Tenet Healthcare (THC) Stock Forecast & Price Target

Tenet Healthcare has demonstrated a robust financial performance, with consolidated net operating revenue reaching $5.3 billion and adjusted EBITDA increasing 12% year-over-year to $1.1 billion, bolstered by organic growth and high patient acuity. In the hospital segment, the company saw a 1.4% rise in adjusted admissions and a 5.9% increase in revenue per adjusted admission, alongside an improvement in margins to 15.1%. Management's positive update on revenue guidance and prospects for continued growth in outpatient services highlight Tenet's strategic advantages and operational efficiencies, contributing to an optimistic long-term outlook.

Tenet Healthcare's financial outlook appears negative due to several fundamental concerns, including a disappointing year-over-year EBITDA raise of only $50 million for 3Q25, which significantly lags behind peers such as HCA and UHS. Additionally, the company's financial stability is threatened by a leveraged balance sheet and significant reimbursement risk associated with its high exposure to government-funded programs. These factors, combined with geographic concentration risks and potential adverse shifts in payer mix, contribute to the overall uncertainty surrounding Tenet Healthcare's future profitability and operational trends.