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Tenet Reports Strong Second Quarter 2026 Results; Raises 2026 Financial Outlook

July 23, 2026 4:05 PM

DALLAS--(BUSINESS WIRE)-- Tenet Healthcare Corporation (Tenet) (NYSE: THC) today announced its results for the quarter ended June 30, 2026.

"Strong same-store revenue growth and effective expense management drove our fundamental outperformance in the second quarter of 2026 compared to our original assumptions," said Saum Sutaria, M.D., Chairman and Chief Executive Officer of Tenet. "We are actively navigating current industry dynamics through excellent operational execution, investments in innovation, and a continued focus on higher acuity services to sustain growth, margins and significant free cash flow."

Tenet’s results for second quarter 2026 versus second quarter 2025 are as follows:

Three Months Ended June 30,

Six Months Ended June 30,

($ in millions, except per share results)

2026

2025

2026

2025

Net operating revenues7

$5,628

$5,271

$10,996

$10,494

Net income available to Tenet common shareholders

$826

$288

$1,528

$694

Net income available to Tenet common shareholders per diluted share

$9.84

$3.14

$17.81

$7.43

Adjusted EBITDA1

$1,304

$1,121

$2,466

$2,284

Adjusted diluted earnings per share1

$6.12

$4.02

$10.91

$8.38

Balance Sheet and Cash Flows

Ambulatory Care (Ambulatory) Segment

Tenet’s Ambulatory business segment is comprised of the operations of United Surgical Partners International (USPI). As of June 30, 2026, USPI had interests in 538 ambulatory surgery centers (405 consolidated) and 26 surgical hospitals (eight consolidated) in 37 states.

Three Months Ended June 30,

Six Months Ended June 30,

Ambulatory segment results ($ in millions)

2026

2025

2026

2025

Revenues

Net operating revenues

$1,388

$1,270

$2,708

$2,464

Same-facility system-wide net patient service revenues2

$2,221

$2,115

$4,305

$4,090

Changes versus the Prior-Year Period

Same-facility system-wide net patient service revenues

5.0%

7.7%

5.3%

7.1%

Same-facility system-wide net patient service revenue per case

6.3%

8.3%

5.9%

8.6%

Same-facility system-wide surgical cases2

(1.2)%

(0.6)%

(0.6)%

(1.4)%

Same-facility system-wide surgical cases on same-business day basis2

(1.2)%

(0.6)%

(0.6)%

(0.6)%

Adjusted EBITDA, Margins and NCI

Adjusted EBITDA

$542

$498

$1,026

$954

Adjusted EBITDA margin

39.0%

39.2%

37.9%

38.7%

Adjusted EBITDA less NCI

$330

$303

$621

$582

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 June 30,

Six Months Ended June 30,

Hospital segment results ($ in millions)

2026

2025

2026

2025

Revenues

Net operating revenues7

$4,240

$4,001

$8,288

$8,030

Same-hospital net patient service revenues3

$3,648

$3,443

$7,106

$6,932

Same-Hospital Volume Changes versus the Prior-Year Period

Admissions

2.3%

1.6%

1.3%

3.0%

Adjusted admissions4

2.6%

0.4%

1.6%

1.6%

Outpatient visits (including outpatient ER visits)

0.1%

(3.2)%

(1.5)%

(1.3)%

Emergency Room visits (inpatient and outpatient)

2.0%

(4.7)%

(0.7)%

(1.6)%

Hospital surgeries

(0.7)%

(1.7)%

(0.8)%

(1.6)%

Adjusted EBITDA

Adjusted EBITDA

$762

$623

$1,440

$1,330

Adjusted EBITDA margin

18.0%

15.6%

17.4%

16.6%

2026 Outlook1

Tenet’s Outlook for full year 2026 (consolidated and by segment) follows. Revenue recognized from the early conclusion of the CommonSpirit contract is not included in net operating revenues.

