Tenet Healthcare (THC) Stock Forecast & Price Target

Tenet Healthcare demonstrated robust performance in the third quarter, with consolidated net operating revenue reaching $5.3 billion and adjusted EBITDA increasing by 12% year-over-year to $1.1 billion, reflecting a 20.8% margin enhancement. The hospital segment saw adjusted admissions rise by 1.4% year-over-year and revenue per admission increase by 5.9%, supported by a favorable payor mix and higher acuity cases, resulting in improved margins. Management has raised revenue guidance for the year, indicating strong operational execution, improving patient demand, and growth potential in both the hospital and ambulatory surgery center sectors.

Tenet Healthcare’s recent financial performance reveals a decline in staffing as a percentage of revenue, which decreased by 160 basis points year-over-year to 41.7%, indicating reduced reliance on contract labor but highlighting potential operational inefficiencies. The healthcare organization’s EBITDA raise of $50 million for the third quarter of 2025 falls short of peers such as HCA and UHS, whose EBITDA raises of $450 million and $93.5 million respectively reflect stronger operational growth. Furthermore, Tenet faces substantial risks, including high exposure to government reimbursement rates, a leveraged balance sheet, and adverse shifts in the payer mix, all of which contribute to a negative outlook on its stock.