Tenet Reports Strong Fourth Quarter and FY 2025 Results; Provides 2026 Financial Outlook

DALLAS--( BUSINESS WIRE)--Tenet Healthcare Corporation (Tenet) (NYSE: THC) today announced its results for the quarter ended December 31, 2025.

"2025 extended Tenet's track record of strong revenue growth, disciplined operations, improved margins and robust free cash flow generation," said Saum Sutaria, M.D., Chairman and Chief Executive Officer of Tenet. "We see continued demand for acute care and ambulatory surgical services in our markets and are confident in our ability to execute on our strategy, deliver quality results for our patients and physician partners, and achieve our full year 2026 expectations."

Tenet’s results for fourth quarter 2025 versus fourth quarter 2024 are as follows:

Three Months Ended

December 31,

Years Ended

December 31,

($ in millions, except per share results)

2025

2024

2025

2024

Net operating revenues

$5,527

$5,073

$21,310

$20,675

Net income available to Tenet common shareholders

$371

$318

$1,407

$3,200

Net income available to Tenet common shareholders per diluted share

$4.22

$3.32

$15.49

$32.70

Adjusted EBITDA 1

$1,183

$1,048

$4,566

$3,995

Adjusted diluted earnings per share 1

$4.70

$3.44

$16.78

$11.88

Balance Sheet and Cash Flows

Recent Transaction

Ambulatory Care (Ambulatory) Segment

Tenet’s Ambulatory business segment is comprised of the operations of United Surgical Partners International (USPI). As of December 31, 2025, USPI had interests in 533 ambulatory surgery centers (401 consolidated) and 26 surgical hospitals (eight consolidated) in 37 states.

Three Months Ended

December 31,

Years Ended

December 31,

Ambulatory segment results ($ in millions)

2025

2024

2025

2024

Revenues

Net operating revenues

$1,433

$1,259

$5,172

$4,534

Same-facility system-wide net patient service revenues 2

$2,393

$2,232

$8,483

$7,894

Changes versus the Prior-Year Period

Same-facility system-wide net patient service revenues

7.2 %

8.6 %

7.5 %

7.8 %

Same-facility system-wide net patient service revenue per case

5.5 %

8.5 %

7.1 %

7.4 %

Same-facility system-wide surgical cases 2

1.6 %

0.1 %

0.3 %

Same-facility system-wide surgical cases on same-business day basis 2

1.6 %

(1.5) %

0.7 %

(0.5) %

Adjusted EBITDA, Margins and NCI

Adjusted EBITDA

$580

$530

$2,026

$1,810

Adjusted EBITDA margin

40.5%

42.1%

39.2%

39.9%

Adjusted EBITDA less NCI

$347

$317

$1,221

$1,096

Hospital Operations and Services (Hospital) Segment

Tenet’s Hospital business segment is primarily comprised of acute care and specialty hospitals, imaging centers, ancillary outpatient facilities, micro-hospitals and physician practices. It also provides comprehensive end-to-end and focused point services, including hospital and physician revenue cycle management, patient communications and engagement support and value-based care solutions.

Three Months Ended

December 31,

Years Ended

December 31,

Hospital segment results ($ in millions)

2025

2024

2025

2024

Revenues

Net operating revenues

$4,094

$3,814

$16,138

$16,141

Same-hospital net patient service revenues 3

$3,499

$3,255

$13,791

$12,940

Same-Hospital Volume Changes versus the Prior-Year Period

Admissions

(0.7)%

5.0%

1.7%

4.7%

Adjusted admissions 4

—%

3.1%

1.2%

2.5%

Outpatient visits (including outpatient ER visits)

(3.0)%

0.4%

(1.8)%

0.3%

Emergency Room visits (inpatient and outpatient)

(0.3)%

(2.4)%

(1.4)%

0.9%

Hospital surgeries

0.1%

0.2%

(0.6)%

0.6%

Adjusted EBITDA

$603

$518

$2,540

$2,185

Adjusted EBITDA margin

14.7%

13.6%

15.7%

13.5%

2026 Outlook 1

Tenet’s Outlook for full year 2026 (consolidated and by segment) follows. Revenue recognized from the termination of the CommonSpirit contract will not be included in net operating revenues.

