Episode
Tenet Healthcare Stock: It CRUSHED Q2 and Raised Guidance — Is There Value Left?
- Published
- Jul 25, 2026
- Duration seconds
- 894
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Summary
Tenet Healthcare (THC) Q2 2026 — Tenet Healthcare (THC), the Dallas hospital + ambulatory-surgery operator, delivered a blowout Q2 2026 and RAISED full-year guidance — and the stock jumped ~17% to ~$233. Adjusted diluted EPS of $6.12 (+52% YoY vs $4.02) crushed the $4.26 estimate, on revenue of $5.63B (+6.8%) and adjusted EBITDA of $1.30B (+16%), with the adjusted EBITDA margin EXPANDING from 21.3% to 23.2%. The USPI ambulatory-surgery segment (the largest ASC operator in the U.S.) grew adjusted EBITDA 9% to $542M at a 39% margin, with same-facility revenue +5% and total-joint-replacement volumes +10%. Management raised FY2026 adjusted EPS guidance to $20.30–$21.69 (from ~$17.85), adjusted EBITDA to $4.83–$5.03B (+$295M midpoint), revenue to $21.9–$22.5B, and adjusted FCF ~$225M. Tenet has deleveraged to ~2.2x net debt/EBITDA (~$11B net debt), repurchased $1.04B of stock in Q2, and expanded its buyback authorization by $2.0B (~$2.13B remaining). The quarter was partly flattered by non-recurring prior-year Medicaid supplemental payments and contract-termination revenue, and an ACA-subsidy/payer-mix headwind looms into 2026-27. Our owner-earnings DCF + segment sum-of-parts lands fair value near $250 vs ~$233. Our call: BUY, 3/5 — the transformation is real, but much of the beat-and-raise is now priced in. Tenet Healthcare (THC) is a ~$20B Dallas-based operator of ~50 acute-care hospitals, the Conifer revenue-cycle business, and — the crown jewel — USPI (United Surgical Partners), the largest ambulatory-surgery-center operator in America with ~500 centers, led by CEO Dr. Saum Sutaria. The story is a deliberate transformation: Tenet sold dozens of hospitals and reinvested the proceeds into high-margin surgery centers and debt paydown, morphing from a leveraged hospital cha…