Financial Analysis

ACQUISITIONS During the year ended December 31, 2025, we used $308 million of cash for acquisition-related activity, of which $301 million related to acquisitions and consolidations completed during 2025 and $7 million related to measurement-period adjustments for acquisitions completed during 2024. We acquired controlling ownership interests in 27 ambulatory surgery centers and a surgical hospital through a series of transactions in 2025. We also acquired controlling ownership interests in nine previously unconsolidated ambulatory surgery centers. We acquired controlling ownership interests in 52 ambulatory surgery centers and The Hospitals of Providence Rehabilitation Hospital East, located in El Paso, Texas, through a series of transactions during the year ended December 31, 2024. In addition, we acquired controlling ownership interests in seven previously unconsolidated ambulatory surgery centers and 15 previously unconsolidated UCCs, which allowed us to consolidate their financial results. We paid a total of $571 million to acquire all of these ownership interests during the year ended December 31, 2024. In December 2023, we purchased 55% of the ownership interest held by NextCare, Inc. and certain of its affiliates (NextCare) in NextCare Arizona I JV, LLC (NextCare JV I), a joint venture established to own and operate 41 UCCs and a telehealth center in Arizona. We paid $75 million from cash on hand on the acquisition date in 2023 and retained an additional $10 million i …

BusinessCombinationDisclosureTextBlock · excerpt; the full note is in the filing

CLAIMS AND LAWSUITS We operate in a highly regulated and litigious industry; as such, we are regularly named in various legal actions in the ordinary course of our business. Healthcare companies are subject to numerous investigations by various governmental agencies. Further, private parties have the right to bring qui tam or whistleblower lawsuits against companies that allegedly submit false claims for payments to, or improperly retain overpayments from, the government and, in some states, private payers. We and our subsidiaries have received inquiries in recent years from government agencies, and we may receive similar inquiries in future periods. We are also subject to private litigation (including class action lawsuits) related to, among other things, the care and treatment provided at our hospitals and outpatient facilities; the application of various federal and state labor and privacy laws, rules and regulations; antitrust claims; tax audits; contract disputes (including disagreements with joint venture partners); and other matters. Some of these actions may involve large demands, as well as substantial defense costs. We cannot predict the outcome of current or future legal actions against us or the effect that judgments or settlements in such matters may have on us; however, we believe that the ultimate resolution of our existing ordinary-course claims and lawsuits will not have a material effect on our business or financial condition. New claims or inquiries may be …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

LONG-TERM DEBT The table below presents our long-term debt included in the accompanying Consolidated Balance Sheets: December 31, 2025 2024 Senior unsecured notes: 6.125% due 2028 $ 1,750 $ 2,500 6.875% due 2031 362 362 6.000% due 2033 750 Senior secured first lien notes: 5.125% due 2027 1,500 1,500 4.625% due 2028 600 600 4.250% due 2029 1,400 1,400 4.375% due 2030 1,450 1,450 6.125% due 2030 2,000 2,000 6.750% due 2031 1,350 1,350 5.500% due 2032 1,500 Senior secured second lien notes: 6.250% due 2027 1,500 Finance leases, mortgages and other notes 603 605 Unamortized issue costs and note discounts (94) (94) Total long-term debt 13,171 13,173 Less: Current portion 79 92 Long-term debt, net of current portion $ 13,092 $ 13,081 Senior Unsecured Notes and Senior Secured Notes At December 31, 2025, we had senior unsecured notes and senior secured notes with aggregate principal amounts outstanding of $12.662 billion. These notes have fixed interest rates ranging from 4.250% to 6.875% and require semi-annual interest payments in arrears. A payment of the principal and any accrued but unpaid interest is due upon the maturity date of the respective notes, which dates are staggered from November 2027 through November 2033. We completed the following transactions during the year ended December 31, 2025, all of which occurred in November: We issued $1.500 billion aggregate principal amount of our 5.500% senior secured first lien notes due on November 15, 2032 (the 2032 Senior Secured …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

