Track market-moving stories before they get noisy

It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.

The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.

It also includes access to the Zacks Style Scores.

What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.

Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.

The Style Scores are broken down into four categories:

Value ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.

Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.

Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.

VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.

How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.

It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.8% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.

With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.

That's where the Style Scores come in.

To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.

As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.

A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.

Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: Encompass Health (EHC - Free Report) Encompass Health Corporation is a provider of integrated healthcare services. It offers facility-based patient care through its network of inpatient rehabilitation hospitals. Through its extensive network of 173 hospitals across 39 states and Puerto Rico, the company delivers high-quality, cost-effective, integrated care in the healthcare space. It provides a continuum of facility-based for its patients and their families, which will gain more prevalence as coordinated care and integrated delivery payment models, such as accountable care organizations and bundled payment arrangements.

EHC is a #2 (Buy) on the Zacks Rank, with a VGM Score of A.

Momentum investors should take note of this Medical stock. EHC has a Momentum Style Score of A, and shares are up 6.2% over the past four weeks.

For fiscal 2026, six analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.10 to $6.07 per share. EHC boasts an average earnings surprise of +6.8%.

With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, EHC should be on investors' short list.

Bank of New York Mellon Corp purchased a new stake in shares of Encompass Health Corporation (NYSE:EHC – Free Report) in the second quarter, according to its most recent disclosure with the Securities & Exchange Commission. The firm purchased 808,034 shares of the company’s stock, valued at approximately $81,676,000. Bank of New York Mellon Corp owned about 0.81% of Encompass Health at the end of the most recent quarter.

Several other large investors have also recently modified their holdings of the business. State of Wyoming bought a new stake in shares of Encompass Health during the 2nd quarter valued at $70,000. GSA Capital Partners LLP bought a new position in Encompass Health in the 2nd quarter worth about $933,000. Oppenheimer Asset Management Inc. bought a new position in Encompass Health in the 2nd quarter worth about $2,620,000. Trust Point Inc. purchased a new stake in shares of Encompass Health in the second quarter worth about $211,000. Finally, Reinhart Partners LLC. boosted its position in shares of Encompass Health by 1.9% in the second quarter. Reinhart Partners LLC. now owns 435,362 shares of the company’s stock valued at $44,008,000 after acquiring an additional 8,162 shares during the period. Hedge funds and other institutional investors own 97.25% of the company’s stock.

Insider Activity at Encompass Health In related news, CEO Mark J. Tarr sold 173,148 shares of Encompass Health stock in a transaction on Monday, August 10th. The shares were sold at an average price of $125.47, for a total value of $21,724,879.56. Following the transaction, the chief executive officer directly owned 267,814 shares of the company’s stock, valued at $33,602,622.58. The trade was a 39.27% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, EVP John Patrick Darby sold 8,906 shares of the company’s stock in a transaction on Monday, August 10th. The shares were sold at an average price of $125.95, for a total transaction of $1,121,710.70. Following the sale, the executive vice president owned 75,041 shares of the company’s stock, valued at $9,451,413.95. This represents a 10.61% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 1.80% of the stock is owned by company insiders.

Encompass Health Price Performance Shares of Encompass Health stock opened at $120.18 on Wednesday. The company has a debt-to-equity ratio of 0.76, a quick ratio of 1.19 and a current ratio of 1.19. Encompass Health Corporation has a 52-week low of $92.77 and a 52-week high of $127.99. The company has a fifty day moving average of $111.85 and a 200-day moving average of $106.83. The stock has a market capitalization of $11.86 billion, a price-to-earnings ratio of 19.57, a price-to-earnings-growth ratio of 2.45 and a beta of 0.72. Encompass Health (NYSE:EHC – Get Free Report) last issued its earnings results on Wednesday, August 5th. The company reported $1.55 EPS for the quarter, topping analysts’ consensus estimates of $1.48 by $0.07. Encompass Health had a net margin of 10.01% and a return on equity of 18.08%. The company had revenue of $1.60 billion for the quarter, compared to analysts’ expectations of $1.57 billion. During the same quarter last year, the company earned $1.40 EPS. The firm’s revenue was up 9.6% compared to the same quarter last year. Encompass Health has set its FY 2026 guidance at 6.020-6.250 EPS. Equities research analysts expect that Encompass Health Corporation will post 6.09 EPS for the current year.

Encompass Health Increases Dividend The business also recently announced a quarterly dividend, which will be paid on Thursday, October 15th. Investors of record on Thursday, October 1st will be issued a dividend of $0.21 per share. The ex-dividend date is Thursday, October 1st. This represents a $0.84 annualized dividend and a yield of 0.7%. This is a boost from Encompass Health’s previous quarterly dividend of $0.19. Encompass Health’s dividend payout ratio (DPR) is currently 12.38%.

Analysts Set New Price Targets Several analysts have issued reports on EHC shares. Leerink Partners set a $152.00 target price on shares of Encompass Health in a research note on Friday, May 22nd. Weiss Ratings upgraded shares of Encompass Health from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Wednesday, August 12th. Barclays upped their price target on shares of Encompass Health from $140.00 to $144.00 and gave the stock an “overweight” rating in a report on Thursday, August 6th. TD Cowen upped their price objective on shares of Encompass Health from $125.00 to $140.00 and gave the stock a “buy” rating in a research report on Monday, August 10th. Finally, Truist Financial raised their target price on shares of Encompass Health from $140.00 to $150.00 and gave the company a “buy” rating in a research note on Friday, August 7th. One equities research analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating and one has given a Hold rating to the company. Based on data from MarketBeat.com, the stock has a consensus rating of “Buy” and a consensus target price of $148.71.

View Our Latest Stock Report on EHC

Encompass Health Company Profile (Free Report)

Encompass Health Corporation is a leading provider of post‐acute healthcare services in the United States, operating a comprehensive network of inpatient rehabilitation hospitals and home health and hospice agencies. Its inpatient rehabilitation hospitals offer intensive therapy programs for patients recovering from conditions such as stroke, brain injury, spinal cord injury, cardiac and pulmonary disorders, and orthopedic procedures. Through its home health segment, Encompass Health delivers skilled nursing, physical therapy, occupational therapy and speech therapy to patients in the comfort of their homes, while its hospice services provide end‐of‐life care focused on symptom management and emotional support for patients and families.

Founded in 1984 as HealthSouth Corporation and rebranded as Encompass Health in 2018, the company has grown organically and through acquisitions to serve patients across more than 30 states.

Featured Stories Five stocks we like better than Encompass Health Pathward’s Credit Scare Tests Its Comeback Story Wiring the AI Boom: Rumble’s $13.7B Pivot StoneX: Too Far Too Fast? DICK’s Sporting Goods Faces Pain Now for a Bigger Prize

Receive News & Ratings for Encompass Health Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Encompass Health and related companies with MarketBeat.com's FREE daily email newsletter.

Encompass Health Corporation is the largest U.S. inpatient rehabilitation hospital operator, showing robust top- and bottom-line growth with industry-leading balance sheet strength. EHC is executing a disciplined expansion strategy, targeting 6–10 new hospitals and 80–120 bed additions annually, supported by favorable US demographic trends. Despite trading at a premium to peers, EHC's valuation remains attractive given its growth, profitability, and declining net leverage ratio.

Canada Pension Plan Investment Board acquired a new position in Encompass Health Corporation (NYSE:EHC – Free Report) in the 2nd quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The fund acquired 76,400 shares of the company’s stock, valued at approximately $7,723,000. Canada Pension Plan Investment Board owned approximately 0.08% of Encompass Health as of its most recent SEC filing.

A number of other institutional investors have also recently bought and sold shares of EHC. Legal & General Group Plc acquired a new position in shares of Encompass Health during the 2nd quarter worth approximately $14,405,000. The Manufacturers Life Insurance Company acquired a new stake in shares of Encompass Health in the second quarter valued at approximately $13,532,000. L2 Asset Management LLC acquired a new stake in shares of Encompass Health in the second quarter valued at approximately $492,000. Meiji Yasuda Asset Management Co Ltd. bought a new stake in shares of Encompass Health in the second quarter valued at approximately $235,000. Finally, Globeflex Capital L P bought a new stake in shares of Encompass Health in the second quarter valued at approximately $1,118,000. Institutional investors own 97.25% of the company’s stock.

Analyst Upgrades and Downgrades A number of equities analysts have commented on EHC shares. Wall Street Zen upgraded Encompass Health from a “hold” rating to a “buy” rating in a research note on Sunday, August 16th. Leerink Partners set a $152.00 target price on Encompass Health in a research report on Friday, May 22nd. Barclays increased their target price on Encompass Health from $140.00 to $144.00 and gave the stock an “overweight” rating in a report on Thursday, August 6th. TD Cowen boosted their price target on Encompass Health from $125.00 to $140.00 and gave the company a “buy” rating in a research note on Monday, August 10th. Finally, Weiss Ratings raised shares of Encompass Health from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Wednesday, August 12th. One research analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating and one has given a Hold rating to the company’s stock. According to MarketBeat.com, the company currently has a consensus rating of “Buy” and a consensus price target of $148.71.

Read Our Latest Analysis on EHC Insider Buying and Selling at Encompass Health In other Encompass Health news, EVP John Patrick Darby sold 8,906 shares of Encompass Health stock in a transaction dated Monday, August 10th. The stock was sold at an average price of $125.95, for a total value of $1,121,710.70. Following the transaction, the executive vice president owned 75,041 shares in the company, valued at $9,451,413.95. The trade was a 10.61% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, CEO Mark J. Tarr sold 173,148 shares of the business’s stock in a transaction dated Monday, August 10th. The stock was sold at an average price of $125.47, for a total value of $21,724,879.56. Following the transaction, the chief executive officer directly owned 267,814 shares of the company’s stock, valued at approximately $33,602,622.58. The trade was a 39.27% decrease in their position. The SEC filing for this sale provides additional information. 1.80% of the stock is owned by corporate insiders.

Encompass Health Stock Performance NYSE EHC opened at $120.98 on Friday. The firm’s 50 day simple moving average is $113.20 and its 200 day simple moving average is $107.18. The firm has a market capitalization of $11.93 billion, a price-to-earnings ratio of 19.70, a P/E/G ratio of 2.45 and a beta of 0.72. The company has a current ratio of 1.19, a quick ratio of 1.19 and a debt-to-equity ratio of 0.76. Encompass Health Corporation has a 1 year low of $92.77 and a 1 year high of $127.99.

Encompass Health (NYSE:EHC – Get Free Report) last announced its quarterly earnings data on Wednesday, August 5th. The company reported $1.55 EPS for the quarter, beating the consensus estimate of $1.48 by $0.07. Encompass Health had a net margin of 10.01% and a return on equity of 18.08%. The business had revenue of $1.60 billion during the quarter, compared to the consensus estimate of $1.57 billion. During the same period in the previous year, the business earned $1.40 earnings per share. The company’s revenue was up 9.6% on a year-over-year basis. Encompass Health has set its FY 2026 guidance at 6.020-6.250 EPS. As a group, research analysts expect that Encompass Health Corporation will post 6.08 earnings per share for the current fiscal year.

