Tenet Healthcare's Q2 revenue beats, adjusted EPS up 74%

Overview

• Tenet Healthcare Q2 2025 revenue rises 3.2%, beating analyst expectations, per LSEG data

• Adjusted EPS for Q2 2025 up 74%, surpassing consensus, per LSEG data

• Co authorizes $1.5 bln increase to share repurchase program

Outlook

• Tenet raises FY 2025 adjusted EBITDA outlook to $4.40 bln-$4.54 bln

• Company expects FY 2025 net operating revenues of $20.95 bln-$21.25 bln

• Tenet forecasts FY 2025 adjusted EPS of $15.55-$16.21

• Company projects FY 2025 free cash flow of $2.025 bln-$2.275 bln

Result Drivers

• SAME-FACILITY REVENUE - Growth driven by higher acuity and favorable payer mix

• MEDICAID IMPACT - Hospital segment benefited from $79 mln favorable pre-tax impact from Medicaid supplemental revenues

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 20 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the healthcare facilities & services peer group is "buy"

• Wall Street's median 12-month price target for Tenet Healthcare Corp is $191.50, about 8.8% above its July 21 closing price of $174.65

• The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 11 three months ago

Press Release: ID:nBw5PBsxPa