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

Encompass Health (NYSE:EHC) issued an update on its FY 2026 earnings guidance on Friday. The company provided EPS guidance of 6.230-6.370 for the period, compared to the consensus EPS estimate of 6.110. The company issued revenue guidance of $6.5 billion, compared to the consensus revenue estimate of $6.5 billion.

Wall Street Analysts Forecast Growth

A number of equities analysts have recently commented on EHC shares. KeyCorp lifted their target price on Encompass Health from $147.00 to $150.00 and gave the stock an “overweight” rating in a report on Friday. Raymond James Financial restated a “strong-buy” rating and set a $155.00 price target on shares of Encompass Health in a report on Friday. Weiss Ratings upgraded Encompass Health from a “buy (b-)” rating to a “buy (b)” rating in a research report on Thursday, October 8th. Wall Street Zen raised shares of Encompass Health from a “hold” rating to a “buy” rating in a research note on Saturday. Finally, Truist Financial reiterated a “buy” rating and set a $156.00 price objective (up from $150.00) on shares of Encompass Health in a research report on Friday. One research analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating and one has issued a Hold rating to the company’s stock. Based on data from MarketBeat.com, the stock has a consensus rating of “Buy” and a consensus price target of $154.14.

Encompass Health Stock Performance

Encompass Health stock opened at $136.09 on Friday. The company has a debt-to-equity ratio of 0.73, a current ratio of 1.09 and a quick ratio of 1.19. Encompass Health has a 1-year low of $92.77 and a 1-year high of $137.27. The firm has a market capitalization of $13.43 billion, a P/E ratio of 21.26, a price-to-earnings-growth ratio of 2.66 and a beta of 0.74. The company’s 50-day moving average is $122.89 and its 200 day moving average is $109.98.

Encompass Health (NYSE:EHC) last announced its quarterly earnings data on Wednesday, October 28th. The company reported $1.52 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.36 by $0.16. Encompass Health had a net margin of 10.17% and a return on equity of 18.35%. The business had revenue of $1.61 billion during the quarter, compared to the consensus estimate of $1.60 billion. During the same quarter last year, the firm earned $1.23 earnings per share. The firm’s quarterly revenue was up 8.9% compared to the same quarter last year. Research analysts forecast that Encompass Health will post 6.28 EPS for the current year.

Encompass Health Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, January 15th. Investors of record on Monday, January 4th will be paid a dividend of $0.21 per share. This represents a $0.84 dividend on an annualized basis and a dividend yield of 0.6%. The ex-dividend date of this dividend is Monday, January 4th. Encompass Health’s dividend payout ratio (DPR) is currently 13.12%.

Insiders Place Their Bets

In other Encompass Health news, EVP John Darby sold 8,906 shares of the stock in a transaction on Monday, August 10th. The stock was sold at an average price of $125.95, for a total value of $1,121,710.70. Following the sale, the executive vice president owned 75,041 shares in the company, valued at $9,451,413.95. This trade represents a 10.61% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CEO Mark J. Tarr sold 173,148 shares of Encompass Health stock in a transaction on Monday, August 10th. The stock was sold at an average price of $125.47, for a total value of $21,724,879.56. Following the sale, the chief executive officer owned 267,814 shares of the company’s stock, valued at approximately $33,602,622.58. This trade represents a 39.27% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last 90 days, insiders have sold 186,912 shares of company stock valued at $23,434,845. 1.80% of the stock is owned by company insiders.

Key Encompass Health News

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

• Positive Sentiment: Q3 results exceeded expectations: Encompass Health reported adjusted earnings of $1.52 per share, above the $1.36 consensus estimate and up from $1.23 a year earlier. Revenue rose 8.9% year over year to $1.61 billion, while adjusted EBITDA increased 15.5% to $346.6 million. Encompass Health Q3 Earnings and Revenues Top Estimates
• Positive Sentiment: Full-year guidance was raised: Management now expects 2026 adjusted EPS of $6.23 to $6.37, above the prior range of $6.02 to $6.25 and higher than the $6.11 analyst consensus. Revenue guidance remains approximately $6.5 billion. Encompass Health Climbs After Q3 Results Top Expectations and Guidance Is Raised
• Positive Sentiment: Patient-care metrics remained healthy: Quarterly discharges increased 5.7%, same-store discharges rose 3.0%, and net patient revenue per discharge improved 4.0%, supporting the view that demand for inpatient rehabilitation services remains strong. Encompass Health Q3 2026 Earnings Call Transcript
• Positive Sentiment: TD Cowen became more bullish: The firm raised its price target from $140 to $150 and assigned a “Buy” rating, implying further upside based on the referenced share price. TD Cowen Raises Encompass Health Price Target
• Neutral Sentiment: Valuation commentary was favorable: Zacks identified EHC as a strong value stock, although the report appears to be based primarily on its quantitative Style Scores rather than a new fundamental development. Why Encompass Health Is a Strong Value Stock
• Negative Sentiment: Insider selling is a watchpoint: Recent data shows company insiders made no open-market purchases and sold shares during the past six months. These transactions may reflect diversification or planned selling, but they provide a modest counterpoint to the otherwise positive earnings news. Encompass Health Insider Trading and Earnings Analysis

About Encompass Health

Encompass Health Corporation (NYSE:EHC) is a healthcare services company that operates inpatient rehabilitation hospitals in the United States and Puerto Rico. Its hospitals provide intensive rehabilitation to patients recovering from conditions such as stroke, brain and spinal cord injuries, neurological disorders, amputations, hip fractures and other serious illnesses or injuries.

The company’s services typically include nursing care, physical therapy, occupational therapy, speech and language therapy, respiratory therapy and medical management.