Encompass Health Increases Dividend The firm also recently declared a quarterly dividend, which will be paid on Thursday, October 15th. Stockholders of record on Thursday, October 1st will be issued a dividend of $0.21 per share. This is an increase from Encompass Health’s previous quarterly dividend of $0.19. The ex-dividend date of this dividend is Thursday, October 1st. This represents a $0.84 dividend on an annualized basis and a dividend yield of 0.7%. Encompass Health’s payout ratio is presently 12.38%.

Encompass Health Company Profile (Free Report)

Encompass Health Corporation is a leading provider of post‐acute healthcare services in the United States, operating a comprehensive network of inpatient rehabilitation hospitals and home health and hospice agencies. Its inpatient rehabilitation hospitals offer intensive therapy programs for patients recovering from conditions such as stroke, brain injury, spinal cord injury, cardiac and pulmonary disorders, and orthopedic procedures. Through its home health segment, Encompass Health delivers skilled nursing, physical therapy, occupational therapy and speech therapy to patients in the comfort of their homes, while its hospice services provide end‐of‐life care focused on symptom management and emotional support for patients and families.

Founded in 1984 as HealthSouth Corporation and rebranded as Encompass Health in 2018, the company has grown organically and through acquisitions to serve patients across more than 30 states.

Read More Five stocks we like better than Encompass Health From SaaS-pocalypse to Perfect Storm: Workday’s AI Growth Story Strengthens These 3 GARP Stocks Show Why Growth and Value Do Not Have to Clash Venture Into High-Volatility Corners of the Market With These 3 ETFs 3 Retail Stocks to Watch After a Big Consumer Earnings Week

Receive News & Ratings for Encompass Health Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Encompass Health and related companies with MarketBeat.com's FREE daily email newsletter.

Key Takeaways EHC's revenues rose 9.6% year over year in Q2 2026, driven by higher discharges and net revenue per discharge.EHC plans five new hospitals and 250 beds, plus 100-150 beds at existing facilities in 2026.EHC raised 2026 revenue and adjusted EPS guidance as occupancy and cash flow continued to improve. Encompass Health Corporation (EHC - Free Report) is well-positioned for growth, supported by rising demand for inpatient rehabilitation services, higher patient acuity and continued investments in expanding its hospital capacity. The company has gained 13.9% over the past six-month period, outperforming the industry average of 11.2%.

Encompass Health — with a market cap of $12 billion — offers facility-based patient care through its network of inpatient rehabilitation hospitals. The company has a national footprint that includes 176 hospitals across 39 states and Puerto Rico. Its forward P/E ratio of 18.92X is lower than the industry average of 19.27X.

Courtesy of solid prospects, Encompass Health currently carries a Zacks Rank #2 (Buy) and a Growth Score of B.

Where Do EHC’s Estimates Stand?The Zacks Consensus Estimate for Encompass Health’s 2026 earnings is pegged at $6.04 per share, indicating a 10.8% year-over-year rise. In the past 30 days, it has witnessed five upward estimate revisions against none in the opposite direction. Furthermore, the consensus mark for revenues is pegged at $6.5 billion for 2026, implying an 8.8% year-over-year increase.

It beat earnings estimates in each of the past four quarters with an average surprise of 6.8%.

EHC’s Growth DriversEncompass Health’s growth is being supported by rising demand for inpatient rehabilitation and a favorable shift toward higher-acuity patients. In the second quarter of 2026, revenues increased 9.6% year over year, driven by 5.6% growth in discharges and a 3.9% increase in net revenue per discharge. Medically complex categories remained strong, with growth in same-store stroke and brain injury volumes. System-wide occupancy also reached 77.4%, up 290 basis points year over year, supporting better utilization of the company’s growing hospital network.

Capacity expansion remains a key part of Encompass Health’s long-term growth strategy. The company opened three hospitals totaling 139 beds during the first half of 2026 and plans to open another five hospitals with 250 beds while adding 100-150 beds to existing facilities during the remainder of the year. Beyond 2026, the development pipeline currently includes 13 hospitals with 606 beds. North Carolina is emerging as an additional growth market following the repeal of its inpatient rehabilitation Certificate of Need law.

Workforce development and care-access initiatives are also supporting Encompass Health’s growth. Its clinical career ladder programs are helping improve staff retention, reduce reliance on premium labor and strengthen its ability to care for higher-acuity patients. The company is also expanding its VA business and testing initiatives such as its admit and appeal program, which could create additional growth opportunities.

The company’s financial stability is reinforced by its strong liquidity position and robust cash flow generation. As of June 30, 2025, Encompass Health held $107.7 million in cash and cash equivalents, up 49.2% from the 2025-end level. Operating cash flows increased 17.2% year over year in 2025 and 6.6% in the first half of 2026.

The company boasts a favorable trailing 12-month return on invested capital of 10.1%, surpassing the industry average of 7.1%. EHC increased its 2026 net operating revenue forecast, now to be in the range of $6.41-$6.49 billion. It also increased its adjusted EPS guidance to be between $6.02 and $6.25.

EHC: Risks to WatchThere are some factors, however, that investors should keep a careful eye on.

The company’s operating expenses escalated over the last several years due to higher salaries and benefits expenses. Total expenses increased 10.8% in 2024 and 8.3% year over year in 2025, along with 8.1% and 9.2% in the first quarter and second quarter of 2026, respectively. The persistent escalation of expenses might weigh on its margin growth.

The company carries a significant long-term debt, net of the current portion, which amounted to $2.6 billion at the end of the second quarter. This leads to a net debt-to-capitalization of 41.4%, higher than the industry average of 37.6%.

Other Stocks to ConsiderSome other top-ranked stocks in the Medical space are BrightSpring Health Services, Inc. (BTSG - Free Report) , Globus Medical, Inc. (GMED - Free Report) and Centene Corporation (CNC - Free Report) , each currently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for BrightSpring Health Services’ current-year earnings of $1.78 per share has witnessed five upward revisions in the past 30 days against no movement in the opposite direction. BTSG beat earnings estimates in three of the trailing four quarters and missed once, with the average surprise being 16.1%. The consensus estimate for current-year revenues is pegged at $15.2 billion, suggesting 18.1% year-over-year growth.

The Zacks Consensus Estimate for Globus Medical’s current-year earnings of $4.93 per share has witnessed three upward revisions in the past 30 days, against no movement in the opposite direction. GMED Pharmaceuticals beat earnings estimates in each of the trailing four quarters, with the average surprise being 27.9%. The consensus estimate for current-year revenues is pegged at $3.2 billion, suggesting 8.8% year-over-year growth.

The Zacks Consensus Estimate for Centene’s current-year earnings of $4.89 per share has witnessed nine upward revisions in the past 30 days, against no movement in the opposite direction. CNC beat earnings estimates in each of the trailing four quarters, with an average surprise of 151.3%. The consensus estimate for current-year revenues is pegged at $196.3 billion, suggesting 0.8% year-over-year growth.

Encompass Health Corporation (EHC +0.03%) President and CEO Mark J. Tarr reported a sale of about 173,000 shares of common stock on August 10, according to a recent SEC Form 4 filing.

Transaction summaryMetricValueTransaction dateAugust 10, 2026Shares sold173,148Transaction value$21.7 millionPost-transaction shares (directly held)267,814Post-transaction value$33.69 millionTransaction value based on SEC Form 4 weighted average sale price ($125.47); post-transaction value based on the August 10 market close ($125.81).

Key questionsWhat were the specific execution details for this transaction?
The shares were sold in multiple transactions at prices ranging from $124.93 to $126.22, with the reporting person providing weighted average data for two distinct price bands in the filing.How does this sale impact the CEO's overall equity stake?
The disposition reduced Tarr's direct common stock position by 39%, though he maintains a significant remaining stake of 268,000 shares valued at more than $33 million.What is the broader operational context for Encompass Health?
Headquartered in Birmingham, the company operates across two primary divisions, Inpatient Rehabilitation and Home Health and Hospice, and currently maintains a market capitalization of $12.5 billion.Does the insider have any remaining indirect beneficial interest?
No, the CEO's total beneficial ownership of 267,814 shares consists entirely of direct holdings, with no shares reported in indirect accounts or other share classes.Company OverviewMetricValueShare Price (as of market close 2026-08-10)$125.81Market Capitalization$12.5 billionRevenue (TTM)$6.2 billionNet Income (TTM)$621.0 millionCompany SnapshotEncompass Health Corporation operates a diversified post-acute healthcare platform delivering inpatient rehabilitation services and home health and hospice care across the United States through both dedicated facilities and in-home settings.The company generates revenue through its two primary divisions: Inpatient Rehabilitation, which provides focused recovery treatment on an inpatient and outpatient basis, and Home Health and Hospice, which delivers care services directly to patients in their residences.Encompass Health serves patients transitioning from acute care settings, including those recovering from significant illnesses, surgeries, and injuries, with a customer base comprised of healthcare systems, insurance providers, and individual patients requiring post-acute care services.Encompass Health Corporation is a leading operator in the post-acute healthcare sector with a market capitalization of $12.5 billion and TTM revenues of $6.2 billion, positioning the company as a significant provider of rehabilitation and home-based care services. The company's diversified business model across inpatient facilities and home health services provides revenue stability and exposure to the growing demand for post-acute care driven by an aging population and the shift toward value-based care delivery. With over 40,000 employees and a strong net income margin of approximately 10% on TTM revenues, Encompass Health maintains operational scale and profitability in a fragmented market characterized by consolidation opportunities.

What this transaction means for investorsTarr didn't have shares withheld for taxes here, and there's no plan noted; he chose to sell, and he parted with about 39% of his direct stake in a single stretch, a meaningful cut for a sitting CEO. He did it days after Encompass Health's stock jumped on strong earnings, near a 52-week high, so he sold into strength. He still holds around 268,000 shares worth more than $33 million, which keeps him well aligned, but a sale this size deserves noting rather than dismissing.

That said, the sale doesn't appear to signal trouble at the company. Encompass reported earlier this month that revenue rose about 10% to $1.6 billion, raised its full-year guidance for the second time this year, and lifted both its dividend and buyback authorization to $1 billion. Demand for its rehabilitation hospitals keeps climbing as the population ages, and in the earnings release, Tarr said the company was "very pleased with our second quarter results."

Ultimately, the most likely read here is a CEO taking some money off the table after a strong run, not a warning, though a steep cut is worth watching for whether more follows.

Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

John Patrick Darby, EVP and general counsel of Encompass Health Corporation (EHC +0.03%), sold 8,906 shares of common stock on August 10, according to an SEC Form 4 filing.

Transaction summaryMetricValueShares sold (directly held)8,906Transaction value$1.1 millionPost-transaction shares (directly held)75,041Post-transaction value$9.44 millionTransaction value based on SEC Form 4 weighted average sale price ($125.95); post-transaction value based on the August 10 market close ($125.81).

