Dallas-based Tenet Healthcare recorded an operating income of $832 million (15.6% operating margin) in the second quarter of 2025, up from $761 million (14.9% margin) in 2024, according to its July 22 financial report.
Seven things to know:
1. The for-profit system reported a net income of $288 million for the three months ended June 30 from $259 million during the same period last year.
2. Tenet reported a net operating revenue of $5.3 billion in the second quarter, up from $5.1 billion during the same period in 2024.
3. The system’s salaries, wages and benefit expenses decreased by 0.4% year over year to $2.2 billion. Supply costs increased by 2.6% to $932 million. Other operating expenses decreased by 2.5% to $1.1 billion.
4. The hospital segment posted a net revenue of $4 billion, a 0.9% increase over the same period last year. Tenet attributed the increase to growth in same-hospital admissions, favorable payer mix and higher acuity, partially offset by the effect of hospital divestitures in 2024.
5. The ambulatory segment posted a net operating revenue of $1.3 billion, an 11.3% increase year over year. Tenet said the increase was driven by strong net revenue per case growth, facility acquisitions and increased service lines.
6. Tenet raised its 2025 outlook. The system is now expecting net operating revenues between $20.95 billion and $21.25 billion, up from its previous estimate of $20.6 billion to $21 billion. The system is projecting an adjusted net income of $1.12 billion to $1.22 billion, up from the previous estimate of $1 billion to $1.2 billion.
7. “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,” Tenet Chairman and CEO Saum Sutaria, MD, said in the release.
