Tenet Healthcare Corporation

Tenet Healthcare reported second-quarter 2026 adjusted earnings per share of $6.12, beating the Zacks Consensus Estimate by 50% and rising 52.2% year over year. Net operating revenues grew 6.8% to $5.63 billion, exceeding the consensus by 4.4%, driven by strong same-facility revenue growth, higher patient acuity, disciplined expense management, and higher Medicaid supplemental revenues, though partly offset by an unfavorable payer mix from lower exchange admissions. Adjusted EBITDA climbed 16.3% to $1.3 billion, with the margin improving 190 basis points to 23.2%. The company raised its full-year 2026 guidance, now projecting net operating revenues of $21.9 billion to $22.5 billion, adjusted EBITDA of $4.83 billion to $5.03 billion, and adjusted EPS of $20.30 to $21.69, up from prior ranges. Tenet also repurchased 5.7 million shares for approximately $1 billion in the quarter and announced a $2 billion increase to its share repurchase authorization, leaving about $2.1 billion remaining.

US stock futures are pointing slightly higher this morning, with E-mini S&P 500 contracts up 0.03%, as investors weigh signs of steady US growth against lingering inflation and interest rate questions. New single family home sales reached a 628,000 annual pace in June, up 1.6% for the first monthly rise in three months, while the US Services PMI came in at 53.6 in July, the strongest in eight months. Among top movers, Tenet Healthcare jumped 17.17% after strong Q2 earnings and higher 2026 guidance, International Paper gained 11.21% on potential benefits from containerboard price increases, and Smurfit Westrock rose 11.10% on similar analyst commentary. On the losing side, Nebius Group declined 15.02%, Bloom Energy fell 14.91%, and CoreWeave declined 11.37%. Earnings will dominate the next few sessions, with Microsoft, Meta Platforms, QUALCOMM, and Procter & Gamble all reporting on Wednesday, while PayPal releases results on Tuesday.

Several stocks made notable premarket moves following earnings reports and major agreements. Intel rallied 4% after posting its sharpest quarterly revenue growth in nearly 15 years, with Q2 revenue of $16.1 billion and adjusted earnings of 42 cents per share beating analyst expectations. Oracle rose nearly 3% after signing a 10-year, nearly $7 billion software agreement with the Pentagon for on-premises military use. Amkor Technology surged more than 11% on a multiyear $1.5 billion deal with Nvidia to develop advanced semiconductor packaging and testing for artificial intelligence. On the downside, American Express dipped 3% after missing revenue estimates with $19.64 billion versus the $19.71 billion consensus, while Deckers Outdoor slid 3% as Hoka and Ugg brand revenues fell short of Street expectations. Other movers included Tenet Healthcare jumping over 16% on a strong earnings beat, SAP gaining 5% on 27% cloud backlog growth to 22.9 billion euros, and MaxLinear tumbling more than 9% despite better-than-expected results, having been up over 400% in 2026 heading into the report.

Zacks Investment Research identifies Elevance Health, Tenet Healthcare, and Aveanna Healthcare Holdings as attractively valued medical stocks amid renewed US-Iran military confrontation and geopolitical uncertainty. The firm notes that healthcare demand remains non-discretionary, and these companies carry a Zacks Rank #2 (Buy) with Value and Growth scores of A. Elevance Health raised its 2026 earnings guidance and trades at a forward price-to-sales ratio of 0.46, below its industry average. Tenet Healthcare reaffirmed its 2026 outlook with ambulatory operations generating nearly half of EBITDA, while Aveanna Healthcare raised full-year guidance after first-quarter revenue climbed nearly 16% and adjusted EBITDA rose more than 25%. All three have outperformed the Zacks Medical sector year-to-date, with Elevance and Aveanna also beating the S&P 500.