The table below presents our sources of net operating revenues: Years Ended December 31, 2025 2024 2023 Hospital Operations: Net patient service revenues from hospitals and related outpatient facilities: Medicare $ 2,119 $ 2,132 $ 2,383 Medicaid 1,524 1,439 1,233 Managed care 9,696 9,809 10,248 Uninsured 52 64 96 Indemnity and other 551 522 590 Total 13,942 13,966 14,550 Other revenues (1) 2,196 2,175 2,148 Total Hospital Operations 16,138 16,141 16,698 Ambulatory Care 5,172 4,534 3,866 Net operating revenues $ 21,310 $ 20,675 $ 20,564 (1) Primarily revenue from physician practices and revenue cycle management. The following table presents the composition of net operating revenues for our Ambulatory Care segment: Years Ended December 31, 2025 2024 2023 Net patient service revenues $ 4,956 $ 4,356 $ 3,713 Revenue from other sources 216 178 152 Net operating revenues $ 5,172 $ 4,534 $ 3,865

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EMPLOYEE BENEFIT PLANS Share-Based Compensation Plans We have granted stock options and restricted stock units (RSUs) to certain of our employees and directors pursuant to our stock incentive plans. Stock options have an exercise price equal to the fair market value of our shares on the date of grant and generally expire 10 years from the date of grant. An RSU is a contractual right to receive one share of our common stock in the future, and the fair value of the RSU is based on our share price on the grant date. Typically, stock options and time-based RSUs vest one-third on each of the first three anniversary dates of the grant; however, certain special retention awards may have different vesting terms. Shares underlying vested RSUs are generally distributed to participants (settled) immediately after the vesting date. We also grant RSUs to our non-employee directors as part of their annual compensation. Previously, these grants vested immediately and were settled on the third anniversary of the date of grant. Beginning in 2024, annual compensation grants to our non-employee directors vest on the first anniversary of the date of grant. Compensation cost is measured by the fair value of the awards on their grant dates and is recognized over the requisite service period of the awards, whether or not the awards had any intrinsic value during the period. We also grant performance-based RSUs that vest subject to the achievement of specified performance goals within a pre-establis …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

FAIR VALUE MEASUREMENTS We are required to provide additional disclosures about fair value measurements as part of our financial statements for each major category of assets and liabilities measured at fair value. In general, fair values determined by Level 1 inputs utilize quoted prices (unadjusted) in active markets for identical assets or liabilities, which generally are not applicable to non-financial assets and liabilities. Fair values determined by Level 2 inputs utilize data points that are observable, such as definitive sales agreements, appraisals or established market values of comparable assets. Fair values determined by Level 3 inputs utilize unobservable data points for the asset or liability and include situations where there is little, if any, market activity for the asset or liability, such as internal estimates of future cash flows. Non-Recurring Fair Value Measurements Our non-financial assets and liabilities not permitted or required to be measured at fair value on a recurring basis typically relate to long-lived assets held and used, long-lived assets held for sale and goodwill. The following table presents information about assets measured at fair value on a non-recurring basis and indicates the fair value hierarchy of the valuation techniques we utilized to determine such fair values: Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) December 31, 20 …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

GOODWILL AND OTHER INTANGIBLE ASSETS The following table presents information on changes in the carrying amount of goodwill for each of our segments: December 31, 2025 2024 Hospital Operations Goodwill at beginning of period, net of accumulated impairment losses $ 2,697 $ 3,119 Goodwill acquired during the year, including purchase price allocation adjustments 42 Goodwill related to assets held for sale and disposed (464) Goodwill at end of period, net of accumulated impairment losses $ 2,697 $ 2,697 Ambulatory Care Goodwill at beginning of period 7,994 $ 7,188 Goodwill acquired during the year, including purchase price allocation adjustments 507 927 Goodwill related to assets held for sale and disposed or deconsolidated facilities (121) Goodwill at end of period 8,501 $ 7,994 Total Goodwill $ 11,198 $ 10,691 There were $2.430 billion of accumulated impairment losses related to the goodwill of our Hospital Operations segment at both December 31, 2025 and 2024. There were no accumulated goodwill impairment losses related to our Ambulatory Care segment in either period. The following table presents information regarding other intangible assets, which were included in the accompanying Consolidated Balance Sheets: Gross Carrying Amount Accumulated Amortization Net Book Value At December 31, 2025: Other intangible assets with finite useful lives: Capitalized software costs $ 1,511 $ (1,166) $ 345 Contracts 241 (148) 93 Other 42 (14) 28 Other intangible assets with finite lives 1,79 …

