Tenet Reports Strong Second Quarter 2026 Results; Raises 2026 Financial Outlook

Tenet Reports Strong Second Quarter 2026 Results; Raises 2026 Financial Outlook July 23, 2026 Net income available to common shareholders in second quarter 2026 was $826 million, or $9.84 per diluted share compared to $288 million, or $3.14 in second quarter 2025 Adjusted diluted earnings per share1 increased 52.2% to $6.12 in second quarter 2026 compared to $4.02 in second quarter 2025 Second quarter 2026 Consolidated Adjusted EBITDA1 increased 16.3% over second quarter 2025 to $1.304 billion; Second quarter 2026 Adjusted EBITDA margin was 23.2%; Our second quarter 2026 Consolidated Adjusted EBITDA well exceeded the high end of our second quarter guidance range of 24-25% of our previous full year guidance of $4.635 billion at the mid-point Second quarter 2026 Ambulatory Care Adjusted EBITDA of $542 million increased 8.8% over second quarter 2025 Hospital Adjusted EBITDA margin increased to 18.0% in second quarter 2026 compared to 15.6% in second quarter 2025 despite payer mix headwinds Board of Directors authorized a $2.0 billion increase to the share repurchase program FY 2026 Adjusted EBITDA Outlook is now expected to be in the range of $4.83 billion to $5.03 billion, a $295 million increase at the midpoint of the range; FY 2026 Adjusted Free Cash Flow outlook now expected to be in the range of $2.725 billion to $3.025 billion, a $225 million increase Tenet Healthcare Corporation (Tenet) (NYSE: THC) today announced its results for the quarter ended June 30, 2026. "Strong same-store revenue growth and effective expense management drove our fundamental outperformance in the second quarter of 2026 compared to our original assumptions," said Saum Sutaria, M.D., Chairman and Chief Executive Officer of Tenet. "We are actively navigating current industry dynamics through excellent operational execution, investments in innovation, and a continued focus on higher acuity services to sustain growth, margins and significant free cash flow." Tenet’s results for second quarter 2026 versus second quarter 2025 are as follows: Three Months Ended June 30, Six Months Ended June 30, ($ in millions, except per share results) 2026 2025 2026 2025 Net operating revenues7 $5,628 $5,271 $10,996 $10,494 Net income available to Tenet common shareholders $826 $288 $1,528 $694 Net income available to Tenet common shareholders per diluted share $9.84 $3.14 $17.81 $7.43 Adjusted EBITDA1 $1,304 $1,121 $2,466 $2,284 Adjusted diluted earnings per share1 $6.12 $4.02 $10.91 $8.38 Net income available to the Company’s common shareholders in second quarter 2026 was $826 million, or $9.84 per diluted share, versus $288 million, or $3.14 per diluted share, in second quarter 2025.Adjusted EBITDA 1 in second quarter 2026 was $1.304 billion compared to $1.121 billion in second quarter 2025, reflecting strong growth in same facility revenue and disciplined expense management, partially offset by unfavorable payer mix due to lower exchange admissions. Balance Sheet and Cash Flows Net cash flows provided by operating activities for the six months ended June 30, 2026 were $2.226 billion versus $1.751 billion for the six months ended June 30, 2025.The Company generated adjusted free cash flow 1 of $1.422 billion for the six months ended June 30, 2026 versus $1.466 billion for the six months ended June 30, 2025.In the three months ended June 30, 2026, the Company repurchased 5.68 million shares of common stock for $1.042 billion. In the six months ended June 30, 2026, the Company repurchased 7.02 million shares of common stock for $1.360 billion.The Company's Board of Directors authorized a $2.0 billion increase to the share repurchase program. With this new authorization, the Company has $2.13 billion remaining under its repurchase authorizations as of July 23, 2026. Repurchases will be made at management's discretion from time to time in the open market or through privately negotiated transactions, subject to market conditions and other relevant factors.The Company’s ratio of net debt to Adjusted EBITDA 1 was 2.33x at June 30, 2026 compared to 2.24x at March 31, 2026 and 2.25x at December 31, 2025. Ambulatory Care (Ambulatory) Segment Tenet’s Ambulatory business segment is comprised of the operations of United Surgical Partners International (USPI). As of June 30, 2026, USPI had interests in 538 ambulatory surgery centers (405 consolidated) and 26 surgical hospitals (eight consolidated) in 37 states. Three Months Ended June 30, Six Months Ended June 30, Ambulatory segment results ($ in millions) 2026 2025 2026 2025 Revenues Net operating revenues $1,388 $1,270 $2,708 $2,464 Same-facility system-wide net patient service revenues2 $2,221 $2,115 $4,305 $4,090 Changes versus the Prior-Year Period Same-facility system-wide net patient service revenues 5.0% 7.7% 5.3% 7.1% Same-facility