Dallas-based Tenet Healthcare saw an operating income of $1.3 billion (24.1% operating margin) in the first quarter of 2026, up from $943 million (18.1% margin) during the same period in 2025, according to an April 30 financial report.
Six things to know:
1. Tenet reported net income of $702 million in the three months ended March 31, up from $406 million during the same period last year. The year-over-year jump was boosted by $413 million in revenue ($314 million after-tax) from the early conclusion of Conifer’s revenue-cycle services contract with Chicago-based CommonSpirit Health, bringing full control of the company back under Tenet.
2. Tenet saw net operating revenue of $5.4 billion in the first quarter of 2026, up from $5.2 billion during the same period in 2025. The increase was driven by strong same-facility revenue growth in the ambulatory segment and a modest uptick in hospital revenue, partially offset by unfavorable payer mix due to lower exchange admissions.
3. “We delivered strong results in both the Ambulatory and Hospital segments in the first quarter of 2026, characterized by disciplined operations and strong free cash flow,” Saum Sutaria, MD, chairman and CEO of Tenet, said in the report. “We continue to support our physician partners to drive innovation in patient care as we execute on our high acuity strategy and grow our businesses both organically and inorganically.”
4. Salary, wage and benefit expenses were $2.2 billion in the quarter, up from $2.1 billion in the first quarter of 2025. Supply expenses were $961 million, up from $907 million during the same period last year.
5. Tenet’s hospital segment reported net operating revenue of $4 billion in the first quarter of 2026, essentially flat compared to the same period in 2025. Same-hospital net patient services revenue was $3.46 billion, down 1.5% year over year from $3.5 billion, driven by the absence of a $40 million “favorable pretax impact for additional Medicaid supplemental revenue related to prior years recorded in first quarter 2025 and unfavorable payer mix related to lower exchange admissions.”
6. Its ambulatory segment reported net operating revenue of $1.3 billion in the first quarter of 2026, up from $1.2 billion during the same period last year, a 10.6% increase driven by same-facility net patient service revenue, facility acquisitions and expanded service lines. Ambulatory adjusted EBITDA increased 6.1% to $484 million.
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