Tenet Healthcare (THC) Stock Forecast & Price Target

Tenet Healthcare demonstrated robust financial performance in the third quarter, with consolidated net operating revenue increasing to $5.3 billion and a 12% year-over-year rise in adjusted EBITDA to $1.1 billion, indicating solid margins driven by organic growth and high patient acuity. The company experienced improved metrics in its hospital segment, reflected in a 1.4% growth in adjusted admissions and a 5.9% increase in revenue per adjusted admission, alongside a notable margin enhancement of 160 basis points year-over-year to 15.1%. Management has raised revenue guidance, reflecting confidence in continued operational improvements and strong future demand, particularly in the higher-margin USPI segment, which positions Tenet favorably for sustained growth.

Tenet Healthcare's financial outlook is negatively impacted by its underwhelming EBITDA growth, which at 1% or $50 million for the third quarter of 2025, falls significantly short compared to peers such as HCA and UHS, indicating potential challenges in operational efficiency. The company's reliance on government-sponsored reimbursement programs exposes it to inherent risks, further exacerbated by its leveraged balance sheet and concentrated operations in specific geographic areas. Additionally, adverse shifts in payer mix and ongoing labor shortages contribute to volatility in operating trends, raising concerns about Tenet's ability to maintain sustained growth amidst these challenges.