Dallas-based Tenet Healthcare recorded $1 billion in net income for the third quarter of 2026, up from $342 million in the same period last year, according to its Oct. 29 financial report.
“Our outperformance in the third quarter of 2026 was driven by sustained strength in same-store revenue growth and effective expense management,” Tenet Chairman and CEO Saum Sutaria, MD, said in the report.
Six things to know:
1. Tenet reported operating income of $1.8 billion (31.1% operating margin) during the three months ended Sept. 30, up from $889 million (16.8% margin) during the same period last year.
2. Net operating revenue was $5.6 billion in the third quarter of 2026, up from $5.3 billion during the same period last year. Tenet also recorded $646 million in revenue from the early conclusion of Conifer’s revenue-cycle contract with Chicago-based CommonSpirit Health, bringing that revenue to $1.5 billion through the first nine months of the year.
3. Total operating expenses were $4.6 billion in the quarter, up from $4.5 billion during the same period last year. Salaries, wages and benefits totaled $2.17 billion, down from $2.2 billion during the same period last year. Supply expenses totaled $983 million, up from $931 million. Other operating expenses totaled $1.2 billion, up from $1.1 billion.
4. Net revenue in Tenet’s hospital segment rose 6.1% to $4.3 billion, driven by higher adjusted admissions and pricing strength. Fewer patients with ACA exchange coverage partly offset those gains. Adjusted admissions rose 3.2%, and same-hospital revenue per adjusted admission rose 0.2%.
5. Net revenue in the ambulatory segment rose 7.5% to $1.4 billion. Tenet credited same-facility revenue growth, facility acquisitions and expanded service lines. Same-facility surgical cases fell 1.5%, while revenue per case rose 6.1%.
6. Tenet again raised its 2026 outlook. It now expects:
- Net income of $3 billion to $3.1 billion, up from $2.9 billion to $3 billion
- Revenue of $22.1 billion to $22.5 billion, tightened from $21.9 billion to $22.5 billion
- Adjusted EBITDA of $5.1 billion to $5.2 billion, up from $4.8 billion to $5 billion
The revenue outlook excludes the CommonSpirit contract termination revenue.
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