system-wide net patient service revenue per case 6.3% 8.3% 5.9% 8.6% Same-facility system-wide surgical cases2 (1.2)% (0.6)% (0.6)% (1.4)% Same-facility system-wide surgical cases on same-business day basis2 (1.2)% (0.6)% (0.6)% (0.6)% Adjusted EBITDA, Margins and NCI Adjusted EBITDA $542 $498 $1,026 $954 Adjusted EBITDA margin 39.0% 39.2% 37.9% 38.7% Adjusted EBITDA less NCI $330 $303 $621 $582 Second quarter 2026 net operating revenues increased 9.3% compared to second quarter 2025 driven by strong growth in consolidated same-facility net patient service revenues, acquisitions of facilities, and increased service lines.Surgical business same-facility system-wide net patient service revenues increased 5.0% in second quarter 2026 compared to second quarter 2025, with cases down 1.2% and net revenue per case up 6.3%. Net revenue per case growth was driven by higher acuity and favorable service mix.Second quarter 2026 Adjusted EBITDA increased 8.8% compared to second quarter 2025, due to strong growth in same-facility net patient service revenues, disciplined expense management, and contributions from acquisitions. Hospital Operations and Services (Hospital) Segment Tenet’s Hospital business segment is primarily comprised of acute care and specialty hospitals, imaging centers, ancillary outpatient facilities, micro-hospitals and physician practices. It also provides comprehensive end-to-end and focused point services, including hospital and physician revenue cycle management, patient communications and engagement support and value-based care solutions. Three Months Ended June 30, Six Months Ended June 30, Hospital segment results ($ in millions) 2026 2025 2026 2025 Revenues Net operating revenues7 $4,240 $4,001 $8,288 $8,030 Same-hospital net patient service revenues3 $3,648 $3,443 $7,106 $6,932 Same-Hospital Volume Changes versus the Prior-Year Period Admissions 2.3% 1.6% 1.3% 3.0% Adjusted admissions4 2.6% 0.4% 1.6% 1.6% Outpatient visits (including outpatient ER visits) 0.1% (3.2)% (1.5)% (1.3)% Emergency Room visits (inpatient and outpatient) 2.0% (4.7)% (0.7)% (1.6)% Hospital surgeries (0.7)% (1.7)% (0.8)% (1.6)% Adjusted EBITDA Adjusted EBITDA $762 $623 $1,440 $1,330 Adjusted EBITDA margin 18.0% 15.6% 17.4% 16.6% Second quarter 2026 net operating revenues increased 6.0% from second quarter 2025 due to an increase in adjusted admissions and higher acuity partially offset by unfavorable payer mix due to lower exchange admissions.Same-hospital net patient service revenue per adjusted admission increased 3.3% year-over-year for second quarter 2026 primarily due to strength in commercial employer net patient revenues and increases in Medicaid supplemental revenues, partially offset by unfavorable payer mix related to lower exchange admissions.Adjusted EBITDA in second quarter 2026 was $762 million compared to $623 million in second quarter 2025, a 22.3% increase, reflecting strong growth in same facility revenue and disciplined expense management as well as increases in Medicaid supplemental revenues, partially offset by unfavorable payer mix due to lower exchange admissions.In the second quarter of 2026, the Hospital segment recognized a $92 million favorable pre-tax impact associated with additional Medicaid supplemental revenues related to prior years. Second quarter 2025 results included a $70 million favorable pre-tax impact for additional Medicaid supplemental revenues related to prior years. 2026 Outlook1 Tenet’s Outlook for full year 2026 (consolidated and by segment) follows. Revenue recognized from the early conclusion of the CommonSpirit contract is not included in net operating revenues. CONSOLIDATED ($ in millions, except per share amounts) FY 2026 Outlook Net operating revenues7 $21,900 to $22,500 Net income available to Tenet common stockholders $2,869 to $3,024 Adjusted EBITDA $4,830 to $5,030 Adjusted EBITDA margin 22.1% to 22.4% Diluted income per common share $34.57 to $36.43 Adjusted net income $1,685 to $1,800 Adjusted diluted earnings per share $20.30 to $21.69 Equity in earnings of unconsolidated affiliates $265 to $275 Depreciation and amortization $875 to $925 Interest expense $800 to $810 Income tax expense5 $1,075 to $1,130 Net income available to NCI $910 to $960 Weighted average diluted common shares ~83 million Net cash provided by operating activities $3,840 to $4,290 Adjusted net cash provided by operating activities $3,425 to $3,825 Capital expenditures $700 to $800 Free cash flow $3,140 to $3,490 Adjusted free cash flow $2,725 to $3,025 NCI cash distributions $900 to $970 Ambulatory Segment ($ in millions) FY 2026 Outlook Net operating revenues $5,500 to $5,700 Adjusted EBITDA $2,160 to $2,220 NCI $865 to $895 Adjusted EBITDA less NCI $1,295 to $1,325 Changes versus prior year6: Same-facility system-wide revenues Up 3.0% to 6.0% Hospital Segment ($ in millions) FY 2026 Outlook Net operating