Encompass Health Q3 profit beats on higher patient volume, revenue; raises guidance

Encompass Health

28/10/2026 20:32

Overview
US inpatient rehab operator's Q3 revenue rose 8.9% from a year earlier
Adjusted EPS for Q3 beat analyst expectations
Company raised full-year 2026 guidance for revenue, adjusted EBITDA, and adjusted EPS

Outlook
Encompass Health raises full-year 2026 revenue guidance to $6.45 bln-$6.5 bln
Company lifts 2026 adjusted EBITDA forecast to $1.395 bln-$1.415 bln
Company now expects 2026 adjusted EPS of $6.23-$6.37

Result Drivers
PATIENT VOLUME - Co said total discharges rose 5.7% and same-store discharge growth was 3.0% in Q3
REVENUE PER PATIENT - Net patient revenue per discharge increased 4.0% year-over-year
CAPACITY EXPANSION - Co opened four hospitals and added 85 beds to existing hospitals in first nine months of 2026

Company press release: ID:nPn27pTRGa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Operating Revenue
 
$1.61 bln
 
Q3 Adjusted EPS
Beat
$1.52
$1.36 (13 Analysts)

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 14 "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 Corporation is $148.50, about 22.2% above its October 27 closing price of $121.53
The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 16 three months ago

Reuters Recommended Reads
Oct 27 - Ensign Group Q3 adjusted EPS beats estimates, revenue up on higher occupancy rates
Oct 27 - HCA Healthcare Q3 revenue rises on admissions, emergency room visits growth
Oct 27 - Chemed Q3 adjusted EPS beats estimates on VITAS patient growth

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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.)