$EHC · Encompass Health Corp
Encompass Health reported Q3 2026 results with net operating revenue of $1.609B (+8.9% YoY), Adjusted EBITDA of $346.6M (+15.5%), and Adjusted EPS of $1.52 (+23.6%). The Company raised full-year 2026 guidance across all metrics: revenue to $6.45B-$6.50B, Adjusted EBITDA to $1.395B-$1.415B, and Adjusted EPS to $6.23-$6.37.
- Net operating revenue of $1.609B, up 8.9% YoY from $1.478B in Q3 2025.
- Adjusted EPS of $1.52 beat prior-year $1.23 by 23.6%; GAAP diluted EPS from continuing ops was $1.51.
- Adjusted EBITDA grew 15.5% to $346.6M; Adjusted free cash flow surged 51.2% to $263.4M.
- Same-store discharge growth of 3.0%; net patient revenue per discharge rose 4.0% to $22,543.
- Full-year 2026 guidance raised: revenue to $6.45B-$6.50B, Adjusted EBITDA to $1.395B-$1.415B, Adjusted EPS to $6.23-$6.37.
Markets closed — no regular-session reaction yet; extended-hours move not captured here. The broad guidance raise across revenue, EBITDA, and EPS alongside strong volume and pricing metrics positions the stock for potential upside when trading resumes.
Encompass Health delivered broad-based beats and raised full-year guidance across all key metrics, reinforcing its position as the dominant inpatient rehab operator with strong pricing power and volume growth.
As the largest inpatient rehabilitation hospital operator in the U.S. (179 hospitals, 39 states), Encompass Health's strong volume and pricing growth underscores resilient demand for post-acute care services amid an aging population.
The Company cannot predict items excluded from non-GAAP guidance (government settlements, restructuring, tax adjustments), which could materially impact GAAP results. Credit agreement covenants tied to Adjusted EBITDA could force immediate debt repayment if breached.