Tenet Healthcare's stock surged 5.52% during intraday trading on Wednesday, marking a significant rebound after earlier weakness.
The sharp rise follows the company's release of fourth-quarter 2025 results that handily exceeded analyst expectations. Tenet reported adjusted earnings per share of $4.70, beating the consensus estimate of $4.05, and revenue of $5.53 billion, topping the forecast of $5.47 billion. The strong performance was driven by increased Medicaid supplemental revenues, favorable payer mix, and growth in both its ambulatory care and hospital segments.
While the stock faced initial pressure in pre-market and early trading after the company provided a 2026 revenue outlook that was slightly below some estimates, investor focus quickly shifted to the robust quarterly profit beat and the company's solid adjusted EPS guidance for the full year, which brackets or slightly exceeds market expectations. This combination of strong historical execution and a confident forward view fueled the intraday rally.