GoodwillAndIntangibleAssetsDisclosureTextBlock · excerpt; the full note is in the filing

INCOME TAXES Income before income taxes for continuing operations for the years ended December 31, 2025, 2024 and 2023 consisted of the following: Years Ended December 31, 2025 2024 2023 Domestic $ 2,805 $ 5,251 $ 1,620 Foreign (5) (3) (3) $ 2,800 $ 5,248 $ 1,617 The provision for income taxes for the years ended December 31, 2025, 2024 and 2023 consisted of the following: Years Ended December 31, 2025 2024 2023 Current tax expense: Federal $ 305 $ 926 $ 208 State 119 361 46 424 1,287 254 Deferred tax expense (benefit): Federal 18 (92) 55 State (9) (11) (3) 9 (103) 52 Total tax expense $ 433 $ 1,184 $ 306 A reconciliation between the amount of reported income tax expense and the amount computed by multiplying income before income taxes by the statutory federal tax rate is presented below. Years Ended December 31, 2025 2024 2023 Amount Percent Amount Percent Amount Percent Tax expense at statutory federal rate $ 588 21.0 % $ 1,102 21.0 % $ 340 21.0 % Domestic federal tax Nontaxable or nondeductible items: Tax benefit attributable to noncontrolling interests (202) (7.2) % (181) (3.4) % (147) (9.1) % Nondeductible goodwill % 161 3.1 % % Other (2) (0.1) % 7 0.1 % 7 0.4 % Stock-based compensation tax benefit (11) (0.4) % (9) (0.2) % (2) (0.1) % Other (21) (0.7) % (5) (0.1) % 4 0.2 % State and local income taxes, net of federal income tax effect 82 2.9 % 278 5.3 % 11 0.7 % Changes in valuation allowances (3) (0.1) % (184) (3.5) % 68 4.2 % Changes in prior year unrecognized tax bene …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

LEASES The following table presents the components of our right-of-use assets and liabilities related to leases and their classification in our Consolidated Balance Sheets: December 31, Component of Lease Balances Classification in Consolidated Balance Sheets 2025 2024 Assets: Operating lease assets Investments and other assets $ 1,134 $ 1,037 Finance lease assets Property and equipment, at cost, less accumulated depreciation and amortization 419 454 Total leased assets $ 1,553 $ 1,491 Liabilities: Operating lease liabilities: Current Other current liabilities $ 214 $ 204 Long-term Other long-term liabilities 1,043 950 Total operating lease liabilities 1,257 1,154 Finance lease liabilities: Current Current portion of long-term debt 45 54 Long-term Long-term debt, net of current portion 407 390 Total finance lease liabilities 452 444 Total lease liabilities $ 1,709 $ 1,598 The following table presents the components of our lease expense and their classification in our consolidated statements of operations: Component of Lease Expense Classification in Consolidated Statements of Operations Years Ended December 31, 2025 2024 2023 Operating lease expense Other operating expenses, net $ 267 $ 257 $ 259 Finance lease expense: Amortization of leased assets Depreciation and amortization 51 49 55 Interest on lease liabilities Interest expense 24 7 8 Total finance lease expense 75 56 63 Variable and short term-lease expense Other operating expenses, net 143 160 159 Total lease expense $ …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

Recently Issued Accounting Standards The FASB issued Accounting Standard Update (ASU) 2024-03, Income Statement Reporting Comprehensive Income Expense Disaggregation Disclosures (Subtopic 22-40): Disaggregation of Income Statement Expenses (ASU 2024-03) in November 2024. This ASU requires entities to provide enhanced disclosures related to certain expense categories included in income statement captions. The ASU aims to increase transparency and provide investors with more detailed information about the nature of expenses reported on the face of the income statement. The new standard does not change the requirements for the presentation of expenses on the face of the income statement. ASU 2024-03 is effective for annual reporting periods beginning after December 15, 2026 and interim reporting periods beginning after December 15, 2027. Early adoption is permitted. While the adoption is not expected to have an impact on our financial statements, it is expected to result in incremental disclosures within the footnotes to our consolidated financial statements. Recently Adopted Accounting Standards We adopted ASU 2023-05, Business Combinations Joint Venture Formations (Subtopic 805-60): Recognition and Initial Measurement (ASU 2023-05) effective January 1, 2025. The amendments in the ASU sought to reduce diversity in practice that has resulted from a lack of authoritative guidance regarding the accounting for the formation of joint ventures in separate financial statements. The am …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