revenues7 $16,400 to $16,800 Adjusted EBITDA $2,670 to $2,810 NCI $45 to $65 Changes versus prior year6: Inpatient admissions Up 1.0% to 2.0% Adjusted admissions Up 1.0% to 2.0% Management’s Webcast Discussion of Results Tenet management will discuss the Company’s second quarter 2026 results in a webcast scheduled for 11:30 a.m. Eastern Time (10:30 a.m. Central Time) on July 24, 2026. Investors can access the webcast through the Company’s website at www.tenethealth.com/investors. The slide presentation associated with the webcast referenced above, a copy of this earnings press release, and a related supplemental financial disclosures document will be available on the Company’s Investor Relations website on July 23, 2026. Cautionary Statement This release contains “forward-looking statements” - that is, statements that relate to future, not past, events. In this context, forward-looking statements often address the Company’s expected future business and financial performance and financial condition, and often contain words such as “expect,” “anticipate,” “assume,” “believe,” “budget,” “estimate,” “forecast,” “intend,” “plan,” “predict,” “project,” “seek,” “see,” “target,” or “will.” Forward-looking statements by their nature address matters that are, to different degrees, uncertain. Particular uncertainties that could cause the Company’s actual results to be materially different than those expressed in the Company’s forward-looking statements include, but are not limited to the factors disclosed under “Forward-Looking Statements” and “Risk Factors” in our Form 10-K for the year ended December 31, 2025 and other filings with the Securities and Exchange Commission. Footnotes Tables and discussions throughout this earnings release include certain financial measures, including those related to our full year 2026 Outlook, that are not in accordance with accounting principles generally accepted in the United States of America (GAAP). Reconciliations of GAAP measures to the Adjusted (non-GAAP) measures used are detailed in Tables #1-6 included at the end of this earnings release. Management’s reasoning for the use of these non-GAAP measures and descriptions of the various non-GAAP measures are included in the Non-GAAP Financial Measures section of this earnings release.Same-facility system-wide revenues and statistical information include the results of the facilities in which the Ambulatory segment has an investment that are not consolidated by Tenet. To help analyze the segment’s results of operations, management uses system-wide measures, which include revenues and cases of both consolidated and unconsolidated facilities.For 2026, same-hospital revenues and statistical data include those for hospitals and hospital-affiliated outpatient centers operated by the Company’s Hospital segment continuously from January 1, 2025 through June 30, 2026. Amounts associated with physician practices are excluded.Adjusted admissions represent actual patient admissions adjusted to include outpatient services provided by facilities in our Hospital segment by multiplying actual patient admissions by the sum of gross inpatient revenues and outpatient revenues, then dividing that result by gross inpatient revenues.Income tax expense is calculated by multiplying 24% (the federal corporate tax rate of 21% plus an estimate of state taxes) by the sum of: pretax income less GAAP facility level NCI expense plus permanent differences, and non-deductible interest expense.Change versus prior year is presented on a same-facility system-wide basis for USPI Ambulatory surgical cases and on a same-hospital basis for hospital statistics.Revenue recognized from the early conclusion of the CommonSpirit contract is not included in net operating revenues. About Tenet Healthcare Tenet Healthcare Corporation (NYSE: THC) is a diversified healthcare services company headquartered in Dallas. Our care delivery network includes United Surgical Partners International, the largest ambulatory platform in the country, which operates ambulatory surgery centers and surgical hospitals. We also operate a national portfolio of acute care and specialty hospitals, other outpatient facilities, a network of leading employed physicians and a global business center in Manila, Philippines. Our Conifer Health Solutions subsidiary provides revenue cycle management and value-based care services to hospitals, health systems, physician practices, employers and other clients. Across the Tenet enterprise, we are united by our mission to deliver quality, compassionate care in the communities we serve. For more information, please visit www.tenethealth.com. Non-GAAP Financial Measures The Company believes the non-GAAP measures described below are useful to investors and analysts because they present additional information on the Company’s financial performance. Investors, analysts, Company