Tenet Healthcare, a leading operator of hospitals and ambulatory surgery centers, has increased its full-year guidance after reporting robust revenue growth and profitability in the third quarter.

Following the release of its Q3 results, shares of Tenet surged 16% on Tuesday. The company announced a net profit of $472 million (or $4.89 per diluted share) for the quarter, with $209 million attributed to after-tax gains from the sale of five hospitals in Alabama. This marked a substantial increase compared to last year’s Q3 net profit of $101 million. Adjusted earnings for the quarter reached $2.93 per share.

Revenue for the third quarter rose to $5.12 billion, reflecting a 1.2% increase from $5.066 billion year-over-year, while adjusted EBITDA grew 14.5% to $978 million. These results exceeded analysts’ expectations on both revenue and earnings.

In response, Tenet raised its 2024 guidance. The company now anticipates full-year revenue between $20.6 billion and $20.8 billion, with adjusted EBITDA projected at $3.9 billion to $4 billion—up by $50 million from previous forecasts. Adjusted EPS is expected to range from $11.12 to $11.73, while net profit estimates are between $3.09 billion and $3.19 billion.

“Our businesses continue to produce strong results and generate robust free cash flow, with same-store revenue growth and profitability well above our expectations,” said Saum Sutaria, M.D., chairman and CEO of Tenet, highlighting the company’s successful portfolio transformation. “We are well-positioned to deliver enhanced value to our patients, physician partners, and shareholders.”

The outlook boost reflects Tenet’s strategic portfolio reshaping, which included the sale of 14 hospitals in 2024 totaling nearly $4.8 billion.