CONTRACT BALANCES Hospital Operations Segment Our Hospital Operations segments contract assets and liabilities primarily derive from: (1) patients receiving ongoing inpatient care from one of our facilities at the end of the reporting period; and (2) timing differences between our performance of revenue cycle management and other contract-based services and the invoicing or receipt of payment for these services. Our Hospital Operations segments contract assets were included in other current assets, and its contract liabilities were included in other current liabilities or other long-term liabilities, depending upon when we expect to recognize the underlying revenue, in the accompanying Consolidated Balance Sheets at December 31, 2025 and 2024. The opening and closing balances of our Hospital Operations segments receivables, contract assets, and current and long-term contract liabilities were as follows: Receivables Contract Assets Unbilled Revenue Contract Liabilities Current Deferred Revenue Contract Liabilities Long-Term Deferred Revenue December 31, 2024 $ 28 $ 190 $ 80 $ 13 December 31, 2025 26 188 88 13 Increase (decrease) $ (2) $ (2) $ 8 $ December 31, 2023 $ 21 $ 208 $ 59 $ 12 December 31, 2024 28 190 80 13 Increase (decrease) $ 7 $ (18) $ 21 $ 1 The differences between the balances of our contract assets at December 31, 2025 and 2024 and the differences between December 31, 2024 and 2023 were both primarily related to patients who were receiving inpatient acute care a …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

SEGMENT INFORMATION Our business consists of our Hospital Operations segment and our Ambulatory Care segment. Our approach to segment identification aligns with how management structures the business to make operational decisions, allocates resources and evaluates performance. Central to this approach is the information routinely reviewed by our Chief Operating Decision Maker (CODM) group. For both segments, the CODM group focuses primarily on Adjusted EBITDA as the key metric for performance evaluation and resource allocation. The CODM groups evaluation of Adjusted EBITDA includes budget-to-actual analyses and comparisons across current and historical periods. At December 31, 2025, our CODM group included our Chief Executive Officer and our Chief Financial Officer. Our Hospital Operations segment is comprised of our acute care and specialty hospitals, physician practices and outpatient facilities. At December 31, 2025, our subsidiaries operated 50 hospitals, serving primarily urban and suburban communities in eight states, as well as 132 outpatient facilities, primarily UCCs, imaging centers, off-campus hospital emergency departments and micro-hospitals. Our Hospital Operations segment also provides revenue cycle management and value-based care services to hospitals, health systems, physician practices, employers and other clients. Our Hospital Operations segment generated 76%, 78% and 81% of our net operating revenues in the years ended December 31, 2025, 2024 and 2023, res …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

SIGNIFICANT ACCOUNTING POLICIES Description of Business Tenet Healthcare Corporation (together with our subsidiaries, referred to herein as Tenet, we or us) is a diversified healthcare services company headquartered in Dallas, Texas. Our expansive, nationwide care delivery network consists of our Hospital Operations and Services (Hospital Operations) and Ambulatory Care segments. As of December 31, 2025, our Hospital Operations segment was comprised of 50 acute care and specialty hospitals, a network of employed physicians and 132 outpatient facilities, including urgent care centers (each, a UCC), imaging centers, off-campus hospital emergency departments and micro-hospitals. Our Ambulatory Care segment is comprised of the operations of USPI Holding Company, Inc. (together with its subsidiaries, USPI), which held ownership interests in 533 ambulatory surgery centers and 26 surgical hospitals at December 31, 2025. USPI held noncontrolling interests in 150 of these facilities, which are recorded using the equity method of accounting. In addition, we operate a Global Business Center (GBC) in the Philippines. Basis of Presentation Our Consolidated Financial Statements include the accounts of Tenet and its wholly owned and majority-owned subsidiaries. We eliminate intercompany accounts and transactions in consolidation, and we include the results of operations of businesses that are newly acquired in purchase transactions from their dates of acquisition. We account for significant …