CONSOLIDATED ($ in millions, except per share amounts)

FY 2026 Outlook

Net operating revenues 7

$21,500 to $22,300

Net income available to Tenet common stockholders

$2,605 to $2,840

Adjusted EBITDA

$4,485 to $4,785

Adjusted EBITDA margin

20.9% to 21.5%

Diluted income per common share

$29.60 to $32.27

Adjusted net income

$1,425 to $1,625

Adjusted diluted earnings per share

$16.19 to $18.47

Equity in earnings of unconsolidated affiliates

$265 to $275

Depreciation and amortization

$875 to $925

Interest expense

$800 to $810

Income tax expense 5

$985 to $1,060

Net income available to NCI

$910 to $960

Weighted average diluted common shares

~88 million

Net cash provided by operating activities

$3,640 to $4,090

Adjusted net cash provided by operating activities

$3,200 to $3,600

Capital expenditures

$700 to $800

Free cash flow

$2,940 to $3,290

Adjusted free cash flow

$2,500 to $2,800

NCI cash distributions

$900 to $970

Ambulatory Segment ($ in millions)

FY 2026 Outlook

Net operating revenues

$5,500 to $5,700

Adjusted EBITDA

$2,130 to $2,230

NCI

$865 to $895

Adjusted EBITDA less NCI

$1,265 to $1,335

Changes versus prior year 6:

Same-facility system-wide revenue

Up 3.0% to 6.0%

Hospital Segment ($ in millions)

FY 2026 Outlook

Net operating revenues 7

$16,000 to $16,600

Adjusted EBITDA

$2,355 to $2,555

NCI

$45 to $65

Changes versus prior year 6:

Inpatient admissions

Up 1.0% to 2.0%

Adjusted admissions

Up 1.0% to 2.0%

Management’s Webcast Discussion of Results

Tenet management will discuss the Company’s fourth quarter 2025 results in a webcast scheduled for 10:00 a.m. Eastern Time (9:00 a.m. Central Time) on February 11, 2026. Investors can access the webcast through the Company’s website at www.tenethealth.com/investors.

The slide presentation associated with the webcast referenced above, a copy of this earnings press release, and a related supplemental financial disclosures document will be available on the Company’s Investor Relations website on February 11, 2026.

Cautionary Statement

This release contains “forward-looking statements” - that is, statements that relate to future, not past, events. In this context, forward-looking statements often address the Company’s expected future business and financial performance and financial condition, and often contain words such as “expect,” “anticipate,” “assume,” “believe,” “budget,” “estimate,” “forecast,” “intend,” “plan,” “predict,” “project,” “seek,” “see,” “target,” or “will.” Forward-looking statements by their nature address matters that are, to different degrees, uncertain. Particular uncertainties that could cause the Company’s actual results to be materially different than those expressed in the Company’s forward-looking statements include, but are not limited to the factors disclosed under “Forward-Looking Statements” and “Risk Factors” in our Form 10-K for the year ended December 31, 2024 and other filings with the Securities and Exchange Commission.

Footnotes

About Tenet Healthcare

Tenet Healthcare Corporation (NYSE: THC) is a diversified healthcare services company headquartered in Dallas. Our care delivery network includes United Surgical Partners International, the largest ambulatory platform in the country, which operates ambulatory surgery centers and surgical hospitals. We also operate a national portfolio of acute care and specialty hospitals, other outpatient facilities, a network of leading employed physicians and a global business center in Manila, Philippines. Our Conifer Health Solutions subsidiary provides revenue cycle management and value-based care services to hospitals, health systems, physician practices, employers and other clients. Across the Tenet enterprise, we are united by our mission to deliver quality, compassionate care in the communities we serve. For more information, please visit www.tenethealth.com.

