01—Abstract
Summary
Summary of the 10-K filed February 17, 2026. Cited figures are marked; the original filing is the authoritative source.
Tenet Healthcare Corporation (THC) reported net operating revenues of $21.31 billiona for 2025, up $635 million, or 3.1%, from $20.68 billion in 2024.
Operating income fell to $3.508 billionb from $5.956 billion, largely because 2024 included $2.916 billion of net gains on sales of facilities, primarily the Divested Hospitals. Net income available to Tenet common shareholders was $1.407 billion, or $15.49 diluted EPS, versus $3.200 billion, or $32.70, in 2024. Net cash provided by operating activities rose to $3.540 billion from $2.047 billion, and the company repurchased $1.386 billion of its common stock during the year.
The Hospital Operations segment ran 50 acute care and specialty hospitals in eight states and generated $16.138 billionc of net operating revenues, roughly flat year over year, with segment operating income of $1.730 billion. Ambulatory Care, operated through USPI, held interests in 533 ASCs and 26 surgical hospitals and grew net operating revenues 14.1% to $5.172 billion, with segment operating income of $1.778 billion. Management cites a more favorable payer mix, higher acuity and commercial rate increases as drivers, while flagging significant headwinds from the expiration of enhanced ACA premium tax credits at the end of 2025 and the One Big Beautiful Bill Act, whose most consequential Medicaid provisions take effect in 2027.
The balance sheet shows $13.171 billiond of total long-term debt and $2.883 billion of cash at year-end. In November 2025 the company issued $1.500 billion of 5.500% senior secured notes due 2032 and $750 million of 6.000% senior notes due 2033, and used the proceeds with cash on hand to redeem the February 2027 second lien notes and $750 million of the October 2028 notes. In January 2026 Tenet agreed with CommonSpirit Health to end the Conifer revenue cycle services agreement effective December 31, 2026, with CHI paying $1.900 billion over three years and Conifer buying back CHI's 23.8% minority stake for $540 million.
02—Key points
Key Highlights
- Net operating revenues were $21.31 billion in 2025, up $635 million (3.1%) from $20.68 billion, with Ambulatory Care growing 14.1% to $5.172 billion.
- Operating income declined to $3.508 billion from $5.956 billion, primarily because 2024 included $2.916 billion of net gains on facility sales, mainly the Divested Hospitals.
- Net income available to Tenet common shareholders was $1.407 billion ($15.49 diluted EPS), compared with $3.200 billion ($32.70) in 2024.
- Net cash provided by operating activities increased to $3.540 billion from $2.047 billion, and capital expenditures were $1.010 billion.
- Tenet repurchased $1.386 billion of common stock in 2025, leaving $1.490 billion available under its repurchase program at year-end.
- Interest expense was $821 million in 2025; the company refinanced higher-cost debt in November 2025 with new 5.500% and 6.000% notes.
- In January 2026 an agreement with CommonSpirit Health ends the Conifer RCM services contract as of December 31, 2026, with CHI paying $1.900 billion over three years.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2025filed February 17, 2026Financial Statements
FY2025 against FY2024
| Line item | FY2025FY2024 | Change |
|---|---|---|
| Revenue | $21.31B$20.68B | +3.1% |
| Operating Income | $3.51B$5.96B | −41.1% |
| Net Income | $1.41B$3.20B | −56.0% |
| EPS (Basic) | $15.61$33.02 | −52.7% |
| EPS (Diluted) | $15.49$32.70 | −52.6% |
| Shares Outstanding (Basic) | 90.15M96.90M | −7.0% |
| Shares Outstanding (Diluted) | 90.83M97.88M | −7.2% |
05—Questions
Frequently Asked Questions
How did Tenet's revenue and profitability change in 2025?
Net operating revenues rose $635 million, or 3.1%, to $21.31 billion. Operating income fell to $3.508 billion from $5.956 billion, mainly because 2024 included $2.916 billion of net gains on facility sales. Net income available to common shareholders was $1.407 billion, versus $3.200 billion in 2024.
What are the main risks the filing highlights for future results?
The filing points to the expiration of enhanced ACA premium tax credits at the end of 2025, which it expects to raise the uninsured population and shift patients to government coverage in 2026. It also cites the One Big Beautiful Bill Act, whose Medicaid work requirements, caps on state-directed payments and provider tax limits mainly take effect in 2027, and states the company cannot yet estimate its impact. Other risks include managed care payer concentration, with the top 10 payers generating 69% of managed care revenues, and labor costs.
What happened with the Conifer arrangement with CommonSpirit Health?
On January 27, 2026, Tenet agreed with CommonSpirit Health (successor to CHI) to terminate the Conifer revenue cycle services agreement effective December 31, 2026. CHI will pay Tenet $1.900 billion in annual installments over three years, with $540 million offset on January 27, 2026. Conifer will also redeem CHI's minority stake for $540 million, effective January 1, 2026. The company does not expect to record a gain or loss on that redemption.
How is Tenet's debt position and liquidity?
Total long-term debt was $13.171 billion at December 31, 2025, and cash and cash equivalents were $2.883 billion. The $1.900 billion 2025 Credit Agreement had no cash borrowings outstanding, and the company was in compliance with its covenants. In November 2025 Tenet issued $1.500 billion of 5.500% senior secured notes due 2032 and $750 million of 6.000% senior notes due 2033 to refinance higher-cost debt. The company expects 2026 interest payments of about $750 million to $760 million.
What is Tenet's capital return and spending outlook?
In 2025 Tenet repurchased $1.386 billion of common stock, and $1.490 billion remained under the repurchase program at year-end. Capital expenditures were $1.010 billion in 2025 and are expected to total approximately $700 million to $800 million in 2026.
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