management and the Company’s Board of Directors utilize these non-GAAP measures, in addition to GAAP measures, to track the Company’s financial and operating performance and compare the Company’s performance to its peer companies, which use similar non-GAAP financial measures in their presentations and earnings releases. The Human Resources Committee of the Company’s Board of Directors also uses certain of these measures to evaluate management’s performance for the purpose of determining incentive compensation. Additional information regarding the purpose and utility of specific non-GAAP measures used in this release is set forth below. Adjusted EBITDA is defined by the Company as net income available (loss attributable) to Tenet common shareholders before (1) the cumulative effect of changes in accounting principles, (2) net loss attributable (income available) to noncontrolling interests, (3) income (loss) from discontinued operations, net of tax, (4) income tax benefit (expense), (5) gain (loss) from early extinguishment of debt, (6) other non-operating income (expense), net, (7) interest expense, (8) litigation and investigation benefit (costs), net of insurance recoveries, (9) net gains (losses) on sales, consolidation and deconsolidation of facilities, (10) impairment and restructuring charges and acquisition-related costs, (11) depreciation and amortization, (12) income (loss) from divested and closed businesses (i.e., health plan businesses) and (13) revenue from contract termination. Revenue from contract termination represents the present value of the $1.9 billion of consideration related to the early termination of Conifer’s revenue cycle services agreement with CommonSpirit (as further described in the Company’s Form 8-K dated February 2, 2026), net of amortization of an associated contract asset. Litigation and investigation costs excluded do not include ordinary course of business malpractice and other litigation and related expenses.Adjusted diluted earnings (loss) per share is defined by the Company as Adjusted net income available (loss attributable) to Tenet common shareholders, divided by the weighted average diluted shares outstanding in the reporting period.Adjusted net income available (loss attributable) to Tenet common shareholders is defined by the Company as net income available (loss attributable) to Tenet common shareholders before (1) income (loss) from discontinued operations, net of tax, (2) gain (loss) from early extinguishment of debt, (3) litigation and investigation benefit (costs), net of insurance recoveries, (4) net gains (losses) on sales, consolidation and deconsolidation of facilities, (5) impairment and restructuring charges and acquisition-related costs, (6) income (loss) from divested and closed businesses (i.e., health plan businesses), (7) revenue from contract termination and (8) the associated impact of these items on taxes and noncontrolling interests. Revenue from contract termination represents the present value of the $1.9 billion of consideration related to the early termination of Conifer’s revenue cycle services agreement with CommonSpirit (as further described in the Company’s Form 8-K dated February 2, 2026), net of amortization of an associated contract asset. Litigation and investigation costs excluded do not include ordinary course of business malpractice and other litigation and related expenses.Free Cash Flow is defined by the Company as (1) net cash provided by (used in) operating activities, less (2) purchases of property and equipment.Adjusted Free Cash Flow is defined by the Company as (1) Adjusted net cash provided by (used in) operating activities, less (2) purchases of property and equipment.Adjusted net cash provided by (used in) operating activities is defined by the Company as cash provided by (used in) operating activities prior to (1) payments for restructuring charges, acquisition-related costs and litigation costs and settlements, (2) net cash provided by (used in) operating activities from discontinued operations and (3) cash received for contract termination defined above. The Company believes that Adjusted EBITDA is a useful measure, in part, because certain investors and analysts use both historical and projected Adjusted EBITDA, in addition to other GAAP and non-GAAP measures, as factors in determining the estimated fair value of shares of the Company’s common stock. Company management also regularly reviews the Adjusted EBITDA performance for each operating segment. The Company does not use Adjusted EBITDA to measure liquidity, but instead to measure operating performance. The Company uses, and believes investors use, Free Cash Flow and Adjusted Free Cash Flow as supplemental non-GAAP measures to analyze cash flows generated from the Company’s operations. The Company believes these measures are useful to investors in evaluating its