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

Encompass Health (NYSE:EHC) issued an update on its FY 2026 earnings guidance on Friday morning. The company provided earnings per share guidance of 6.230-6.370 for the period, compared to the consensus 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 issued reports on EHC shares. Weiss Ratings raised Encompass Health from a “buy (b-)” rating to a “buy (b)” rating in a research report on Thursday, October 8th. UBS Group restated a “buy” rating and issued a $165.00 price objective on shares of Encompass Health in a report on Friday. Wall Street Zen raised shares of Encompass Health from a “hold” rating to a “buy” rating in a research note on Saturday. Raymond James Financial reiterated a “strong-buy” rating and set a $155.00 target price on shares of Encompass Health in a report on Friday. Finally, TD Cowen raised their target price on shares of Encompass Health from $140.00 to $150.00 and gave the company a “buy” rating in a research report on Friday. One investment analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating and one has assigned a Hold rating to the company. Based on data from MarketBeat.com, Encompass Health currently has a consensus rating of “Buy” and an average price target of $154.14.

Encompass Health Stock Up 3.5%

Encompass Health stock opened at $136.09 on Friday. The business has a fifty day moving average of $122.89 and a two-hundred day moving average of $109.98. The company has a quick ratio of 1.19, a current ratio of 1.09 and a debt-to-equity ratio of 0.73. The firm has a market cap of $13.43 billion, a P/E ratio of 21.26, a P/E/G ratio of 2.58 and a beta of 0.74. Encompass Health has a twelve month low of $92.77 and a twelve month high of $137.27.

Encompass Health (NYSE:EHC) last announced its earnings results on Wednesday, October 28th. The company reported $1.52 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.36 by $0.16. Encompass Health had a return on equity of 18.35% and a net margin of 10.17%. The business had revenue of $1.61 billion for the quarter, compared to analysts’ expectations of $1.60 billion. During the same quarter last year, the firm earned $1.23 EPS. The business’s revenue for the quarter was up 8.9% on a year-over-year basis. On average, analysts forecast that Encompass Health will post 6.29 earnings per share for the current fiscal year.

Encompass Health Announces Dividend

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

Insider Transactions at Encompass Health

In other Encompass Health news, EVP John Darby sold 4,858 shares of Encompass Health stock in a transaction dated Monday, August 31st. The stock was sold at an average price of $121.09, for a total value of $588,255.22. Following the transaction, the executive vice president owned 75,041 shares in the company, valued at $9,086,714.69. The trade was a 6.08% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, CEO Mark Tarr sold 173,148 shares of Encompass Health stock in a transaction dated Monday, August 10th. The shares were sold at an average price of $125.47, for a total value of $21,724,879.56. Following the completion of the transaction, the chief executive officer owned 267,814 shares in the company, valued at $33,602,622.58. This trade represents a 39.27% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders have sold 186,912 shares of company stock worth $23,434,845. 1.80% of the stock is owned by corporate insiders.

Encompass Health News Summary

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.