Encompass Health (NYSE:EHC) Announces Quarterly Earnings Results, Beats Estimates By $0.17 EPS

Encompass Health (NYSE:EHC) released its earnings results on Thursday. The company reported $1.46 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.29 by $0.17, FiscalAI reports. Encompass Health had a return on equity of 18.50% and a net margin of 9.54%.The firm 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. Encompass Health’s revenue was up 9.9% compared to the same quarter last year. Encompass Health updated its FY 2026 guidance to 5.810-6.100 EPS.

Encompass Health Trading Up 6.0%

Encompass Health stock opened at $105.55 on Friday. Encompass Health has a 52 week low of $92.53 and a 52 week high of $127.99. The company has a debt-to-equity ratio of 0.76, a quick ratio of 1.14 and a current ratio of 1.14. The firm has a market capitalization of $10.62 billion, a price-to-earnings ratio of 19.05, a P/E/G ratio of 1.60 and a beta of 0.73. The company has a 50 day moving average price of $104.26 and a 200 day moving average price of $114.41.

Wall Street Analysts Forecast Growth

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

Institutional Trading of Encompass Health

Several hedge funds and other institutional investors have recently modified their holdings of EHC. Caitong International Asset Management Co. Ltd grew its holdings in shares of Encompass Health by 36,200.0% during the third quarter. Caitong International Asset Management Co. Ltd now owns 363 shares of the company’s stock valued at $46,000 after buying an additional 362 shares in the last quarter. Danske Bank A S acquired a new stake in Encompass Health during the 3rd quarter worth about $76,000. Employees Retirement System of Texas grew its stake in Encompass Health by 105.6% during the 3rd quarter. Employees Retirement System of Texas now owns 956 shares of the company’s stock valued at $121,000 after acquiring an additional 491 shares in the last quarter. Headlands Technologies LLC increased its holdings in shares of Encompass Health by 5,474.1% in the 2nd quarter. Headlands Technologies LLC now owns 1,505 shares of the company’s stock valued at $185,000 after purchasing an additional 1,478 shares during the period. Finally, Advisory Services Network LLC acquired a new stake in shares of Encompass Health during the third quarter worth approximately $209,000. Institutional investors and hedge funds own 97.25% of the company’s stock.

Encompass Health News Roundup

Here are the key news stories impacting Encompass Health this week:

• Positive Sentiment: Q4 EPS beat — Encompass reported adjusted EPS of $1.46 vs. consensus $1.29, a clear beat that was the primary catalyst for the rally. Earnings Beat Article
• Positive Sentiment: Revenue growth and profitability — Revenue was $1.54B, up ~9.9% year-over-year; net margin (~9.33%) and ROE (~17.8%) show healthy operating leverage in the quarter. Those metrics reinforce the quality of the beat. PR News Release
• Positive Sentiment: FY2026 guidance issued — Management guided FY2026 EPS to $5.810–$6.100 and revenue to $6.4–$6.5B, broadly in line with Street expectations and giving investors a clear framework for 2026. That helped limit post-earnings uncertainty. Guidance Article
• Neutral Sentiment: Revenue met, not exceeded, estimates — while revenue grew y/y, the $1.54B figure was essentially in line with consensus, so the surprise was driven mainly by margin/earnings rather than top-line upside. Metrics vs Estimates
• Neutral Sentiment: Investor materials and call available — management provided a slide deck and held the conference call (transcript available) for additional color on volumes, payor mix and margin outlook; useful for modeling but no new headline surprises. Earnings Call Transcript
• Negative Sentiment: Guidance conservatism at the low end — the EPS guidance lower bound (5.810) is marginally below the consensus cited in some coverage (5.820); some traders may view the range as conservative, so watch guidance execution and quarterly cadence. Guidance Detail

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.