Medtronic vs. Tenet Healthcare: Which Healthcare Stock Offers Better Long-Term Growth?

Medtronic (MDT) and Tenet Healthcare (THC) represent contrasting approaches within the healthcare sector. Medtronic's strategy revolves around developing groundbreaking medical devices that could drive a lasting turnaround across its extensive product line. Conversely, Tenet focuses on enhancing hospital profitability and concentrating on higher-acuity procedures within its ambulatory division.

Recent financial results highlight Medtronic's progress. In fiscal Q4 and full-year 2026, the company reported its highest annual revenue growth in a decade. This indicates that the recent investments in faster-growing technologies are starting to yield tangible results. The company boasts a diverse range of growth opportunities, including Affera, Symplicity, Hugo, Altaviva, and Stealth AXiS, each serving as potential catalysts for recovery.

Notably, Cardiac Ablation Solutions have shown impressive growth, with a 78% increase globally and 124% increase in the U.S., thanks to the introduction of newer products that have bolstered Medtronic's standing in the expanding cardiac-ablation market.

Tenet Healthcare, on the other hand, has demonstrated significant earnings growth. Adjusted diluted EPS increased by 52.2% year-over-year to $6.12, while net operating revenue rose by 6.8% to $5.63 billion. The ambulatory segment reported a 9.3% increase in revenue to approximately $1.39 billion, while the hospital segment saw a 6% growth to around $4.20 billion.

Importantly, Tenet's improvement extended beyond its ambulatory platform, as hospital adjusted EBITDA margin expanded from 15.6% to 18%, despite facing a less favorable payer mix. This significant margin expansion underscores Tenet's ability to generate strong operating leverage rather than merely expanding its business size.

While Medtronic's turnaround remains in its early stages, its diversified product portfolio and expanding pipeline offer multiple long-term growth avenues. In contrast, Tenet's current earnings momentum, driven by broad-based revenue gains, hospital margin expansion, and operating leverage, makes it a more attractive option for investors focused on immediate financial performance.

However, Tenet faces risks such as weaker surgical volumes and potential payer-mix deterioration, which could impact revenue quality and profitability.

In summary, Tenet Healthcare appears to be the better choice for those prioritizing current earnings growth and operating leverage, whereas Medtronic may appeal to investors seeking a diversified long-term growth opportunity if Medtronic's recent product-led acceleration proves sustainable and broad-based.