SignificantAccountingPoliciesTextBlock · excerpt; the full note is in the filing

EQUITY Nonredeemable Noncontrolling Interests The table below presents our nonredeemable noncontrolling interests balances by segment: December 31, 2025 2024 Hospital Operations $ 211 $ 205 Ambulatory Care 1,586 1,444 Total nonredeemable noncontrolling interests $ 1,797 $ 1,649 Our net income available to nonredeemable noncontrolling interests by segment are presented in the table below: Years Ended December 31, 2025 2024 2023 Hospital Operations $ 45 $ 50 $ 30 Ambulatory Care 381 341 304 Total net income available to noncontrolling interests $ 426 $ 391 $ 334 Share Repurchase Programs In October 2022, our board of directors authorized the repurchase of up to $1.000 billion of our common stock through a share repurchase program (the 2022 share repurchase program). This program allowed for share repurchases to be made in open-market or privately negotiated transactions, at managements discretion subject to market conditions and other factors, and in a manner consistent with applicable securities laws and regulations. The program did not require us to acquire any particular amount of common stock and could be suspended for periods or discontinued at any time. In July 2024, our board authorized a new share repurchase program (the 2024 share repurchase program) of up to an additional $1.500 billion of our common stock with no expiration date, under terms substantially similar to the 2022 share repurchase program. We did not make any additional repurchases under the 2022 share rep …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing

SUBSEQUENT EVENT As discussed in Note 15, we provide certain revenue cycle management services through the operations of Conifer to certain CHI facilities under an amended and restated master services agreement (the RCM Agreement). At December 31, 2025, CommonSpirit owned an interest of approximately 23.8% in Conifer. On January 27, 2026, we entered into an agreement with CHI relating to Conifer. Subject to the terms of that agreement and other related contracts, the parties have agreed to, among other things: (1) terminate the RCM Agreement effective as of December 31, 2026; (2) CHIs payment to us of an aggregate amount equal to $1.900 billion in annual installments over the next three years; provided that, of such amount, $540 million was satisfied on January 27, 2026 by offsetting the $540 million due to CHI from Conifer as described in the next clause; and (3) the reduction of our redeemable noncontrolling interest balance, and an increase in our additional paid-in capital balance associated with the redemption by Conifer of CHIs minority equity interest in Conifer, in exchange for a payment by Conifer of $540 million, which redemption is effective as of January 1, 2026. We do not expect to recognize a gain or loss related to the redemption of CHIs minority equity interest in Conifer. This subsequent event did not require adjustment to the Consolidated Financial Statements as of December 31, 2025. …

SubsequentEventsTextBlock · excerpt; the full note is in the filing

ACQUISITIONS During the six months ended June 30, 2026, we used $130 million of cash for acquisition-related activity, of which $128 million related to acquisitions and consolidations completed during that period and $2 million related to measurement-period adjustments for acquisitions completed during 2025. During the six months ended June 30, 2025, we used $147 million of cash for acquisition-related activity, of which $138 million related to acquisitions and consolidations completed during that period and $9 million related to measurement-period adjustments for acquisitions completed during 2024. We are required to allocate the purchase prices of acquired businesses to assets acquired or liabilities assumed and, if applicable, noncontrolling interests based on their fair values. The excess of the purchase prices allocated over those fair values is recorded as goodwill. The purchase price allocations for certain acquisitions completed in 2026 and 2025 are preliminary. We are in the process of assessing working capital balances and lease and other agreements assumed, as well as obtaining and evaluating valuations of the acquired property and equipment, management contracts and other intangible assets, and noncontrolling interests. Therefore, those purchase price allocations, including goodwill, recorded in the accompanying Condensed Consolidated Financial Statements are subject to adjustment once the assessments and valuation work are completed and evaluated. Such adjustment …

