Tenet Healthcare's Stock Drops 10.70% Despite Ranking Second in Q2 2025 Revenue Growth

On July 22, 2025, Tenet Healthcare Corporation (THC) experienced a significant drop in its stock price, falling by 10.70% and marking its third consecutive day of decline, with a total decrease of 10.95% over the past three days. Despite this downturn, the company's second-quarter financial results for 2025 showed robust performance, with net operating revenues increasing by 11.3% compared to the same period in 2024. This growth was driven by strong net revenue per case, strategic acquisitions, and expanded service lines.

Tenet's adjusted earnings per share (EPS) for the second quarter of 2025 were reported at $4.02, surpassing analyst expectations by 40.1%. The company's net operating revenues for the quarter reached $5.27 billion, reflecting a 3.1% increase year-over-year and exceeding analysts' estimates of $5.16 billion. This strong financial performance was supported by a 19% growth in consolidated adjusted EBITDA, which reached $1.121 billion for the quarter.

Tenet's Ambulatory Care segment, which includes United Surgical Partners International (USPI), reported net operating revenues of $1.27 billion for the second quarter of 2025, an 11.4% increase from the previous year. The segment's Adjusted EBITDA grew by 11.4% to $498 million, driven by strong net revenue per case and disciplined expense management. The Hospital segment also contributed to the company's overall performance, with net operating revenues increasing by 0.9% to $4.001 billion. The segment's Adjusted EBITDA for the quarter was $623 million, reflecting strong same-hospital revenue growth and favorable payer mix.

In response to the strong financial results, Tenet's Board of Directors authorized a $1.5 billion increase to the share repurchase program, bringing the total authorization to $1.781 billion. The company also raised its full-year 2025 adjusted EBITDA outlook to a range of $4.40 billion to $4.54 billion, reflecting a $395 million increase at the midpoint. Despite the recent stock price decline, Tenet's strong financial performance and strategic initiatives position the company for continued growth and success in the healthcare sector.