Analyst Consensus ?
ConsensusBuy26 ratings
Bullish2284.6%
Neutral311.5%
Bearish13.9%
Encompass Health Corporation · EHC · FY2026 Q2 · Calendar Q3 2026
Encompass Health raises 2026 guidance as rehab demand and capacity expand
The Q2 analysis supports a constructive operating trajectory: demand for high-acuity inpatient rehabilitation remains strong, capacity is expanding, and workforce initiatives are reducing turnover and premium labor costs. The main counterweights are payer denials, Medicare pricing sensitivity, and execution risk on new projects.
Reported After market closeNYSEHealthcare
$13.41B market cap
100quality score
Earnings scorecard
Reported versus consensus
Reported EPS
$1.55
Consensus $1.48
EPS surprise
+4.7%
Reported versus consensus
Reported revenue
$1.60B
Consensus $1.57B
Revenue surprise
+1.7%
Reported versus consensus
Market reaction
event-close to next-session close
Stock move
+12.6%
Event window
SPY move
-0.2%
Same window
Abnormal move
+12.7%
Stock minus SPY
Volume
2.4×
Versus trailing sessions
Subsequent drift
-1.8%
Up to 20 sessions
EHCSPY benchmark
Ask FN2 about EHC FY2026 Q2
Transcript, numbers and history already loaded
Why did EHC rise 12.6% after beating EPS estimates in FY2026 Q2?What changed in EHC's guidance and outlook in FY2026 Q2?Give me the bull and bear case for EHC after FY2026 Q2 earnings.
Free account. Your question opens in FN2 with this report's transcript and numbers attached.
Transcript intelligence
What changed
Management raised 2026 guidance and highlighted a pipeline of 13 announced projects totaling 606 beds. The quarter also brought an expanded share-repurchase authorization, a higher dividend, and updated expectations for the CMS 2027 IRF final rule.
Guidance delta
Raised for 2026, according to the supplied Q2 analysis.
Key takeaways
- Demand is strongest in high-acuity categories such as stroke and brain injury rehabilitation.
- Capacity expansion remains central, including new hospitals, added beds and planned small-format hubs.
- Career-ladder programs are associated with lower nursing turnover and premium labor costs.
- The CMS IRF final rule is expected to provide a modest Medicare revenue benefit.
Management priorities
- Expand hospital and bed capacity.
- Develop the small-format hub-and-spoke model.
- Improve workforce productivity and reduce reliance on premium labor.
- Grow the VA patient program and use analytics partnerships to improve efficiency.
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Try FN2 freeEarnings History
Estimate
Beat
Miss
Match
Analyst 52W Price Targets
$135.9Current
$83Low
$125.13Average
$165High
Latest persisted target per named analyst; persisted current price from FN2's market snapshot as of Oct 31, 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 |
|---|---|---|---|---|
| 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 |
| UBS | Buy | Buy | Maintain | Aug 7, 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 current price $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 |
Track every rating change on EHC the moment it posts. Free to start.
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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Latest beats and misses
Who reports nextBeat on EPS
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- BTSGUFY2026 Q3 · October 30, 2026+14.2% EPS+10.0% move
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Get the EHC recap when the next report posts
One email per quarter with the scorecard, the market reaction and what changed on the call. No account needed.
Sources
- Earnings call transcript and parsed analysis · 2026-08-06T22:11:08.093004+00:00
- FN2 earnings calendar · 2026-09-10T01:23:13.706414+00:00
- Polygon adjusted daily market bars · 2026-10-31T03:20:40.067516+00:00
- Financial Modeling Prep analyst price-target consensus and quote snapshot · 2026-10-31T03:20:40.065522+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 2026-10-31. For educational purposes only; not investment advice.