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

Encompass Health (NYSE:EHC) updated its FY 2026 earnings guidance on Wednesday. The company provided EPS guidance of 6.020-6.250 for the period, compared to the consensus estimate of 6.000. The company issued revenue guidance of $6.4 billion-$6.5 billion, compared to the consensus revenue estimate of $6.4 billion.

Encompass Health Stock Up 0.0%

Shares of NYSE EHC opened at $110.55 on Thursday. The company has a 50 day simple moving average of $106.14 and a 200 day simple moving average of $104.27. The company has a debt-to-equity ratio of 0.76, a current ratio of 1.17 and a quick ratio of 1.17. Encompass Health has a 1 year low of $92.77 and a 1 year high of $127.99. The firm has a market cap of $10.97 billion, a PE ratio of 18.46, a price-to-earnings-growth ratio of 2.41 and a beta of 0.72.

Encompass Health (NYSE:EHC) last released its quarterly earnings results on Wednesday, August 5th. The company reported $1.55 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.48 by $0.07. Encompass Health had a net margin of 10.04% and a return on equity of 18.28%. The firm had revenue of $1.60 billion during the quarter, compared to the consensus estimate of $1.57 billion. During the same quarter last year, the firm earned $1.40 earnings per share. The company’s revenue for the quarter was up 9.6% on a year-over-year basis. Encompass Health has set its FY 2026 guidance at 6.020-6.250 EPS. On average, research analysts forecast that Encompass Health will post 5.96 EPS for the current year.

Encompass Health Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, October 15th. Shareholders of record on Thursday, October 1st will be given a $0.21 dividend. This is a boost from Encompass Health’s previous quarterly dividend of $0.19. The ex-dividend date is Thursday, October 1st. This represents a $0.84 dividend on an annualized basis and a dividend yield of 0.8%. Encompass Health’s dividend payout ratio is presently 14.02%.

Wall Street Analysts Forecast Growth

A number of equities analysts recently commented on the company. TD Cowen started coverage on Encompass Health in a research note on Thursday, May 28th. They issued a “buy” rating and a $125.00 price objective on the stock. Wall Street Zen upgraded shares of Encompass Health from a “hold” rating to a “buy” rating in a report on Saturday, May 2nd. Weiss Ratings lowered Encompass Health from a “buy (b-)” rating to a “hold (c+)” rating in a research report on Friday, June 26th. Leerink Partners set a $152.00 target price on shares of Encompass Health in a research report on Friday, May 22nd. Finally, Barclays reiterated an “overweight” rating and issued a $144.00 price target on shares of Encompass Health in a report on Thursday. One analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating and two have assigned a Hold rating to the company’s stock. According to MarketBeat, the stock has an average rating of “Moderate Buy” and an average price target of $144.43.

Insiders Place Their Bets

In other news, EVP Patrick William Tuer sold 682 shares of the stock in a transaction dated Monday, May 11th. The shares were sold at an average price of $104.56, for a total value of $71,309.92. Following the sale, the executive vice president directly owned 24,755 shares of the company’s stock, valued at approximately $2,588,382.80. This represents a 2.68% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. 1.80% of the stock is owned by insiders.

Institutional Investors Weigh In On Encompass Health

Several large investors have recently added to or reduced their stakes in EHC. Caitong International Asset Management Co. Ltd raised its holdings in shares of Encompass Health by 36,200.0% in the 3rd quarter. Caitong International Asset Management Co. Ltd now owns 363 shares of the company’s stock valued at $46,000 after acquiring an additional 362 shares in the last quarter. Aster Capital Management DIFC Ltd purchased a new position in Encompass Health in the fourth quarter worth $55,000. Danske Bank A S purchased a new stake in Encompass Health during the third quarter valued at about $76,000. Atlas Capital Advisors Inc. purchased a new stake in Encompass Health during the fourth quarter valued at about $82,000. Finally, Employees Retirement System of Texas lifted its stake in Encompass Health by 105.6% during the third quarter. Employees Retirement System of Texas now owns 956 shares of the company’s stock worth $121,000 after purchasing an additional 491 shares during the last quarter. Institutional investors own 97.25% of the company’s stock.

About Encompass Health

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.