Encompass Health beats Q4 adjusted profit estimates

Encompass Health

05/02/2026 21:27

Overview

U.S. rehab hospital operator's Q4 revenue rose 9.9% yr/yr

Adjusted EPS for Q4 beat analyst expectations

Company issued 2026 guidance projecting revenue and EBITDA growth

Outlook

Encompass Health forecasts 2026 net operating revenue of $6.365 bln to $6.465 bln

Company expects 2026 adjusted EBITDA between $1.340 bln and $1.380 bln

Encompass Health projects 2026 adjusted EPS of $5.81 to $6.10

Result Drivers

CAPACITY EXPANSION - Co added 517 inpatient rehabilitation beds via eight new hospitals and expanded existing facilities

AGING POPULATION - Rising demand for services attributed to aging U.S. population

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Operating Revenue
$1.54 bln
Q4 Adjusted EPS
Beat
$1.46
$1.30 (12 Analysts)

Analyst Coverage

The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 12 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

The average consensus recommendation for the healthcare facilities & services peer group is "buy."

Wall Street's median 12-month price target for Encompass Health Corp is $140.00, about 46.4% above its February 4 closing price of $95.66

The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 20 three months ago

Press Release: ID:nPn6gNctPa

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)