Encompass Health posts strong Q3 2026 results and lifts full‑year outlook
Encompass Health Corp. reported third‑quarter 2026 net operating revenue of $1.61 billion, up 8.9% year over year, and adjusted EBITDA of $346.6 million, up 15.5%. Adjusted earnings per share rose 23.6% to $1.52. The company raised its 2026 revenue guidance to $6.45 billion‑$6.50 billion, adjusted EBITDA guidance to $1.395 billion‑$1.415 billion and adjusted EPS guidance to $6.23‑$6.37, and highlighted capacity expansion with four new hospitals and 85 added beds.
Why it matters
The higher guidance signals stronger future cash flow and earnings potential, which could support a higher valuation for the stock (the company’s shares rose on the news). The expanded capacity and improved profitability metrics suggest continued growth momentum.
Key facts
- 1Q3 net operating revenue was $1,609.5 million, representing 8.9% growth YoY. fool.com
- 2Adjusted EBITDA for the quarter was $346.6 million, up 15.5% YoY. fool.com
- 3Adjusted EPS for the quarter was $1.52, up 23.6% YoY. fool.com
- 4Full‑year 2026 revenue guidance was raised to $6.45 billion‑$6.50 billion, from $6.41 billion‑$6.49 billion. fool.com
- 5Full‑year adjusted EBITDA guidance was raised to $1.395 billion‑$1.415 billion, from $1.365 billion‑$1.395 billion. fool.com
- 6Full‑year adjusted EPS guidance was raised to $6.23‑$6.37, from $6.02‑$6.25. fool.com
Summary written by AlphAI AI Desk from 12 of 12 sources. Not investment advice. Figures are as stated by the linked sources.