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

Key Points

• FY 2026 guidance: Encompass Health updated its FY26 guidance to EPS $5.890–$6.110 (consensus $5.92) and revenue $6.4–$6.5 billion (consensus $6.4B), essentially in line with Street estimates.
• Quarterly beat but stock slipped: The company reported quarterly EPS of $1.60 and revenue of $1.59B, both above estimates, yet shares fell to $100.15 on heavy volume after the update.
• Insider selling noted: CEO Mark J. Tarr sold 150,000 shares (~$16.7M) and Treasurer Edmund Fay sold 11,937 shares, with insiders now owning about 1.8% of the company.

Encompass Health (NYSE:EHC - Get Free Report) 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.

Encompass Health Stock Performance

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

Encompass Health (NYSE:EHC - Get Free Report) last issued its quarterly earnings results on Thursday, April 30th. The company reported $1.60 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.49 by $0.11. The business had revenue of $1.59 billion for the quarter, compared to analyst estimates of $1.58 billion. Encompass Health had a net margin of 9.54% and a return on equity of 18.20%. Encompass Health has set its FY 2026 guidance at 5.890-6.110 EPS. As a group, research analysts anticipate that Encompass Health will post 5.91 earnings per share for the current fiscal year.

Encompass Health Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Wednesday, April 15th. Shareholders 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 yield of 0.8%. Encompass Health's dividend payout ratio (DPR) is currently 13.72%.

Wall Street Analysts Forecast Growth

A number of equities analysts have recently commented on EHC shares. Barclays raised their price target on shares of Encompass Health from $150.00 to $153.00 and gave the company an "overweight" rating in a report on Friday, February 6th. Wall Street Zen lowered shares of Encompass Health from a "buy" rating to a "hold" rating in a report on Saturday, April 11th. Two equities research analysts have rated the stock with a Strong Buy rating, six have issued a Buy rating and one has given a Hold rating to the company. According to MarketBeat, the stock presently has an average rating of "Buy" and a consensus price target of $146.33.

Insider Activity at Encompass Health

In other news, Treasurer Edmund Fay sold 11,937 shares of Encompass Health stock in a transaction that occurred on Monday, March 9th. The shares were sold at an average price of $107.00, for a total value of $1,277,259.00. Following the transaction, the treasurer directly owned 89,325 shares of the company's stock, valued at $9,557,775. This trade represents a 11.79% 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, CEO Mark J. Tarr sold 150,000 shares of Encompass Health stock in a transaction that occurred on Wednesday, February 11th. The stock was sold at an average price of $111.64, for a total transaction of $16,746,000.00. Following the completion of the transaction, the chief executive officer directly owned 377,070 shares in the company, valued at approximately $42,096,094.80. This trade represents a 28.46% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Company insiders own 1.80% of the company's stock.

Institutional Trading of Encompass Health

Institutional investors and hedge funds have recently modified their holdings of the company. Caitong International Asset Management Co. Ltd raised its stake in Encompass Health by 36,200.0% during the 3rd quarter. Caitong International Asset Management Co. Ltd now owns 363 shares of the company's stock valued at $46,000 after purchasing an additional 362 shares during the last quarter. Aster Capital Management DIFC Ltd acquired a new position in Encompass Health during the 4th quarter valued at $55,000. Danske Bank A S acquired a new position in Encompass Health during the 3rd quarter valued at $76,000. Atlas Capital Advisors Inc. acquired a new position in Encompass Health during the 4th quarter valued at $82,000. Finally, Employees Retirement System of Texas raised its stake in shares of Encompass Health by 105.6% in 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 in the last quarter. 97.25% of the stock is currently owned by institutional investors and hedge funds.

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.

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