Tenet Healthcare Corporation (Tenet Healthcare (THC)) shares are down on Thursday after the company reported mixed first-quarter results. The hospitals and healthcare facilities operator posted adjusted earnings of $4.82 per share, beating the consensus estimate of $4.18. But revenue came in at $5.37 billion, just shy of the $5.39 billion analysts were expecting.
Adjusted EBITDA was $1.162 billion, essentially flat compared to $1.163 billion a year ago. The company said this reflected strong growth in same-facility revenue and disciplined expense management, offset by an unfavorable payer mix due to lower exchange admissions.
Hospital Segment Growth Limited By Payer Mix Headwinds
Tenet's Ambulatory Care segment was a bright spot, with net operating revenues up 10.6% to $1.32 billion. That growth came from strong same-facility net patient service revenues, acquisitions, and expanded service lines. The surgical business saw same-facility system-wide net patient service revenues rise 5.3%, even though case volumes dipped 0.3%. Net revenue per case jumped 5.6%, driven by higher acuity and a favorable service mix.
The Hospital business segment, however, told a different story. Sales reached $4.05 billion, up just 0.5%. Adjusted admissions increased, but that was largely offset by the unfavorable payer mix from lower exchange admissions. In other words, more patients came through the doors, but a bigger share of them were paying less — or not paying as much.
Cash flow looked healthier. Operating cash flow for the three months ending March 31, 2026, hit $1.641 billion, up from $815 million a year earlier. Adjusted free cash flow rose to $978 million from $678 million.
FY26 Outlook Hiked
Despite the mixed quarter, Tenet raised its fiscal 2026 adjusted earnings guidance to $16.38-$18.68 per share, up from the prior range of $16.19-$18.47. The new range brackets the consensus estimate of $17.21. The company reaffirmed its 2026 sales guidance of $21.5 billion-$22.3 billion, compared to the consensus of $22.02 billion.
Management Flags External Pressures On Operations
On an investor call Thursday, management painted a picture of a dynamic operating environment. "As anticipated towards the end of last year, the operating environment is dynamic. There are payer mix shifts, seasonal effects, and insurance enrollment uncertainty in the exchanges and Medicaid that impact demand," the company said. It also noted that "our operations in the first quarter were somewhat impacted by two major winter storms and uncertainty from vendor cyber attacks."
So it wasn't just the numbers — it was the weather and hackers, too.
THC Technical Analysis: Trend, RSI And Key Support Levels
Tenet Healthcare shares are trading within their 52-week range, which spans from a high of $247.21 to a low of $126.75. The stock is currently 7.4% below its 20-day simple moving average (SMA) and 15.7% below its 50-day SMA, signaling a bearish short-term trend as it struggles to regain upward momentum.
The relative strength index (RSI) sits at 37.34, leaning toward bearish territory but not yet oversold. The moving average convergence divergence (MACD) is below the signal line, confirming the bearish bias.
Key levels to watch: resistance at $206.50, where the stock has previously struggled to push higher, and support at $158.50, a critical floor that could provide a bounce if tested.
THC Stock Price Activity: Tenet Healthcare shares were down 5.95% at $169.38 at the time of publication on Thursday, according to market data.
