Tenet Healthcare (THC) Stock Forecast & Price Target

Tenet Healthcare reported impressive financial performance for Q3, with consolidated net operating revenue reaching $5.3 billion and adjusted EBITDA growing 12% year-over-year to $1.1 billion, reflecting a healthy margin increase driven by organic growth and high patient acuity. The company also demonstrated operational improvements within its Hospital segment, showcasing a 1.4% rise in adjusted admissions and a 5.9% increase in revenue per adjusted admission, supported by a favorable payer mix and high-acuity cases. Furthermore, Tenet's management has raised revenue guidance for the year, underpinned by their successful turnaround strategy and positive outlook for patient demand, particularly in the USPI segment, which enhances its growth trajectory and shareholder value.

Tenet Healthcare's stock outlook is negatively impacted by underwhelming financial performance, as evidenced by a 1% EBITDA increase of only $50 million in 3Q25, which falls short of its peers like HCA and UHS that reported stronger growth. Additionally, the company's dependency on federal and state government-sponsored programs presents significant reimbursement risks, while demographic and operational challenges such as geographic concentration and a leveraged balance sheet further exacerbate the financial uncertainty. Finally, adverse payer mix shifts and ongoing labor shortages could lead to increased volatility in operating trends, further complicating Tenet's financial stability.