CONSOLIDATED ($ in millions, except per share amounts)

FY 2026 Outlook

Net operating revenues7

$21,900 to $22,500

Net income available to Tenet common stockholders

$2,869 to $3,024

Adjusted EBITDA

$4,830 to $5,030

Adjusted EBITDA margin

22.1% to 22.4%

Diluted income per common share

$34.57 to $36.43

Adjusted net income

$1,685 to $1,800

Adjusted diluted earnings per share

$20.30 to $21.69

Equity in earnings of unconsolidated affiliates

$265 to $275

Depreciation and amortization

$875 to $925

Interest expense

$800 to $810

Income tax expense5

$1,075 to $1,130

Net income available to NCI

$910 to $960

Weighted average diluted common shares

~83 million

Net cash provided by operating activities

$3,840 to $4,290

Adjusted net cash provided by operating activities

$3,425 to $3,825

Capital expenditures

$700 to $800

Free cash flow

$3,140 to $3,490

Adjusted free cash flow

$2,725 to $3,025

NCI cash distributions

$900 to $970

Ambulatory Segment ($ in millions)

FY 2026 Outlook

Net operating revenues

$5,500 to $5,700

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

$16,400 to $16,800

Adjusted EBITDA

$2,670 to $2,810

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 second quarter 2026 results in a webcast scheduled for 11:30 a.m. Eastern Time (10:30 a.m. Central Time) on July 24, 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 July 23, 2026.

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 June 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 GAAP facility level 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. Revenue recognized from the early conclusion of the CommonSpirit contract is not included in net operating revenues.

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.

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.

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.

TENET HEALTHCARE CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

(Dollars in millions, except per share amounts)

Three Months Ended June 30,

2026

%

2025

%

Change

Net operating revenues

$

5,628

100.0

%

$

5,271

100.0

%

6.8

%

Revenue from contract termination

413

7.3

%

—

—

%

100.0

%

Equity in earnings of unconsolidated affiliates

65

1.2

%

61

1.2

%

6.6

%

Operating expenses:

Salaries, wages and benefits

2,231

39.6

%

2,160

41.0

%

3.3

%

Supplies

984

17.5

%

932

17.7

%

5.6

%

Other operating expenses, net

1,174

20.9

%

1,119

21.3

%

4.9

%

Depreciation and amortization

215

3.7

%

208

3.9

%

Impairment and restructuring charges, and acquisition-related costs

31

0.6

%

24

0.5

%

Litigation and investigation costs

3

0.1

%

28

0.5

%

Net losses (gains) on sales, consolidation and deconsolidation of facilities

(33

)

(0.6

)%

38

0.7

%

Operating income

1,501

26.7

%

823

15.6

%

Interest expense

(204

)

(206

)

Other non-operating income, net

43

25

Income before income taxes

1,340

642

Income tax expense

(295

)

(120

)

Net income

1,045

522

Less: Net income available to noncontrolling interests

219

234

Net income available to Tenet Healthcare Corporation common shareholders

$

826

$

288

Earnings per share available to Tenet Healthcare Corporation common shareholders:

Basic

$

9.89

$

3.16

Diluted

$

9.84

$

3.14

Weighted average shares and dilutive securities outstanding (in thousands):

Basic

83,524

91,135

Diluted

83,964

91,791

TENET HEALTHCARE CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

(Dollars in millions, except per share amounts)

Six Months Ended June 30,

2026

%

2025

%

Change

Net operating revenues

$

10,996

100.0

%

$

10,494

100.0

%

4.8

%

Revenue from contract termination

826

7.5

%

—

—

%

100.0

%

Equity in earnings of unconsolidated affiliates

116

1.1

%

117

1.1

%

(0.9

)%

Operating expenses:

Salaries, wages and benefits

4,405

40.1

%

4,279

40.8

%

2.9

%

Supplies

1,945

17.7

%

1,839

17.5

%

5.8

%

Other operating expenses, net

2,296

20.9

%

2,209

21.1

%

3.9

%

Depreciation and amortization

444

4.0

%

414

3.9

%

Impairment and restructuring charges, and acquisition-related costs

55

0.5

%

43

0.4

%

Litigation and investigation costs

30

0.3

%

45

0.4

%

Net losses (gains) on sales, consolidation and deconsolidation of facilities

(34

)

(0.3

)%

16

0.2

%

Operating income

2,797

25.4

%

1,766

16.8

%

Interest expense

(409

)

(410

)

Other non-operating income, net

84

51

Income before income taxes

2,472

1,407

Income tax expense

(521

)

(263

)

Net income

1,951

1,144

Less: Net income available to noncontrolling interests

423

450

Net income available to Tenet Healthcare Corporation common shareholders

$

1,528

$

694

Earnings per share available to Tenet Healthcare Corporation common shareholders:

