01—Abstract
Summary
Summary of the 10-Q filed July 30, 2025. Cited figures are marked; the original filing is the authoritative source.
Tenet Healthcare Corporation's Form 10-Q for the quarter ended June 30, 2025 shows second-quarter net operating revenues of $5.271 billiona, up from $5.108 billion a year earlier, with operating income of $823 million versus $761 million.
For the six months, net operating revenues were $10.494 billionb and operating income was $1.766 billion, compared with $4.046 billion in the prior-year period, which included large gains on facility sales (net gains of $2.558 billion in 2024). Net income available to Tenet common shareholders was $288 million for the quarter ($3.14 diluted EPS) and $694 million for the six months ($7.43 diluted EPS), compared with $2.410 billion for the six months of 2024. The balance sheet shows cash and cash equivalents of $2.625 billion at June 30, 2025, down from $3.019 billion at December 31, 2024, and long-term debt of $13.091 billion (non-current).
Total shareholders' equity fell to $3.749 billionc from $4.171 billion as treasury stock rose to $4.642 billion, reflecting $1.095 billion of share repurchases in the six months. The board increased the 2024 share repurchase program by $1.500 billion in July 2025, and $1.781 billion was available for repurchases as of July 22, 2025. Operating cash flow was $1.751 billion for the six months, compared with $1.333 billion a year earlier.
The filing also notes that the One Big Beautiful Bill Act, signed in July 2025, is expected to materially affect Medicaid funding and enrollment, with most healthcare provisions taking effect in 2027 and later. Management says it is unable to predict the timing or size of the impact on the company, though it expects decreased government program payments and payment delays.
02—Key points
Key Highlights
- Net operating revenues were $5.271 billion in Q2 2025 versus $5.108 billion in Q2 2024; Ambulatory Care revenues rose to $1.270 billion from $1.141 billion.
- Net income available to Tenet common shareholders was $288 million in Q2 2025 ($3.14 diluted EPS), compared with $259 million ($2.64 diluted EPS) a year earlier.
- Six-month 2024 results included net gains on sales of facilities of $2.558 billion (largely the South Carolina and California hospital sales), so six-month net income available to common shareholders fell to $694 million from $2.410 billion.
- Share repurchases totaled $1.095 billion in the six months ended June 30, 2025; the board added $1.500 billion to the repurchase program in July 2025, with $1.781 billion available as of July 22, 2025.
- Cash and cash equivalents declined to $2.625 billion from $3.019 billion at December 31, 2024, while net cash provided by operating activities rose to $1.751 billion from $1.333 billion.
- Long-term debt, net of current portion, was $13.091 billion; the $1.500 billion revolving Credit Agreement had no cash borrowings outstanding and $1.400 billion of borrowing availability at June 30, 2025.
- The OBBBA, signed in July 2025, is expected to materially affect Medicaid funding and enrollment, with the most significant healthcare provisions effective in 2027 and later; the company cannot yet estimate its impact.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2025filed July 30, 2025Financial Statements
Q2 FY2025 against Q2 FY2024
| Line item | Q2 FY2025Q2 FY2024 | Change |
|---|---|---|
| Revenue | $5.27B$5.11B | +3.2% |
| Operating Income | $823.00M$761.00M | +8.1% |
| Net Income | $288.00M$259.00M | +11.2% |
| EPS (Basic) | $3.16$2.66 | +18.8% |
| EPS (Diluted) | $3.14$2.64 | +18.9% |
| Shares Outstanding (Basic) | 91.14M97.27M | −6.3% |
| Shares Outstanding (Diluted) | 91.79M98.44M | −6.8% |
05—Questions
Frequently Asked Questions
How did Tenet's revenue and operating income perform in the second quarter of 2025?
Net operating revenues were $5.271 billion, up from $5.108 billion in the second quarter of 2024. Operating income was $823 million, compared with $761 million a year earlier. Hospital Operations revenues rose to $4.001 billion from $3.967 billion, and Ambulatory Care revenues rose to $1.270 billion from $1.141 billion, driven mainly by recent acquisitions and higher net revenue per case.
Why are six-month 2025 earnings so much lower than six-month 2024 earnings?
The six months ended June 30, 2024 included large gains on sales and consolidation of facilities totaling $2.558 billion, primarily from the sales of the South Carolina, Orange County and Los Angeles County, and San Luis Obispo County hospitals. Operating income for the six months was $1.766 billion in 2025 versus $4.046 billion in 2024, and net income available to common shareholders was $694 million versus $2.410 billion.
How is Tenet using its cash and capital?
Tenet repurchased $1.095 billion of common stock in the six months ended June 30, 2025, and paid $374 million in distributions to noncontrolling interests. Capital expenditures were $366 million. In July 2025, the board increased the 2024 share repurchase program by $1.500 billion, and $1.781 billion was available for repurchases as of July 22, 2025.
What does the One Big Beautiful Bill Act mean for Tenet?
The filing states that the OBBBA is expected to materially affect Medicaid funding and enrollment, along with the health insurance marketplace, and that most of the substantial healthcare provisions take effect in 2027 and later. Tenet says it cannot yet estimate the impact and expects possible decreased government program payments and payment delays. For income taxes, the company does not believe the law will have a material impact on current-year tax expense.
What is Tenet's debt position?
Aggregate principal of senior unsecured and senior secured notes was $12.662 billion at June 30, 2025, with fixed rates ranging from 4.250% to 6.875% and maturities staggered from February 2027 through November 2031. Total long-term debt was $13.175 billion, including $84 million current. The revolving Credit Agreement had no cash borrowings outstanding.
06—Continue