Key questionsHow does this sale impact the executive's overall equity exposure?
The disposal of 8,906 shares accounted for 11% of the insider's direct common stock position, resulting in a remaining direct stake of 75,041 shares.What was the execution range for the reported transaction?
The shares were sold in multiple transactions at prices ranging from $125.94 to $126.04, yielding a weighted average price of $125.95.What is the financial profile of Encompass Health at the time of this trade?
The company, a provider of post-acute healthcare services, reported $6.2 billion in trailing-twelve-month revenue and $621.0 million in net income, supporting a market capitalization of $12.5 billion as of the August 10 market close.Does the insider maintain other forms of beneficial ownership?
Total beneficial ownership is reported at 75,041 shares, which align with the executive's direct common stock holdings following this transaction.Company OverviewMetricValueShare Price (as of market close 2026-08-10)$125.81Market Capitalization$12.5 billionRevenue (TTM)$6.2 billionNet Income (TTM)$621.0 millionCompany SnapshotEncompass Health Corporation operates a diversified post-acute healthcare platform delivering inpatient rehabilitation services and home health and hospice care across the United States through both dedicated facilities and in-home settings.The company generates revenue through its two primary divisions: Inpatient Rehabilitation, which provides focused recovery treatment on an inpatient and outpatient basis, and Home Health and Hospice, which delivers care services directly to patients in their residences.Encompass Health serves patients transitioning from acute care settings, including those recovering from significant illnesses, surgeries, and injuries, with a customer base comprised of healthcare systems, insurance providers, and individual patients requiring post-acute care services.Encompass Health Corporation is a leading operator in the post-acute healthcare sector, with a market capitalization of $12.5 billion and TTM revenues of $6.2 billion, positioning it as a significant provider of rehabilitation and home-based care services. The company's diversified business model across inpatient facilities and home health services provides revenue stability and exposure to the growing demand for post-acute care driven by an aging population and the shift toward value-based care delivery. With over 42,000 employees and a strong net income margin of approximately 10% on TTM revenues, Encompass Health maintains operational scale and profitability in a fragmented market characterized by consolidation opportunities.

What this transaction means for investorsDarby wasn't alone among insiders selling shares after a strong earnings report lifted the stock, and the quarter they sold into had a specific tailwind worth noting. Beyond the 10% revenue growth and the raised guidance, Encompass benefits from a coming Medicare rate increase, the firm noted on its latest earnings call. Federal regulators finalized a rule in late July lifting payments for inpatient rehabilitation by about 2.3% starting in October, and because Medicare covers a large share of Encompass patients, that adjustment flows fairly directly toward its results, and it was part of why management raised its outlook for the second time this year.

The reimbursement backdrop is the real thing for shareholders to track, more than three insiders trimming after a rally. Encompass grows by adding hospital capacity into steady demand, but its pricing leans on government rates, so a favorable Medicare update helps and an unfavorable one would sting.

Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

, /PRNewswire/ -- Encompass Health Corp. (NYSE: EHC) today announced it has commenced a private offering of an additional $100 million in aggregate principal amount of 5.875% senior notes maturing in 2034 (the "Additional Notes"), subject to market and other conditions. The Additional Notes will constitute a reopening of the Company's 5.875% senior notes maturing in 2034 originally issued in May 2026 (the "Existing Notes") and will be treated as the same class as, and will have the same terms (other than the date of issuance and the offering price) as, the Existing Notes. The Additional Notes will be jointly and severally guaranteed on a senior unsecured basis by all of the Company's existing and future subsidiaries that guarantee borrowings under the Company's credit agreement and other capital markets debt.

The Company intends to use the net proceeds from the offering of the Additional Notes, together with cash on hand, to repay outstanding amounts under the Company's senior secured revolving credit facility.

The Additional Notes will be offered in the United States only to persons reasonably believed to be qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the "Securities Act"), and to certain non-U.S. persons in transactions outside the United States pursuant to Regulation S under the Securities Act. The offer and any sale of the Additional Notes and the related guarantees have not been and will not be registered under the Securities Act or any state securities laws, and the Additional Notes may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and applicable state securities laws.

This press release is for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any security and does not constitute an offer, solicitation or sale of any security in any jurisdiction in which such offer, solicitation or sale would be unlawful.

About Encompass Health 
Encompass Health (NYSE: EHC) is the largest owner and operator of inpatient rehabilitation hospitals in the United States. With a national footprint that includes 176 hospitals in 39 states and Puerto Rico, the Company provides high-quality, compassionate rehabilitative care for patients recovering from a major injury or illness, using advanced technology and innovative treatments to maximize recovery. Encompass Health is recognized by Newsweek as America's Most Awarded Leader in Inpatient Rehabilitation and is ranked among Fortune's World's Most Admired Companies™ and Forbes' America's Best Companies. It is also recognized by Becker's Healthcare and Modern Healthcare as a top healthcare employer. For more information, visit encompasshealth.com, or follow us on our newsroom, X, Instagram and Facebook.

From Fortune.© 2026 Fortune Media IP Limited. All rights reserved. Fortune® is a registered trademark and Fortune World's Most Admired Companies™ is a trademark of Fortune Media IP Limited and are used under license. Fortune and Fortune Media IP Limited are not affiliated with, and do not endorse products or services of, Encompass Health. 

Forward-looking statements 
Statements contained in this press release which are not historical facts, such as the likelihood, timing and effects of the completion of the private offering of the Additional Notes, are forward-looking statements. In addition, Encompass Health, through its senior management, may from time to time make forward-looking public statements concerning the matters described herein. All such estimates, projections, and forward-looking information speak only as of the date hereof, and Encompass Health undertakes no duty to publicly update or revise such forward-looking information, whether as a result of new information, future events, or otherwise. Such forward-looking statements are necessarily estimates based upon current information and involve a number of risks and uncertainties. Actual events or results may differ materially from those anticipated in these forward-looking statements as a result of a variety of factors. While it is impossible to identify all such factors, factors which could cause actual events or results to differ materially from those estimated by Encompass Health include, but are not limited to, Encompass Health's ability to complete the offering of the Additional Notes on the terms described or at all; potential disruptions, breaches, or other incidents affecting the proper operation, availability, or security of Encompass Health's information systems, including unauthorized access to or theft of patient, business associate, or other sensitive information; changes, delays in (including in connection with resolution of Medicare payment reviews or appeals), or suspension of reimbursement for Encompass Health's services by governmental or private payors; a significant disruption in the capital markets or economy; and other factors which may be identified from time to time in Encompass Health's SEC filings and other public announcements, including its Form 10-K for the year ended Dec. 31, 2025 and Forms 10-Q for the quarters ended March 31, 2026 and June 30, 2026.

Media contact:
Polly Manuel | 205-970-5912
[email protected]

Investor relations contact:
Mark Miller | 205-970-5860
[email protected]

SOURCE Encompass Health Corp.

Key Takeaways EHC topped Q2 earnings estimates as revenues, patient revenue per discharge and discharges increased.Encompass Health raised 2026 revenue, adjusted EBITDA and adjusted EPS guidance after strong Q2 results.EHC reaffirmed expansion plans with new hospitals, bed additions and long-term discharge growth targets. Encompass Health Corporation (EHC - Free Report) reported second-quarter adjusted earnings per share (EPS) of $1.55, which beat the Zacks Consensus Estimate by 4.7%. The bottom line increased 10.7% year over year.

Net operating revenues of $1.6 billion improved 9.6% year over year. The top line marginally beat the consensus mark by 1.5%.

The robust results were primarily driven by strong growth in net patient revenue per discharge, supported by solid discharge volumes and contributions from capacity expansion. However, the upside was partly offset by elevated operating expenses, particularly higher salaries, benefits, and general and administrative costs.

EHC’s Q2 OperationsEHC’s net patient revenue per discharge rose 3.9% year over year and beat the Zacks Consensus Estimate by 2.1%. Total discharges grew 5.6% year over year to 68,895, but missed the consensus estimate by 0.2%.

Total operating expenses of $1.3 billion escalated 9.2% year over year due to elevated salaries, benefits, other operating and general & administrative expenses. The figure marginally missed our estimate by 0.9%.

Net income climbed 12.2% year over year to $207.4 million in the second quarter.

Adjusted EBITDA of $348 million grew 9.2% year over year and surpassed our estimate of $330.2 million.

In the first half, Encompass Health opened three new hospitals with beds totaling 139 and added 54 beds across its existing hospitals.

Financial Update (As of June 30, 2026)Encompass Health exited the second quarter with cash and cash equivalents of $107.7 million, which rose 49.2% from the 2025-end level.

Total assets of $7.5 billion increased 5.2% from the 2025-end level.

Long-term debt, net of the current portion, amounted to $2.6 billion, which increased 6.2% from that recorded as of Dec. 31, 2025. The current portion of long-term debt totaled $35.9 million.

Total shareholders’ equity of $3.4 billion improved 5.8% from the 2025-end figure.

EHC generated $595.7 million of net cash from operations in the first half, which improved 6.6% from the prior-year figure. Adjusted free cash flow decreased 9.2% to $370.8 million for the period.

Capital Deployment UpdateEncompass Health bought back 0.7 million shares worth $74.2 million in the second quarter of 2026. As of June 30, 2026, the company had a leftover capacity of around $188 million under its buyback authorization.

On July 23, 2026, Encompass Health increased the aggregate common stock repurchase authorization to $1 billion.

Management paid out a quarterly cash dividend of 19 cents per share.

2026 Outlook by Encompass HealthNet operating revenues are now expected to be between $6.41 billion and $6.49 billion, up from the earlier projection of $6.375-$6.475 billion. This reflected growth over the 2025 reported figure of $5.94 billion.

Adjusted EBITDA is now expected to range between $1.365 billion and $1.395 billion, up from $1.27 billion in 2025. The prior guidance was $1.35-$1.38 billion for the metric.

Adjusted EPS from continuing operations is projected to be between $6.02 and $6.25, reflecting an increase from $5.45 in 2025. The earlier guidance for the metric was $5.89-$6.11.

Adjusted free cash flow is presently forecasted to be in the range of $760-$865 million. Maintenance CAPEX is expected to remain in the range of $225-$240 million.

The company still expects to open eight de novo hospitals, adding a total of 389 beds. It plans to add 150 to 200 beds to its existing hospitals.

Growth Targets ReaffirmedOver the 2023-2027 period, management still aims to inaugurate six to 10 de novos each year, as well as make bed additions in the range of 80-120 every year. It also expects a CAGR of 6-8% in discharges in the same time frame.

It also expects to open freestanding hospitals, including remote and satellite locations, with more than 30 beds beginning in 2026.

EHC’s Zacks RankEHC currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

How Did Peers Perform?Here are some stocks from the broader Medical space that have also reported their quarterly results: Tenet Healthcare Corporation (THC - Free Report) , Elevance Health, Inc. (ELV - Free Report) and Pediatrix Medical Group, Inc. (MD - Free Report) . Here's how they have performed:

Tenet Healthcare reported second-quarter 2026 adjusted earnings per share of $6.12, which surpassed the Zacks Consensus Estimate by 50%. The bottom line increased 52.2% year over year. THC’s net operating revenues advanced 6.8% year over year to $5.63 billion. The quarterly results were driven by strong same-facility revenue growth, higher patient acuity, disciplined expense management and higher Medicaid supplemental revenues. However, the gains were partly offset by an unfavorable payer mix due to lower exchange admissions.

Elevance Health reported second-quarter 2026 adjusted earnings per share of $7.45, which surpassed the Zacks Consensus Estimate by 20.6%. However, the bottom line declined 15.7% year over year. Operating revenues advanced 0.8% year over year to $49.8 billion. ELV’s quarterly results were primarily driven by higher premium yields in the Health Benefits segment and increased CarelonRx product revenues. The gains were partly offset by a decline in overall medical membership and higher operating expenses.