Basic

$

17.94

$

7.49

Diluted

$

17.81

$

7.43

Weighted average shares and dilutive securities outstanding (in thousands):

Basic

85,162

92,688

Diluted

85,780

93,408

TENET HEALTHCARE CORPORATION

CONSOLIDATED BALANCE SHEETS

(Unaudited)

(Dollars in millions)

June 30,
2026

December 31,
2025

ASSETS

Current assets:

Cash and cash equivalents

$

2,170

$

2,883

Accounts receivable

2,608

2,565

Inventories of supplies, at cost

338

348

Assets held for sale

62

62

Other current assets

2,649

1,991

Total current assets

7,827

7,849

Investments and other assets

3,802

2,883

Deferred income taxes

71

84

Property and equipment, at cost, less accumulated depreciation and amortization

6,258

6,315

Goodwill

11,437

11,198

Other intangible assets, at cost, less accumulated amortization

1,281

1,348

Total assets

$

30,676

$

29,677

LIABILITIES AND EQUITY

Current liabilities:

Current portion of long-term debt

$

160

$

79

Accounts payable

1,371

1,360

Accrued compensation and benefits

864

858

Professional and general liability reserves

292

276

Accrued interest payable

113

81

Income tax payable

69

—

Other current liabilities

2,698

1,809

Total current liabilities

5,567

4,463

Long-term debt, net of current portion

13,088

13,092

Professional and general liability reserves

978

951

Defined benefit plan obligations

241

245

Deferred income taxes

325

240

Other long-term liabilities

1,777

1,713

Total liabilities

21,976

20,704

Commitments and contingencies

Redeemable noncontrolling interests in equity of consolidated subsidiaries

2,143

2,956

Equity:

Shareholders’ equity:

Common stock

8

8

Additional paid-in capital

5,192

4,914

Accumulated other comprehensive loss

(177

)

(181

)

Retained earnings

5,943

4,415

Common stock in treasury, at cost

(6,308

)

(4,936

)

Total shareholders’ equity

4,658

4,220

Noncontrolling interests

1,899

1,797

Total equity

6,557

6,017

Total liabilities and equity

$

30,676

$

29,677

TENET HEALTHCARE CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

Six Months Ended

June 30,

(Dollars in millions)

2026

2025

Net income

$

1,951

$

1,144

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization

444

414

Deferred income tax expense

97

11

Stock-based compensation expense

69

41

Impairment and restructuring charges, and acquisition-related costs

55

43

Litigation and investigation costs

30

45

Net losses (gains) on sales, consolidation and deconsolidation of facilities

(34

)

16

Equity in earnings of unconsolidated affiliates, net of distributions received

(11

)

(8

)

Amortization of debt discount and debt issuance costs

11

12

Other items, net

(10

)

(1

)

Changes in cash from operating assets and liabilities:

Accounts receivable

(33

)

40

Inventories and other current assets

249

9

Income taxes

94

10

Accounts payable, accrued expenses and other current liabilities

(638

)

24

Other long-term liabilities

36

32

Payments for restructuring charges, acquisition-related costs, and litigation costs and settlements

(84

)

(81

)

Net cash provided by operating activities

2,226

1,751

Cash flows from investing activities:

Purchases of property and equipment

(348

)

(366

)

Purchases of businesses or joint venture interests, net of cash acquired

(130

)

(147

)

Proceeds from sales of facilities and other assets

6

14

Proceeds from sales of marketable securities and long-term investments

51

37

Purchases of marketable securities and long-term investments

(77

)

(38

)

Other items, net

(22

)

(1

)

Net cash used in investing activities

(520

)

(501

)

Cash flows from financing activities:

Repayments of borrowings

(59

)

(62

)

Proceeds from borrowings

28

15

Repurchases of common stock

(1,360

)

(1,095

)

Distributions paid to noncontrolling interests

(398

)

(374

)

Proceeds from the sale of noncontrolling interests

15

18

Purchases of noncontrolling interests

(558

)

(79

)

Repayments of advances from managed care payers

—

(12

)

Taxes paid related to net share settlement, net of proceeds from shares issued under stock‑based compensation plans

(83

)

(33

)

Other items, net

(4

)

(22

)

Net cash used in financing activities

(2,419

)

(1,644

)

Net decrease in cash and cash equivalents

(713

)

(394

)

