Tenet Healthcare (THC) investor relations material

Executive summary

• Net operating revenues reached $5.37 billion in Q1 2026, up 2.8% year-over-year, with consolidated adjusted EBITDA of $1.162 billion and a margin of 21.6%, exceeding expectations despite payer mix shifts and insurance enrollment uncertainty.

• Net income available to common shareholders rose to $702 million ($8.01 per diluted share), up 73% year-over-year, driven by strong Ambulatory Care growth and a $413 million contract termination payment.

• Ambulatory segment delivered 6.1% adjusted EBITDA growth, added 10 new facilities, and saw revenues rise 10.6% year-over-year.

• Disciplined operations, expense management, and investments in technology, automation, and AI drove productivity and robust free cash flow.

• Cash flow from operations surged to $1.64 billion, up from $815 million in the prior year period.

Financial highlights

• Adjusted EBITDA was $1.162 billion with a 21.6% margin; net income available to common shareholders was $702 million; adjusted diluted EPS was $4.82.

• USPI/ambulatory adjusted EBITDA was $484 million (36.7% margin); hospital segment adjusted EBITDA was $678 million (16.7% margin).

• Adjusted free cash flow was $978 million in Q1 2026, up from $678 million in Q1 2025; cash on hand was $2.97 billion.

• Net operating revenues: $5.37 billion (+2.8% YoY); Ambulatory Care $1.32 billion (+10.6%), Hospital Operations $4.05 billion (+0.5%).

• Diluted EPS was $8.01; adjusted net income available to shareholders was $422 million.

Outlook and guidance

• FY 2026 adjusted EBITDA guidance is $4.485–$4.785 billion; net operating revenues expected between $21.5–$22.3 billion.

• Adjusted diluted EPS forecasted at $16.38–$18.68; adjusted free cash flow projected at $1.6–$1.83 billion, or up to $2.8 billion including certain adjustments.

• Capital expenditures for 2026 projected at $700–$800 million.

• Q2 2026 consolidated adjusted EBITDA is expected to be 24%-25% of the full-year target.

• Management expects continued growth in Ambulatory Care through acquisitions and organic expansion.