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Jun 30
Tenet Healthcare Q2 2025 Earnings Report
Tenet Healthcare reported strong second quarter 2025 results, with significant increases in net income, adjusted diluted EPS, and Adjusted EBITDA, leading to a raised financial outlook for 2025.
Key Takeaways
Tenet Healthcare delivered robust performance in the second quarter of 2025, exceeding expectations with substantial growth in net income and Adjusted EBITDA. The company's Ambulatory Care segment showed strong revenue and EBITDA growth, while the Hospital Operations segment also contributed positively with increased admissions and favorable payer mix. This strong quarter led Tenet to raise its full-year 2025 financial outlook.
Net income available to common shareholders increased to $288 million, or $3.14 per diluted share, in Q2 2025.
Adjusted diluted earnings per share rose significantly by 74% to $4.02 in Q2 2025.
Consolidated Adjusted EBITDA grew by 18.6% to $1.121 billion, with an Adjusted EBITDA margin of 21.3% in Q2 2025.
The Board of Directors authorized a $1.5 billion increase to the share repurchase program, demonstrating confidence in future performance.
Tenet Healthcare
Tenet Healthcare
Tenet Healthcare Revenue by Segment
Revenue by Segment
Ambulatory Care Revenue
CapyFin.comHospital Operations and Services Revenue
CapyFin.com Forward Guidance
Tenet Healthcare has raised its full-year 2025 financial outlook, anticipating higher net operating revenues, net income, and Adjusted EBITDA, reflecting confidence in continued strong performance.
Positive Outlook
- FY 2025 Net operating revenues are expected to be between $20.95 billion and $21.25 billion.
- FY 2025 Net income available to common stockholders is projected to be between $1.279 billion and $1.379 billion.
- FY 2025 Adjusted EBITDA outlook is now expected to be in the range of $4.40 billion to $4.54 billion, a $395 million increase at the midpoint.
- FY 2025 Adjusted diluted earnings per share is expected to be between $15.55 and $16.21.
- FY 2025 Free cash flow is projected to be between $2.025 billion and $2.275 billion.
Challenges Ahead
- The company does not generally forecast impairment charges, acquisition-related costs, and litigation costs and settlements due to their indeterminable nature.
- The company does not generally forecast net gains (losses) on sales, consolidation and deconsolidation of facilities due to their indeterminable nature.
- The outlook for inpatient admissions growth in the Hospital segment is 2.0% to 3.0%, which is lower than the 3.0% growth seen in the first six months of 2025.
- The outlook for adjusted admissions growth in the Hospital segment is 1.5% to 2.5%, also lower than the 1.6% growth in the first six months of 2025.
- The outlook for same-facility system-wide revenue growth in the Ambulatory segment is 4.0% to 7.0%, which is lower than the 7.7% growth achieved in Q2 2025.