Cash and cash equivalents at beginning of period

2,883

3,019

Cash and cash equivalents at end of period

$

2,170

$

2,625

Supplemental disclosures:

Interest paid, net of capitalized interest

$

(365

)

$

(399

)

Income tax payments, net

$

(330

)

$

(242

)

TENET HEALTHCARE CORPORATION

SEGMENT REPORTING

(Unaudited)

Three Months Ended

Six Months Ended

June 30,

June 30,

(Dollars in millions)

2026

2025

2026

2025

Net operating revenues:

Ambulatory Care

$

1,388

$

1,270

$

2,708

$

2,464

Hospital Operations and Services

4,240

4,001

8,288

8,030

Total

$

5,628

$

5,271

$

10,996

$

10,494

Equity in earnings of unconsolidated affiliates:

Ambulatory Care

$

64

$

59

$

115

$

113

Hospital Operations and Services

1

2

1

4

Total

$

65

$

61

$

116

$

117

Adjusted EBITDA:

Ambulatory Care

$

542

$

498

$

1,026

$

954

Hospital Operations and Services

762

623

1,440

1,330

Total

$

1,304

$

1,121

$

2,466

$

2,284

Adjusted EBITDA margins:

Ambulatory Care

39.0

%

39.2

%

37.9

%

38.7

%

Hospital Operations and Services

18.0

%

15.6

%

17.4

%

16.6

%

Total

23.2

%

21.3

%

22.4

%

21.8

%

Capital expenditures:

Ambulatory Care

$

38

$

27

$

70

$

52

Hospital Operations and Services

130

166

278

314

Total

$

168

$

193

$

348

$

366

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

Six Months Ended

June 30,

June 30,

(Dollars in millions, except per share amounts)

2026

2025

2026

2025

Net income available to Tenet Healthcare Corporation common shareholders

$

826

$

288

$

1,528

$

694

Less:

Revenue from contract termination

413

—

826

—

Impairment and restructuring charges, and acquisition-related costs

(31

)

(24

)

(55

)

(43

)

Litigation and investigation costs

(3

)

(28

)

(30

)

(45

)

Net gains (losses) on sales, consolidation and deconsolidation of facilities

33

(38

)

34

(16

)

Tax and noncontrolling interests impact of above items

(100

)

9

(183

)

15

Adjusted net income available to common shareholders

$

514

$

369

$

936

$

783

Diluted earnings per share

$

9.84

$

3.14

$

17.81

$

7.43

Less:

Revenue from contract termination

4.92

—

9.63

—

Impairment and restructuring charges, and acquisition-related costs

(0.37

)

(0.26

)

(0.64

)

(0.46

)

Litigation and investigation costs

(0.03

)

(0.31

)

(0.35

)

(0.48

)

Net gains (losses) on sales, consolidation and deconsolidation of facilities

0.39

(0.41

)

0.40

(0.17

)

Tax and noncontrolling interests impact of above items

(1.19

)

0.10

(2.14

)

0.16

Adjusted diluted earnings per share

$

6.12

$

4.02

$

10.91

$

8.38

Weighted average basic shares outstanding (in thousands)

83,524

91,135

85,162

92,688

Weighted average dilutive shares outstanding (in thousands)

83,964

91,791

85,780

93,408

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

Six Months Ended

June 30,

June 30,

(Dollars in millions)

2026

2025

2026

2025

Net income available to Tenet Healthcare Corporation common shareholders

$

826

$

288

$

1,528

$

694

Less:

Net income available to noncontrolling interests

(219

)

(234

)

(423

)

(450

)

Net income

1,045

522

1,951

1,144

Income tax expense

(295

)

(120

)

(521

)

(263

)

Other non-operating income, net

43

25

84

51

Interest expense

(204

)

(206

)

(409

)

(410

)

Operating income

1,501

823

2,797

1,766

Revenue from contract termination

413

—

826

—

Depreciation and amortization

(215

)

(208

)

(444

)

(414

)

Impairment and restructuring charges, and acquisition-related costs

(31

)

(24

)

(55

)

(43

)

Litigation and investigation costs

(3

)

(28

)

(30

)

(45

)

Net gains (losses) on sales, consolidation and deconsolidation of facilities

33

(38

)

34

(16

)

Adjusted EBITDA

$

1,304

$

1,121

$

2,466

$

2,284

Net operating revenues

$

5,628

$

5,271

$

10,996

$

10,494

Net income available to Tenet Healthcare Corporation common shareholders as a % of net operating revenues

