Tenet shares hit all-time high of $262 after Q2 beat
Tenet Healthcare's stock closed at a record $262.63 on July 28, five days after the Dallas-based system posted second-quarter earnings that beat Wall Street estimates by more than 40% and prompted a raised full-year outlook, according to Seeking Alpha. The stock is up roughly 32% from its 2026 opening near $199 and about 68% above its 52-week low of $156.72 set Aug. 4, 2025.
Net income reached $826 million in Q2, up from $288 million a year earlier. Operating income was $1.5 billion (26.7% margin), versus $823 million (15.6%) in the prior-year period. Total operating revenue rose 6.8% year over year to $5.6 billion, including $413 million tied to the early conclusion of Conifer's revenue cycle services contract with CommonSpirit.
The ambulatory segment, anchored by United Surgical Partners International, posted $1.4 billion in net revenue, up 9.3%. The hospital segment reported $4.2 billion, up 6%, with adjusted EBITDA margin improving to 18% from 15.6% despite unfavorable payer mix from lower ACA exchange admissions, which fell 17% year over year.
Full-year 2026 guidance moved higher: net operating revenue of $21.9 billion to $22.5 billion, net income of $2.9 billion to $3.0 billion, and adjusted EBITDA of $4.8 billion to $5 billion. The board authorized a $2 billion expansion of the share repurchase program, leaving $2.13 billion available. Leverage stood at 2.33 times adjusted EBITDA as of June 30, with $2.1 billion in cash on hand.