Encompass Health (NYSE:EHC) Releases FY 2026 Earnings Guidance

Encompass Health (NYSE:EHC) issued an update on its FY 2026 earnings guidance on Thursday morning. The company provided earnings per share (EPS) guidance of 5.810-6.100 for the period, compared to the consensus estimate of 5.820. The company issued revenue guidance of $6.4 billion-$6.5 billion, compared to the consensus revenue estimate of $6.4 billion.

Encompass Health Stock Up 11.1%

Shares of NYSE EHC traded up $11.04 during trading hours on Friday, hitting $110.60. 963,191 shares of the stock were exchanged, compared to its average volume of 1,284,787. Encompass Health has a 12 month low of $92.53 and a 12 month high of $127.99. The firm has a fifty day moving average price of $104.47 and a 200-day moving average price of $114.44. The company has a quick ratio of 1.14, a current ratio of 1.14 and a debt-to-equity ratio of 0.76. The company has a market cap of $11.13 billion, a PE ratio of 20.91, a PEG ratio of 1.54 and a beta of 0.73.

Encompass Health (NYSE:EHC) last released its quarterly earnings results on Thursday, February 5th. The company reported $1.46 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.29 by $0.17. Encompass Health had a net margin of 9.33% and a return on equity of 17.84%. The business had revenue of $1.54 billion for the quarter, compared to analyst estimates of $1.54 billion. During the same period in the previous year, the company earned $1.17 earnings per share. The business’s revenue for the quarter was up 9.9% on a year-over-year basis. Encompass Health has set its FY 2026 guidance at 5.810-6.100 EPS. On average, sell-side analysts expect that Encompass Health will post 4.8 EPS for the current year.

Analyst Ratings Changes

Several equities research analysts have weighed in on the company. Wall Street Zen raised Encompass Health from a “hold” rating to a “buy” rating in a research report on Sunday, January 18th. Barclays lifted their price target on shares of Encompass Health from $150.00 to $153.00 and gave the company an “overweight” rating in a research note on Friday. Zacks Research cut Encompass Health from a “strong-buy” rating to a “hold” rating in a report on Wednesday, November 19th. Finally, Raymond James Financial raised Encompass Health to a “strong-buy” rating in a report on Friday, October 31st. Two analysts have rated the stock with a Strong Buy rating, eight have given a Buy rating and one has assigned a Hold rating to the stock. According to MarketBeat.com, the stock currently has an average rating of “Buy” and an average target price of $143.29.

Institutional Investors Weigh In On Encompass Health

Several hedge funds and other institutional investors have recently made changes to their positions in the stock. Certuity LLC grew its holdings in shares of Encompass Health by 22.4% in the third quarter. Certuity LLC now owns 2,303 shares of the company’s stock valued at $292,000 after purchasing an additional 422 shares during the period. Cresset Asset Management LLC purchased a new position in Encompass Health during the third quarter worth about $383,000. Evergreen Capital Management LLC acquired a new position in Encompass Health in the 2nd quarter valued at about $239,000. Vident Advisory LLC purchased a new stake in shares of Encompass Health in the 2nd quarter valued at approximately $336,000. Finally, EP Wealth Advisors LLC increased its holdings in shares of Encompass Health by 2.4% during the 2nd quarter. EP Wealth Advisors LLC now owns 3,694 shares of the company’s stock worth $453,000 after buying an additional 88 shares during the last quarter. Institutional investors and hedge funds own 97.25% of the company’s stock.

Encompass Health Company Profile

Encompass Health Corporation is a leading provider of post‐acute healthcare services in the United States, operating a comprehensive network of inpatient rehabilitation hospitals and home health and hospice agencies. Its inpatient rehabilitation hospitals offer intensive therapy programs for patients recovering from conditions such as stroke, brain injury, spinal cord injury, cardiac and pulmonary disorders, and orthopedic procedures. Through its home health segment, Encompass Health delivers skilled nursing, physical therapy, occupational therapy and speech therapy to patients in the comfort of their homes, while its hospice services provide end‐of‐life care focused on symptom management and emotional support for patients and families.

Founded in 1984 as HealthSouth Corporation and rebranded as Encompass Health in 2018, the company has grown organically and through acquisitions to serve patients across more than 30 states.