14.7

%

5.5

%

13.9

%

6.6

%

Adjusted EBITDA as a % of net operating revenues (Adjusted EBITDA margin)

23.2

%

21.3

%

22.4

%

21.8

%

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)

Q2

YTD

Net cash provided by operating activities

$

585

$

2,226

Purchases of property and equipment

(168

)

(348

)

Free cash flow

$

417

$

1,878

Net cash used in investing activities

$

(203

)

$

(520

)

Net cash used in financing activities

$

(1,179

)

$

(2,419

)

Net cash provided by operating activities

$

585

$

2,226

Less:

Payments for restructuring charges, acquisition-related costs, and litigation costs and settlements

(27

)

(84

)

Cash received for contract termination

—

540

Adjusted net cash provided by operating activities

612

1,770

Purchases of property and equipment

(168

)

(348

)

Adjusted free cash flow

$

444

$

1,422

2025

(Dollars in millions)

Q2

YTD

Net cash provided by operating activities

$

936

$

1,751

Purchases of property and equipment

(193

)

(366

)

Free cash flow

$

743

$

1,385

Net cash used in investing activities

$

(314

)

$

(501

)

Net cash used in financing activities

$

(996

)

$

(1,644

)

Net cash provided by operating activities

$

936

$

1,751

Less:

Payments for restructuring charges, acquisition-related costs, and litigation costs and settlements

(45

)

(81

)

Adjusted net cash provided by operating activities

981

1,832

Purchases of property and equipment

(193

)

(366

)

Adjusted free cash flow

$

788

$

1,466

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

$

2,869

$

3,024

Less:

Revenue from contract termination

1,650

1,650

Impairment and restructuring charges, acquisition-related costs, and litigation costs and settlements(1)

(125

)

(75

)

Net gains on sales, consolidation and deconsolidation of facilities(2)

34

34

Tax and noncontrolling interests impact of above items

(375

)

(385

)

Adjusted net income available to common shareholders

$

1,685

$

1,800

Diluted earnings per share

$

34.57

$

36.43

Less:

Revenue from contract termination

19.88

19.88

Impairment and restructuring charges, acquisition-related costs, and litigation costs and settlements

(1.50

)

(0.91

)

Net gains on sales, consolidation and deconsolidation of facilities

0.41

0.41

Tax and noncontrolling interests impact of above items

(4.52

)

(4.64

)

Adjusted diluted earnings per share

$

20.30

$

21.69

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 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.

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

$

2,869

$

3,024

Less:

Net income available to noncontrolling interests

(910

)

(960

)

Income tax expense

(1,075

)

(1,130

)

Interest expense

(810

)

(800

)

Other non-operating income, net

150

200

Net gains on sales, consolidation and deconsolidation of facilities(2)

34

34

Impairment and restructuring charges, acquisition-related costs, and litigation costs and settlements(1)

(125

)

(75

)

Depreciation and amortization

(875

)

(925

)

Revenue from contract termination

1,650

1,650

Adjusted EBITDA

$

4,830

$

5,030

Net income available to Tenet Healthcare Corporation common shareholders

$

2,869

$

3,024

Net operating revenues

$

21,900

$

22,500

Net income available to Tenet Healthcare Corporation common shareholders as a % of net operating revenues

13.1

%

13.4

%

Adjusted EBITDA as a % of net operating revenues (Adjusted EBITDA margin)

22.1

%

22.4

%

(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 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.

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

(Unaudited)

FY 2026

(Dollars in millions)

Low

High

Net cash provided by operating activities

$

3,840

$

4,290

Purchases of property and equipment

(700

)

(800

)

Free cash flow

$

3,140

$

3,490

Net cash provided by operating activities

$

3,840

$

4,290

Less:

Payments for restructuring charges, acquisition-related costs and litigation costs and settlements(1)

(125

)

(75

)

Cash received for contract termination

540

540

Adjusted net cash provided by operating activities

3,425

3,825

Purchases of property and equipment

(700

)

(800

)

Adjusted free cash flow(2)

$

2,725

$

3,025

(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.

Investor Contact

Will McDowell

469-893-2387

[email protected]

Media Contact

Olivia E. Nadler

469-893-6352

[email protected]

Source: Tenet Healthcare Corporation

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