BusinessCombinationDisclosureTextBlock · excerpt; the full note is in the filing

CLAIMS AND LAWSUITS We operate in a highly regulated and litigious industry. Healthcare companies are subject to numerous investigations by various governmental agencies. Further, private parties have the right to bring qui tam or whistleblower lawsuits against companies that allegedly submit false claims for payments to, or improperly retain overpayments from, the government and, in some states, commercial payers. We and our subsidiaries have received inquiries in recent years from government agencies, and we may receive similar inquiries in future periods. We are also subject to class action lawsuits, employment-related claims, private litigation and other legal actions in the ordinary course of business, including potential claims related to, among other things: the care and treatment provided at our hospitals and outpatient facilities; the application of various federal and state labor and privacy laws, rules and regulations; antitrust claims; tax audits; contract disputes (including disagreements with joint venture partners); and other matters. Some of these actions may involve large demands, as well as substantial defense costs. We cannot predict the outcome of current or future legal actions against us or the effect that judgments or settlements in such matters may have on us; however, we believe that the ultimate resolution of our existing ordinary-course claims and lawsuits will not have a material effect on our business or financial condition. New claims or inquirie …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

LONG-TERM DEBT The table below presents our long-term debt included in the accompanying Condensed Consolidated Balance Sheets: June 30, 2026 December 31, 2025 Senior unsecured notes: 6.125% due 2028 $ 1,750 $ 1,750 6.875% due 2031 362 362 6.000% due 2033 750 750 Senior secured first lien notes: 5.125% due 2027 1,500 1,500 4.625% due 2028 600 600 4.250% due 2029 1,400 1,400 4.375% due 2030 1,450 1,450 6.125% due 2030 2,000 2,000 6.750% due 2031 1,350 1,350 5.500% due 2032 1,500 1,500 Finance leases, mortgages and other notes 671 603 Unamortized issue costs and note discounts (85) (94) Total long-term debt 13,248 13,171 Less: Current portion 160 79 Long-term debt, net of current portion $ 13,088 $ 13,092 At June 30, 2026, we had senior unsecured notes and senior secured notes with aggregate principal amounts outstanding of $12.662 billion. These notes have fixed interest rates ranging from 4.250% to 6.875% and require semi-annual interest payments in arrears. Payment of the principal and any accrued but unpaid interest is due upon the maturity date of the respective notes, which dates are staggered from November 2027 through November 2033. We have a senior secured revolving credit facility (the Credit Agreement) that provides for revolving loans in an aggregate principal amount of up to $1.900 billion with a $200 million subfacility for standby letters of credit. Our borrowing availability, which is calculated by reference to a borrowing base that is determined by specified per …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

The table below presents our sources of net operating revenues: Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Hospital Operations: Net patient service revenues from hospitals and related outpatient facilities: Medicare $ 534 $ 530 $ 1,099 $ 1,078 Medicaid 505 379 861 759 Managed care 2,470 2,423 4,864 4,823 Uninsured 9 35 Indemnity and other 159 121 309 238 Total 3,668 3,453 7,142 6,933 Other revenues (1) 572 548 1,146 1,097 Total Hospital Operations 4,240 4,001 8,288 8,030 Ambulatory Care 1,388 1,270 2,708 2,464 Net operating revenues $ 5,628 $ 5,271 $ 10,996 $ 10,494 (1) Primarily revenue from physician practices and revenue cycle management. The table below presents the composition of net operating revenues for our Ambulatory Care segment: Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Net patient service revenues $ 1,318 $ 1,214 $ 2,584 $ 2,357 Revenue from other sources 70 56 124 107 Net operating revenues $ 1,388 $ 1,270 $ 2,708 $ 2,464 …

