Tenet Healthcare Corporation Reports Strong Q2 2025 Results

Tenet Healthcare Corporation, a diversified healthcare services company headquartered in Dallas, has released its financial results for the second quarter of 2025. The company reported robust performance across various financial metrics, reflecting strong operational execution and strategic investments.

Financial Highlights

For the second quarter of 2025, Tenet Healthcare reported a net income available to common shareholders of $288 million, or $3.14 per diluted share, compared to $259 million, or $2.64 per diluted share, in the same period of 2024. Adjusted diluted earnings per share increased by 74% to $4.02 from $2.31 in the prior year. Consolidated Adjusted EBITDA rose by 18.6% to $1.121 billion, with an Adjusted EBITDA margin of 21.3%.

Business and Operational Highlights

The Ambulatory Care segment, which includes United Surgical Partners International (USPI), saw its Adjusted EBITDA increase by 11.4% to $498 million. The segment's net operating revenues grew by 11.3% year-over-year, driven by strong net revenue per case growth, acquisitions, and expanded service lines. The Hospital Operations and Services segment also performed well, with net operating revenues increasing by 0.9% and Adjusted EBITDA rising to $623 million from $498 million in the previous year.

Strategic Initiatives and Corporate Developments

Tenet's Board of Directors authorized a $1.5 billion increase to the share repurchase program, bringing the total remaining authorization to $1.781 billion as of July 22, 2025. The company repurchased 4.6 million shares of common stock for $747 million in the second quarter and 7.2 million shares for $1.095 billion in the first half of 2025. Additionally, Tenet's ratio of net debt to Adjusted EBITDA improved to 2.45x at the end of June 2025.

Management's Perspective

Saum Sutaria, M.D., Chairman and Chief Executive Officer of Tenet, commented, "Our strong second quarter results extend our track record of attractive same store revenue growth, operational performance driven by fundamentals, and robust free cash flow generation. We continue to make investments both organically and inorganically to expand our capabilities and innovate to better serve our patients."

Future Outlook

Looking ahead, Tenet has raised its full-year 2025 Adjusted EBITDA outlook to a range of $4.40 billion to $4.54 billion, reflecting a $395 million increase at the midpoint. The company also expects net operating revenues to be between $20.95 billion and $21.25 billion, with adjusted diluted earnings per share projected to be in the range of $15.55 to $16.21.

SEC Filing: TENET HEALTHCARE CORP [ THC ] - 8-K - Jul. 22, 2025