Tenet Healthcare (NYSE:THC) Shares Gap Up on Earnings Beat

Shares of Tenet Healthcare Corporation (NYSE:THC) gapped up prior to trading on Friday following a stronger than expected earnings report. The stock had previously closed at $199.02, but opened at $235.01. Tenet Healthcare shares last traded at $244.4420, with a volume of 833,784 shares changing hands.

The company reported $6.12 EPS for the quarter, topping the consensus estimate of $4.26 by $1.86. The company had revenue of $6.04 billion during the quarter, compared to analysts’ expectations of $5.43 billion. Tenet Healthcare had a net margin of 10.27% and a return on equity of 27.17%. The business’s revenue for the quarter was up 6.8% on a year-over-year basis. During the same period last year, the company posted $4.02 earnings per share.

Key Headlines Impacting Tenet Healthcare

Here are the key news stories impacting Tenet Healthcare this week:

• Positive Sentiment: Tenet beat Q2 expectations by a wide margin, reporting $6.12 EPS versus estimates around $4.26, while revenue of $6.04 billion also came in above forecasts. The company cited strong same-store revenue growth and effective expense management. Tenet Reports Strong Second Quarter 2026 Results; Raises 2026 Financial Outlook
• Positive Sentiment: Management raised FY 2026 EPS guidance to $20.30-$21.69, well above prior Street expectations, signaling that the earnings beat may not be a one-quarter event. Tenet Reports Strong Second Quarter 2026 Results; Raises 2026 Financial Outlook
• Positive Sentiment: Investor enthusiasm was further supported by commentary highlighting hospital growth, expense control, and M&A momentum, with multiple reports describing the quarter as a “blockbuster” and noting the stock’s strong response. Tenet’s Blockbuster Quarter Sends Stock Flying, 2026 Outlook Gets Major Upgrade
• Neutral Sentiment: Tenet’s earnings call transcript and presentation may provide more detail on the quarter and outlook, but the main stock driver today appears to be the earnings beat and guidance increase rather than any new strategic surprise. Tenet Healthcare Corporation (THC) Q2 2026 Earnings Call Transcript
• Neutral Sentiment: Media coverage also noted broader strength in hospital stocks, which may be adding to the move in Tenet Healthcare (THC). Why Tenet Healthcare Stock Is Soaring Today

Analysts Set New Price Targets

A number of brokerages have recently weighed in on THC. Wells Fargo & Company upped their target price on Tenet Healthcare from $213.00 to $231.00 and gave the company an “overweight” rating in a report on Monday, July 13th. UBS Group reaffirmed a “buy” rating on shares of Tenet Healthcare in a research report on Friday. Weiss Ratings lowered shares of Tenet Healthcare from a “buy (b-)” rating to a “hold (c+)” rating in a research note on Tuesday, June 2nd. Wall Street Zen lowered shares of Tenet Healthcare from a “buy” rating to a “hold” rating in a research note on Saturday, July 18th. Finally, KeyCorp cut their price objective on Tenet Healthcare from $250.00 to $225.00 and set an “overweight” rating for the company in a report on Friday, May 1st. Seventeen analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average target price of $246.47.

Insider Transactions at Tenet Healthcare

In other Tenet Healthcare news, Director J Robert Kerrey sold 5,638 shares of the business’s stock in a transaction dated Thursday, May 28th. The stock was sold at an average price of $174.52, for a total value of $983,943.76. Following the completion of the sale, the director owned 16,804 shares of the company’s stock, valued at $2,932,634.08. The trade was a 25.12% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Nadja West sold 3,000 shares of the business’s stock in a transaction that occurred on Wednesday, May 27th. The stock was sold at an average price of $177.35, for a total value of $532,050.00. Following the completion of the sale, the director owned 24,805 shares of the company’s stock, valued at approximately $4,399,166.75. This trade represents a 10.79% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 0.97% of the stock is owned by insiders.

Institutional Investors Weigh In On Tenet Healthcare

Several hedge funds and other institutional investors have recently made changes to their positions in THC. Norges Bank acquired a new position in shares of Tenet Healthcare during the fourth quarter worth approximately $248,494,000. Wellington Management Group LLP increased its holdings in shares of Tenet Healthcare by 1,114.2% during the 4th quarter. Wellington Management Group LLP now owns 1,135,801 shares of the company’s stock worth $225,706,000 after purchasing an additional 1,042,260 shares during the period. Boston Partners raised its position in shares of Tenet Healthcare by 38.8% during the third quarter. Boston Partners now owns 3,147,555 shares of the company’s stock valued at $638,958,000 after buying an additional 880,413 shares during the last quarter. AQR Capital Management LLC lifted its stake in shares of Tenet Healthcare by 62.3% in the third quarter. AQR Capital Management LLC now owns 1,876,423 shares of the company’s stock valued at $380,989,000 after buying an additional 720,160 shares during the period. Finally, Alliancebernstein L.P. grew its position in Tenet Healthcare by 375.7% during the second quarter. Alliancebernstein L.P. now owns 790,254 shares of the company’s stock worth $139,085,000 after buying an additional 624,125 shares in the last quarter. 95.44% of the stock is owned by institutional investors and hedge funds.

Tenet Healthcare Stock Performance

The firm has a fifty day simple moving average of $185.16 and a 200 day simple moving average of $197.62. The company has a current ratio of 1.36, a quick ratio of 1.30 and a debt-to-equity ratio of 1.96. The stock has a market cap of $20.08 billion, a price-to-earnings ratio of 8.99, a PEG ratio of 1.65 and a beta of 1.27.

About Tenet Healthcare

Tenet Healthcare Corporation (NYSE: THC) is a diversified American healthcare services company that owns and operates acute care hospitals and a broad range of outpatient facilities. Its portfolio includes general acute-care hospitals, specialty hospitals, ambulatory surgery centers, urgent care and diagnostic imaging centers, and other ancillary service locations. Tenet’s operations are oriented around delivering inpatient and outpatient clinical care across multiple medical specialties, with an emphasis on surgical services, emergency care, and advanced diagnostics.

In addition to facility-based care, Tenet provides integrated services designed to support clinical operations and improve patient access and care coordination.