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

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

Wall Street Analysts Forecast Growth

Several equities analysts have recently weighed in on EHC shares. Barclays increased their price objective on shares of Encompass Health from $141.00 to $150.00 and gave the stock an “overweight” rating in a research note on Thursday, October 30th. Wall Street Zen upgraded shares of Encompass Health from a “hold” rating to a “buy” rating in a research report on Sunday, January 18th. Zacks Research cut shares of Encompass Health from a “strong-buy” rating to a “hold” rating in a research note on Wednesday, November 19th. Raymond James Financial upgraded Encompass Health to a “strong-buy” rating in a research note on Friday, October 31st. Finally, Weiss Ratings reiterated a “buy (b+)” rating on shares of Encompass Health in a research report on Wednesday, October 8th. Two analysts have rated the stock with a Strong Buy rating, eight have assigned a Buy rating and one has issued a Hold rating to the company. According to data from MarketBeat, Encompass Health has an average rating of “Buy” and an average price target of $142.86.

Encompass Health Price Performance

Shares of Encompass Health stock traded up $3.88 during trading hours on Thursday, hitting $99.54. The company’s stock had a trading volume of 2,866,472 shares, compared to its average volume of 1,239,305. The company has a market cap of $10.02 billion, a PE ratio of 18.82, a PEG ratio of 1.54 and a beta of 0.73. The company has a debt-to-equity ratio of 0.76, a quick ratio of 1.14 and a current ratio of 1.14. The business has a 50 day moving average price of $104.81 and a two-hundred day moving average price of $114.55. Encompass Health has a 12-month low of $92.53 and a 12-month high of $127.99.

Encompass Health (NYSE:EHC) last issued its earnings results on Thursday, February 5th. The company reported $1.46 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.29 by $0.17. Encompass Health had a return on equity of 17.84% and a net margin of 9.33%.The company had revenue of $1.54 billion for the quarter, compared to the consensus estimate of $1.54 billion. During the same quarter last year, the company earned $1.17 EPS. The firm’s quarterly revenue was up 9.9% on a year-over-year basis. Encompass Health has set its FY 2026 guidance at 5.810-6.100 EPS. Analysts expect that Encompass Health will post 4.8 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in EHC. Millennium Management LLC raised its position in Encompass Health by 140.0% in the 3rd quarter. Millennium Management LLC now owns 1,223,665 shares of the company’s stock worth $155,430,000 after purchasing an additional 713,738 shares during the period. 8 Knots Management LLC bought a new position in shares of Encompass Health during the second quarter valued at approximately $78,644,000. Raymond James Financial Inc. raised its holdings in shares of Encompass Health by 34.8% in the third quarter. Raymond James Financial Inc. now owns 1,541,336 shares of the company’s stock worth $195,780,000 after buying an additional 397,694 shares during the period. Freestone Grove Partners LP lifted its stake in shares of Encompass Health by 14,750.4% during the 3rd quarter. Freestone Grove Partners LP now owns 362,202 shares of the company’s stock worth $46,007,000 after acquiring an additional 359,763 shares during the last quarter. Finally, AQR Capital Management LLC boosted its holdings in Encompass Health by 47.5% during the 3rd quarter. AQR Capital Management LLC now owns 645,280 shares of the company’s stock valued at $81,699,000 after acquiring an additional 207,666 shares during the period. Hedge funds and other 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.