Q1 2026 Tenet Healthcare Corp Earnings Call Transcript
Key Points
- Tenet Healthcare Corp (THC) reported net operating revenues of $5.4 billion and consolidated adjusted EBITDA of $1.16 billion, exceeding expectations.
- USPI generated $484 million in adjusted EBITDA, representing 6% growth over the first quarter of 2025 and 22% of the full year 2026 adjusted EBITDA guidance.
- The company invested $125 million in the first quarter to acquire 7 ASCs and commenced patient care at three de novo centers, achieving half of the targeted full year spend.
- Tenet Healthcare Corp (THC) is executing on AI-related capabilities to drive efficiencies, improving clinician productivity and reducing administrative burdens.
- The company repurchased 1.35 million shares for $318 million in the first quarter and plans to continue share repurchases, indicating confidence in its valuation.
- The operating environment remains dynamic with challenges such as payer mix shifts, seasonal effects, and insurance enrollment uncertainty impacting demand.
- First quarter operations were impacted by two major winter storms and vendor cyber attacks, affecting procedure scheduling.
- There was a decline in exchange coverage, with same-store exchange admissions down about 10% compared to the first quarter of 2025.
- Revenue per adjusted admissions declined 1.5% year-over-year due to reduced exchange volumes and the impact of prior year supplemental Medicaid revenues.
- The company faces high levels of payer disputes and denials, which remain a challenge compared to pre-pandemic periods.
Good morning, and welcome to Tenet Healthcare's first quarter 2026 earnings conference call. (Operator Instructions)
I'll now turn the call over to your host, Mr. Will McDowell, Vice President of Investor Relations. Mr. McDowell, you may begin.
Good morning, everyone, and thank you for joining today's call. I am Will McDowell, Vice President of Investor Relations. We're pleased to have you join us for a discussion of Tenet's first quarter 2026 results as well as a discussion of our financial outlook.
Tenet's senior management participating in today's call will be Dr. Saum Sutaria, Chairman and Chief Executive Officer; and Sun Park, Executive Vice President and Chief Financial Officer.
Our webcast this morning includes a slide presentation, which has been posted to the Investor Relations section of our website, tenethealth.com.
Listeners to this call are advised that certain statements made during our discussion today are forward-looking and
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