Pediatrix Medical reported second-quarter 2026 adjusted earnings per share of 63 cents, which beat the Zacks Consensus Estimate by 10.5%. The bottom line increased 18.9% year over year. Net revenues increased 4.1% year over year to $487.8 million. MD’s strong performance was driven by improved cash collection activity and a favorable payor mix, along with contributions from recent acquisitions. However, these gains were partly offset by lower patient volumes and higher operating costs.

On August 06, 2026, Encompass Health Corp (EHC) shares rose 12.6% to a current price of $124.82. This increase is notable, considering the stock's performance o

For the quarter ended June 2026, Encompass Health (EHC - Free Report) reported revenue of $1.6 billion, up 9.6% over the same period last year. EPS came in at $1.55, compared to $1.40 in the year-ago quarter.

The reported revenue represents a surprise of +1.52% over the Zacks Consensus Estimate of $1.57 billion. With the consensus EPS estimate being $1.48, the EPS surprise was +4.73%.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.

Here is how Encompass Health performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

Net patient revenue per discharge: $22,521.00 compared to the $22,065.23 average estimate based on two analysts.Discharges: 68,895 versus 69,042 estimated by two analysts on average.Net Operating Revenues- Inpatient: $1.55 billion compared to the $1.52 billion average estimate based on two analysts. The reported number represents a change of +9.8% year over year.Net Operating Revenues- Other: $45.8 million versus $47.42 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +4.1% change.View all Key Company Metrics for Encompass Health here>>>

Shares of Encompass Health have returned -0.2% over the past month versus the Zacks S&P 500 composite's +3.5% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term.

Increases full-year guidance
Announces increase in common stock repurchase authorization

, /PRNewswire/ -- Encompass Health Corporation (NYSE: EHC), the largest owner and operator of inpatient rehabilitation hospitals in the United States, today reported its results of operations for the second quarter ended June 30, 2026.

Summary results

Growth

Q2 2026

Q2 2025

Dollars

Percent

(In Millions, Except Per Share Data)

Net operating revenue

$     1,597.4

$     1,457.7

$    139.7

9.6 %

Income from continuing operations attributable to
     Encompass Health per diluted share

1.55

1.40

0.15

10.7 %

Adjusted earnings per share

1.55

1.40

0.15

10.7 %

Cash flows provided by operating activities

282.6

270.2

12.4

4.6 %

Adjusted EBITDA

348.0

318.6

29.4

9.2 %

Adjusted free cash flow

177.0

185.9

(8.9)

(4.8) %

(Actual Amounts)

Discharges

68,895

65,237

5.6 %

   Same-store discharge growth

2.8 %

Net patient revenue per discharge

$      22,521

$      21,670

3.9 %

See attached supplemental information for calculations of non-GAAP measures and reconciliations to their most comparable GAAP measure.

"We are very pleased with our performance for the second quarter, as revenue increased 9.6% and Adjusted EBITDA grew 9.2%," said Mark Tarr, President and Chief Executive Officer. "Through the first half of the year, we have opened three hospitals totaling 139 beds and added 54 beds to existing hospitals. We expect to open five additional hospitals and add more than 100 beds to existing facilities before year end, further increasing access to high-quality inpatient rehabilitation care. Our value proposition and disciplined operating strategy continue to be validated, and we remain highly optimistic about the long-term prospects of our business."

2026 Guidance 

The Company increased its full-year guidance as follows: 

Full-Year 2026 Guidance

Previous Guidance

Updated Guidance

(In Millions, Except Per Share Data)

Net operating revenue

$6,375 to $6,470

$6,410 to $6,490

Adjusted EBITDA

$1,350 to $1,380

$1,365 to $1,395

Adjusted earnings per share from continuing operations
     attributable to Encompass Health

$5.89 to $6.11

$6.02 to $6.25

For considerations regarding the Company's 2026 guidance, see the supplemental information posted on the Company's website at http://investor.encompasshealth.com. See also the "Other information" section below for an explanation of why the Company does not provide guidance for comparable GAAP measures for Adjusted EBITDA and adjusted earnings per share.

Common stock repurchase authorization

On July 23, 2026, the Company's board of directors approved an increase in the aggregate common stock repurchase authorization to $1 billion. The Company repurchased $145.8 million of its common stock year to date and had approximately $188 million remaining under the prior authorization as of June 30, 2026.

Earnings conference call and webcast

The Company will host an investor conference call at 10:00 a.m. Eastern Time on Thursday, August 6, 2026 to discuss its results for the second quarter of 2026. For reference during the call, the Company will post certain supplemental information at http://investor.encompasshealth.com.

The conference call may be accessed by dialing 833 354-6854 and giving the conference ID EHCQ226. International callers should dial 785 838-9343 and give the same conference ID. Please call approximately ten minutes before the start of the call to ensure you are connected. The conference call will also be webcast live and will be available for on-line replay at http://investor.encompasshealth.com by clicking on an available link.

About Encompass Health

Encompass Health (NYSE: EHC) is the largest owner and operator of inpatient rehabilitation hospitals in the United States. With a national footprint that includes 176 hospitals in 39 states and Puerto Rico, the Company provides high-quality, compassionate rehabilitative care for patients recovering from a major injury or illness, using advanced technology and innovative treatments to maximize recovery. Encompass Health is recognized by Newsweek as America's Most Awarded Leader in Inpatient Rehabilitation and is  ranked among Fortune's World's Most Admired Companies™1 and Forbes' America's Best Companies. It is also recognized by Becker's Healthcare and Modern Healthcare as a top healthcare employer. For more information, visit encompasshealth.com, or follow us on our newsroom, X, Instagram and Facebook.

1 From Fortune. © 2026 Fortune Media IP Limited. All rights reserved. Fortune® is a registered trademark and Fortune World's Most Admired Companies™ is trademark of Fortune Media IP Limited and are used under license. Fortune and Fortune Media IP Limited are not affiliated with, and do not endorse products or services of, Encompass Health.

Other information

The information in this press release is summarized and should be read in conjunction with the Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2026 (the "June 2026 Form 10-Q"), when filed, as well as the Company's Current Report on Form 8-K filed on August 5, 2026 (the "Q2 Earnings Form 8-K"), to which this press release is attached as Exhibit 99.1. In addition, the Company will post supplemental information today on its website at http://investor.encompasshealth.com for reference during its August 6, 2026 earnings call.

The financial data contained in the press release and supplemental information include non-GAAP financial measures, including the Company's adjusted earnings per share, leverage ratio, Adjusted EBITDA, and adjusted free cash flow. Reconciliations to their most comparable GAAP measure, except with regard to non-GAAP guidance, are included below or in the Q2 Earnings Form 8-K. Readers are encouraged to review the "Note Regarding Presentation of Non-GAAP Financial Measures" included in the Q2 Earnings Form 8-K which provides further explanation and disclosure regarding the Company's use of these non-GAAP financial measures.

Excluding net operating revenues, the Company does not provide guidance on a GAAP basis because it is unable to predict, with reasonable certainty, the future impact of items that are deemed to be outside the control of the Company or otherwise not indicative of its ongoing operating performance. Such items include government, class action, and related settlements; professional fees—accounting, tax, and legal; mark-to-market adjustments for stock appreciation rights; gains or losses related to hedging instruments; loss on early extinguishment of debt; adjustments to its income tax provision (such as valuation allowance adjustments and settlements of income tax claims); items related to corporate and facility restructurings; and certain other items the Company believes to be not indicative of its ongoing operations. These items cannot be reasonably predicted and will depend on several factors, including industry and market conditions, and could be material to the Company's results computed in accordance with GAAP.

However, the following reasonably estimable GAAP measures for 2026 would be included in a reconciliation for Adjusted EBITDA if the other reconciling GAAP measures could be reasonably predicted:

Interest expense and amortization of debt discounts and fees - approximately $130 million Amortization of debt-related items - approximately $10 million The Q2 Earnings Form 8-K and, when filed, the June 2026 Form 10-Q can be found on the Company's website at http://investor.encompasshealth.com and the SEC's website at www.sec.gov.

Encompass Health Corporation and Subsidiaries

Condensed Consolidated Statements of Operations

(Unaudited)

Three Months Ended
June 30,

Six Months Ended
June 30,

2026

2025

2026

2025

(In Millions, Except Per Share Data)

Net operating revenues

$ 1,597.4

$ 1,457.7

$ 3,184.0

$ 2,913.1

Operating expenses:

Salaries and benefits

820.3

767.7

1,638.4

1,530.0

Other operating expenses

254.9

213.8

496.8

431.3

Occupancy costs

14.7

14.7

29.9

29.6

Supplies

66.1

63.1

130.4

125.3

General and administrative expenses

62.6

59.4

120.8

111.7

Depreciation and amortization

90.4

79.9

177.7

159.1

Total operating expenses

1,309.0

1,198.6

2,594.0

2,387.0

Loss on early extinguishment of debt

3.2

—

3.4

—

Interest expense and amortization of debt discounts and
     fees

32.8

30.4

64.6

62.2

Other income

(9.1)

(6.7)

(27.8)

(9.2)

Equity in net income of nonconsolidated affiliates

(0.1)

(1.4)

(0.5)

(2.3)

Income from continuing operations before income tax
     expense

261.6

236.8

550.3

475.4

Provision for income tax expense

53.6

51.0

110.0

92.6

Income from continuing operations

208.0

185.8

440.3

382.8

(Loss) income from discontinued operations, net of tax

(0.6)

(0.9)

15.3

(1.4)

Net income

207.4

184.9

455.6

381.4

Less: Net income attributable to noncontrolling interests

(53.5)

(42.8)

(107.2)

(87.8)

Net income attributable to Encompass Health

$    153.9

$    142.1

$    348.4

$    293.6

Weighted average common shares outstanding:

Basic

98.8

100.6

99.0

100.6

Diluted

100.0

102.3

100.3

102.2

Earnings per common share:

Basic earnings per share attributable to Encompass
     Health common shareholders:

Continuing operations

$      1.56

$      1.42

$      3.36

$      2.92

Discontinued operations

(0.01)

(0.01)

0.15

(0.01)

Net income

$      1.55

$      1.41

$      3.51

$      2.91

Diluted earnings per share attributable to Encompass
     Health common shareholders:

Continuing operations

$      1.55

$      1.40

$      3.32

$      2.88

Discontinued operations

(0.01)

(0.01)

0.15

(0.01)

Net income

$      1.54

$      1.39

$      3.47

$      2.87

Amounts attributable to Encompass Health common
     shareholders:

Income from continuing operations

$    154.5

$    143.0

$    333.1

$    295.0

(Loss) income from discontinued operations, net of tax

(0.6)

(0.9)

15.3

(1.4)

Net income attributable to Encompass Health

$    153.9

$    142.1

$    348.4

$    293.6

Encompass Health Corporation and Subsidiaries

Condensed Consolidated Balance Sheets

(Unaudited)

June 30,
2026

December 31,
2025

(In Millions)

Assets

Current assets:

