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 5.890-6.110 for the period, compared to the consensus earnings per share 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 Analyst Weigh In

A number of research firms have issued reports on EHC. Barclays upped their target price on shares of Encompass Health from $150.00 to $153.00 and gave the company an “overweight” rating in a research report on Friday, February 6th. Wall Street Zen downgraded shares of Encompass Health from a “buy” rating to a “hold” rating in a report on Saturday, April 11th. Two research 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’s stock. According to data from MarketBeat, the stock has a consensus rating of “Buy” and a consensus target price of $146.33.

Encompass Health Stock Performance

EHC stock traded down $2.46 during midday trading on Thursday, reaching $100.15. 2,098,849 shares of the company were exchanged, compared to its average volume of 1,156,316. The company has a debt-to-equity ratio of 0.76, a current ratio of 1.08 and a quick ratio of 1.08. The business has a 50-day moving average price of $103.19 and a two-hundred day moving average price of $107.70. Encompass Health has a one year low of $92.77 and a one year high of $127.99. The firm has a market capitalization of $9.96 billion, a price-to-earnings ratio of 18.08, a price-to-earnings-growth ratio of 1.93 and a beta of 0.75.

Encompass Health (NYSE:EHC) last posted its earnings results on Thursday, April 30th. The company reported $1.60 earnings per share for the quarter, topping analysts’ consensus estimates of $1.49 by $0.11. Encompass Health had a return on equity of 18.20% and a net margin of 9.54%.The company had revenue of $1.59 billion during the quarter, compared to the consensus estimate of $1.58 billion. Encompass Health has set its FY 2026 guidance at 5.890-6.110 EPS. Equities research analysts forecast that Encompass Health will post 5.91 EPS for the current year.

Encompass Health Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Wednesday, April 15th. Investors of record on Wednesday, April 1st were paid a $0.19 dividend. This represents a $0.76 dividend on an annualized basis and a yield of 0.8%. The ex-dividend date of this dividend was Wednesday, April 1st. Encompass Health’s payout ratio is 13.72%.

Insider Transactions at Encompass Health

In other Encompass Health news, CEO Mark J. Tarr sold 150,000 shares of Encompass Health stock in a transaction dated 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 transaction, the chief executive officer owned 377,070 shares in the company, valued at $42,096,094.80. The trade was a 28.46% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, Treasurer Edmund Fay sold 11,937 shares of the business’s stock in a transaction dated Monday, March 9th. The stock was sold at an average price of $107.00, for a total value of $1,277,259.00. Following the sale, the treasurer owned 89,325 shares in the company, valued at approximately $9,557,775. This trade represents a 11.79% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders own 1.80% of the company’s stock.

Hedge Funds Weigh In On Encompass Health

Several institutional investors have recently added to or reduced their stakes in the business. Virtu Financial LLC acquired a new position in Encompass Health in the fourth quarter valued at approximately $371,000. T. Rowe Price Investment Management Inc. lifted its stake in Encompass Health by 27.2% in the fourth quarter. T. Rowe Price Investment Management Inc. now owns 2,722,887 shares of the company’s stock valued at $289,008,000 after buying an additional 581,812 shares during the period. Corient Private Wealth LLC lifted its stake in Encompass Health by 154.7% in the fourth quarter. Corient Private Wealth LLC now owns 50,460 shares of the company’s stock valued at $5,356,000 after buying an additional 30,651 shares during the period. Beacon Pointe Advisors LLC acquired a new position in Encompass Health in the fourth quarter valued at approximately $2,158,000. Finally, EP Wealth Advisors LLC acquired a new position in Encompass Health in the fourth quarter valued at approximately $279,000. 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.