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

Encompass Health (NYSE:EHC) issued an update on its FY 2026 earnings guidance on Wednesday. The company provided EPS guidance of 6.020-6.250 for the period, compared to the consensus earnings per share 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.

Analyst Ratings Changes

Several equities analysts have recently issued reports on EHC shares. Barclays decreased their price target on Encompass Health from $153.00 to $140.00 and set an “overweight” rating on the stock in a research note on Tuesday, May 5th. Weiss Ratings downgraded shares of Encompass Health from a “buy (b-)” rating to a “hold (c+)” rating in a research note on Friday, June 26th. Leerink Partners set a $152.00 price objective on Encompass Health in a research note on Friday, May 22nd. Wall Street Zen raised shares of Encompass Health from a “hold” rating to a “buy” rating in a research report on Saturday, May 2nd. Finally, TD Cowen started coverage on shares of Encompass Health in a research note on Thursday, May 28th. They issued a “buy” rating and a $125.00 price objective for the company. One investment analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating and two have given a Hold rating to the company’s stock. According to MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average target price of $143.86.

Encompass Health Stock Up 0.0%

EHC traded up $0.05 during midday trading on Wednesday, reaching $110.55. 1,306,323 shares of the company were exchanged, compared to its average volume of 1,076,140. The company has a market cap of $10.97 billion, a price-to-earnings ratio of 18.46, a price-to-earnings-growth ratio of 2.45 and a beta of 0.72. The company has a debt-to-equity ratio of 0.76, a quick ratio of 1.17 and a current ratio of 1.17. Encompass Health has a one year low of $92.77 and a one year high of $127.99. The company’s fifty day moving average price is $106.01 and its 200 day moving average price is $104.22.

Encompass Health (NYSE:EHC) last posted its quarterly earnings data on Wednesday, August 5th. The company reported $1.55 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates 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 for the quarter, compared to the consensus estimate of $1.57 billion. Encompass Health has set its FY 2026 guidance at 6.020-6.250 EPS. As a group, analysts expect that Encompass Health will post 5.96 EPS for the current year.

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 paid a $0.21 dividend. The ex-dividend date is Thursday, October 1st. This is a positive change from Encompass Health’s previous quarterly dividend of $0.19. This represents a $0.84 annualized dividend and a yield of 0.8%. Encompass Health’s dividend payout ratio (DPR) is currently 12.69%.

Insiders Place Their Bets

In related news, EVP Patrick William Tuer sold 682 shares of the business’s stock in a transaction dated Monday, May 11th. The stock was 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 in the company, valued at approximately $2,588,382.80. The trade was a 2.68% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Company insiders own 1.80% of the company’s stock.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of EHC. Caitong International Asset Management Co. Ltd increased its stake in 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 worth $46,000 after acquiring an additional 362 shares during the last quarter. Aster Capital Management DIFC Ltd purchased a new stake in shares of Encompass Health in the 4th quarter valued at $55,000. Danske Bank A S bought a new position in shares of Encompass Health during the third quarter valued at about $76,000. Atlas Capital Advisors Inc. purchased a new position in Encompass Health in the 4th quarter worth approximately $82,000. Finally, Employees Retirement System of Texas boosted its position in Encompass Health by 105.6% during the 3rd quarter. Employees Retirement System of Texas now owns 956 shares of the company’s stock valued at $121,000 after buying an additional 491 shares during the period. 97.25% of the stock is owned by institutional investors.

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.