Non-GAAP Financial Measures

The Company believes the non-GAAP measures described below are useful to investors and analysts because they present additional information on the Company’s financial performance. Investors, analysts, Company management and the Company’s Board of Directors utilize these non-GAAP measures, in addition to GAAP measures, to track the Company’s financial and operating performance and compare the Company’s performance to its peer companies, which use similar non-GAAP financial measures in their presentations and earnings releases. The Human Resources Committee of the Company’s Board of Directors also uses certain of these measures to evaluate management’s performance for the purpose of determining incentive compensation. Additional information regarding the purpose and utility of specific non-GAAP measures used in this release is set forth below.

The Company believes that Adjusted EBITDA is a useful measure, in part, because certain investors and analysts use both historical and projected Adjusted EBITDA, in addition to other GAAP and non-GAAP measures, as factors in determining the estimated fair value of shares of the Company’s common stock. Company management also regularly reviews the Adjusted EBITDA performance for each operating segment. The Company does not use Adjusted EBITDA to measure liquidity, but instead to measure operating performance.

The Company uses, and believes investors use, Free Cash Flow and Adjusted Free Cash Flow as supplemental non-GAAP measures to analyze cash flows generated from the Company’s operations. The Company believes these measures are useful to investors in evaluating its ability to fund distributions paid to noncontrolling interests or for acquisitions, purchasing equity interests in joint ventures or repaying debt.

These non-GAAP measures may not be comparable to similarly titled measures reported by other companies. Because these measures exclude many items that are included in the Company’s financial statements, they do not provide a complete measure of the Company’s operating performance. For example, the Company’s definitions of Free Cash Flow and Adjusted Free Cash Flow do not include other important uses of cash including (1) cash used to purchase businesses or joint venture interests, or (2) any items that are classified as Cash Flows from Financing Activities on the Company’s Consolidated Statement of Cash Flows, including items such as (i) cash used to repay borrowings, or (ii) distributions paid to noncontrolling interests. Accordingly, investors are encouraged to use GAAP measures when evaluating the Company’s financial performance.

See corresponding reconciliations of the non-GAAP financial measures referred to above to the most comparable GAAP financial measures in Tables #1 - 6 below.

Tenet Healthcare Corporation

Financial Statements and Reconciliations

Fourth Quarter Earnings Release

Table of Contents

Description

Page

Consolidated Statements of Operations

Consolidated Balance Sheets

Consolidated Statements of Cash Flows

Segment Reporting

Table #1 – Reconciliations of Net Income to Adjusted Net Income

Table #2 – Reconciliations of Net Income to Adjusted EBITDA

Table #3 – Reconciliations of Net Cash Provided by (Used in) Operating Activities to Free Cash Flow and Adjusted Free Cash Flow

Table #4 – Reconciliations of Outlook Net Income to Outlook Adjusted Net Income

Table #5 – Reconciliations of Outlook Net Income to Outlook Adjusted EBITDA

Table #6 – Reconciliations of Outlook Net Cash Provided by Operating Activities to Outlook Free Cash Flow and Outlook Adjusted Free Cash Flow

TENET HEALTHCARE CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

(Dollars in millions, except per share amounts)

Three Months Ended December 31,

2025

2024

Change

Net operating revenues

5,527

100.0

5,073

100.0

8.9

Equity in earnings of unconsolidated affiliates

1.5

6.4

Operating expenses:

Salaries, wages and benefits

2,222

40.2

2,094

41.3

6.1

Supplies

1,010

18.3

930

18.3

8.6

Other operating expenses, net

1,195

21.6

1,079

21.3

10.8

Depreciation and amortization

231

4.2

193

3.8

Impairment and restructuring charges, and acquisition-related costs

1.2

0.5

Litigation and investigation costs

0.5

0.3

Net losses (gains) on sales, consolidation and deconsolidation of facilities

0.1

(10

)

(0.2

Operating income

853

15.4

821

16.2

Interest expense

(205

)

(203

)

Other non-operating income, net

Loss from early extinguishment of debt

)

—

Income before income taxes

681

655

Income tax expense

(37

)

(83

)

Net income

644

572

Less: Net income available to noncontrolling interests

273

254

Net income available to Tenet Healthcare Corporation common shareholders

371

318

Earnings per share available to Tenet Healthcare Corporation common shareholders:

