Tenet Healthcare's Ambulatory Growth Offsets Emerging Policy Headwinds

Tenet Healthcare delivered another strong earnings beat, with non-GAAP EPS up 43.5% and operating margins expanding, driven by Ambulatory segment growth. Ambulatory revenue rose 10% year-over-year with 37.9% margins, offsetting weaker hospital segment growth and ACA exchange headwinds. FY2026 guidance was raised: revenue to $5.03B and adjusted free cash flow to $3.025B, supporting a $2B increase in share repurchase authorization. I reiterate my Buy rating on THC, citing robust cash flow, low valuation (11.6x forward P/E), and resilient execution despite ongoing US healthcare policy uncertainty.

This time last year, I reiterated my buy rating on Tenet Healthcare (THC) after an encouraging earnings beat. Since then the stock price has trended generally upward, and now, fresh off