Encompass Health Corporation · EHC · FY2025 Q4 · Calendar Q1 2026
Encompass Health pairs FY2025 growth with a capacity-led 2026 outlook
The supplied FY2025 results and management commentary support a company-specific case for continued growth: strong historical demand, lower premium labor costs and ongoing capacity additions underpin management’s 2026 outlook. Whether that trajectory converts to sustained growth depends on occupancy, payer mix, new-unit execution and reimbursement conditions.
Earnings scorecard
Reported versus consensusMarket reaction
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Transcript intelligence
What changed
The call moved the focus from the prior quarter’s raised 2025 outlook to reported FY2025 performance and management’s maintained 2026 guidance. Management described continued hospital and bed expansion, while also identifying potential same-store discharge headwinds from unit closures and lease expirations.
Guidance delta
Management maintained its 2026 guidance. The supplied prior-quarter analysis concerned raised 2025 guidance, so it does not provide a like-for-like basis for quantifying a change in the current outlook.
Key takeaways
- Management characterized FY2025 revenue and EBITDA growth as double-digit, citing demand and operating leverage.
- Premium labor spend declined by more than $21 million, according to the supplied transcript analysis.
- The 2026 outlook calls for continued top-line and earnings expansion despite regulatory headwinds.
- Capacity additions and a small-format hospital model are central to the growth plan.
Management priorities
- Expand capacity through new hospitals, bed additions and the small-format hospital model.
- Manage labor costs and support clinical workforce efficiency.
- Use RCD reviews and claim processes to mitigate audit and reimbursement risk.
- Develop Palantir-enabled revenue-cycle and market analytics capabilities.
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Analyst 52W Price Targets
Latest persisted target per named analyst; persisted previous close from FN2's market snapshot as of Nov 2, 2026. Not an FN2 forecast.
Firm-level rating actions
FMP grade actions identify the grading firm, not a named analyst.
| Firm | Rating | Prior rating | Action | Date |
|---|---|---|---|---|
| UBS | Buy | Buy | Maintain | Oct 30, 2026 |
| Truist Securities | Buy | Buy | Maintain | Oct 30, 2026 |
| TD Cowen | Buy | Buy | Maintain | Oct 30, 2026 |
| Keybanc | Overweight | Overweight | Maintain | Oct 30, 2026 |
| Barclays | Overweight | Overweight | Maintain | Oct 29, 2026 |
| B of A Securities | Buy | Buy | Maintain | Sep 10, 2025 |
| Stephens & Co. | Overweight | Overweight | Maintain | Jun 5, 2025 |
| RBC Capital | Outperform | Outperform | Maintain | Apr 28, 2025 |
| Raymond James | Strong Buy | Strong Buy | Maintain | Apr 26, 2024 |
| Mizuho | Buy | Buy | Maintain | Apr 25, 2024 |
| Credit Suisse | Outperform | Outperform | Maintain | Aug 4, 2023 |
| Deutsche Bank | Buy | Buy | Maintain | May 1, 2023 |
| BMO Capital | Outperform | Outperform | Maintain | Aug 4, 2022 |
| Jefferies | Buy | Buy | Maintain | Jul 27, 2020 |
| Baird | Outperform | Outperform | Maintain | Mar 5, 2020 |
| SunTrust Robinson Humphrey | Buy | Buy | Maintain | Feb 10, 2020 |
| Wells Fargo | Underweight | Equal Weight | Downgrade | Dec 11, 2019 |
| Bank of America | Buy | Neutral | Upgrade | Sep 6, 2019 |
| William Blair | Outperform | Outperform | Maintain | Nov 21, 2017 |
| Craig-Hallum | Buy | Buy | Maintain | Feb 14, 2017 |
| PiperJaffray | Neutral | Neutral | Maintain | Jan 4, 2017 |
| Stifel Nicolaus | Hold | Buy | Downgrade | Oct 29, 2015 |
| JMP Securities | Outperform | Market Perform | Upgrade | Jul 2, 2015 |
| Wedbush | Neutral | Neutral | Maintain | Jun 10, 2015 |
| Susquehanna | Outperform | Positive | Maintain | Jul 26, 2013 |
| Lazard | Buy | Buy | Maintain | Jul 24, 2013 |
Named analyst price targets
Upside is calculated against the persisted previous close $135.9. FMP does not supply a rating on these named-analyst rows.