DisaggregationOfRevenueTableTextBlock · excerpt; the full note is in the filing

EMPLOYEE BENEFIT PLANS The accompanying Condensed Consolidated Statements of Operations for the six months ended June 30, 2026 and 2025 include $69 million and $41 million, respectively, of pre-tax compensation costs related to our stock-based compensation arrangements. Stock Options As of June 30, 2026, there were 144,681 stock options outstanding under our stock-based compensation plans, which had a weighted average exercise price per share of $24.16. There was no activity related to our stock options during either of the six-month periods ended June 30, 2026 or 2025. All outstanding options were vested and exercisable at June 30, 2026, and the options collectively had an aggregate intrinsic value of $24 million. Restricted Stock Units The following table presents information about our restricted stock unit (RSU) activity during the six months ended June 30, 2026: Number of RSUs Weighted Average Grant Date Fair Value Per RSU Unvested at December 31, 2025 1,440,379 $ 111.02 Granted 253,115 $ 248.96 Performance-based adjustment 350,583 $ 110.83 Vested (875,005) $ 105.42 Forfeited (26,893) $ 171.10 Unvested at June 30, 2026 1,142,179 $ 172.34 During the six months ended June 30, 2026, we granted 124,019 RSUs that vest over periods ranging from one to three years. In addition, we granted 129,096 performance-based RSUs, the vesting of which is contingent on our achievement of specified performance goals for the years 2026 to 2028. Provided the goals are achieved, the performance …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

FAIR VALUE MEASUREMENTS We are required to provide additional disclosures about fair value measurements as part of our financial statements for each major category of assets and liabilities measured at fair value. In general, fair values determined by Level 1 inputs utilize quoted prices (unadjusted) in active markets for identical assets or liabilities, which generally are not applicable to non-financial assets and liabilities. Fair values determined by Level 2 inputs utilize data points that are observable, such as definitive sales agreements, appraisals or established market values of comparable assets. Fair values determined by Level 3 inputs utilize unobservable data points for the asset or liability and include situations where there is little, if any, market activity for the asset or liability, such as internal estimates of future cash flows. Non-Recurring Fair Value Measurements Our non-financial assets and liabilities not permitted or required to be measured at fair value on a recurring basis typically relate to long-lived assets held and used, long-lived assets held for sale and goodwill. The following table presents information about assets measured at fair value on a non-recurring basis and indicates the fair value hierarchy of the valuation techniques we utilized to determine such fair values at December 31, 2025. There were no significant non-recurring fair value measurements at June 30, 2026. Total Quoted Prices in Active Markets for Identical Assets (Level 1) …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

INCOME TAXES A reconciliation between the amount of reported income tax expense and the amount computed by multiplying income before income taxes by the statutory federal tax rate is presented below: Six Months Ended June 30, 2026 2025 Amount Percent Amount Percent Tax expense at statutory federal rate $ 519 21.0 % $ 296 21.0 % Domestic federal tax: Nontaxable or nondeductible items: Tax benefit attributable to noncontrolling interests (89) (3.6) % (94) (6.7) % Other 20 0.8 % 17 1.2 % Stock-based compensation tax benefit (15) (0.6) % (5) (0.3) % State and local income taxes, net of federal income tax effect 91 3.7 % 56 4.0 % Changes in valuation allowances (7) (0.3) % (7) (0.5) % Changes in prior year unrecognized tax benefits 2 0.1 % % Income tax expense $ 521 21.1 % $ 263 18.7 % Income before income taxes for the six months ended June 30, 2026 and 2025 was $2.472 billion and $1.407 billion, respectively. Our provision for income taxes during interim reporting periods is calculated by applying an estimate of the annual effective tax rate to ordinary income or loss (pre-tax income or loss excluding unusual or infrequently occurring discrete items) for the reporting period. In calculating ordinary income, non-taxable income available to noncontrolling interests was deducted from pre-tax income. During the six months ended June 30, 2026, we recorded an income tax benefit of $6 million to decrease the valuation allowance, including an increase of $2 million related to interest e …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