Basic

4.25

3.34

Diluted

4.22

3.32

Weighted average shares and dilutive securities outstanding (in thousands):

Basic

87,271

95,102

Diluted

87,917

95,882

TENET HEALTHCARE CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

(Dollars in millions, except per share amounts)

Years Ended December 31,

2025

2024

Change

Net operating revenues

21,310

100.0

20,675

100.0

3.1

Equity in earnings of unconsolidated affiliates

264

1.2

260

1.3

1.5

Operating expenses:

Salaries, wages and benefits

8,705

40.8

8,801

42.6

(1.1

Supplies

3,780

17.7

3,647

17.6

3.6

Other operating expenses, net

4,523

21.2

4,492

21.7

0.7

Depreciation and amortization

863

4.1

818

4.0

Impairment and restructuring charges, and acquisition-related costs

130

0.6

102

0.5

Litigation and investigation costs

0.3

0.2

Net losses (gains) on sales, consolidation and deconsolidation of facilities

—

(2,916

)

(14.1

Operating income

3,508

16.5

5,956

28.8

Interest expense

(821

)

(826

)

Other non-operating income, net

117

126

Loss from early extinguishment of debt

)

Income before income taxes

2,800

5,248

Income tax expense

(433

)

(1,184

)

Net income

2,367

4,064

Less: Net income available to noncontrolling interests

960

864

Net income available to Tenet Healthcare Corporation common shareholders

1,407

3,200

Earnings per share available to Tenet Healthcare Corporation common shareholders:

Basic

15.61

33.02

Diluted

15.49

32.70

Weighted average shares and dilutive securities outstanding (in thousands):

Basic

90,150

96,904

Diluted

90,833

97,881

TENET HEALTHCARE CORPORATION

CONSOLIDATED BALANCE SHEETS

(Unaudited)

(Dollars in millions)

December 31,

2025

2024

ASSETS

Current assets:

Cash and cash equivalents

2,883

3,019

Accounts receivable

2,565

2,536

Inventories of supplies, at cost

348

346

Assets held for sale

Other current assets

1,991

1,760

Total current assets

7,849

7,682

Investments and other assets

2,883

3,037

Deferred income taxes

Property and equipment, at cost, less accumulated depreciation and amortization

6,315

6,049

Goodwill

11,198

10,691

Other intangible assets, at cost, less accumulated amortization

1,348

1,397

Total assets

29,677

28,936

LIABILITIES AND EQUITY

Current liabilities:

Current portion of long-term debt

Accounts payable

1,360

1,294

Accrued compensation and benefits

858

899

Professional and general liability reserves

276

238

Accrued interest payable

149

Liabilities held for sale

—

Income tax payable

—

Other current liabilities

1,809

1,607

Total current liabilities

4,463

4,310

Long-term debt, net of current portion

13,092

13,081

Professional and general liability reserves

951

900

Defined benefit plan obligations

245

298

Deferred income taxes

240

227

Other long-term liabilities

1,713

1,573

Total liabilities

20,704

20,389

Commitments and contingencies

Redeemable noncontrolling interests in equity of consolidated subsidiaries

2,956

2,727

Equity:

Shareholders’ equity:

Common stock

Additional paid-in capital

4,914

4,873

Accumulated other comprehensive loss

(181

)

(180

)

Retained earnings

4,415

3,008

Common stock in treasury, at cost

(4,936

)

(3,538

)

Total shareholders’ equity

4,220

4,171

Noncontrolling interests

1,797

1,649

Total equity

6,017

5,820

Total liabilities and equity

29,677

28,936

TENET HEALTHCARE CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

(Dollars in millions)

Years Ended

December 31,

2025

2024

Net income

2,367

4,064

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization

863

818

Deferred income tax expense (benefit)

(103

)

Stock-based compensation expense

104

Impairment and restructuring charges, and acquisition-related costs

130

102

Litigation and investigation costs

Net losses (gains) on sales, consolidation and deconsolidation of facilities

(2,916

)

