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

Encompass Health (NYSE:EHC) updated its FY 2026 earnings guidance on Thursday. The company provided earnings per share (EPS) guidance of 5.890-6.110 for the period, compared to the consensus estimate of 5.920. 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 brokerages have recently commented on EHC. Wall Street Zen raised Encompass Health from a “hold” rating to a “buy” rating in a report on Saturday. Barclays upped their price target on Encompass Health from $150.00 to $153.00 and gave the company an “overweight” rating in a research report on Friday, February 6th. Two investment analysts have rated the stock with a Strong Buy rating, six have assigned a Buy rating and one has issued a Hold rating to the company. According to data from MarketBeat.com, Encompass Health currently has a consensus rating of “Buy” and a consensus price target of $146.33.

Encompass Health Stock Up 7.5%

NYSE:EHC traded up $7.48 during trading hours on Friday, hitting $107.48. 1,737,978 shares of the company’s stock traded hands, compared to its average volume of 996,597. The firm has a market cap of $10.69 billion, a P/E ratio of 19.40, a P/E/G ratio of 1.92 and a beta of 0.72. Encompass Health has a twelve month low of $92.77 and a twelve month high of $127.99. The company has a debt-to-equity ratio of 0.76, a quick ratio of 1.08 and a current ratio of 1.08. The stock’s fifty day moving average price is $103.05 and its two-hundred day moving average price is $107.65.

Encompass Health (NYSE:EHC) last posted its quarterly earnings results on Thursday, April 30th. The company reported $1.60 earnings per share for the quarter, beating the consensus estimate of $1.51 by $0.09. The firm had revenue of $1.59 billion for the quarter, compared to analyst estimates of $1.57 billion. Encompass Health had a return on equity of 18.54% and a net margin of 10.04%.Encompass Health’s quarterly revenue was up 9.0% on a year-over-year basis. During the same period in the previous year, the firm earned $1.37 earnings per share. Encompass Health has set its FY 2026 guidance at 5.890-6.110 EPS. On average, research analysts expect that Encompass Health will post 5.91 earnings per share for the current fiscal year.

Encompass Health Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Wednesday, April 15th. Stockholders of record on Wednesday, April 1st were paid a dividend of $0.19 per share. The ex-dividend date of this dividend was Wednesday, April 1st. This represents a $0.76 dividend on an annualized basis and a dividend yield of 0.7%. Encompass Health’s dividend payout ratio (DPR) is 13.72%.

Insider Activity

In related news, CEO Mark J. Tarr sold 150,000 shares of the business’s stock in a transaction that occurred on Wednesday, February 11th. The stock was sold at an average price of $111.64, for a total value of $16,746,000.00. Following the completion of the sale, the chief executive officer owned 377,070 shares of the company’s stock, valued at approximately $42,096,094.80. The trade was a 28.46% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through this link. Also, Treasurer Edmund Fay sold 11,937 shares of the firm’s stock in a transaction that occurred on Monday, March 9th. The shares were sold at an average price of $107.00, for a total transaction of $1,277,259.00. Following the transaction, the treasurer directly owned 89,325 shares in the company, valued at approximately $9,557,775. The trade was a 11.79% decrease in their position. The disclosure for this sale is available in the SEC filing. 1.80% of the stock is owned by insiders.

Encompass Health News Summary

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

• Positive Sentiment: Q1 results beat expectations — Encompass reported revenue of about $1.59B (+9% YoY) and EPS of $1.60, topping consensus and showing solid margin and profitability improvements. Encompass Health (EHC) Q1 Earnings and Revenues Surpass Estimates
• Positive Sentiment: Company raised FY‑2026 outlook — management updated full‑year EPS guidance to a range of 5.890–6.110 and increased revenue guidance (roughly $6.4–6.5B), signaling confidence in the recovery/hospital business. Encompass Health reports results for first quarter 2026
• Positive Sentiment: Underlying operating strength — company metrics cited in releases include healthy ROE (~18.2%), improved net margins and solid operating cash flow, supporting the earnings beat and guidance lift. Encompass Health reports results for first quarter 2026 (Finanznachrichten)
• Neutral Sentiment: Management commentary and detail — the Q1 earnings call transcript provides additional color on volumes, payor dynamics and capital allocation that investors may parse for sustainability of growth. EHC Q1 2026 Earnings Call Transcript
• Neutral Sentiment: Wide media coverage — outlets summarized the beat + guidance and amplified the stock move; useful for understanding market momentum but not new fundamental data. Encompass Health (EHC) shares skyrocket, what you need to know
• Negative Sentiment: Insider selling highlighted — filings and coverage show multiple insider sales (including sales by senior executives) in recent months, which can be perceived as a governance/headwind signal by some investors. Encompass Health Corporation (EHC) Stock Falls on Q1 2026 Earnings

Hedge Funds Weigh In On Encompass Health

Several hedge funds have recently bought and sold shares of EHC. EP Wealth Advisors LLC lifted its position in shares of Encompass Health by 2.4% in the second quarter. EP Wealth Advisors LLC now owns 3,694 shares of the company’s stock worth $453,000 after buying an additional 88 shares during the last quarter. Johnson Investment Counsel Inc. increased its holdings in shares of Encompass Health by 5.6% during the 4th quarter. Johnson Investment Counsel Inc. now owns 2,364 shares of the company’s stock valued at $251,000 after acquiring an additional 126 shares during the last quarter. Ancora Advisors LLC increased its holdings in shares of Encompass Health by 0.3% during the 3rd quarter. Ancora Advisors LLC now owns 47,688 shares of the company’s stock valued at $6,057,000 after acquiring an additional 160 shares during the last quarter. Vanguard Personalized Indexing Management LLC increased its holdings in shares of Encompass Health by 1.0% during the 4th quarter. Vanguard Personalized Indexing Management LLC now owns 16,034 shares of the company’s stock valued at $1,702,000 after acquiring an additional 163 shares during the last quarter. Finally, Public Employees Retirement System of Ohio increased its holdings in shares of Encompass Health by 0.6% during the 3rd quarter. Public Employees Retirement System of Ohio now owns 33,450 shares of the company’s stock valued at $4,249,000 after acquiring an additional 187 shares during the last quarter. 97.25% of the stock is owned by institutional investors and hedge funds.

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.