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Research Alert: Tenet Healthcare: Q1 Earnings Beat Despite Hospital Volume Headwinds

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CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:

Tenet Healthcare delivered Q1 adjusted EPS of $4.82 (+10.6% Y/Y), beating consensus by $0.65, while net operating revenues of $5.368B (+2.8% Y/Y) missed consensus by 0.5%. Consolidated adjusted EBITDA of $1.162B remained flat at 21.6% margins vs. the prior-year quarter. The Ambulatory Care segment supported the performance with revenues up 10.6% to $1.320B and adjusted EBITDA growing 6.1% to $484M, though margins compressed 150bps to 36.7%. The Hospital segment faced headwinds from ACA enhanced premium tax credit expiration, with revenues up only 0.5% to $4.048B and adjusted EBITDA declining 4.1% to $678M as margins compressed 80bps to 16.7%. The strong EPS beat and maintained margin guidance suggest confidence in underlying operational trends despite volume headwinds, in our view. THC maintained its FY 2026 adjusted EBITDA guidance of $4.485B-$4.785B while raising the adjusted EPS midpoint 1.2% to $17.53, supported by share repurchases.

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