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Tenet Healthcare 8-K Report, Financial Results (Oct 28, 2025)

Reports
Earnings & Results·Exhibits & Filings
Filing Date
Filed October 28, 2025
Period End
October 28, 2025
Security
THC
In the record · 2016–202610-K1110-Q338-K176

THC filed 11 annual reports (10-K), 33 quarterly reports (10-Q) and 176 current reports (8-K) between 2016 and 2026.

  1. Deal closed8-K · Jan ’19Jan ’19
  2. Deal closed8-K · Dec ’20Dec ’20
  3. Leadership change8-K · Oct ’22Oct ’22
  4. Material agreement8-K · Sep ’26Sep ’26

01—Abstract

Summary

Summary of the 8-K filed October 28, 2025. Cited figures are marked; the original filing is the authoritative source.

Tenet Healthcare Corporation (NYSE: THC) reported third quarter 2025 results on October 28, 2025, furnished under Item 2.02 of Form 8-K as Exhibit 99.1.

Net income available to Tenet common shareholders was $342 milliona, or $3.86 per diluted share, versus $472 million, or $4.89 per diluted share, in third quarter 2024; the prior-year quarter included a $348 million pre-tax gain tied primarily to the sale of its 70% majority interest in Brookwood Baptist Health. Adjusted diluted EPS rose 26.3% to $3.70, and Adjusted EBITDA increased 12.4% to $1.099 billion, with an Adjusted EBITDA margin of 20.8%. Net operating revenues were $5,289 million, up from $5,126 million.

By segment, Ambulatory Care Adjusted EBITDA reached $492 millionb, up 12.1%, with same-facility system-wide net patient service revenues up 8.3% on cases up 2.1% and revenue per case up 6.1%. The Hospital segment's Adjusted EBITDA rose to $607 million from $539 million, with a 15.1% margin, and included a $38 million favorable pre-tax impact from additional Medicaid supplemental revenues related to prior years. Balance sheet metrics improved, with the net debt to Adjusted EBITDA ratio at 2.30x at September 30, 2025, versus 2.45x at June 30, 2025.

Nine-month free cash flow was $2.163 billionc, and the company repurchased 7.8 million shares for $1.188 billion year to date. Management raised its full-year 2025 Adjusted EBITDA outlook to $4.47 billion to $4.57 billion, a $50 million increase at the midpoint, and guided to net operating revenues of $21.15 billion to $21.35 billion and free cash flow of $2.275 billion to $2.525 billion. The guidance is presented as a forward-looking outlook and is subject to the risk factors cited in the company's Form 10-K for 2024.

02—Key points

Key Highlights

  1. Q3 2025 net income available to common shareholders was $342 million ($3.86 per diluted share), down from $472 million ($4.89) in Q3 2024, which included a $348 million pre-tax gain on the Brookwood Baptist Health sale.
  2. Adjusted diluted EPS increased 26.3% to $3.70 from $2.93, and Adjusted EBITDA rose 12.4% to $1.099 billion with a 20.8% margin.
  3. Ambulatory Care Adjusted EBITDA grew 12.1% to $492 million, driven by same-facility system-wide revenue growth of 8.3% (cases up 2.1%, revenue per case up 6.1%).
  4. Hospital segment Adjusted EBITDA rose to $607 million from $539 million, with margin up to 15.1%, including a $38 million favorable one-time Medicaid supplemental revenue impact related to prior years.
  5. Net debt to Adjusted EBITDA improved to 2.30x at September 30, 2025, from 2.45x at June 30, 2025 and 2.54x at December 31, 2024.
  6. Nine-month free cash flow reached $2.163 billion, versus $1.777 billion a year earlier, and the company repurchased $1.188 billion of stock year to date.
  7. Full-year 2025 Adjusted EBITDA outlook was raised to $4.47 billion to $4.57 billion, a $50 million increase at the midpoint.

03—Questions

Frequently Asked Questions

  1. Why did reported net income decline year over year even though operating performance improved?

    Third quarter 2024 net income available to common shareholders included a $348 million pre-tax gain ($209 million after tax, or $2.16 per diluted share) primarily from the sale of the 70% majority interest in Brookwood Baptist Health. Third quarter 2025 net gains on sales were only $20 million, so the comparison is distorted by that prior-year gain, while Adjusted EBITDA and Adjusted diluted EPS both increased.

  2. What drove the raised 2025 outlook?

    The filing attributes the strong quarter to growth in same-facility revenue, higher acuity, favorable payer mix, and disciplined expense management. The company raised its full-year Adjusted EBITDA outlook to $4.47 billion to $4.57 billion, a $50 million increase at the midpoint.

  3. How much of the Hospital segment's Q3 improvement came from one-time items?

    The Hospital segment recognized a $38 million favorable pre-tax impact from additional Medicaid supplemental revenues related to prior years in the third quarter of 2025. The filing does not separate this amount from the segment's other drivers in its discussion of the Adjusted EBITDA increase.

  4. How is the company's leverage and cash generation trending?

    The net debt to Adjusted EBITDA ratio fell to 2.30x at September 30, 2025, from 2.45x at June 30, 2025 and 2.54x at December 31, 2024. Nine-month operating cash flow was $2.809 billion and free cash flow was $2.163 billion, and the company repurchased 7.8 million shares for $1.188 billion in the first nine months of 2025.

  5. What is the nature of the financial measures used in this release?

    Adjusted EBITDA, Adjusted diluted EPS, Free Cash Flow, and Adjusted Free Cash Flow are non-GAAP measures. The company reconciles them to GAAP measures in the release tables, and states that they are supplemental and do not provide a complete measure of operating performance.

04—Continue

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