Tenet Healthcare Corporation (NYSE:THC) reported fourth-quarter results on Wednesday that exceeded Wall Street expectations, supported by solid revenue growth and tight cost control.
Shares rose 0.26% in premarket trading following the release.
The hospital operator posted adjusted earnings of $4.70 per share for the fourth quarter of 2025, well above the $4.02 consensus estimate. Revenue climbed to $5.53 billion, surpassing the $5.47 billion forecast and marking an 8.9% increase from a year earlier. Same-hospital net patient service revenue grew 7.5% year over year, driven by a favorable payer mix and increased demand for higher-acuity services.
“2025 extended Tenet’s track record of strong revenue growth, disciplined operations, improved margins and robust free cash flow generation,” said Saum Sutaria, Chairman and CEO of Tenet. “We see continued demand for acute care and ambulatory surgical services in our markets.”
The company’s Ambulatory Care segment, which includes United Surgical Partners International (USPI), delivered a 9.4% rise in adjusted EBITDA to $580 million, with same-facility net patient service revenue increasing 7.2%. The Hospital segment posted adjusted EBITDA of $603 million, up 16.4%, with margins expanding to 14.7% from 13.6% in the prior year.
For fiscal 2026, Tenet projected adjusted earnings per share between $16.19 and $18.47 on revenue of $21.5 billion to $22.3 billion, compared with analyst expectations of $16.46 per share on revenue of $22.21 billion. Adjusted EBITDA is expected to range from $4.49 billion to $4.79 billion, implying margins of 20.9% to 21.5%.
Tenet also disclosed a major agreement with CommonSpirit Health, under which Tenet will receive $1.9 billion in payments over the next three years and CommonSpirit will redeem its 23.8% ownership stake in Conifer Health Solutions.