Cash and cash equivalents

$          107.7

$              72.2

Restricted cash

25.8

30.7

Accounts receivable

687.3

619.2

Other current assets

220.2

183.8

Total current assets

1,041.0

905.9

Property and equipment, net

4,341.7

4,101.6

Operating lease right-of-use assets

198.2

212.6

Goodwill

1,323.5

1,317.6

Intangible assets, net

306.8

308.3

Other long-term assets

246.3

243.7

Total assets

$       7,457.5

$         7,089.7

Liabilities and Shareholders' Equity

Current liabilities:

Current portion of long-term debt

$            35.9

$              43.6

Current operating lease liabilities

27.5

26.5

Accounts payable

221.6

178.2

Accrued expenses and other current liabilities

588.4

588.1

Total current liabilities

873.4

836.4

Long-term debt, net of current portion

2,598.1

2,447.2

Long-term operating lease liabilities

180.8

196.6

Deferred income tax liabilities

131.9

126.8

Other long-term liabilities

212.2

206.9

Total liabilities

3,996.4

3,813.9

Commitments and contingencies

Redeemable noncontrolling interests

57.9

58.3

Shareholders' equity:

Encompass Health shareholders' equity

2,597.7

2,438.2

Noncontrolling interests

805.5

779.3

Total shareholders' equity

3,403.2

3,217.5

Total liabilities and shareholders' equity

$       7,457.5

$         7,089.7

Encompass Health Corporation and Subsidiaries

Condensed Consolidated Statements of Cash Flows

(Unaudited)

Six Months Ended June 30,

2026

2025

(In Millions)

Cash flows from operating activities:

Net income

$             455.6

$             381.4

(Income) loss from discontinued operations, net of tax

(15.3)

1.4

Adjustments to reconcile net income to net cash provided by
   operating activities—

Depreciation and amortization

177.7

159.1

Loss on early extinguishment of debt

3.4

—

Stock-based compensation

25.3

23.8

Deferred tax expense

5.4

5.3

Gain on investments

(22.6)

(3.2)

Other, net

6.8

4.3

Change in assets and liabilities, net of acquisitions—

Accounts receivable

(63.4)

(15.7)

Other assets

(28.4)

(16.5)

Accounts payable

20.3

(2.5)

Other liabilities

10.6

23.3

Net cash provided by (used in) operating activities of discontinued
     operations

20.3

(1.9)

Total adjustments

155.4

176.0

Net cash provided by operating activities

595.7

558.8

Cash flows from investing activities:

Purchases of property, equipment, and intangible assets

(382.7)

(320.0)

Proceeds from sale of restricted investments

59.6

132.0

Purchases of restricted investments

(54.5)

(127.8)

Other, net

(8.1)

(8.1)

Net cash used in investing activities

(385.7)

(323.9)

Cash flows from financing activities:

Proceeds from bond issuance

500.0

—

Principal payments on debt, including pre-payments

(411.8)

(10.7)

Borrowings on revolving credit facility

670.0

60.0

Payments on revolving credit facility

(600.0)

(80.0)

Principal payments under finance lease obligations

(12.9)

(11.6)

Debt amendment and issuance costs

(11.8)

—

Repurchases of common stock, including fees and expenses

(145.8)

(56.8)

Dividends paid on common stock

(39.2)

(35.1)

Distributions paid to noncontrolling interests of consolidated affiliates

(98.1)

(73.3)

Taxes paid on behalf of employees for shares withheld

(30.9)

(19.9)

Other, net

1.1

6.8

Net cash used in financing activities

(179.4)

(220.6)

Increase in cash, cash equivalents, and restricted cash

30.6

14.3

Cash, cash equivalents, and restricted cash at beginning of period

102.9

123.1

Cash, cash equivalents, and restricted cash at end of period

$             133.5

$             137.4

Encompass Health Corporation and Subsidiaries

Supplemental Information

Earnings Per Share

Three Months Ended
June 30,

Six Months Ended
June 30,

2026

2025

2026

2025

(In Millions, Except Per Share Data)

Adjusted EBITDA

$    348.0

$    318.6

$    696.8

$    632.2

Depreciation and amortization

(90.4)

(79.9)

(177.7)

(159.1)

Interest expense and amortization of debt discounts
     and fees

(32.8)

(30.4)

(64.6)

(62.2)

Stock-based compensation

(13.8)

(14.3)

(25.3)

(23.8)

Loss on disposal or impairment of assets

(2.1)

(0.3)

(2.4)

(0.5)

208.9

193.7

426.8

386.6

Items not indicative of ongoing operating performance:

Loss on early extinguishment of debt

(3.2)

—

(3.4)

—

Change in fair market value of marketable securities

2.4

0.3

2.2

1.0

Gain on sale of Gamma Knife

—

—

17.5

—

Pre-tax income

208.1

194.0

443.1

387.6

Income tax expense

(53.6)

(51.0)

(110.0)

(92.6)

Income from continuing operations (1)

$    154.5

$    143.0

$    333.1

$    295.0

Basic shares

98.8

100.6

99.0

100.6

Diluted shares

100.0

102.3

100.3

102.2

Basic earnings per share (1)

$      1.56

$      1.42

$      3.36

$      2.92

Diluted earnings per share (1)

$      1.55

$      1.40

$      3.32

$      2.88

(1)

Income from continuing operations attributable to Encompass Health

Encompass Health Corporation and Subsidiaries

Supplemental Information

Adjusted Earnings Per Share

Three Months Ended
June 30,

Six Months Ended
June 30,

2026

2025

2026

2025

Earnings per share, as reported

$     1.55

$     1.40

$     3.32

$     2.88

Adjustments, net of tax:

Income tax adjustments

(0.01)

—

(0.05)

(0.11)

Loss on early extinguishment of debt

0.02

—

0.02

—

Change in fair market value of marketable securities

(0.02)

—

(0.02)

(0.01)

Gain on sale of Gamma Knife

—

—

(0.13)

—

Adjusted earnings per share*

$     1.55

$     1.40

$     3.15

$     2.77

*

Adjusted EPS may not sum due to rounding.

Encompass Health Corporation and Subsidiaries

Supplemental Information

Reconciliation of Net Cash Provided by Operating Activities to Adjusted EBITDA

Three Months Ended
June 30,

Six Months Ended
June 30,

2026

2025

2026

2025

(In Millions)

Net cash provided by operating activities

$    282.6

$    270.2

$    595.7

$    558.8

Interest expense and amortization of debt discounts and
     fees

32.8

30.4

64.6

62.2

Gain on investments, excluding impairments

6.4

3.3

22.6

3.2

Equity in net income of nonconsolidated affiliates

0.1

1.4

0.5

2.3

Net income attributable to noncontrolling interests in
     continuing operations

(53.5)

(42.8)

(107.2)

(87.8)

Amortization of debt-related items

(2.2)

(2.4)

(4.6)

(4.8)

Distributions from nonconsolidated affiliates

(0.1)

(0.9)

(0.2)

(1.4)

Current portion of income tax expense

56.7

54.5

104.6

87.3

Change in assets and liabilities

27.1

3.9

60.9

11.4

Cash used in (provided by) operating activities of
     discontinued operations

0.9

1.2

(20.3)

1.9

Change in fair market value of marketable securities

(2.4)

(0.3)

(2.2)

(1.0)

Gain on sale of Gamma Knife

—

—

(17.5)

—

Other

(0.4)

0.1

(0.1)

0.1

Adjusted EBITDA

$    348.0

$    318.6

$    696.8

$    632.2

Encompass Health Corporation and Subsidiaries

Supplemental Information

Reconciliation of Income from Continuing Operations Attributable to Encompass Health per Diluted Share to Adjusted Earnings Per Share

For the Three Months Ended June 30, 2026

Adjustments

As
Reported

Loss on
Early
Exting. of
Debt

Income Tax
Adjustments

Change in Fair
Market Value
of Marketable
Securities

As
Adjusted

(In Millions, Except Per Share Amounts)

Adjusted EBITDA*

$   348.0

$         —

$             —

$                —

$   348.0

Depreciation and amortization

(90.4)

—

—

—

(90.4)

Interest expense and amortization of debt discounts and fees

(32.8)

—

—

—

(32.8)

Stock-based compensation

(13.8)

—

—

—

(13.8)

Loss on disposal or impairment of assets

(2.1)

—

—

—

(2.1)

Loss on early extinguishment of debt

(3.2)

3.2

—

—

—

Change in fair market value of marketable securities

2.4

—

—

(2.4)

—

Income from continuing operations before income tax expense

208.1

3.2

—

(2.4)

208.9

Provision for income tax expense

(53.6)

(0.8)

(0.5)

0.6

(54.3)

Income from continuing operations attributable to Encompass Health

$   154.5

$       2.4

$          (0.5)

$            (1.8)

$   154.6

Diluted earnings per share from continuing operations**

$     1.55

$     0.02

$        (0.01)

$          (0.02)

$     1.55

Diluted shares used in calculation

100.0

*

See reconciliation of net income to Adjusted EBITDA.

**

Adjusted EPS may not sum across due to rounding.

Encompass Health Corporation and Subsidiaries

Supplemental Information

Reconciliation of Income from Continuing Operations Attributable to Encompass Health per Diluted Share to Adjusted Earnings Per Share

For the Three Months Ended June 30, 2025

Adjustments

As
Reported

Income Tax
Adjustments

Change in Fair
Market Value
of Marketable
Securities

As
Adjusted

(In Millions, Except Per Share Amounts)

Adjusted EBITDA*

$   318.6

$               —

$                —

$    318.6

Depreciation and amortization

(79.9)

—

—

(79.9)

Interest expense and amortization of debt discounts and fees

(30.4)

—

—

(30.4)

Stock-based compensation

(14.3)

—

—

(14.3)

Loss on disposal or impairment of assets

(0.3)

—

—

(0.3)

Change in fair market value of marketable securities

0.3

—

(0.3)

—

Income from continuing operations before income tax expense

194.0

—

(0.3)

193.7

Provision for income tax expense

(51.0)

0.4

0.1

(50.5)

Income from continuing operations attributable to Encompass Health

$   143.0

$             0.4

$            (0.2)

$    143.2

Diluted earnings per share from continuing operations**

$     1.40

$              —

$               —

$      1.40

Diluted shares used in calculation

102.3

*

See reconciliation of net income to Adjusted EBITDA.

**

Adjusted EPS may not sum across due to rounding.

Encompass Health Corporation and Subsidiaries

Supplemental Information

Reconciliation of Income from Continuing Operations Attributable to Encompass Health per Diluted Share to Adjusted Earnings Per Share

For the Six Months Ended June 30, 2026

Adjustments

As
Reported

Loss on
Early
Exting. of
Debt

Income Tax
Adjustments

Change in Fair
Market Value
of Marketable
Securities

Gain on
Sale of
Gamma
Knife

As
Adjusted

(In Millions, Except Per Share Amounts)

Adjusted EBITDA*

$   696.8

$         —

$             —

$                —

$         —

$   696.8

Depreciation and amortization

(177.7)

—

—

—

—

(177.7)

Interest expense and amortization of debt discounts and fees

(64.6)

—

—

—

—

(64.6)

Stock-based compensation

(25.3)

—

—

—

—

(25.3)

Loss on disposal or impairment of assets

(2.4)

—

—

—

—

(2.4)

Loss on early extinguishment of debt

(3.4)

3.4

—

—

—

—

Change in fair market value of marketable securities

2.2

—

—

(2.2)

—

—

Gain on sale of Gamma Knife

17.5

—

—

—

(17.5)

—

Income from continuing operations before income tax
     expense

443.1

3.4

—

(2.2)

(17.5)

426.8

Provision for income tax expense

(110.0)

(0.9)

(5.2)

0.6

4.5

(111.0)

Income from continuing operations attributable to
     Encompass Health

$   333.1

$        2.5

$          (5.2)

$            (1.6)

$    (13.0)

$   315.8

Diluted earnings per share from continuing operations**

$     3.32

$      0.02

$        (0.05)

$          (0.02)

$    (0.13)

$     3.15

Diluted shares used in calculation

100.3

*

See reconciliation of net income to Adjusted EBITDA.

