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

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

Shares of Encompass Health stock traded up $0.05 during trading on Wednesday, hitting $110.55. The stock had a trading volume of 1,306,323 shares, compared to its average volume of 1,076,140. The firm has a market cap of $10.97 billion, a price-to-earnings ratio of 18.46, a P/E/G ratio of 2.45 and a beta of 0.72. Encompass Health has a 12 month low of $92.77 and a 12 month high of $127.99. The business’s 50-day moving average is $106.01 and its 200 day moving average is $104.22. The company has a current ratio of 1.17, a quick ratio of 1.17 and a debt-to-equity ratio of 0.76.

Encompass Health (NYSE:EHC) last posted its earnings results on Wednesday, August 5th. The company reported $1.55 EPS for the quarter, topping the consensus estimate of $1.48 by $0.07. Encompass Health had a return on equity of 18.28% and a net margin of 10.04%.The business had revenue of $1.60 billion during the quarter, compared to analysts’ expectations of $1.57 billion. During the same period in the previous year, the business earned $1.40 earnings per share. The firm’s revenue was up 9.6% on a year-over-year basis. Encompass Health has set its FY 2026 guidance at 6.020-6.250 EPS. As a group, sell-side analysts anticipate that Encompass Health will post 5.96 earnings per share for the current year.

Encompass Health Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, October 15th. Investors of record on Thursday, October 1st will be paid a $0.21 dividend. This is an increase from Encompass Health’s previous quarterly dividend of $0.19. This represents a $0.84 dividend on an annualized basis and a yield of 0.8%. The ex-dividend date of this dividend is Thursday, October 1st. Encompass Health’s payout ratio is 12.69%.

Wall Street Analysts Forecast Growth

Several equities research analysts have issued reports on EHC shares. Leerink Partners set a $152.00 target price on shares of Encompass Health in a research report on Friday, May 22nd. Barclays cut their target price on shares of Encompass Health from $153.00 to $140.00 and set an “overweight” rating for the company in a research report on Tuesday, May 5th. Weiss Ratings downgraded Encompass Health from a “buy (b-)” rating to a “hold (c+)” rating in a research report on Friday, June 26th. TD Cowen began coverage on Encompass Health in a report on Thursday, May 28th. They issued a “buy” rating and a $125.00 price objective for the company. Finally, Wall Street Zen raised Encompass Health from a “hold” rating to a “buy” rating in a report on Saturday, May 2nd. One equities research analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating and two have issued a Hold rating to the company’s stock. Based on data from MarketBeat, Encompass Health currently has an average rating of “Moderate Buy” and a consensus target price of $143.86.

Insiders Place Their Bets

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

Institutional Investors Weigh In On Encompass Health

Several institutional investors have recently bought and sold shares of the stock. Caitong International Asset Management Co. Ltd lifted its position in Encompass Health by 36,200.0% in the third quarter. Caitong International Asset Management Co. Ltd now owns 363 shares of the company’s stock valued at $46,000 after purchasing an additional 362 shares during the last quarter. Aster Capital Management DIFC Ltd bought a new position in shares of Encompass Health in the fourth quarter worth approximately $55,000. Danske Bank A S purchased a new position in shares of Encompass Health in the third quarter worth $76,000. Atlas Capital Advisors Inc. purchased a new position in shares of Encompass Health in the fourth quarter worth $82,000. Finally, Employees Retirement System of Texas raised its holdings 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 buying an additional 491 shares during the last quarter. 97.25% of the stock is currently owned by hedge funds and other institutional investors.

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.