Encompass Health Q3 Earnings Call Highlights

Encompass Health's Sea Pines hospital in Florida closed indefinitely due to flood damage. The company reaffirmed its 2026 guidance, expecting $6.45–$6.50B revenue and $1.395–$1.415B Adjusted EBITDA. Sea Pines contributed $44M in revenue and $14M in EBITDA in 2026's first nine months.

Encompass Health reported Q3 2026 revenue of $1.61B, up 8.9% YoY, and net income of $203.6M, up 16.6%. Diluted EPS rose 21% to $1.5. Growth was driven by higher patient volumes and pricing. The company expanded with four new hospitals and 85 additional beds.

Mizuho raised its price target on Encompass Health (EHC) to $155 from $140, citing strong demand and increased EBITDA estimates. The stock is up 29% YTD. Other analysts also raised targets post Q3 results, which beat estimates. EHC reported $1.61B revenue and $1.52 EPS, raising its full-year outlook.

Raymond James raised its price target for Encompass Health (EHC) to $155 from $150, citing strong Q3 results and raised guidance. The company beat EBITDA expectations for the 16th straight quarter, driven by acuity and cost control. EHC shares are near their 52-week high, up 32% in six months. Analysts like UBS, KeyBanc, and Truist also raised their price targets, noting strong EBITDA performance and positive 2027 outlook.

KeyBanc raised its price target for Encompass Health (NYSE:EHC) to $150 from $147, citing strong Q3 results. Core EBITDA beat estimates by 10% with 23% YoY growth, driven by acuity improvements and expense management. The company reported $1.52B EBITDA over the last 12 months. Same-store volumes grew 3.0%, with expectations of further improvement. Management is optimistic about 2027 and RCD expansion. The stock has returned 32% over six months, trading near its 52-week high of $133.75.

Truist Securities raised its price target on Encompass Health (NYSE:EHC) to $156 from $150, citing strong Q3 results. The company reported adjusted EBITDA of $1.52B and a 32% stock return over six months. Encompass Health raised its guidance despite headwinds and is expanding capacity. The stock trades near its 52-week high of $133.75, with a financial health score of 3.35 out of 5.