**

Adjusted EPS may not sum across due to rounding.

Encompass Health Corporation and Subsidiaries

Supplemental Information

Reconciliation of Income from Continuing Operations Attributable to Encompass Health per Diluted Share to Adjusted Earnings Per Share

For the Six Months Ended June 30, 2025

Adjustments

As
Reported

Income Tax
Adjustments

Change in Fair
Market Value
of Marketable
Securities

As
Adjusted

(In Millions, Except Per Share Amounts)

Adjusted EBITDA*

$   632.2

$              —

$                —

$    632.2

Depreciation and amortization

(159.1)

—

—

(159.1)

Interest expense and amortization of debt discounts and fees

(62.2)

—

—

(62.2)

Stock-based compensation

(23.8)

—

—

(23.8)

Loss on disposal or impairment of assets

(0.5)

—

—

(0.5)

Change in fair market value of marketable securities

1.0

—

(1.0)

—

Income from continuing operations before income tax expense

387.6

—

(1.0)

386.6

Provision for income tax expense

(92.6)

(11.6)

0.3

(103.9)

Income from continuing operations attributable to Encompass Health

$   295.0

$          (11.6)

$             (0.7)

$    282.7

Diluted earnings per share from continuing operations**

$     2.88

$          (0.11)

$           (0.01)

$      2.77

Diluted shares used in calculation

102.2

*

See reconciliation of net income to Adjusted EBITDA.

**

Adjusted EPS may not sum across due to rounding.

Encompass Health Corporation and Subsidiaries

Supplemental Information

Reconciliation of Net Income to Adjusted EBITDA

Three Months Ended
June 30,

Six Months Ended
June 30,

2026

2025

2026

2025

(In Millions)

Net income

$    207.4

$    184.9

$    455.6

$    381.4

Loss (income) from discontinued operations, net of tax,
     attributable to Encompass Health

0.6

0.9

(15.3)

1.4

Net income attributable to noncontrolling interests
     included in continuing operations

(53.5)

(42.8)

(107.2)

(87.8)

Provision for income tax expense

53.6

51.0

110.0

92.6

Interest expense and amortization of debt discounts and
     fees

32.8

30.4

64.6

62.2

Depreciation and amortization

90.4

79.9

177.7

159.1

Loss on early extinguishment of debt

3.2

—

3.4

—

Loss on disposal or impairment of assets

2.1

0.3

2.4

0.5

Stock-based compensation

13.8

14.3

25.3

23.8

Change in fair market value of marketable securities

(2.4)

(0.3)

(2.2)

(1.0)

Gain on sale of Gamma Knife

—

—

(17.5)

—

Adjusted EBITDA

$    348.0

$    318.6

$    696.8

$    632.2

Encompass Health Corporation and Subsidiaries

Supplemental Information

Reconciliation of Net Cash Provided by Operating Activities to Adjusted Free Cash Flow

Three Months Ended
June 30,

Six Months Ended
June 30,

2026

2025

2026

2025

(In Millions)

Net cash provided by operating activities

$    282.6

$    270.2

$    595.7

$    558.8

Impact of discontinued operations

0.9

1.2

(20.3)

1.9

Net cash provided by operating activities of continuing
     operations

283.5

271.4

575.4

560.7

Capital expenditures for maintenance

(66.2)

(45.1)

(110.0)

(79.1)

Distributions paid to noncontrolling interests of
     consolidated affiliates

(40.3)

(40.4)

(98.1)

(73.3)

Items not indicative of ongoing operating performance:

Transaction costs and related liabilities

—

—

3.5

—

Adjusted free cash flow

$    177.0

$    185.9

$    370.8

$    408.3

For the three months ended June 30, 2026, net cash used in investing activities was $235.6 million and resulted primarily from capital expenditures. Net cash used in financing activities during the three months ended June 30, 2026 was $76.9 million and resulted primarily from repurchases of common stock, distributions paid to noncontrolling interests of consolidated affiliates, and cash dividends paid on common stock partially offset by net debt borrowings.

For the three months ended June 30, 2025, net cash used in investing activities was $165.4 million and resulted primarily from capital expenditures. Net cash used in financing activities during the three months ended June 30, 2025 was $90.2 million and resulted primarily from distributions paid to noncontrolling interests of consolidated affiliates, repurchases of common stock, cash dividends paid on common stock, and net debt payments.

For the six months ended June 30, 2026 net cash used in investing activities was $385.7 million and resulted primarily from capital expenditures. Net cash used in financing activities during the six months ended June 30, 2026 was $179.4 million and resulted primarily from repurchases of common stock, distributions paid to noncontrolling interests of consolidated affiliates, cash dividends paid on common stock, and taxes paid on behalf of employees for shares withheld partially offset by net debt borrowings.

For the six months ended June 30, 2025, net cash used in investing activities was $323.9 million and resulted primarily from capital expenditures. Net cash used in financing activities during the six months ended June 30, 2025 was $220.6 million and resulted primarily from distributions paid to noncontrolling interests of consolidated affiliates, repurchases of common stock, net debt payments, and cash dividends paid on common stock.

Encompass Health Corporation and Subsidiaries
Forward-Looking Statements

Statements contained in this press release and the supplemental information which are not historical facts, such as those relating to the business, strategy, outlook, growth targets and guidance considerations, dividend strategies, effective income tax rates, cost trends, legislative and regulatory developments or their impacts, financial guidance, ability to return value to shareholders, projected capital expenditures, acquisition opportunities, development projects, addressable market size, other balance sheet and cash flow plans, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. In addition, Encompass Health, through its senior management, may from time to time make forward-looking public statements concerning the matters described herein. All such estimates, projections, and forward-looking information speak only as of the date hereof, and Encompass Health undertakes no duty to publicly update or revise such forward-looking information, whether as a result of new information, future events, or otherwise. Such forward-looking statements are necessarily estimates based upon current information and involve a number of risks and uncertainties. Actual events or results may differ materially from those anticipated in these forward-looking statements as a result of a variety of factors. While it is impossible to identify all such factors, factors which could cause actual events or results to differ materially from those estimated by Encompass Health include, but are not limited to, possible reductions or other changes in Medicaid, including Medicaid directed and supplemental payment programs and Medicaid waiver programs, which may decrease our revenues and increase our provider tax expenses; infectious disease outbreak, including the speed, depth, geographic reach and duration of its spread, which could decrease our patient volumes and revenues and lead to staffing and supply shortages and associated cost increases; Encompass Health's infectious disease prevention and control efforts; the demand for Encompass Health's services, including based on any downturns in the economy and consumer confidence in patient care; the price of Encompass Health's common stock as it affects Encompass Health's willingness and ability to repurchase shares and the financial and accounting effects of any repurchases; any adverse outcome of various lawsuits, claims, and legal or regulatory proceedings involving Encompass Health, including any matters related to yet undiscovered issues, if any, in acquired operations; Encompass Health's ability to attract and retain key management personnel; potential disruptions, breaches, or other incidents affecting the proper operation, availability, or security of Encompass Health's or its vendors' or partners' information systems, including unauthorized access to or theft of patient, business associate, or other sensitive information or inability to provide patient care because of system unavailability; Encompass Health's ability to successfully complete and integrate de novo developments, acquisitions, investments, and joint ventures consistent with its growth strategy; increases in Medicare audit activity, including increased use of sampling and extrapolation, resulting in additional unpaid reimbursement claims and an increase in the backlog of appealed claims denials; changes, delays in (including in connection with resolution of Medicare payment reviews or appeals), or suspension of reimbursement for Encompass Health's services by governmental or private payors; changes in the regulation of the healthcare industry at either or both of the federal and state levels, including as part of national healthcare reform and deficit reduction and Encompass Health's ability to adapt operations to those changes, including in connection with the CMS inpatient rehabilitation review choice demonstration project; competitive pressures in the healthcare industry and Encompass Health's response thereto; Encompass Health's ability to obtain and retain favorable arrangements with third-party payors; Encompass Health's ability to control costs, particularly labor and employee benefit costs, including group medical expenses; adverse effects resulting from coverage determinations made by Medicare Administrative Contractors regarding its Medicare reimbursement claims and lengthening delays in Encompass Health's ability to recover improperly denied claims through the administrative appeals process on a timely basis, including as part of the review choice demonstration; Encompass Health's ability to adapt to changes in the healthcare delivery system, including value-based purchasing such as the transforming episode accountability model and involvement in coordinated care initiatives or programs that may arise with its referral sources; Encompass Health's ability to attract and retain nurses, therapists, and other healthcare professionals in a highly competitive environment with often severe staffing shortages, which may be worsened by infectious disease outbreaks, and the impact on Encompass Health's labor expenses from potential union activity, staffing shortages, and competitive compensation practices; general conditions in the economy and capital markets, including any instability or uncertainty related to trade war, armed conflict or an act of terrorism, governmental impasse over approval of the United States federal budget, an increase in the debt ceiling, or an international sovereign debt crisis; the increase in the cost of, or the decrease in the availability of, construction materials and necessary supplies, including as a result of tariffs and import restrictions; the increase in the costs of defending and insuring against alleged professional liability claims, and Encompass Health's ability to predict the estimated costs related to such claims; and other factors which may be identified from time to time in Encompass Health's SEC filings and other public announcements, including Encompass Health's Form 10‑K for the year ended December 31, 2025 and Form 10-Q for the quarters ended March 31, 2026 and June 30, 2026, when filed.

Media Contact
Polly Manuel, 205 969-4532
[email protected]

Investor Relations Contact
Mark Miller, 205 970-5860
[email protected]

SOURCE Encompass Health Corp.

Key Takeaways EHC is expected to deliver 7.9% revenue growth and 5.7% EPS growth in the second quarter.Encompass Health's occupancy is projected to rise to 79.9% from 76.6% a year ago.EHC's total discharges are expected to increase 5.8%, supported by higher patient volumes. Hospital operator Encompass Health Corporation (EHC - Free Report) is set to report second-quarter 2026 results on Aug. 5, after the closing bell. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings is currently pegged at $1.48 per shareon revenues of $1.57 billion. 

The second-quarter earnings estimate has remained stable over the past 60 days. The bottom-line projection indicates a year-over-year increase of 5.7%. Also, the Zacks Consensus Estimate for quarterly revenues suggests year-over-year growth of 7.9%.

Image Source: Zacks Investment Research

For full-year 2026, the Zacks Consensus Estimate for Encompass Health’s revenues is pegged at $6.43 billion, implying a rise of 8.3% year over year. The consensus mark for 2026 earnings per share is pegged at $5.96, indicating a jump of 9.4% on a year-over-year basis.