Loss from early extinguishment of debt

Equity in earnings of unconsolidated affiliates, net of distributions received

(34

)

(29

)

Amortization of debt discount and debt issuance costs

Net gains from the sale of investments and long-lived assets

)

Other items, net

)

Changes in cash from operating assets and liabilities:

Accounts receivable

245

Inventories and other current assets

(73

)

(86

)

Income taxes

(25

)

Accounts payable, accrued expenses and other current liabilities

209

(30

)

Other long-term liabilities

)

Payments for restructuring charges, acquisition-related costs, and litigation costs and settlements

(121

)

(153

)

Net cash provided by operating activities

3,540

2,047

Cash flows from investing activities:

Purchases of property and equipment

(1,010

)

(931

)

Purchases of businesses or joint venture interests, net of cash acquired

(308

)

(571

)

Proceeds from sales of facilities and other assets

4,981

Proceeds from sales of marketable securities and long-term investments

Purchases of marketable securities and long-term investments

(90

)

(94

)

Other items, net

(19

)

Net cash provided by (used in) investing activities

(1,275

)

3,429

Cash flows from financing activities:

Repayments of borrowings

(2,372

)

(2,243

)

Proceeds from borrowings

2,276

Repurchases of common stock

(1,386

)

(672

)

Debt issuance costs

(32

)

—

Distributions paid to noncontrolling interests

(809

)

(681

)

Proceeds from the sale of noncontrolling interests

Purchases of noncontrolling interests

(92

)

(200

)

Advances from managed care payers

—

342

Repayments of advances from managed care payers

(32

)

(310

)

Taxes paid related to net share settlement, net of proceeds from shares issued under

stock-based compensation plans

(51

)

(25

)

Other items, net

Net cash used in financing activities

(2,401

)

(3,685

)

Net increase (decrease) in cash and cash equivalents

(136

)

1,791

Cash and cash equivalents at beginning of period

3,019

1,228

Cash and cash equivalents at end of period

2,883

3,019

Supplemental disclosures:

Interest paid, net of capitalized interest

(865

)

(851

)

Income tax payments, net

(450

)

(1,271

)

TENET HEALTHCARE CORPORATION

SEGMENT REPORTING

(Unaudited)

Three Months Ended

Years Ended

December 31,

(Dollars in millions)

2025

2024

2025

2024

Net operating revenues:

Ambulatory Care

1,433

1,259

5,172

4,534

Hospital Operations and Services

4,094

3,814

16,138

16,141

Total

5,527

5,073

21,310

20,675

Equity in earnings of unconsolidated affiliates:

Ambulatory Care

258

250

Hospital Operations and Services

Total

264

260

Adjusted EBITDA:

Ambulatory Care

580

530

2,026

1,810

Hospital Operations and Services

603

518

2,540

2,185

Total

1,183

1,048

4,566

3,995

Adjusted EBITDA margins:

Ambulatory Care

40.5

42.1

39.2

39.9

Hospital Operations and Services

14.7

13.6

15.7

13.5

Total

21.4

20.7

21.4

19.3

Capital expenditures:

Ambulatory Care

124

Hospital Operations and Services

330

309

886

845

Total

364

330

1,010

931

TENET HEALTHCARE CORPORATION

Additional Supplemental Non-GAAP disclosures

Table #1 – Reconciliations of Net Income Available to Tenet Healthcare Corporation Common Shareholders to Adjusted Net Income Available to Common Shareholders

(Unaudited)

Three Months Ended

Years Ended

December 31,

(Dollars in millions, except per share amounts)

2025

2024

2025

2024

Net income available to Tenet Healthcare Corporation common shareholders

371

318

1,407

3,200

Less:

Impairment and restructuring charges, and acquisition-related costs

(64

)

(27

)

(130

)

(102

)

Litigation and investigation costs

(30

)

(17

)

(64

)

(35

)

Net gains (losses) on sales, consolidation and deconsolidation of facilities

)

2,916

Loss from early extinguishment of debt

)

—

)

Tax and noncontrolling interests impact of above items

(733

)

