What drove the large increase in third quarter 2026 earnings?

Management attributes the outperformance to strong same-store revenue growth and expense management. Results also include a net favorable $147 million impact from the revised timeline for the Conifer revenue cycle management transition with CommonSpirit Health, which includes a $97 million revenue timing adjustment and about $50 million of transition benefits. The filing also notes that the $233 million catch-up from contract termination is a timing-related adjustment.

Are the timing-related benefits expected to recur?

The company states that these are timing-related adjustments and do not change its total or full-year 2026 expectations for contract termination revenue or net operating revenues associated with the RCM Agreements.

How did the outlook change?

Tenet raised its FY 2026 Adjusted EBITDA outlook to $5.05 billion to $5.20 billion, a $195 million increase at the midpoint, and its Adjusted Free Cash Flow outlook to $2.825 billion to $3.125 billion, a $100 million increase. Consolidated net operating revenues are expected at $22.05 billion to $22.45 billion.

What happened in the segments?

Ambulatory Care Adjusted EBITDA rose 9.1% to $537 million, with same-facility system-wide net patient service revenues up 4.5% and surgical cases down 1.5%. Hospital Operations and Services Adjusted EBITDA rose to $818 million from $607 million, with an Adjusted EBITDA margin of 19.2% versus 15.1%, reflecting strong same-hospital revenue growth and expense discipline partly offset by unfavorable payer mix from lower exchange admissions.

THC 8-K: Earnings & Results

Q: How did the company manage its debt and capital returns?

In September 2026 Tenet issued $2.0 billion of 6.250% senior notes due 2034, using proceeds with cash on hand to redeem $1.5 billion of 5.125% senior secured first lien notes due 2027 and partially redeem $500 million of 6.125% senior notes due 2028. Year to date the company repurchased 7.99 million shares for $1.615 billion, and its net debt to Adjusted EBITDA ratio was 2.11x at September 30, 2026.

01—Abstract

Summary

Summary of the 8-K filed October 29, 2026. Cited figures are marked; the original filing is the authoritative source.

Tenet Healthcare Corporation (NYSE: THC) reported third quarter 2026 results for the quarter ended September 30, 2026, furnished under Item 2.02 via Exhibit 99.1.

Net income available to Tenet common shareholders was $1.000 billion^a, or $12.41 per diluted share, versus $342 million, or $3.86 per diluted share, in the third quarter of 2025. Adjusted diluted earnings per share rose 79.5% to $6.64 from $3.70, and Consolidated Adjusted EBITDA increased 23.3% to $1.355 billion, with an Adjusted EBITDA margin of 24.1%. The results include a $233 million contract termination catch-up and a $97 million net operating revenue timing adjustment tied to the revised CommonSpirit/Conifer revenue cycle management agreements, plus about $50 million of transition benefits, for a net favorable $147 million impact on Adjusted EBITDA.

The company raised its FY 2026 outlook: Adjusted EBITDA is now expected at $5.05 billion to $5.20 billion^b, a $195 million increase at the midpoint, and Adjusted Free Cash Flow is expected at $2.825 billion to $3.125 billion, a $100 million increase. Ambulatory Care Adjusted EBITDA was $537 million, up 9.1%, with same-facility system-wide net patient service revenues up 4.5% and surgical cases down 1.5%. Hospital Operations and Services Adjusted EBITDA was $818 million versus $607 million a year earlier, with same-hospital admissions up 2.8%.

Balance sheet and cash flow items include nine-month operating cash flow of $3.507 billion^c, nine-month adjusted free cash flow of $2.524 billion, share repurchases of $1.615 billion year to date, and a net debt to Adjusted EBITDA ratio of 2.11x at September 30, 2026. In September 2026 the company issued $2.0 billion of 6.250% senior notes due 2034 and used the proceeds, with cash on hand, to redeem $1.5 billion of 5.125% senior secured first lien notes due 2027 and partially redeem $500 million of 6.125% senior notes due 2028.

02—Key points

Key Highlights

Q3 2026 net income available to common shareholders of $1.000 billion ($12.41 per diluted share) versus $342 million ($3.86) in Q3 2025.
Adjusted diluted EPS of $6.64, up 79.5% from $3.70; Consolidated Adjusted EBITDA of $1.355 billion, up 23.3%, at a 24.1% margin.
Q3 results include a net favorable $147 million impact from the revised CommonSpirit/Conifer RCM transition, comprising a $97 million timing-related revenue adjustment and about $50 million of transition benefits; the $233 million contract termination catch-up is also cited.
FY 2026 Adjusted EBITDA outlook raised to $5.05 billion to $5.20 billion (a $195 million midpoint increase); Adjusted Free Cash Flow outlook raised to $2.825 billion to $3.125 billion (a $100 million increase).
Hospital segment Adjusted EBITDA rose to $818 million from $607 million, with same-hospital admissions up 2.8%; Ambulatory Care Adjusted EBITDA rose 9.1% to $537 million.
Nine-month operating cash flow of $3.507 billion and adjusted free cash flow of $2.524 billion; $1.615 billion of share repurchases year to date.
Net debt to Adjusted EBITDA improved to 2.11x at September 30, 2026, from 2.33x at June 30, 2026, after a $2.0 billion 6.250% senior notes due 2034 offering used to refinance 2027 and 2028 notes.

03—Questions

Frequently Asked Questions

What drove the large increase in third quarter 2026 earnings?
Management attributes the outperformance to strong same-store revenue growth and expense management. Results also include a net favorable $147 million impact from the revised timeline for the Conifer revenue cycle management transition with CommonSpirit Health, which includes a $97 million revenue timing adjustment and about $50 million of transition benefits. The filing also notes that the $233 million catch-up from contract termination is a timing-related adjustment.
Are the timing-related benefits expected to recur?
The company states that these are timing-related adjustments and do not change its total or full-year 2026 expectations for contract termination revenue or net operating revenues associated with the RCM Agreements.
How did the outlook change?
Tenet raised its FY 2026 Adjusted EBITDA outlook to $5.05 billion to $5.20 billion, a $195 million increase at the midpoint, and its Adjusted Free Cash Flow outlook to $2.825 billion to $3.125 billion, a $100 million increase. Consolidated net operating revenues are expected at $22.05 billion to $22.45 billion.
What happened in the segments?
Ambulatory Care Adjusted EBITDA rose 9.1% to $537 million, with same-facility system-wide net patient service revenues up 4.5% and surgical cases down 1.5%. Hospital Operations and Services Adjusted EBITDA rose to $818 million from $607 million, with an Adjusted EBITDA margin of 19.2% versus 15.1%, reflecting strong same-hospital revenue growth and expense discipline partly offset by unfavorable payer mix from lower exchange admissions.
How did the company manage its debt and capital returns?
In September 2026 Tenet issued $2.0 billion of 6.250% senior notes due 2034, using proceeds with cash on hand to redeem $1.5 billion of 5.125% senior secured first lien notes due 2027 and partially redeem $500 million of 6.125% senior notes due 2028. Year to date the company repurchased 7.99 million shares for $1.615 billion, and its net debt to Adjusted EBITDA ratio was 2.11x at September 30, 2026.

04—Continue

← View all 8-K filings