NET OPERATING REVENUES Net operating revenues for our Hospital Operations and Ambulatory Care segments primarily consist of net patient service revenues, principally for patients covered by Medicare, Medicaid, and managed care and other health plans, as well as certain uninsured patients under our Compact with Uninsured Patients and other uninsured discount and charity programs. Net operating revenues for our Hospital Operations segment also include revenues from providing revenue cycle management and value-based care services to hospitals and other healthcare facilities, health systems, physician practices, employers and other clients, as well as income recognized under grant programs. The table below presents our sources of net operating revenues: Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Hospital Operations: Net patient service revenues from hospitals and related outpatient facilities: Medicare $ 534 $ 530 $ 1,099 $ 1,078 Medicaid 505 379 861 759 Managed care 2,470 2,423 4,864 4,823 Uninsured 9 35 Indemnity and other 159 121 309 238 Total 3,668 3,453 7,142 6,933 Other revenues (1) 572 548 1,146 1,097 Total Hospital Operations 4,240 4,001 8,288 8,030 Ambulatory Care 1,388 1,270 2,708 2,464 Net operating revenues $ 5,628 $ 5,271 $ 10,996 $ 10,494 (1) Primarily revenue from physician practices and revenue cycle management. During the three and six months ended June 30, 2026, we recognized $413 million and $826 million, respectively, of revenue …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

SEGMENT INFORMATION The following tables present amounts for each of our reportable segments and the reconciling items necessary to agree to amounts reported in the accompanying Condensed Consolidated Balance Sheets and Condensed Consolidated Statements of Operations, as applicable. June 30, 2026 December 31, 2025 Assets: Hospital Operations $ 17,128 $ 16,586 Ambulatory Care 13,548 13,091 Total $ 30,676 $ 29,677 Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Capital expenditures: Hospital Operations $ 130 $ 166 $ 278 $ 314 Ambulatory Care 38 27 70 52 Total $ 168 $ 193 $ 348 $ 366 Depreciation and amortization: Hospital Operations $ 174 $ 173 $ 362 $ 340 Ambulatory Care 41 35 82 74 Total $ 215 $ 208 $ 444 $ 414 Three Months Ended June 30, 2026 Six Months Ended June 30, 2026 Hospital Operations Ambulatory Care Total Hospital Operations Ambulatory Care Total Net operating revenues $ 4,240 $ 1,388 $ 5,628 $ 8,288 $ 2,708 $ 10,996 Equity in earnings of unconsolidated affiliates 1 64 65 1 115 116 Less: Salaries, wages and benefits 1,893 338 2,231 3,737 668 4,405 Supplies 615 369 984 1,219 726 1,945 Other operating expenses, net 971 203 1,174 1,893 403 2,296 Adjusted EBITDA $ 762 $ 542 1,304 $ 1,440 $ 1,026 2,466 Reconciliation of Adjusted EBITDA: Revenue from contract termination 413 826 Depreciation and amortization (215) (444) Impairment and restructuring charges, and acquisition-related costs (31) (55) Litigation and investigation costs (3) (30) Intere …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

EQUITY The following tables present the changes in consolidated equity (dollars in millions, share amounts in thousands): Common Stock Additional Paid-In Capital Accumulated Other Comprehensive Loss Retained Earnings Treasury Stock Noncontrolling Interests Total Equity Shares Outstanding Issued Par Amount Balances at December 31, 2025 86,952 $ 8 $ 4,914 $ (181) $ 4,415 $ (4,936) $ 1,797 $ 6,017 Net income 702 93 795 Distributions paid to noncontrolling interests (75) (75) Other comprehensive income 2 2 Purchases of businesses and noncontrolling interests, net 270 84 354 Repurchases of common stock (1,346) (320) (320) Stock-based compensation expense, tax benefit and issuance of common stock 518 (60) (60) Balances at March 31, 2026 86,124 8 5,124 (179) 5,117 (5,256) 1,899 6,713 Net income 826 106 932 Distributions paid to noncontrolling interests (78) (78) Other comprehensive income 2 2 Purchases (sales) of businesses and noncontrolling interests, net 22 (28) (6) Repurchases of common stock (5,675) (1,052) (1,052) Stock-based compensation expense, tax benefit and issuance of common stock 58 46 46 Balances at June 30, 2026 80,507 $ 8 $ 5,192 $ (177) $ 5,943 $ (6,308) $ 1,899 $ 6,557 Common Stock Additional Paid-In Capital Accumulated Other Comprehensive Loss Retained Earnings Treasury Stock Noncontrolling Interests Total Equity Shares Outstanding Issued Par Amount Balances at December 31, 2024 95,109 $ 8 $ 4,873 $ (180) $ 3,008 $ (3,538) $ 1,649 $ 5,820 Net income 406 95 501 Di …

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