Zacks Research Issues Pessimistic Estimate for EHC Earnings

Encompass Health Corporation (NYSE:EHC) – Equities researchers at Zacks Research dropped their Q3 2026 earnings per share estimates for Encompass Health in a research note issued on Tuesday, August 25th. Zacks Research analyst Team now forecasts that the company will post earnings per share of $1.35 for the quarter, down from their previous estimate of $1.36. The consensus estimate for Encompass Health’s current full-year earnings is $6.09 per share. Zacks Research also issued estimates for Encompass Health’s Q4 2026 earnings at $1.53 EPS, FY2026 earnings at $6.03 EPS, Q1 2027 earnings at $1.65 EPS, Q2 2027 earnings at $1.64 EPS, Q3 2027 earnings at $1.49 EPS, FY2027 earnings at $6.42 EPS, Q1 2028 earnings at $1.77 EPS, Q2 2028 earnings at $1.87 EPS and FY2028 earnings at $7.18 EPS.

Encompass Health (NYSE:EHC) last released its quarterly earnings data on Wednesday, August 5th. The company reported $1.55 earnings per share for the quarter, topping analysts’ consensus estimates of $1.48 by $0.07. The company had revenue of $1.60 billion for the quarter, compared to analyst estimates of $1.57 billion. Encompass Health had a return on equity of 18.08% and a net margin of 10.01%.The firm’s revenue for the quarter was up 9.6% compared to the same quarter last year. During the same quarter in the previous year, the company posted $1.40 earnings per share. Encompass Health has set its FY 2026 guidance at 6.020-6.250 EPS.

A number of other brokerages have also issued reports on EHC. Weiss Ratings raised shares of Encompass Health from a “hold (c+)” rating to a “buy (b-)” rating in a report on Wednesday, August 12th. Leerink Partners set a $152.00 price target on shares of Encompass Health in a report on Friday, May 22nd. Barclays upped their price objective on Encompass Health from $140.00 to $144.00 and gave the company an “overweight” rating in a report on Thursday, August 6th. TD Cowen raised their target price on Encompass Health from $125.00 to $140.00 and gave the stock a “buy” rating in a research note on Monday, August 10th. Finally, UBS Group upped their price target on Encompass Health from $150.00 to $155.00 and gave the company a “buy” rating in a research note on Friday, August 7th. One investment analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating and one has issued a Hold rating to the stock. According to data from MarketBeat.com, Encompass Health currently has a consensus rating of “Buy” and a consensus target price of $148.71.

Encompass Health Stock Down 0.6%

NYSE EHC opened at $120.18 on Wednesday. The business’s fifty day simple moving average is $111.85 and its 200-day simple moving average is $106.83. The company has a quick ratio of 1.19, a current ratio of 1.19 and a debt-to-equity ratio of 0.76. The firm has a market cap of $11.86 billion, a PE ratio of 19.57, a P/E/G ratio of 2.45 and a beta of 0.72. Encompass Health has a 52 week low of $92.77 and a 52 week high of $127.99.

Encompass Health Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, October 15th. Investors of record on Thursday, October 1st will be issued a $0.21 dividend. The ex-dividend date is Thursday, October 1st. This represents a $0.84 annualized dividend and a dividend yield of 0.7%. This is a boost from Encompass Health’s previous quarterly dividend of $0.19. Encompass Health’s dividend payout ratio (DPR) is presently 12.38%.

Insider Activity

In other news, EVP John Patrick Darby sold 8,906 shares of the stock in a transaction dated Monday, August 10th. The shares were sold at an average price of $125.95, for a total transaction of $1,121,710.70. Following the sale, the executive vice president owned 75,041 shares of the company’s stock, valued at approximately $9,451,413.95. This represents a 10.61% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CEO Mark J. Tarr sold 173,148 shares of Encompass Health stock in a transaction on 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 of the company’s stock, valued at approximately $33,602,622.58. This trade represents a 39.27% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 1.80% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in EHC. Royal Bank of Canada lifted its position in shares of Encompass Health by 21.5% during the 1st quarter. Royal Bank of Canada now owns 88,470 shares of the company’s stock worth $8,960,000 after purchasing an additional 15,677 shares during the last quarter. Millennium Management LLC boosted its position in shares of Encompass Health by 38.4% during the 1st quarter. Millennium Management LLC now owns 92,197 shares of the company’s stock worth $9,338,000 after acquiring an additional 25,574 shares in the last quarter. Caxton Associates LLP acquired a new stake in shares of Encompass Health during the 1st quarter worth about $259,000. Walleye Capital LLC boosted its holdings in Encompass Health by 667.6% in the second quarter. Walleye Capital LLC now owns 6,522 shares of the company’s stock valued at $800,000 after purchasing an additional 7,671 shares in the last quarter. Finally, Gamco Investors INC. ET AL purchased a new position in Encompass Health in the second quarter valued at approximately $588,000. Hedge funds and other institutional investors own 97.25% of the company’s stock.

Encompass Health News Summary

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

• Positive Sentiment: Zacks Research raised its FY2026 EPS estimate to $6.03 from $5.96, FY2027 to $6.42 from $6.35, and FY2028 to $7.18 from $7.16. The firm also increased estimates for Q1 2027, Q2 2027, Q3 2027 and Q2 2028, signaling expectations for continued earnings growth.
• Positive Sentiment: A Zacks analysis highlighted Encompass Health’s capacity expansion, new facilities and North Carolina development pipeline as potential drivers of 6%–8% multi-year discharge growth. How EHC’s Capacity Expansion Fuels a Multi-Year Growth Runway
• Neutral Sentiment: Zacks maintained estimates of $1.35 EPS for Q3 2026 and $1.53 for Q4 2026, while its FY2026 forecast of $6.03 remains slightly below the broader analyst consensus of $6.09.
• Neutral Sentiment: Recent Zacks style-score commentary continues to identify EHC as a potentially attractive momentum and value stock, supporting the longer-term investment case but adding limited new company-specific information. Why Encompass Health Is a Top Momentum Stock for the Long-Term
• Negative Sentiment: Zacks trimmed its Q3 2026 EPS estimate to $1.35 from $1.36, Q4 2026 to $1.53 from $1.55, and Q1 2028 to $1.77 from $1.80. These near-term reductions suggest some caution around upcoming quarterly results.

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.