ability to fund distributions paid to noncontrolling interests or for acquisitions, purchasing equity interests in joint ventures or repaying debt. These non-GAAP measures may not be comparable to similarly titled measures reported by other companies. Because these measures exclude many items that are included in the Company’s financial statements, they do not provide a complete measure of the Company’s operating performance. For example, the Company’s definitions of Free Cash Flow and Adjusted Free Cash Flow do not include other important uses of cash including (1) cash used to purchase businesses or joint venture interests, or (2) any items that are classified as Cash Flows from Financing Activities on the Company’s Consolidated Statement of Cash Flows, including items such as (i) cash used to repay borrowings, or (ii) distributions paid to noncontrolling interests. Accordingly, investors are encouraged to use GAAP measures when evaluating the Company’s financial performance. See corresponding reconciliations of the non-GAAP financial measures referred to above to the most comparable GAAP financial measures in Tables #1 - 6 below. TENET HEALTHCARE CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (Dollars in millions, except per share amounts) Three Months Ended June 30, 2026 % 2025 % Change Net operating revenues $ 5,628 100.0 % $ 5,271 100.0 % 6.8 % Revenue from contract termination 413 7.3 % — — % 100.0 % Equity in earnings of unconsolidated affiliates 65 1.2 % 61 1.2 % 6.6 % Operating expenses: Salaries, wages and benefits 2,231 39.6 % 2,160 41.0 % 3.3 % Supplies 984 17.5 % 932 17.7 % 5.6 % Other operating expenses, net 1,174 20.9 % 1,119 21.3 % 4.9 % Depreciation and amortization 215 3.7 % 208 3.9 % Impairment and restructuring charges, and acquisition-related costs 31 0.6 % 24 0.5 % Litigation and investigation costs 3 0.1 % 28 0.5 % Net losses (gains) on sales, consolidation and deconsolidation of facilities (33 ) (0.6 )% 38 0.7 % Operating income 1,501 26.7 % 823 15.6 % Interest expense (204 ) (206 ) Other non-operating income, net 43 25 Income before income taxes 1,340 642 Income tax expense (295 ) (120 ) Net income 1,045 522 Less: Net income available to noncontrolling interests 219 234 Net income available to Tenet Healthcare Corporation common shareholders $ 826 $ 288 Earnings per share available to Tenet Healthcare Corporation common shareholders: Basic $ 9.89 $ 3.16 Diluted $ 9.84 $ 3.14 Weighted average shares and dilutive securities outstanding (in thousands): Basic 83,524 91,135 Diluted 83,964 91,791 TENET HEALTHCARE CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (Dollars in millions, except per share amounts) Six Months Ended June 30, 2026 % 2025 % Change Net operating revenues $ 10,996 100.0 % $ 10,494 100.0 % 4.8 % Revenue from contract termination 826 7.5 % — — % 100.0 % Equity in earnings of unconsolidated affiliates 116 1.1 % 117 1.1 % (0.9 )% Operating expenses: Salaries, wages and benefits 4,405 40.1 % 4,279 40.8 % 2.9 % Supplies 1,945 17.7 % 1,839 17.5 % 5.8 % Other operating expenses, net 2,296 20.9 % 2,209 21.1 % 3.9 % Depreciation and amortization 444 4.0 % 414 3.9 % Impairment and restructuring charges, and acquisition-related costs 55 0.5 % 43 0.4 % Litigation and investigation costs 30 0.3 % 45 0.4 % Net losses (gains) on sales, consolidation and deconsolidation of facilities (34 ) (0.3 )% 16 0.2 % Operating income 2,797 25.4 % 1,766 16.8 % Interest expense (409 ) (410 ) Other non-operating income, net 84 51 Income before income taxes 2,472 1,407 Income tax expense (521 ) (263 ) Net income 1,951 1,144 Less: Net income available to noncontrolling interests 423 450 Net income available to Tenet Healthcare Corporation common shareholders $ 1,528 $ 694 Earnings per share available to Tenet Healthcare Corporation common shareholders: Basic $ 17.94 $ 7.49 Diluted $ 17.81 $ 7.43 Weighted average shares and dilutive securities outstanding (in thousands): Basic 85,162 92,688 Diluted 85,780 93,408 TENET HEALTHCARE CORPORATION CONSOLIDATED BALANCE SHEETS (Unaudited) (Dollars in millions) June 30, 2026 December 31, 2025 ASSETS Current assets: Cash and cash equivalents $ 2,170 $ 2,883 Accounts receivable 2,608 2,565 Inventories of supplies, at cost 338 348 Assets held for sale 62 62 Other current assets 2,649 1,991 Total current assets 7,827 7,849 Investments and other assets 3,802 2,883 Deferred income taxes 71 84 Property and equipment, at cost, less accumulated depreciation and amortization 6,258 6,315 Goodwill 11,437 11,198 Other intangible assets, at cost, less accumulated amortization 1,281 1,348 Total assets $ 30,676 $ 29,677 LIABILITIES AND EQUITY Current liabilities: Current portion of long-term debt $ 160 $ 79 Accounts payable 1,371 1,360 Accrued compensation and benefits 864 858 Professional and general liability reserves 292 276 Accrued interest payable 113 81 Income tax payable 