Adjusted net income available to common shareholders

413

330

1,524

1,162

Diluted earnings per share

4.22

3.32

15.49

32.70

Less:

Impairment and restructuring charges, and acquisition-related costs

(0.73

)

(0.28

)

(1.43

)

(1.04

)

Litigation and investigation costs

(0.34

)

(0.18

)

(0.71

)

(0.36

)

Net gains (losses) on sales, consolidation and deconsolidation of facilities

(0.06

)

0.11

(0.01

)

29.79

Loss from early extinguishment of debt

(0.04

)

—

(0.04

)

(0.08

)

Tax and noncontrolling interests impact of above items

0.69

0.23

0.90

(7.49

)

Adjusted diluted earnings per share

4.70

3.44

16.78

11.88

Weighted average basic shares outstanding (in thousands)

87,271

95,102

90,150

96,904

Weighted average dilutive shares outstanding (in thousands)

87,917

95,882

90,833

97,881

TENET HEALTHCARE CORPORATION

Additional Supplemental Non-GAAP disclosures

Table #2 – Reconciliations of Net Income Available to Tenet Healthcare Corporation Common Shareholders to Adjusted EBITDA

(Unaudited)

Three Months Ended

Years Ended

December 31,

(Dollars in millions)

2025

2024

2025

2024

Net income available to Tenet Healthcare Corporation common shareholders

371

318

1,407

3,200

Less:

Net income available to noncontrolling interests

(273

)

(254

)

(960

)

(864

)

Net income

644

572

2,367

4,064

Income tax expense

(37

)

(83

)

(433

)

(1,184

)

Loss from early extinguishment of debt

)

—

)

Other non-operating income, net

117

126

Interest expense

(205

)

(203

)

(821

)

(826

)

Operating income

853

821

3,508

5,956

Litigation and investigation costs

(30

)

(17

)

(64

)

(35

)

Net gains (losses) on sales, consolidation and deconsolidation of facilities

)

2,916

Impairment and restructuring charges, and acquisition-related costs

(64

)

(27

)

(130

)

(102

)

Depreciation and amortization

(231

)

(193

)

(863

)

(818

)

Adjusted EBITDA

1,183

1,048

4,566

3,995

Net operating revenues

5,527

5,073

21,310

20,675

Net income available to Tenet Healthcare Corporation common shareholders as a % of net operating revenues

6.7

6.3

6.6

15.5

Adjusted EBITDA as a % of net operating revenues (Adjusted EBITDA margin)

21.4

20.7

21.4

19.3

TENET HEALTHCARE CORPORATION

Additional Supplemental Non-GAAP disclosures

Table #3 – Reconciliations of Net Cash Provided by (Used in) Operating Activities to

Free Cash Flow and Adjusted Free Cash Flow

(Unaudited)

2025

(Dollars in millions)

YTD

Net cash provided by operating activities

731

3,540

Purchases of property and equipment

(364

)

(1,010

)

Free cash flow

367

2,530

Net cash used in investing activities

(389

)

(1,275

)

Net cash used in financing activities

(434

)

(2,401

)

Net cash provided by operating activities

731

3,540

Less:

Payments for restructuring charges, acquisition-related costs, and litigation costs and settlements

(37

)

(121

)

Adjusted net cash provided by operating activities

768

3,661

Purchases of property and equipment

(364

)

(1,010

)

Adjusted free cash flow

404

2,651

2024

(Dollars in millions)

YTD

Net cash provided by (used in) operating activities

(331

)

2,047

Purchases of property and equipment

(330

)

(931

)

Free cash flow

(661

)

1,116

Net cash provided by (used in) investing activities

(372

)

3,429

Net cash used in financing activities

(372

)

(3,685

)

Net cash provided by (used in) operating activities

(331

)

2,047

Less:

Payments for restructuring charges, acquisition-related costs, and litigation costs and settlements

(34

)

(153

)

Adjusted net cash provided by (used in) operating activities

(297

)

2,200

Purchases of property and equipment

(330

)

(931

)

Adjusted free cash flow

(627

)

