01—Abstract
Summary
Summary of the 10-Q filed July 29, 2026. Cited figures are marked; the original filing is the authoritative source.
Tenet Healthcare Corporation's Form 10-Q for the quarter ended June 30, 2026 shows net operating revenues of $5.628 billiona for the three months ended June 30, 2026, up from $5.271 billion a year earlier, and $10.996 billion for the six months, up from $10.494 billion.
The results were materially boosted by a revenue line item called "revenue from contract termination," which totaled $413 millionb for the quarter and $826 million for the six months. This revenue relates to the Omnibus Agreement with Catholic Health Initiatives (now CommonSpirit Health) concluding the Conifer revenue cycle management agreement early. Operating income rose to $1.501 billion for the quarter from $823 million, and net income available to Tenet common shareholders was $826 million, compared with $288 million a year earlier.
Diluted earnings per share were $9.84c for the quarter versus $3.14 in the prior-year period. Cash flow and capital allocation were significant during the period. Net cash provided by operating activities was $2.226 billion for the six months, compared with $1.751 billion in 2025, helped by $540 million of contract termination payments received.
The company repurchased shares totaling $1.360 billiond in the six months, with $2.130 billion remaining under the repurchase program at June 30, 2026, after the board authorized an additional $2.000 billion in June 2026. Cash and cash equivalents declined to $2.170 billion from $2.883 billion at December 31, 2025, and the company also made $558 million of purchases of noncontrolling interests in the six months. Balance sheet highlights include total assets of $30.676 billion and long-term debt, net of current portion, of $13.088 billion.
Senior unsecured and senior secured notes had aggregate principal of $12.662 billion, with the $1.900 billion Credit Agreement undrawn at June 30, 2026. The filing states that the CHI Note Receivable of $1.360 billion is non-interest-bearing and will be paid in three annual installments of approximately $453 million, the first in January 2027.
02—Key points
Key Highlights
- Net operating revenues rose to $5.628 billion in Q2 2026 from $5.271 billion in Q2 2025; Hospital Operations contributed $4.240 billion and Ambulatory Care $1.388 billion.
- Revenue from contract termination of $413 million in the quarter and $826 million year to date relates to the Omnibus Agreement with CHI concluding the Conifer RCM agreement early.
- Operating income was $1.501 billion in Q2 2026 versus $823 million in Q2 2025, and operating margin was 26.7% compared with 15.6%.
- Diluted EPS was $9.84 for Q2 2026 compared with $3.14 a year earlier; net income available to common shareholders was $826 million versus $288 million.
- Share repurchases totaled $1.360 billion in the six months ended June 30, 2026, and $2.130 billion remained available under the program at June 30, 2026 after an additional $2.000 billion was authorized in June 2026.
- Cash and cash equivalents were $2.170 billion at June 30, 2026, down from $2.883 billion at December 31, 2025, and the $1.900 billion revolving Credit Agreement was undrawn.
- The company completed the redemption of CHI's minority interest in Conifer effective January 1, 2026, for $540 million, reducing redeemable noncontrolling interests by $846 million.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2026filed July 29, 2026Financial Statements
Q2 FY2026 against Q2 FY2025
| Line item | Q2 FY2026Q2 FY2025 | Change |
|---|---|---|
| Revenue | $5.63B$5.27B | +6.8% |
| Operating Income | $1.50B$823.00M | +82.4% |
| Net Income | $826.00M$288.00M | +186.8% |
| EPS (Basic) | $9.89$3.16 | +213.0% |
| EPS (Diluted) | $9.84$3.14 | +213.4% |
| Shares Outstanding (Basic) | 83.52M91.14M | −8.4% |
| Shares Outstanding (Diluted) | 83.96M91.79M | −8.5% |
05—Questions
Frequently Asked Questions
How much of the quarter's earnings growth came from the contract termination revenue?
Revenue from contract termination was $413 million in the three months ended June 30, 2026, and no such revenue was recorded in the prior-year quarter. The filing states this revenue relates to the Omnibus Agreement with CHI, which concluded the Conifer revenue cycle management agreement early. Operating income increased to $1.501 billion from $823 million, so this item is a significant contributor to the increase.
Is the CHI payment stream fully collected?
No. The CHI Note Receivable is a $1.360 billion non-interest-bearing promissory note with three annual payments of approximately $453 million. The first two are due in January 2027 and January 2028, and the final payment is due in January 2029. At June 30, 2026, $414 million was in other current assets and $828 million in investments and other assets, and the filing states its fair value was approximately 100.0% of carrying value.
How is the company returning capital to shareholders?
The company repurchased $1.360 billion of common stock in the six months ended June 30, 2026, including 7.021 million shares under its repurchase program. In June 2026 the board authorized an additional $2.000 billion, and $2.130 billion remained available at June 30, 2026. The program has no expiration date and does not obligate the company to buy any specific amount.
What is the company's debt position?
Long-term debt totaled $13.248 billion including current portion at June 30, 2026, and senior unsecured and senior secured notes had aggregate principal of $12.662 billion. The notes carry fixed rates from 4.250% to 6.875%, with maturities staggered from November 2027 through November 2033. The $1.900 billion Credit Agreement had no cash borrowings, and $105 million of standby letters of credit were outstanding under the separate LC Facility.
What does the company expect for capital expenditures in 2026?
The filing states that capital expenditures for the year ending December 31, 2026 are anticipated to total approximately $700 million to $800 million, including $111 million accrued as a liability at December 31, 2025. Capital expenditures were $348 million in the six months ended June 30, 2026.
06—Continue