Tenet Healthcare remains a strong Buy despite stock drop and regulatory risks, with solid revenue growth and optimistic 2026 guidance.

Tenet Healthcare Corporation's stock has fallen 22.7% recently, but it remains a compelling Buy due to strong financial performance and a valuation discount compared to peers. The Ambulatory Care segment showed resilience with revenue rising from $1.19B to $1.32B and profit growth. Management projects 2026 revenue between $21.5B and $22.3B, EBITDA of $4.485B to $4.785B, and adjusted net profits of $1.425B to $1.625B. Although proposed Medicaid payment reforms pose regulatory risks to Hospital Operations, the company's valuation offers a margin of safety for investors to stay bullish.