Tenet Healthcare's Cost Discipline, Outpatient Growth Drive Strong Q2 Performance, RBC Says

MT Newswires Live07-27

Tenet Healthcare (THC) is demonstrating improved operational execution as cost discipline across its hospital and ambulatory segments, along with growth in its United Surgical Partners International platform, supported a strong Q2 performance and raised outlook, RBC Capital said in a Sunday note.

According to the note, Tenet's adjusted earnings before interest, taxes, depreciation and amortization of $1.3 billion beat expectations, with revenue up 6.8% year over year to $5.6 billion, as margin expansion reflected cost management despite payer mix pressures, including lower exchange-related revenue.

The brokerage highlighted Tenet's raised 2026 adjusted EBITDA guidance of $4.83 billion to $5.03 billion, with the midpoint up $295 million from prior guidance, reflecting core business outperformance and cost structure flexibility amid changing payer dynamics.

The company's USPI platform is positioned to benefit from rising outpatient procedures, CMS inpatient-only list reforms and continued migration of procedures to ambulatory settings, supported by its acquisition pipeline, the report added.

RBC maintained its outperform rating on the stock and raised its price target to $283 from $236.

Tenet Healthcare shares were up over 5% in Monday trading.

Price: 246.67, Change: +13.47, Percent Change: +5.78

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