| Firm | Analyst | 52W target | Price when posted | Upside | Date |
|---|---|---|---|---|---|
| Raymond James | Andrew Cooper | $155 | $135.9 | +14.1% | Oct 30, 2026 |
| UBS | Analyst unavailable | $165 | $131.49 | +21.4% | Oct 30, 2026 |
| KeyBanc | Matthew Gillmor | $150 | $131.49 | +10.4% | Oct 30, 2026 |
| Truist Financial | David MacDonald | $156 | $131.49 | +14.8% | Oct 30, 2026 |
| Barclays | Analyst unavailable | $151 | $122.09 | +11.1% | Oct 29, 2026 |
| Raymond James | Andrew Cooper | $150 | $123.47 | +10.4% | Sep 28, 2026 |
| Truist Financial | David MacDonald | $150 | $125.42 | +10.4% | Aug 7, 2026 |
| UBS | Analyst unavailable | $155 | $125.45 | +14.1% | Aug 7, 2026 |
| Barclays | Analyst unavailable | $144 | $110.9 | +6.0% | Aug 6, 2026 |
| Leerink Partners | Whit Mayo | $152 | $104.45 | +11.8% | May 22, 2026 |
| Barclays | Analyst unavailable | $140 | $106.64 | +3.0% | May 5, 2026 |
| Barclays | Analyst unavailable | $153 | $99.56 | +12.6% | Feb 6, 2026 |
| Barclays | Andrew Mok | $150 | $125.63 | +10.4% | Oct 30, 2025 |
| UBS | Analyst unavailable | $150 | $124.52 | +10.4% | Oct 2, 2025 |
| Truist Financial | David MacDonald | $140 | $119.3 | +3.0% | Aug 14, 2025 |
| RBC Capital | Analyst unavailable | $125 | $115.32 | -8.0% | Apr 28, 2025 |
| RBC Capital | Ben Hendrix | $105 | $96.75 | -22.7% | Sep 26, 2024 |
| UBS | AJ Rice | $110 | $95.26 | -19.1% | Sep 25, 2024 |
| RBC Capital | Frank Morgan | $95 | $85.86 | -30.1% | May 22, 2024 |
| Mizuho Securities | Ann Hynes | $95 | $82.8 | -30.1% | Apr 25, 2024 |
| Barclays | Andrew Mok | $101 | $81.79 | -25.7% | Mar 28, 2024 |
| RBC Capital | Analyst unavailable | $85 | $68.24 | -37.5% | May 3, 2022 |
| Raymond James | Analyst unavailable | $85 | $68.83 | -37.5% | May 2, 2022 |
| Credit Suisse | Analyst unavailable | $83 | $68.46 | -38.9% | Apr 29, 2022 |
| Stephens | Scott Fidel | $100 | $84.62 | -26.4% | Apr 29, 2021 |
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Start freeCompany context
Snapshot as of publicationEncompass Health Corporation delivers a range of post-acute healthcare services across the United States, offered both in dedicated facilities and directly within patients' homes. The company's operations are divided into two primary divisions: Inpatient Rehabilitation, and Home Health and Hospice. Its Inpatient Rehabilitation division specializes in providing focused recovery treatment, available on an inpatient or outpatient basis. This care is designed for individuals recuperating from significant health challenges such as strokes, neurological disorders, cardiac and pulmonary issues, brain and spinal cord injuries, complex orthopedic conditions, and amputations. The Home Health and Hospice segment primarily serves the Southeast and Texas regions.…
Historical context
All EHC earningsHealthcare peers this season
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|---|---|---|---|---|
| AZN AstraZeneca PLC | FY2026 Q3 · Calendar Q4 2026 | +7.3% | +7.0% | AstraZeneca pairs solid growth with pipeline investment and restructuring |
| BTSG BrightSpring Health Services, Inc. Common Stock | FY2026 Q3 · Calendar Q4 2026 | +14.2% | +11.1% | BrightSpring posts strong Q3 growth while maintaining guidance |
| ABBV AbbVie Inc. | FY2026 Q3 · Calendar Q4 2026 | +2.4% | +1.4% | AbbVie raises 2026 guidance as Skyrizi and Rinvoq drive Q3 growth |
| BTSGU BrightSpring Health Services, Inc. Tangible Equity Unit | FY2026 Q3 · Calendar Q4 2026 | +14.2% | +10.0% | BrightSpring posts strong Q3 growth as pharmacy leads |
| REGN Regeneron Pharmaceuticals, Inc. | FY2026 Q3 · Calendar Q4 2026 | +21.6% | +13.3% | Regeneron posts strong Q3 growth as pipeline expands |
| EXEL Exelixis, Inc. | FY2026 Q3 · Calendar Q4 2026 | +6.0% | +4.8% | Exelixis highlights zanzalintinib pipeline after strong Q3 |
Latest beats and misses
Who reports nextBeat on EPS
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- AZNFY2026 Q3 · October 30, 2026+7.3% EPS+7.0% move
- FRTFY2026 Q3 · October 30, 2026+3.9% EPS-1.1% move
- CVXFY2026 Q3 · October 30, 2026+8.4% EPS+1.8% move
- BTSGFY2026 Q3 · October 30, 2026+14.2% EPS+11.1% move
- EXCFY2026 Q3 · October 30, 2026+10.4% EPS+0.5% move
Missed on EPS
- GLPIFY2026 Q3 · October 29, 2026-11.5% EPS-1.3% move
- LYBFY2026 Q3 · October 30, 2026-1.2% EPS+5.0% move
- CCJFY2026 Q3 · October 30, 2026-101.4% EPS-7.9% move
- VALEFY2026 Q3 · October 29, 2026-24.6% EPS+1.9% move
- DLR-PLFY2026 Q3 · October 29, 2026-8.4% EPS— move
- DLR-PKFY2026 Q3 · October 29, 2026-8.4% EPS— move
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Sources
- Earnings call transcript and parsed analysis · 2026-05-11T10:29:34.698584+00:00
- FN2 earnings calendar · 2026-07-26T00:37:12.209961+00:00
- Polygon adjusted daily market bars · 2026-11-02T10:30:42.597072+00:00
- Financial Modeling Prep analyst price-target consensus and quote snapshot · 2026-11-02T10:30:42.594388+00:00
Methodology
Reported and consensus figures come from FN2's earnings event records. Market reaction and volume are calculated from daily adjusted bars around the event; abnormal move subtracts the SPY move over the same window.
Analyst target low, average, and high values are derived at request time from each named analyst's latest persisted FMP target. The current-price marker comes from FN2's persisted market snapshot. They are sell-side estimates, not an FN2 valuation or recommendation.
Transcript intelligence is a structured synthesis of the current and prior earnings-call analyses. Missing values stay missing and are never estimated.
By FN2 Research · Updated · As of 2026-11-02. For educational purposes only; not investment advice.