1,269

TENET HEALTHCARE CORPORATION

Additional Supplemental Non-GAAP disclosures

Table #4 – Reconciliations of Outlook Net Income Available to Tenet Healthcare Corporation Common Shareholders to Outlook Adjusted Net Income Available to Common Shareholders

(Unaudited)

FY 2026

(Dollars in millions, except per share amounts)

Low

High

Net income available to Tenet Healthcare Corporation common shareholders

2,605

2,840

Less:

Revenue from contract termination

1,650

Impairment and restructuring charges, acquisition-related costs, and litigation costs and settlements (1)

(100

)

(50

)

Tax and noncontrolling interests impact of above items

(370

)

(385

)

Adjusted net income available to common shareholders

1,425

1,625

Diluted earnings per share

29.60

32.27

Less:

Revenue from contract termination

18.75

Impairment and restructuring charges, acquisition-related costs, and litigation costs and settlements

(1.14

)

(0.57

)

Tax and noncontrolling interests impact of above items

(4.20

)

(4.38

)

Adjusted diluted earnings per share

16.19

18.47

Weighted average dilutive shares outstanding (in thousands)

88,000

(1)

The figures shown represent the Company's estimate for restructuring charges. The Company does not generally forecast impairment charges, acquisition-related costs, and litigation costs and settlements because it does not believe that it can forecast these items with sufficient accuracy since some of these items are indeterminable at the time the Company provides its financial Outlook.

TENET HEALTHCARE CORPORATION

Additional Supplemental Non-GAAP disclosures

Table #5 – Reconciliations of Outlook Net Income Available to Tenet Healthcare Corporation Common Shareholders to Outlook Adjusted EBITDA

(Unaudited)

FY 2026

(Dollars in millions)

Low

High

Net income available to Tenet Healthcare Corporation common shareholders

2,605

2,840

Less:

Net income available to noncontrolling interests

(910

)

(960

)

Income tax expense

(985

)

(1,060

)

Interest expense

(810

)

(800

)

Other non-operating income, net

150

200

Impairment and restructuring charges, acquisition-related costs, and litigation costs and settlements (1)

(100

)

(50

)

Depreciation and amortization

(875

)

(925

)

Revenue from contract termination

1,650

Adjusted EBITDA

4,485

4,785

Net income available to Tenet Healthcare Corporation common shareholders

2,605

2,840

Net operating revenues

21,500

22,300

Net income available to Tenet Healthcare Corporation common shareholders as a % of net operating revenues

12.1

12.7

Adjusted EBITDA as a % of net operating revenues (Adjusted EBITDA margin)

20.9

21.5

(1)

TENET HEALTHCARE CORPORATION

Additional Supplemental Non-GAAP disclosures

Table #6 – Reconciliations of Outlook Net Cash Provided by Operating Activities

to Outlook Free Cash Flow and Outlook Adjusted Free Cash Flow

(Unaudited)

FY 2026

(Dollars in millions)

Low

High

Net cash provided by operating activities

3,640

4,090

Purchases of property and equipment

(700

)

(800

)

Free cash flow

2,940

3,290

Net cash provided by operating activities

3,640

4,090

Less:

Payments for restructuring charges, acquisition-related costs and litigation costs and settlements (1)

(100

)

(50

)

Cash received for contract termination

540

Adjusted net cash provided by operating activities

3,200

3,600

Purchases of property and equipment

(700

)

(800

)

Adjusted free cash flow (2)

2,500

2,800

(1)

The figures shown represent the Company's estimate for restructuring payments. The Company does not generally forecast payments for acquisition-related costs, and litigation costs and settlements because it does not believe that it can forecast these items with sufficient accuracy since some of these items are indeterminable at the time the Company provides its financial Outlook.

(2)

The Company’s definition of Adjusted Free Cash Flow does not include other important uses of cash including (1) cash used to purchase businesses or joint venture interests, or (2) any items that are classified as Cash Flows From Financing Activities on the Company’s Consolidated Statement of Cash Flows, including items such as (i) cash used to repay borrowings, and (ii) distributions paid to noncontrolling interests.