01—Abstract
Summary
Summary of the 10-Q filed October 28, 2025. Cited figures are marked; the original filing is the authoritative source.
Tenet Healthcare Corporation's Form 10-Q for the quarter ended September 30, 2025 reports net operating revenues of $5.289 billiona for the three months ended September 30, 2025, up from $5.126 billion a year earlier, and $15.783 billion for the nine months, up from $15.602 billion.
Net income available to Tenet common shareholders was $342 millionb for the quarter versus $472 million in the prior-year quarter, and $1.036 billion for the nine months versus $2.882 billion. The prior-year nine-month period included large gains on facility sales, including the $1.677 billion gain on the sale of the SC Hospitals, which largely explains the year-over-year decline in earnings. Diluted earnings per share were $3.86 for the quarter and $11.28 for the nine months.
Operating cash flow for the nine months was $2.809 billionc, compared with $2.378 billion a year earlier. The company repurchased $1.188 billion of its common stock in the nine months, and $1.688 billion remained available under its repurchase program at September 30, 2025. Cash and cash equivalents were $2.975 billion, and long-term debt was $13.187 billion.
The company's Ambulatory Care segment drove revenue growth, with nine-month segment revenue up $464 milliond, or 14.2%, while Hospital Operations revenue declined $283 million, or 2.3%, largely due to 2024 hospital divestitures. Management states that the One Big Beautiful Bill Act is expected to materially affect Medicaid funding and enrollment, with most major healthcare provisions taking effect in 2027, and that the company cannot yet estimate its impact on future results.
The company also disclosed that its Controller, R. Scott Ramsey, plans to retire effective March 31, 2026.
02—Key points
Key Highlights
- Net operating revenues rose to $5.289 billion in the three months ended September 30, 2025, up $163 million, or 3.2%, from $5.126 billion a year earlier.
- Net income available to common shareholders fell to $342 million for the quarter from $472 million, and to $1.036 billion for the nine months from $2.882 billion, reflecting lower gains on facility sales than in 2024.
- Ambulatory Care nine-month net operating revenues increased $464 million, or 14.2%, to $3.739 billion, driven by acquisitions and higher net revenue per case.
- Net cash provided by operating activities was $2.809 billion for the nine months, compared with $2.378 billion in the prior-year period.
- The company repurchased $1.188 billion of common stock in the nine months ended September 30, 2025, leaving $1.688 billion available under its share repurchase program.
- Long-term debt was $13.187 billion at September 30, 2025, with fixed-rate notes and no cash borrowings outstanding under the $1.500 billion Credit Agreement.
- Management expects the One Big Beautiful Bill Act to materially affect Medicaid funding and enrollment, with the most significant provisions taking effect in 2027 and later.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2025filed October 28, 2025Financial Statements
Q3 FY2025 against Q3 FY2024
| Line item | Q3 FY2025Q3 FY2024 | Change |
|---|---|---|
| Revenue | $5.29B$5.13B | +3.2% |
| Operating Income | $889.00M$1.09B | −18.4% |
| Net Income | $342.00M$472.00M | −27.5% |
| EPS (Basic) | $3.89$4.93 | −21.1% |
| EPS (Diluted) | $3.86$4.89 | −21.1% |
| Shares Outstanding (Basic) | 87.95M95.67M | −8.1% |
| Shares Outstanding (Diluted) | 88.61M96.65M | −8.3% |
05—Questions
Frequently Asked Questions
How did Tenet's earnings change compared with the prior year?
Net income available to Tenet common shareholders was $342 million for the three months ended September 30, 2025, down from $472 million a year earlier, and $1.036 billion for the nine months, down from $2.882 billion. The 2024 nine-month results included large gains on sales of facilities, including a $1.677 billion pre-tax gain on the sale of the SC Hospitals, which the filing identifies as a key driver of the difference.
What drove revenue growth in the quarter?
Consolidated net operating revenues increased $163 million, or 3.2%, to $5.289 billion. Ambulatory Care revenue rose $136 million, or 11.9%, mainly from recently acquired ambulatory surgery centers and higher same-facility case volume and net revenue per case. Hospital Operations revenue rose $27 million, or 0.7%, supported by a more favorable payer mix and higher same-hospital admissions, largely offset by the divestiture of the AL Hospitals.
How is Tenet returning capital to shareholders?
In the nine months ended September 30, 2025, Tenet repurchased $1.188 billion of common stock under its share repurchase program. The board increased the 2024 program by $1.500 billion in July 2025, and $1.688 billion remained available for future repurchases at September 30, 2025. The program has no expiration date and does not obligate the company to buy any particular amount of stock.
What regulatory risks does the filing highlight?
Management states that the One Big Beautiful Bill Act, enacted in July 2025, is expected to materially affect Medicaid funding and enrollment and the health insurance marketplace, with the most significant provisions taking effect in 2027. The company says it cannot yet estimate the impact on its future business, financial condition or results of operations, and notes that the law may result in reduced government program payments and delays in payment timing.
Are there any leadership changes disclosed?
Yes. On October 23, 2025, R. Scott Ramsey, Senior Vice President and Controller (Principal Accounting Officer), informed the company that he plans to retire effective March 31, 2026. A national search is ongoing to identify his successor, and Mr. Ramsey will mentor and onboard that person as part of the transition.
06—Continue