Tenet Healthcare shares have risen 2.6% year-to-date, outperforming the industry's 5.5% decline, as the company benefits from expanding adjusted admissions and strong Ambulatory Care segment performance. The Zacks Consensus Estimate for current-year earnings is $17.61 per share, reflecting 5% year-over-year growth, with two upward revisions in the past 60 days and an average earnings surprise of 20.6% over the last four quarters. Revenue is projected at $22.02 billion, a 3.3% increase, supported by higher patient revenue per adjusted admission and a shift toward higher-acuity services. The Ambulatory Care segment, which included interests in 541 ambulatory surgery centers and 26 surgical hospitals as of March 31, 2026, saw net operating revenues rise 10.6% year over year in the first quarter of 2026, following gains of 14.1% in 2025 and 17.3% in 2024. However, operating expenses increased 4.6% year over year in the first quarter of 2026 after a 20.6% jump in 2025, driven by labor costs, medical supply inflation, and higher patient acuity, which may pressure margins.

Shares of hospital operator Tenet Healthcare jumped 7.6% in morning trading after Cantor Fitzgerald reiterated its Overweight rating on the stock with a $245.00 price target. The investment firm's survey results indicated improving patient acuity, an area where Tenet typically performs well. The positive outlook follows strong first-quarter 2026 earnings, where earnings per share of $4.82 surpassed expectations, and a recent credit rating upgrade from Moody's Ratings citing sustained debt reduction and strong earnings growth.

Tenet Healthcare's United Surgical Partners International is increasingly driving the company's growth as the healthcare industry shifts toward lower-cost outpatient care. In the first quarter of 2026, USPI generated $484 million in adjusted EBITDA, up 6.1% year over year, with same-facility revenues rising 5.3% and double-digit growth in outpatient joint replacements. Tenet invested $125 million during the quarter to acquire seven ambulatory surgery centers and open three de novo centers, completing nearly half of its planned annual investment. The company reaffirmed its full-year guidance, reflecting confidence in USPI's long-term trajectory. Peers Surgery Partners and HCA Healthcare are also expanding their outpatient surgery networks to meet rising demand.

Zacks Equity Research identifies Tenet Healthcare, Universal Health Services, Acadia Healthcare, and Community Health Systems as hospital stocks worth watching amid a structural shift toward lower-cost care settings. The Zacks Medical-Hospital industry is seeing the fastest growth in ambulatory surgery centers, home health, and post-acute care, while hospitals face elevated costs and reimbursement uncertainty. The industry carries a Zacks Industry Rank of 107, placing it in the top 43% of nearly 250 industries, and its 2026 earnings estimates have risen 5.7% over the past year. Tenet Healthcare is expanding its ambulatory care segment, with consensus 2026 earnings per share of $17.61, up 5% year over year. Universal Health Services is growing through tuck-in acquisitions and facility expansion, with 2026 earnings per share estimated at $23.47, an 8% increase. Acadia Healthcare is seeing rising patient days and strong demand for mental health treatment, with 2026 earnings per share of $1.50 and a projected 14.8% jump in 2027. Community Health Systems is benefiting from lower expenses and improving payer mix, with 2026 revenues pegged at $11.56 billion and shares up 15.9% in the past month.

Tenet Healthcare shares have gained 6.6% in recent sessions as investors anticipate the company's July 24, 2026 earnings report, where analysts project higher earnings per share and revenue compared to the prior year. The stock's upward move is supported by favorable analyst rankings and continued operational focus, reinforcing earnings momentum and buyback-driven EPS strength as near-term catalysts. However, shares are now trading above one estimate of fair value, recent insider selling has increased, and analyst targets remain well above the current price, shifting the risk/reward balance. The company's high debt load remains a key risk for investors.

UBS analysts say hospitals could build a more durable competitive advantage from artificial intelligence than health insurers, even as AI becomes a core operating layer across healthcare. Analyst A.J. Rice notes that while managed-care companies like UnitedHealth Group, Elevance Health, Humana, Cigna, and Centene are deploying AI for claims processing, prior authorization, and customer service, those efficiency gains are highly replicable and likely to be competed away through pricing or benefit enhancements. In contrast, large for-profit hospital operators such as HCA Healthcare, Tenet Healthcare, and Universal Health Services are using AI for revenue cycle management, denial appeals, and staffing optimization, and may maintain a multiyear lead over slower-moving nonprofit systems. UBS highlights that Universal Health Services generated approximately $50 million in annualized additional revenue from an AI coding platform, while HCA is using AI to fight claim denials and optimize nurse staffing with a Palantir-built platform. The report concludes that AI will improve profitability unevenly, with hospitals better positioned to retain gains and expand margins over time.