69 — Other current liabilities 2,698 1,809 Total current liabilities 5,567 4,463 Long-term debt, net of current portion 13,088 13,092 Professional and general liability reserves 978 951 Defined benefit plan obligations 241 245 Deferred income taxes 325 240 Other long-term liabilities 1,777 1,713 Total liabilities 21,976 20,704 Commitments and contingencies Redeemable noncontrolling interests in equity of consolidated subsidiaries 2,143 2,956 Equity: Shareholders’ equity: Common stock 8 8 Additional paid-in capital 5,192 4,914 Accumulated other comprehensive loss (177 ) (181 ) Retained earnings 5,943 4,415 Common stock in treasury, at cost (6,308 ) (4,936 ) Total shareholders’ equity 4,658 4,220 Noncontrolling interests 1,899 1,797 Total equity 6,557 6,017 Total liabilities and equity $ 30,676 $ 29,677 TENET HEALTHCARE CORPORATION CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) Six Months Ended June 30, (Dollars in millions) 2026 2025 Net income $ 1,951 $ 1,144 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 444 414 Deferred income tax expense 97 11 Stock-based compensation expense 69 41 Impairment and restructuring charges, and acquisition-related costs 55 43 Litigation and investigation costs 30 45 Net losses (gains) on sales, consolidation and deconsolidation of facilities (34 ) 16 Equity in earnings of unconsolidated affiliates, net of distributions received (11 ) (8 ) Amortization of debt discount and debt issuance costs 11 12 Other items, net (10 ) (1 ) Changes in cash from operating assets and liabilities: Accounts receivable (33 ) 40 Inventories and other current assets 249 9 Income taxes 94 10 Accounts payable, accrued expenses and other current liabilities (638 ) 24 Other long-term liabilities 36 32 Payments for restructuring charges, acquisition-related costs, and litigation costs and settlements (84 ) (81 ) Net cash provided by operating activities 2,226 1,751 Cash flows from investing activities: Purchases of property and equipment (348 ) (366 ) Purchases of businesses or joint venture interests, net of cash acquired (130 ) (147 ) Proceeds from sales of facilities and other assets 6 14 Proceeds from sales of marketable securities and long-term investments 51 37 Purchases of marketable securities and long-term investments (77 ) (38 ) Other items, net (22 ) (1 ) Net cash used in investing activities (520 ) (501 ) Cash flows from financing activities: Repayments of borrowings (59 ) (62 ) Proceeds from borrowings 28 15 Repurchases of common stock (1,360 ) (1,095 ) Distributions paid to noncontrolling interests (398 ) (374 ) Proceeds from the sale of noncontrolling interests 15 18 Purchases of noncontrolling interests (558 ) (79 ) Repayments of advances from managed care payers — (12 ) Taxes paid related to net share settlement, net of proceeds from shares issued under stock‑based compensation plans (83 ) (33 ) Other items, net (4 ) (22 ) Net cash used in financing activities (2,419 ) (1,644 ) Net decrease in cash and cash equivalents (713 ) (394 ) Cash and cash equivalents at beginning of period 2,883 3,019 Cash and cash equivalents at end of period $ 2,170 $ 2,625 Supplemental disclosures: Interest paid, net of capitalized interest $ (365 ) $ (399 ) Income tax payments, net $ (330 ) $ (242 ) TENET HEALTHCARE CORPORATION SEGMENT REPORTING (Unaudited) Three Months Ended Six Months Ended June 30, June 30, (Dollars in millions) 2026 2025 2026 2025 Net operating revenues: Ambulatory Care $ 1,388 $ 1,270 $ 2,708 $ 2,464 Hospital Operations and Services 4,240 4,001 8,288 8,030 Total $ 5,628 $ 5,271 $ 10,996 $ 10,494 Equity in earnings of unconsolidated affiliates: Ambulatory Care $ 64 $ 59 $ 115 $ 113 Hospital Operations and Services 1 2 1 4 Total $ 65 $ 61 $ 116 $ 117 Adjusted EBITDA: Ambulatory Care $ 542 $ 498 $ 1,026 $ 954 Hospital Operations and Services 762 623 1,440 1,330 Total $ 1,304 $ 1,121 $ 2,466 $ 2,284 Adjusted EBITDA margins: Ambulatory Care 39.0 % 39.2 % 37.9 % 38.7 % Hospital Operations and Services 18.0 % 15.6 % 17.4 % 16.6 % Total 23.2 % 21.3 % 22.4 % 21.8 % Capital expenditures: Ambulatory Care $ 38 $ 27 $ 70 $ 52 Hospital Operations and Services 130 166 278 314 Total $ 168 $ 193 $ 348 $ 366 TENET HEALTHCARE CORPORATION Additional Supplemental Non-GAAP disclosures Table #1 – Reconciliations of Net Income Available to Tenet Healthcare Corporation Common Shareholders to Adjusted Net Income Available to Common Shareholders (Unaudited) Three Months Ended Six Months Ended June 30, June 30, (Dollars in millions, except per share amounts) 2026 2025 2026 2025 Net income available to Tenet Healthcare Corporation common shareholders $ 826 $ 288 $ 1,528 $ 694 Less: Revenue from contract termination 413 — 826 — Impairment and restructuring charges, and acquisition-related costs (31 ) (24 ) (55 ) (43 ) Litigation and investigation costs (3 ) (28 ) (30 ) (45 ) Net gains (losses) on