Encompass Health posts Q3 2026 results, raises full‑year revenue and EPS guidance

Encompass Health reported third‑quarter 2026 revenue of $1.61 billion, up 8.9% year‑on‑year, and adjusted earnings per share of $1.52, beating estimates. Adjusted EBITDA rose 15.5% to $346.6 million. The company lifted its full‑year revenue outlook to about $6.48 billion and its adjusted EPS target to $6.30 at the midpoint, above prior guidance.

The raised full‑year revenue and EPS guidance signals stronger than expected earnings for the year, which may support the stock’s valuation. Investors will adjust their models to reflect the higher projected cash flow and profitability.

  • 1Q3 2026 revenue was $1.61 billion, up 8.9% YoY.
  • 2Adjusted EPS for the quarter was $1.52.
  • 3Adjusted EBITDA increased 15.5% to $346.6 million.
  • 4Full‑year revenue guidance was lifted to $6.48 billion at the midpoint.
  • 5Full‑year adjusted EPS guidance was raised to $6.30 at the midpoint.
  • 6The company opened four new hospitals totaling 189 beds and added 85 beds to existing facilities during the first nine months of 2026.
  • Full‑year EPS guidance range differs: $6.23‑$6.37 per share reported in materials 3 and 4 versus $6.30 midpoint in material 5.

Sources