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

Encompass Health (NYSE:EHC) issued an update on its FY 2026 earnings guidance on Wednesday. The company provided EPS guidance of 6.020-6.250 for the period, compared to the consensus estimate of 6.000. 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 Performance

Shares of EHC stock opened at $124.56 on Friday. Encompass Health has a one year low of $92.77 and a one year high of $127.99. The company has a debt-to-equity ratio of 0.76, a current ratio of 1.17 and a quick ratio of 1.17. The firm has a 50-day moving average of $106.52 and a 200-day moving average of $104.44. The company has a market cap of $12.36 billion, a P/E ratio of 20.29, a P/E/G ratio of 2.42 and a beta of 0.72.

Encompass Health (NYSE:EHC) last posted its quarterly earnings data on Wednesday, August 5th. The company reported $1.55 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.48 by $0.07. The business had revenue of $1.60 billion during the quarter, compared to the consensus estimate of $1.57 billion. Encompass Health had a net margin of 10.01% and a return on equity of 18.34%. The firm’s quarterly revenue was up 9.6% compared to the same quarter last year. During the same quarter last year, the company posted $1.40 earnings per share. Encompass Health has set its FY 2026 guidance at 6.020-6.250 EPS. Equities research analysts forecast that Encompass Health will post 5.96 EPS for the current fiscal year.

Encompass Health Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, October 15th. Stockholders of record on Thursday, October 1st will be given a dividend of $0.21 per share. This is an increase from Encompass Health’s previous quarterly dividend of $0.19. The ex-dividend date is Thursday, October 1st. This represents a $0.84 annualized dividend and a dividend yield of 0.7%. Encompass Health’s dividend payout ratio is 12.69%.

Analyst Ratings Changes

A number of analysts have recently weighed in on EHC shares. TD Cowen started coverage on Encompass Health in a research note on Thursday, May 28th. They set a “buy” rating and a $125.00 price objective for the company. Wall Street Zen upgraded shares of Encompass Health from a “hold” rating to a “buy” rating in a research note on Saturday, May 2nd. Barclays lifted their price objective on Encompass Health from $140.00 to $144.00 and gave the stock an “overweight” rating in a report on Thursday. Weiss Ratings cut Encompass Health from a “buy (b-)” rating to a “hold (c+)” rating in a report on Friday, June 26th. Finally, Leerink Partners set a $152.00 price objective on shares of Encompass Health in a report on Friday, May 22nd. One research analyst has rated the stock with a Strong Buy rating, six have given a Buy rating and two have given a Hold rating to the company’s stock. According to MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average price target of $144.43.

Insider Transactions at Encompass Health

In other news, EVP Patrick William Tuer sold 682 shares of Encompass Health stock in a transaction that occurred on Monday, May 11th. The shares were sold at an average price of $104.56, for a total transaction of $71,309.92. Following the sale, the executive vice president owned 24,755 shares in the company, valued at $2,588,382.80. This trade represents a 2.68% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. 1.80% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Encompass Health

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Royal Bank of Canada grew its position in Encompass Health by 21.5% in the first quarter. Royal Bank of Canada now owns 88,470 shares of the company’s stock worth $8,960,000 after acquiring an additional 15,677 shares in the last quarter. Millennium Management LLC raised its holdings in Encompass Health by 38.4% during the 1st quarter. Millennium Management LLC now owns 92,197 shares of the company’s stock valued at $9,338,000 after buying an additional 25,574 shares during the period. Caxton Associates LLP bought a new stake in Encompass Health in the first quarter worth $259,000. Walleye Capital LLC lifted its position in Encompass Health by 667.6% in the second quarter. Walleye Capital LLC now owns 6,522 shares of the company’s stock worth $800,000 after buying an additional 7,671 shares during the last quarter. Finally, Gamco Investors INC. ET AL purchased a new position in Encompass Health during the second quarter worth $588,000. 97.25% of the stock is owned by institutional investors.

About Encompass Health

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.