Description

Tenet Healthcare: Can High-Acuity Outpatient Expansion Supercharge Margins?

Tenet Healthcare’s financial performance in the fourth quarter and full year 2025 highlights a blend of robust growth and operational efficiency, tempered by some anticipated challenges. The company reported net operating revenues of $21.3 billion for 2025 and a consolidated adjusted EBITDA of $4.57 billion, marking a 14% growth over the previous year. A noteworthy aspect was the improvement in the adjusted EBITDA margin to 21.4%, which represents an over 200 basis point increase from the prior year, reflecting disciplined cost control and strong revenue growth. The United Surgical Partners International (USPI) segment was a significant contributor to these results, with a 12% growth in adjusted EBITDA to $2.026 billion. The segment saw strong volume growth, particularly in higher-margin procedures such as total joint replacements.