3 billion, a range that is about 1.4% below analyst consensus, and lifted adjusted EBITDA guidance to $4.485 billion–$4.785 billion, a 13% increase from the prior year’s $4.47 billion–$4.57 billion range. CEO Saum Sutaria said the company “remains confident in its ability to execute on its strategy, deliver quality results for patients and physician partners, and achieve its full‑year 2026 expectations.” CFO Sun Park highlighted that the 2025 performance “demonstrated robust same‑store revenue growth in both the hospitals and USPI segments and adjusted EBITDA that exceeded our expectations each quarter, driven by continued high patient acuity, favorable payer mix and effective expense management.”
Tenet continues to expand its United Surgical Partners International platform, adding 35 new facilities in 2025 and investing roughly $350 million in M&A and de‑novo activity. The company’s disciplined capital allocation is evident in its ongoing share‑repurchase program, which has retired about 22% of outstanding shares for $2.5 billion since the program began in Q4 2022. These initiatives, combined with strong free‑cash‑flow generation, position Tenet to sustain growth, support shareholder returns, and navigate the shifting reimbursement environment.
Overall, the results reinforce Tenet’s trajectory of revenue growth, margin expansion, and operational discipline. The company’s focus on high‑acuity services, favorable payer mix, and strategic acquisitions underpins its confidence in the 2026 outlook, while disciplined cost management and capital allocation provide a solid foundation for long‑term value creation.
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