The Bull Case For Tenet Healthcare (THC) Could Change Following Raised Guidance and Major Share Buyback – Learn Why

Simply Wall St
  • Tenet Healthcare recently reported third quarter 2025 earnings, showing a rise in sales to US$5.29 billion and updated its full-year forecast to higher revenue and earnings expectations.
  • The company also completed a substantial share buyback totaling over 8.62 million shares, representing 9.22% of shares outstanding since July 2024.
  • We’ll examine how Tenet Healthcare’s raised earnings guidance contributes to its investment narrative in the wake of recent results.

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What Is Tenet Healthcare's Investment Narrative?

For me, the investment story with Tenet Healthcare hinges on how it handles growth and profitability in the face of changing industry trends and its own operational results. The third quarter update delivered an uptick in sales but a drop in net income and margins compared to last year. However, management responded by raising full-year guidance and completing a large share buyback that reduced shares outstanding by over 9 percent since July, which could support earnings per share going forward. Short term, the increased guidance and buyback suggest confidence from management, possibly addressing some previous concerns about slower earnings growth and lower margins. But there’s still the question of whether profit margins can recover and debt levels can be kept in check, especially after ambitious repurchases and given the recent volatility in earnings. The impact of these changes could shift how investors weigh both the upside and the risks at this point.

Yet even with raised guidance, weaker profit margins may concern investors seeking consistency. Despite retreating, Tenet Healthcare's shares might still be trading 44% above their fair value. Discover the potential downside here.

Exploring Other Perspectives

THC Community Fair Values as at Nov 2025
Three perspectives from the Simply Wall St Community show fair value estimates for Tenet Healthcare spanning nearly US$211,000 to US$1.77 million. This wide bracket underscores just how differently market participants read the recent guidance changes and margin trends, giving you a spectrum of opinions to explore as you form your own view.

Explore 3 other fair value estimates on Tenet Healthcare - why the stock might be worth over 8x more than the current price!

Build Your Own Tenet Healthcare Narrative

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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