Encompass Health beat the consensus estimate for earnings in each of the trailing four quarters, with the average surprise being 9.8%, as you can see below.

Q2 Earnings Whispers for EHCHowever, our proven model does not conclusively predict an earnings beat for the company this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the odds of an earnings beat. That’s not the case here.

EHC has an Earnings ESP of 0.00% and carries a Zacks Rank #4 (Sell). You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

You can see the complete list of today’s Zacks #1 Rank stocks here.

What’s Shaping EHC’s Q2 Results?The Zacks Consensus Estimate for Inpatient revenues suggests 7.8% year-over-year growth. Also, the same for Outpatient and other revenues indicates a nearly 8% increase from a year ago. Medicare revenues are expected to grow 8.9% in the second quarter.

Meanwhile, the consensus estimate for total discharges signals a 5.8% year-over-year rise, while our model estimate predicts a 6.7% increase. The consensus mark suggests 1.8% year-over-year growth in net patient revenue per discharge in the second quarter.

The Zacks Consensus Estimate for the number of hospitals is currently pegged at 176, up from 169 a year ago. Both the consensus estimate and our model estimate for occupancy are pegged at 79.9%, up from 76.6% in the year-ago quarter.

The factors stated above are expected to have positioned the company for year-over-year growth in revenues and profits. However, the upside was likely partly offset by elevated operating expenses, particularly due to higher salaries, benefits, and general administrative costs.

How Are EHC’s Peers Doing This Quarter?Companies in the broader Medical space, like Tenet Healthcare Corporation (THC - Free Report) , The Ensign Group, Inc. (ENSG - Free Report) and Universal Health Services, Inc. (UHS - Free Report) , have already reported their results for the June quarter, and here’s how they have performed.

Tenet Healthcare reported second-quarter 2026 adjusted EPS of $6.12, which surpassed the Zacks Consensus Estimate by 50% and increased 52.2% year over year.The strong quarterly results were driven by strong same-facility revenue growth, higher patient acuity and THC’s disciplined expense management. However, the gains were partly offset by an unfavorable payer mix due to lower exchange admissions.

Ensign reported second-quarter 2026 adjusted EPS of $1.92, which beat the Zacks Consensus Estimate by 6.7% and improved 20.8% year over year. ENSG’s strong results were driven by higher occupancy, improved patient days and contributions from acquired and transitioning facilities, along with growth in rental income. The positives were partly offset by higher expenses.

Universal Health Services reported second-quarter 2026 adjusted EPS of $5.98, which beat the Zacks Consensus Estimate by 5.7%. The bottom line rose 10.1% year over year. The strong quarterly results were driven by healthy revenue growth across both the Acute Care and Behavioral Health segments. Higher adjusted admissions, increased patient days and improved unit revenues on a same-facility basis supported performance in both businesses. However, the upside was partly offset by UHS’ elevated operating costs.

, /PRNewswire/ -- Encompass Health Corp. (NYSE: EHC) today announced that its board of directors approved an increase of $0.02 in the Company's quarterly dividend and declared a quarterly cash dividend on its common stock of $0.21 per share, payable on Oct. 15, 2026, to holders of record on Oct. 1, 2026.

About Encompass Health 
Encompass Health (NYSE: EHC) is the largest owner and operator of inpatient rehabilitation hospitals in the United States. With a national footprint that includes 176 hospitals in 39 states and Puerto Rico, the Company provides high-quality, compassionate rehabilitative care for patients recovering from major injuries or illnesses, using advanced technology and innovative treatments to maximize recovery. Encompass Health is recognized by Newsweek as America's Most Awarded Leader in Inpatient Rehabilitation and is ranked among Fortune's World's Most Admired Companies™ and Forbes' America's Best Companies. It is also recognized by Becker's Healthcare and Modern Healthcare as a top healthcare employer. For more information, visit encompasshealth.com and follow us on our newsroom, X, Instagram and Facebook.

From Fortune.© 2026 Fortune Media IP Limited. All rights reserved. Fortune® is a registered trademark and Fortune World's Most Admired Companies™ is a trademark of Fortune Media IP Limited and are used under license. Fortune and Fortune Media IP Limited are not affiliated with, and do not endorse products or services of, Encompass Health.

Forward-looking statements 
Statements contained in this press release which are not historical facts, such as the timing and amounts of dividends, are forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995. In addition, Encompass Health, through its senior management, may from time to time make forward-looking public statements concerning the matters described herein. All such estimates, projections, and forward-looking statements speak only as of the date hereof, and Encompass Health undertakes no duty to publicly update or revise such forward-looking statements, whether as a result of new information, future events, or otherwise. Such forward-looking statements are necessarily estimates based upon current information and involve a number of risks and uncertainties. Actual events or results may differ materially from those anticipated in these forward-looking statements as a result of a variety of factors. While it is impossible to identify all such factors, factors which could cause actual events or results to differ materially from those estimated by Encompass Health include, but are not limited to, a decision by the board of directors to change the dividend rate in the future; the legal, regulatory and administrative developments that occur at the federal, state and local levels; general conditions in the economy and capital markets, including any instability or uncertainty related to armed conflict or an act of terrorism, governmental impasse over approval of the United States federal budget, an increase in the debt ceiling, or an international sovereign debt crisis; Encompass Health's ability to comply with extensive, complex, and ever-changing regulations in the healthcare industry; potential disruptions, breaches, or other incidents affecting the proper operation, availability, or security of Encompass Health's information systems, including unauthorized access to or theft of patient, business associate, or other sensitive information; changes, delays in (including in connection with resolution of Medicare payment reviews or appeals), or suspension of reimbursement for Encompass Health's services by governmental or private payors; and other factors which may be identified from time to time in Encompass Health's SEC filings and other public announcements, including Encompass Health's Form 10‑K for the year ended December 31, 2025, and Form 10-Q for the quarter ended Mar. 31, 2026.

Media contact:
Polly Manuel | 205-970-5912
[email protected]

Investor relations contact:
Mark Miller | 205-970-5860
[email protected]

SOURCE Encompass Health Corp.

It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.

The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.

Zacks Premium includes access to the Zacks Style Scores as well.

What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.

Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.

The Style Scores are broken down into four categories:

Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.

Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.

Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.

VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.

How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.

Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.94% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.

But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.

That's where the Style Scores come in.

To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.

As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.

For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.

Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: Encompass Health (EHC - Free Report) Encompass Health Corporation is a provider of integrated healthcare services. It offers facility-based patient care through its network of inpatient rehabilitation hospitals. Through its extensive network of 173 hospitals across 39 states and Puerto Rico, the company delivers high-quality, cost-effective, integrated care in the healthcare space. It provides a continuum of facility-based for its patients and their families, which will gain more prevalence as coordinated care and integrated delivery payment models, such as accountable care organizations and bundled payment arrangements.

EHC is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.

It also boasts a Value Style Score of B thanks to attractive valuation metrics like a forward P/E ratio of 16.91; value investors should take notice.

For fiscal 2026, five analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.07 to $5.97 per share. EHC boasts an average earnings surprise of +9.8%.

With a solid Zacks Rank and top-tier Value and VGM Style Scores, EHC should be on investors' short list.

It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.

Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.

It also includes access to the Zacks Style Scores.

What are the Zacks Style Scores? The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.

Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.

The Style Scores are broken down into four categories:

Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.

Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.

Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.

VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.

How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.

Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +24% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.

This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.

That's where the Style Scores come in.

To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.

As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.

Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.

Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: Encompass Health (EHC - Free Report) Encompass Health Corporation is a provider of integrated healthcare services. It offers facility-based patient care through its network of inpatient rehabilitation hospitals. Through its extensive network of 173 hospitals across 39 states and Puerto Rico, the company delivers high-quality, cost-effective, integrated care in the healthcare space. It provides a continuum of facility-based for its patients and their families, which will gain more prevalence as coordinated care and integrated delivery payment models, such as accountable care organizations and bundled payment arrangements.

EHC is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.

Additionally, the company could be a top pick for growth investors. EHC has a Growth Style Score of A, forecasting year-over-year earnings growth of 9.5% for the current fiscal year.

Five analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.07 to $5.97 per share. EHC boasts an average earnings surprise of +9.8%.

With a solid Zacks Rank and top-tier Growth and VGM Style Scores, EHC should be on investors' short list.

The May Jobs report told a familiar story for investors in healthcare stocks. The sector added 35,200 positions last month, led by ambulatory health services at 25,700 and hospitals at 6,000. What makes this number meaningful is the consistency behind it. Healthcare has averaged roughly 38,000 new jobs per month over the past year, a pace that signals sustained demand for services, not a seasonal blip.

That demand has a direct translation to revenue for the right companies. Ambulatory services are growing because patients are being treated outside hospital walls more often. That benefits outpatient clinics, rehabilitation centers, and home care settings. Hospital hiring reflects a steadily rising inpatient census and procedure volume.

Get UnitedHealth Group alerts:

It’s another reminder that when it comes to macroeconomic data, the real story is almost always in the details. Follow where the jobs are being created, and you find the revenue growth. These three names sit at the intersection of where that growth is actually occurring.

UnitedHealth Group: Leveraging Growth in Healthcare UtilizationUnitedHealth Group Today

UNH

UnitedHealth Group

$407.77 -0.75 (-0.18%)

As of 10:32 AM Eastern

This is a fair market value price provided by Massive. Learn more.

52-Week Range$234.60▼

$415.98Dividend Yield2.17%

P/E Ratio30.80

Price Target$407.17

More ambulatory visits and more managed care utilization equal more Optum touchpoints. That's the direct equation for UnitedHealth Group as healthcare employment, and—by extension—insured patient volume, continues to expand.

UnitedHealth Group NYSE: UNH sits at the center of the U.S. healthcare system as both its largest private insurer and one of its largest care delivery platforms. Rising demand for healthcare services flows through the business from multiple directions.

The operational narrative at UNH right now is a turnaround, and the healthcare jobs data provides a secular tailwind. That turnaround showed up in the company’s Q1 2026 results, which marked a period of stabilization after a difficult stretch. Revenue reached $111.7 billion, up 2% year-over-year, with UnitedHealthcare generating $86.3 billion and Optum contributing the remainder.

The medical benefit ratio improved to 83.9% from 84.8% a year ago, reflecting better cost management and reserve development. It’s further evidence that the medical cost pressures that plagued the managed care sector are beginning to normalize. To support that idea, management raised its full-year 2026 adjusted earnings per share (EPS) guidance to above $18.25 per share.

Optum Health, which runs value-based care practices and home health operations, including the Amedisys platform it acquired in 2025, directly benefits as the ambulatory workforce expands. More clinicians in the field means more capacity to serve more patients under value-based contracts, where utilization efficiency drives margins.

At 22x forward earnings, UNH is still trading at a slight premium to its historic average, but the valuation is getting better. Several analysts have raised their consensus price target well above the consensus price target of $407.17.

HCA Healthcare: A Direct Play on Rising Hospital DemandWhen hospitals add jobs, they're adding capacity, which gets filled by patients. HCA Healthcare NYSE: HCA, the largest hospital operator in the United States, is about as direct a connection between healthcare employment trends and revenue as it gets. HCA's network currently spans 189 hospitals and approximately 2,600 ambulatory sites, giving it direct exposure to both inpatient and ambulatory demand.