sales, consolidation and deconsolidation of facilities 33 (38 ) 34 (16 ) Tax and noncontrolling interests impact of above items (100 ) 9 (183 ) 15 Adjusted net income available to common shareholders $ 514 $ 369 $ 936 $ 783 Diluted earnings per share $ 9.84 $ 3.14 $ 17.81 $ 7.43 Less: Revenue from contract termination 4.92 — 9.63 — Impairment and restructuring charges, and acquisition-related costs (0.37 ) (0.26 ) (0.64 ) (0.46 ) Litigation and investigation costs (0.03 ) (0.31 ) (0.35 ) (0.48 ) Net gains (losses) on sales, consolidation and deconsolidation of facilities 0.39 (0.41 ) 0.40 (0.17 ) Tax and noncontrolling interests impact of above items (1.19 ) 0.10 (2.14 ) 0.16 Adjusted diluted earnings per share $ 6.12 $ 4.02 $ 10.91 $ 8.38 Weighted average basic shares outstanding (in thousands) 83,524 91,135 85,162 92,688 Weighted average dilutive shares outstanding (in thousands) 83,964 91,791 85,780 93,408 TENET HEALTHCARE CORPORATION Additional Supplemental Non-GAAP disclosures Table #2 – Reconciliations of Net Income Available to Tenet Healthcare Corporation Common Shareholders to Adjusted EBITDA (Unaudited) Three Months Ended Six Months Ended June 30, June 30, (Dollars in millions) 2026 2025 2026 2025 Net income available to Tenet Healthcare Corporation common shareholders $ 826 $ 288 $ 1,528 $ 694 Less: Net income available to noncontrolling interests (219 ) (234 ) (423 ) (450 ) Net income 1,045 522 1,951 1,144 Income tax expense (295 ) (120 ) (521 ) (263 ) Other non-operating income, net 43 25 84 51 Interest expense (204 ) (206 ) (409 ) (410 ) Operating income 1,501 823 2,797 1,766 Revenue from contract termination 413 — 826 — Depreciation and amortization (215 ) (208 ) (444 ) (414 ) Impairment and restructuring charges, and acquisition-related costs (31 ) (24 ) (55 ) (43 ) Litigation and investigation costs (3 ) (28 ) (30 ) (45 ) Net gains (losses) on sales, consolidation and deconsolidation of facilities 33 (38 ) 34 (16 ) Adjusted EBITDA $ 1,304 $ 1,121 $ 2,466 $ 2,284 Net operating revenues $ 5,628 $ 5,271 $ 10,996 $ 10,494 Net income available to Tenet Healthcare Corporation common shareholders as a % of net operating revenues 14.7 % 5.5 % 13.9 % 6.6 % Adjusted EBITDA as a % of net operating revenues (Adjusted EBITDA margin) 23.2 % 21.3 % 22.4 % 21.8 % TENET HEALTHCARE CORPORATION Additional Supplemental Non-GAAP disclosures Table #3 – Reconciliations of Net Cash Provided by Operating Activities to Free Cash Flow and Adjusted Free Cash Flow (Unaudited) 2026 (Dollars in millions) Q2 YTD Net cash provided by operating activities $ 585 $ 2,226 Purchases of property and equipment (168 ) (348 ) Free cash flow $ 417 $ 1,878 Net cash used in investing activities $ (203 ) $ (520 ) Net cash used in financing activities $ (1,179 ) $ (2,419 ) Net cash provided by operating activities $ 585 $ 2,226 Less: Payments for restructuring charges, acquisition-related costs, and litigation costs and settlements (27 ) (84 ) Cash received for contract termination — 540 Adjusted net cash provided by operating activities 612 1,770 Purchases of property and equipment (168 ) (348 ) Adjusted free cash flow $ 444 $ 1,422 2025 (Dollars in millions) Q2 YTD Net cash provided by operating activities $ 936 $ 1,751 Purchases of property and equipment (193 ) (366 ) Free cash flow $ 743 $ 1,385 Net cash used in investing activities $ (314 ) $ (501 ) Net cash used in financing activities $ (996 ) $ (1,644 ) Net cash provided by operating activities $ 936 $ 1,751 Less: Payments for restructuring charges, acquisition-related costs, and litigation costs and settlements (45 ) (81 ) Adjusted net cash provided by operating activities 981 1,832 Purchases of property and equipment (193 ) (366 ) Adjusted free cash flow $ 788 $ 1,466 TENET HEALTHCARE CORPORATION Additional Supplemental Non-GAAP disclosures Table #4 – Reconciliations of Outlook Net Income Available to Tenet Healthcare Corporation Common Shareholders to Outlook Adjusted Net Income Available to Common Shareholders (Unaudited) FY 2026 (Dollars in millions, except per share amounts) Low High Net income available to Tenet Healthcare Corporation common shareholders $ 2,869 $ 3,024 Less: Revenue from contract termination 1,650 1,650 Impairment and restructuring charges, acquisition-related costs, and litigation costs and settlements(1) (125 ) (75 ) Net gains on sales, consolidation and deconsolidation of facilities(2) 34 34 Tax and noncontrolling interests impact of above items (375 ) (385 ) Adjusted net income available to common shareholders $ 1,685 $ 1,800 Diluted earnings per share $ 34.57 $ 36.43 Less: Revenue from contract termination 19.88 19.88 Impairment and restructuring charges, acquisition-related costs, and litigation costs and settlements (1.50 ) (0.91 ) Net gains on sales, consolidation and deconsolidation of facilities 0.41 0.41 Tax and noncontrolling interests impact of above items (4.52 ) (4.64 ) Adjusted diluted earnings per share $ 20.30 $ 21.69 Weighted average dilutive shares outstanding (in thousands) 83,000 83,000 (1) The figures shown represent the Company's estimate for restructuring charges plus the actual year-to-date results for impairment and restructuring charges, acquisition-related costs, and litigation costs and settlements. The Company does not generally forecast impairment charges, acquisition-related costs, and litigation costs and settlements because it does not believe that it can forecast these items with sufficient accuracy since some of these items are indeterminable at the time the Company provides its financial Outlook. (2) The Company does not generally forecast net gains (losses) on sales, consolidation and deconsolidation of facilities because the Company does not believe that it can forecast these items with sufficient accuracy since it is indeterminable at the time the Company provides its financial Outlook. The figures shown relate to transactions that have already occurred in 2026. TENET HEALTHCARE CORPORATION Additional Supplemental Non-GAAP disclosures Table #5 – Reconciliations of Outlook Net Income Available to Tenet Healthcare Corporation Common Shareholders to Outlook Adjusted EBITDA (Unaudited) FY 2026 (Dollars in millions) Low High Net income available to Tenet Healthcare Corporation common shareholders $ 2,869 $ 3,024 Less: Net income available to noncontrolling interests (910 ) (960 ) Income tax expense (1,075 ) (1,130 ) Interest expense (810 ) (800 ) Other non-operating income, net 150 200 Net gains on sales, consolidation and deconsolidation of facilities(2) 34 34 Impairment and restructuring charges, acquisition-related costs, and litigation costs and settlements(1) (125 ) (75 ) Depreciation and amortization (875 ) (925 ) Revenue from contract termination 1,650 1,650 Adjusted EBITDA $ 4,830 $ 5,030 Net income available to Tenet Healthcare Corporation common shareholders $ 2,869 $ 3,024 Net operating revenues $ 21,900 $ 22,500 Net income available to Tenet Healthcare Corporation common shareholders as a % of net operating revenues 13.1 % 13.4 % Adjusted EBITDA as a % of net operating revenues (Adjusted EBITDA margin) 22.1 % 22.4 % (1) The figures shown represent the Company's estimate for restructuring charges plus the actual year-to-date results for impairment and restructuring charges, acquisition-related costs, and litigation costs and settlements. The Company does not generally forecast impairment charges, acquisition-related costs, and litigation costs and settlements because it does not believe that it can forecast these items with sufficient accuracy since some of these items are indeterminable at the time the Company provides its financial Outlook. (2) The Company does not generally forecast net gains (losses) on sales, consolidation and deconsolidation of facilities because the Company does not believe that it can forecast these items with sufficient accuracy since it is indeterminable at the time the Company provides its financial Outlook. The figures shown relate to transactions that have already occurred in 2026. TENET HEALTHCARE CORPORATION Additional Supplemental Non-GAAP disclosures Table #6 – Reconciliations of Outlook Net Cash Provided by Operating Activities to Outlook Free Cash Flow and Outlook Adjusted Free Cash Flow (Unaudited) FY 2026 (Dollars in millions) Low High Net cash provided by operating activities $ 3,840 $ 4,290 Purchases of property and equipment (700 ) (800 ) Free cash flow $ 3,140 $ 3,490 Net cash provided by operating activities $ 3,840 $ 4,290 Less: Payments for restructuring charges, acquisition-related costs and litigation costs and settlements(1) (125 ) (75 ) Cash received for contract termination 540 540 Adjusted net cash provided by operating activities 3,425 3,825 Purchases of property and equipment (700 ) (800 ) Adjusted free cash flow(2) $ 2,725 $ 3,025 (1) The figures shown represent the Company's estimate for restructuring payments plus the actual year-to-date payments for restructuring charges, acquisition-related costs, and litigation costs or settlements. The Company does not generally forecast payments for acquisition-related costs, and litigation costs and settlements because it does not believe that it can forecast these items with sufficient accuracy since some of these items are indeterminable at the time the Company provides its financial Outlook. (2) The Company’s definition of Adjusted Free Cash Flow does not include other important uses of cash including (1) cash used to purchase businesses or joint venture interests, or (2) any items that are classified as Cash Flows From Financing Activities on the Company’s Consolidated Statement of Cash Flows, including items such as (i) cash used to repay borrowings, and (ii) distributions paid to noncontrolling interests. Source: Tenet Healthcare Corporation