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

Encompass Health (NYSE:EHC) updated its FY 2026 earnings guidance on Thursday. The company provided EPS guidance of 5.810-6.100 for the period, compared to the consensus EPS 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 Price Performance

Shares of NYSE:EHC opened at $105.55 on Friday. The company’s fifty day moving average is $104.26 and its 200 day moving average is $114.41. Encompass Health has a 52 week low of $92.53 and a 52 week high of $127.99. The stock has a market cap of $10.62 billion, a PE ratio of 19.05, a PEG ratio of 1.60 and a beta of 0.73. The company has a quick ratio of 1.14, a current ratio of 1.14 and a debt-to-equity ratio of 0.76.

Encompass Health (NYSE:EHC) last released its earnings results on Thursday, February 5th. The company reported $1.46 earnings per share for the quarter, beating analysts’ consensus estimates of $1.29 by $0.17. Encompass Health had a return on equity of 18.50% and a net margin of 9.54%.The company had revenue of $1.54 billion during the quarter, compared to analyst estimates of $1.54 billion. During the same quarter in the previous year, the company posted $1.17 EPS. Encompass Health’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. Research analysts anticipate that Encompass Health will post 4.8 earnings per share for the current year.

Analysts Set New Price Targets

A number of equities research analysts recently commented on the stock. Raymond James Financial upgraded shares of Encompass Health to a “strong-buy” rating in a report on Friday, October 31st. Barclays increased their target price on shares of Encompass Health from $150.00 to $153.00 and gave the stock an “overweight” rating in a report on Friday. Zacks Research downgraded Encompass Health from a “strong-buy” rating to a “hold” rating in a report on Wednesday, November 19th. Finally, Wall Street Zen upgraded Encompass Health from a “hold” rating to a “buy” rating in a report on Sunday, January 18th. Two 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 data from MarketBeat, the company presently has an average rating of “Buy” and a consensus price target of $143.29.

Trending Headlines about Encompass Health

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

Hedge Funds Weigh In On Encompass Health

A number of institutional investors have recently added to or reduced their stakes in EHC. Caitong International Asset Management Co. Ltd boosted its holdings in shares of Encompass Health by 36,200.0% during the 3rd 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 purchased a new position in Encompass Health during the 3rd quarter valued at about $76,000. Employees Retirement System of Texas boosted its stake in Encompass Health by 105.6% during the third quarter. Employees Retirement System of Texas now owns 956 shares of the company’s stock worth $121,000 after acquiring an additional 491 shares in the last quarter. Headlands Technologies LLC grew its holdings in Encompass Health by 5,474.1% in the second quarter. Headlands Technologies LLC now owns 1,505 shares of the company’s stock worth $185,000 after purchasing an additional 1,478 shares during the period. Finally, Advisory Services Network LLC bought a new position in shares of Encompass Health during the third quarter valued at approximately $209,000. Institutional investors 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.