Tenet Healthcare (THC) investor relations material

Executive summary

• Q3 net operating revenue rose 6.5% YoY to $5.631B; Adjusted EBITDA increased 23.3% to $1.355B and adjusted diluted EPS rose 79.5% to $6.64.

• Adjusted EBITDA included a $147M favorable CHI transition impact; excluding one-time contract-transition benefits, core EBITDA grew 10% with a 21.8% margin.

• FY26 Adjusted EBITDA guidance rose by $195M at the midpoint to $5.05B–$5.20B; Adjusted Free Cash Flow outlook also increased.

Financial highlights

• Q3 net income available to common shareholders was $1.000B vs. $342M; adjusted net income was $535M vs. $328M and adjusted diluted EPS was $6.64 vs. $3.70.

• Q3 Adjusted Free Cash Flow was $1.102B; 9M Adjusted Free Cash Flow reached $2.524B.

• Commercial renewals were generally 3%–5%, with more than 90% of next year's contracts in place.

Outlook and guidance

• FY26 net operating revenue guidance is $22.05B–$22.45B; Adjusted EBITDA guidance is $5.05B–$5.20B, with a 22.9%–23.2% margin.

• FY26 Adjusted Free Cash Flow is projected at $2.825B–$3.125B, or $1.925B–$2.155B after NCI distributions; outlook includes ~$150M of Conifer transaction taxes.

• FY26 ambulatory same-facility system-wide revenue is expected to grow 3%–6%; Hospital inpatient and adjusted admissions are each expected to rise 1%–2%.

• 2027 Adjusted EBITDA growth is expected after excluding $450M of FY26 Conifer transition contributions; USPI is expected to deliver same-store revenue growth and consistent margins.

• Hospital outlook assumes healthy demand, same-store volume growth and stable operations supported by cost controls.