Tenet Healthcare: What You Need to Know from THC’s 2Q Earnings & Follow-Up with Management

Research evidence excerpt

Tenet Healthcare: What You Need to Know from THC’s 2Q Earnings & Follow-Up with Management

J P M O R G A N North America Equity Research

27 July 2026

Tenet Healthcare Overweight

THC, THC US

What You Need to Know from THC’s 2Q Earnings & Price (24 Jul 26):$233.20

Follow-Up with Management

Managed Care and Facilities

Last week, THC reported 2Q earnings that featured a high quality earnings beat and Benjamin Rossi AC

raise (see our summary here) even excluding +$92M in OOP benefits from (1-212) 622-9603

Medicaid supplemental payments during the quarter. THC also raised 2026 benjamin.rossi@jpmorgan.com

guidance by ~6%, driven by a more favorable 2H26 outlook for MSPPs (+$20M) Lisa C. Gill

and stronger “core” expectations (+$58M). Most importantly, we think THC (1-212) 622-6466

provided a data point against the notion that surgical demand has fundamentally lisa.c.gill@jpmorgan.com

softened, instead describing some pressure related to coverage shifts for elective John Stansel, CFA

procedures, stickier emergent trends, and a more bifurcated setup as competition (1-212) 622-0083

john.stansel@jpmorgan.com

intensifies for the former amid broader shifts from IP to OP. Capital deployment

Cole Harris

priorities were unchanged despite broader policy fluidity, although we think (1-212) 622-9068

mgmt’s comments implied a greater preference for continued growth across ASC cole.harris@jpmorgan.com

assets vs IP in the near-term, with mgmt upping expectations for 2026 Ambulatory J.P. Morgan Securities LLC

M&A spend by ~20% (>$300M vs prior ~$250M) and expressing some caution on

new hospital builds. While we believe Conifer possesses strategic value within

areas like collections and patient access, we still await details regarding a backfill