Just checked out Tenet Healthcare's Q4 numbers and they actually came in pretty solid. EPS hit $4.70, beating estimates by over 15%, and revenue jumped to $5.53 billion with year-over-year growth of 8.9%. The thing that caught my attention was how much the payer mix improved - that really helped drive the top line beat.

Looking at the breakdown, their Hospital Operations segment saw revenues of $4.09 billion, up 7.3% YoY. What's interesting is they're attributing a good chunk of this to a favorable payer mix along with higher acuity levels. The Ambulatory Care side was even stronger, posting 13.8% revenue growth to $1.43 billion, though margins there compressed a bit.

Adjusted EBITDA came in at $1.18 billion, up 12.9%, and the margin expanded to 21.4%. They're managing costs reasonably well despite wage pressures - salaries rose 6.1% but they're still getting efficiency gains from the improved payer mix and acuity. Cash generation was solid too, with free cash flow hitting $2.5 billion in 2025.

Here's where it gets interesting though - their 2026 guidance shows some caution. They're expecting revenue between $21.5-$22.3 billion, but adjusted EBITDA margin is projected to decline slightly to the 20.9-21.5% range. So while the top line keeps growing and the payer mix story continues, margin expansion might be tougher. They're guiding EPS between $16.19-$18.47 next year, which is actually down from the $16.78 they just posted. Worth keeping an eye on how the payer mix evolves as we move through 2026.