Tenet Healthcare (THC) · Q2 2026 results and valuation

At 3.6% growth a year (3-year revenue growth), the model's fair value is $321.84 a share — the stock trades 9% below it. Today's price assumes 2.7% growth a year.

1. Key theme

   Inpatient elective surgeries faced pressure, but outpatient electives and emergency department volumes remained strong.

   Source quote

   “Our elective surgery book was under more pressure on the inpatient side, but elective outpatient surgeries in the hospital or hospital... And I -- look, we had strong emergency department volumes, strong emergency department inpatient surgeries. And that, I attribute largely to the fact that over the past couple of years in these hospitals, especially as we've been doing more work at USPI, we have been investing in hospital-based...”

2. Guidance ↑

   THC raised its revenue guidance for the upcoming period, citing core business drivers and same-store revenue growth as the primary factors for this change.

   Source quote

   “We are confident in our ability to achieve our increased guidance as it is powered by continued strength in our core business drivers, same-store revenue growth, effective expense...”

3. Guidance

   Tenet Healthcare now expects a contribution of $140 million from recently approved increases in certain supplemental Medicaid programs, plus the out-of-period revenues from prior year that I already…

4. Figure

   Quarter net operating revenues were $5.6 billion and consolidated adjusted EBITDA was $1.304 billion.

   Source quote

   “Second quarter net operating revenues were $5.6 billion, and consolidated adjusted EBITDA was $1.304 billion, which represented an adjusted EBITDA...”

Script and answers carried a similar tone, so the script's message held up under questioning.

Sentences that drove the tone

“We are confident in our ability to achieve our increased guidance as it is powered by continued strength in our core business drivers, same-store revenue growth, effective expense management and...”

“And what I mean by that is when we look at our business, we have obviously migrated our hospital portfolio to markets that we thought we had better growth opportunities...”

“I mean we do think at compelling valuations multiple valuations that given our growth prospects into the future, given the continued expansion of our USPI portfolio that share buyback are...”