HCA Healthcare Today

HCA

HCA Healthcare

$389.45 +2.27 (+0.59%)

As of 10:32 AM Eastern

This is a fair market value price provided by Massive. Learn more.

52-Week Range$330.00▼

$556.52Dividend Yield0.80%

P/E Ratio13.39

Price Target$506.14

The company’s Q1 2026 earnings report confirmed the volume picture remains intact. Revenue reached $19.1 billion, up 4.3% year-over-year. Same-facility admissions grew 0.9%, and same-facility equivalent admissions, which include outpatient procedures, increased 1.3%. Revenue per equivalent admission rose 3.1%, driven by a favorable payer mix and negotiated commercial rate increases. Operating cash flow strengthened to $2 billion, a 22% jump from the prior-year quarter.

HCA Healthcare continues to invest in capacity, deploying $1.1 billion in capital expenditures during Q1 while simultaneously repurchasing $1.6 billion in shares. Yet, HCA is down over 16% in 2026 and well off its all-time high from February. Analysts have a consensus price target of $506.14, which is a gain of about 30% from its price as of this writing.

Encompass Health (EHC): The Post-Acute Play on the Outpatient ShiftThe 25,700 ambulatory jobs added in May aren't just showing up at urgent care clinics. A significant portion reflects the growing demand for post-acute and rehabilitation care—patients discharged from hospitals who need structured recovery before returning home. That's the core business of Encompass Health NYSE: EHC, the largest owner and operator of inpatient rehabilitation hospitals in the United States.

Encompass Health Today

EHC

Encompass Health

$100.06 -1.41 (-1.39%)

As of 10:31 AM Eastern

This is a fair market value price provided by Massive. Learn more.

52-Week Range$92.77▼

$127.99Dividend Yield0.76%

P/E Ratio16.71

Price Target$143.86

The company’s Q1 2026 earnings report was among the best in the company's recent history. Revenue grew 9% year-over-year to $1.59 billion. Adjusted EBITDA climbed 11.2%, and adjusted EPS surged 16.8%. Management raised full-year 2026 revenue guidance to a range of $6.375 billion to $6.47 billion. The discharge-to-community rate improved 50 basis points to 84.5%, and nurse turnover hit its lowest level since 2012. That's a tangible labor cost benefit in a sector where staffing has been a persistent headwind.

The demand backdrop is structural. The U.S. population continues to age; inpatient rehabilitation services remain undersupplied relative to demand. Plus, the shift away from skilled nursing facilities toward higher-quality rehabilitation settings creates a direct tailwind for EHC's model. The company is actively expanding, opening seven new hospitals in 2026 and adding 100 to 150 beds to existing facilities.

As of June 11, EHC is down about 4% in 2026. However, analysts give the stock a consensus Buy rating with a $143.86 price target that would be a gain of over 40%.

Should You Invest $1,000 in UnitedHealth Group Right Now?Before you consider UnitedHealth Group, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and UnitedHealth Group wasn't on the list.

While UnitedHealth Group currently has a Moderate Buy rating among analysts, top-rated analysts believe these five stocks are better buys.

View The Five Stocks Here

Learn the basics of options trading and how to use them to boost returns and manage risk with this free report from MarketBeat. Click the link below to get your free copy.

Get This Free Report

, /PRNewswire/ -- Encompass Health Corp. (NYSE:EHC) today announced that its board of directors has declared a quarterly cash dividend on its common stock of $0.19 per share, payable on July 15, 2026, to holders of record on July 1, 2026.

About Encompass Health
Encompass Health (NYSE: EHC) is the largest owner and operator of inpatient rehabilitation hospitals in the United States. With a national footprint that includes 175 hospitals in 39 states and Puerto Rico, the Company provides high-quality, compassionate rehabilitative care for patients recovering from a major injury or illness, using advanced technology and innovative treatments to maximize recovery. Encompass Health is recognized as America's Most Awarded Leader in Inpatient Rehabilitation by Newsweek and Statista and is ranked among Fortune's World's Most Admired Companies™, Forbes' America's Best Companies and Becker's Healthcare's Top Places to Work in Healthcare. For more information, visit encompasshealth.com, or follow us on our newsroom, X, Instagram and Facebook.

From Fortune.© 2026 Fortune Media IP Limited. All rights reserved. Fortune® is a registered trademark and Fortune World's Most Admired Companies™ is a trademark of Fortune Media IP Limited and are used under license. Fortune and Fortune Media IP Limited are not affiliated with, and do not endorse products or services of, Encompass Health.

Forward-Looking Statements
Statements contained in this press release which are not historical facts, such as the timing and amounts of dividends, are forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995. In addition, Encompass Health, through its senior management, may from time to time make forward-looking public statements concerning the matters described herein. All such estimates, projections, and forward-looking statements speak only as of the date hereof, and Encompass Health undertakes no duty to publicly update or revise such forward-looking statements, whether as a result of new information, future events, or otherwise. Such forward-looking statements are necessarily estimates based upon current information and involve a number of risks and uncertainties. Actual events or results may differ materially from those anticipated in these forward-looking statements as a result of a variety of factors. While it is impossible to identify all such factors, factors which could cause actual events or results to differ materially from those estimated by Encompass Health include, but are not limited to, a decision by the board of directors to change the dividend rate in the future; the legal, regulatory and administrative developments that occur at the federal, state and local levels; general conditions in the economy and capital markets, including any instability or uncertainty related to armed conflict or an act of terrorism, governmental impasse over approval of the United States federal budget, an increase in the debt ceiling, or an international sovereign debt crisis; Encompass Health's ability to comply with extensive, complex, and ever-changing regulations in the healthcare industry; potential disruptions, breaches, or other incidents affecting the proper operation, availability, or security of Encompass Health's information systems, including unauthorized access to or theft of patient, business associate, or other sensitive information; changes, delays in (including in connection with resolution of Medicare payment reviews or appeals), or suspension of reimbursement for Encompass Health's services by governmental or private payors; and other factors which may be identified from time to time in Encompass Health's SEC filings and other public announcements, including Encompass Health's Form 10‑K for the year ended December 31, 2025, and Form 10-Q for the quarter ended Mar. 31, 2026.

Media contact:
Polly Manuel | 205-970-5912
[email protected]

Investor relations contact:
Mark Miller | 205-970-5860
[email protected]  

SOURCE Encompass Health Corp.

, /PRNewswire/ -- Encompass Health Corp. (NYSE: EHC) today announced plans to build a freestanding, 50–bed inpatient rehabilitation hospital in Post Falls, Idaho.

The hospital will serve patients recovering from debilitating illnesses and injuries, including stroke and other neurological conditions, brain and spinal cord injuries, amputations and complex orthopedic issues. In addition to 24–hour nursing care, the hospital will provide physical, occupational and speech therapies to help patients restore function and improve their quality of life. Care will be delivered by specialized nurses, therapists and physicians.

The hospital will include private patient rooms, a large therapy gym equipped with advanced rehabilitation technology, an activities of daily living suite, an in–house dialysis suite, a dining room, a pharmacy and an outdoor therapy courtyard.

"We're excited to expand Encompass Health's presence in Idaho to serve patients from Post Falls, Coeur d'Alene and surrounding areas," said Kim Steward, president of Encompass Health's West region. "Kootenai County is one of the fastest–growing regions in the state and the nation, and the community is already underserved in inpatient rehabilitation. This hospital will help meet that growing need by bringing high–quality, specialized care closer to home."

The hospital is expected to open in 2028 and will be part of Encompass Health's national network of inpatient rehabilitation hospitals. It will be the Company's second location in Idaho, joining its existing hospital in Boise.

About Encompass Health
Encompass Health (NYSE: EHC) is the largest owner and operator of inpatient rehabilitation hospitals in the United States. With a national footprint that includes 175 hospitals in 39 states and Puerto Rico, the Company provides high-quality, compassionate rehabilitative care for patients recovering from a major injury or illness, using advanced technology and innovative treatments to maximize recovery. Encompass Health is recognized as America's Most Awarded Leader in Inpatient Rehabilitation by Newsweek and Statista and is ranked among Fortune's World's Most Admired Companies™, Forbes' America's Best Companies and Becker's Healthcare's Top Places to Work in Healthcare. For more information, visit encompasshealth.com, or follow us on our newsroom, X, Instagram and Facebook.

From Fortune.© 2026 Fortune Media IP Limited. All rights reserved. Fortune® is a registered trademark and Fortune World's Most Admired Companies™ is a trademark of Fortune Media IP Limited and are used under license. Fortune and Fortune Media IP Limited are not affiliated with, and do not endorse products or services of, Encompass Health.

Forward-Looking Statements
Statements contained in this press release which are not historical facts, such as those relating to the likelihood, timing and effects of the completion of this hospital project, are forward-looking statements. In addition, Encompass Health may from time to time make forward-looking public statements concerning the matters described herein. All such estimates, projections, and forward-looking information speak only as of the date hereof, and Encompass Health undertakes no duty to publicly update or revise such forward-looking information, whether as a result of new information, future events, or otherwise. Such forward-looking statements are necessarily estimates based upon current information and involve a number of risks and uncertainties. Encompass Health's actual results or events may differ materially from those anticipated in these forward-looking statements as a result of a variety of factors. While it is impossible to identify all such factors, factors which could cause actual results or events to differ materially from those anticipated include, but are not limited to, the regulatory review and approval process, any adverse outcome of various lawsuits, claims, and legal or regulatory proceedings that may be brought by or against the Company; the possibility this project will experience unexpected delays; the ability to successfully complete this project consistent with Encompass Health's growth strategy, including development and maintenance of relationships with referral sources; disease outbreaks, including the speed, depth, geographic reach and duration of the spread; the actions to be taken by Encompass Health in response to disease outbreaks; changes in the regulation of the healthcare industry at either or both of the federal and state levels; competitive pressures in the healthcare industry and Encompass Health's response thereto; the hospital's ability to maintain proper local, state and federal licensing; potential disruptions, breaches, or other incidents affecting the proper operation, availability, or security of Encompass Health's information systems; Encompass Health's ability to attract and retain nurses, therapists, and other healthcare professionals in a highly competitive environment with often severe staffing shortages and the impact on Encompass Health's labor expenses from potential union activity and staffing shortages; changes, delays in (including in connection with resolution of Medicare payment reviews or appeals), or suspension of reimbursement for Encompass Health's services by governmental or private payors; general conditions in the economy and capital markets; and other factors which may be identified from time to time in Encompass Health's SEC filings and other public announcements, including Encompass Health's Form 10–K for the year ended December 31, 2025, and Form 10-Q for the quarter ended Mar. 31, 2026.

Media contact:
Polly Manuel | 205-970-5912
[email protected]

Investor relations contact: 
Mark Miller | 205-970-5860
[email protected]

SOURCE Encompass Health Corp.

Encompass Health Corporation (EHC) Presents at Bank of America Global Healthcare Conference 2026 Transcript

It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.

The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.

It also includes access to the Zacks Style Scores.

What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.

Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.

The Style Scores are broken down into four categories:

Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.

Growth ScoreGrowth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.

Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.

VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.

How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.

#1 (Strong Buy) stocks have produced an unmatched +23.7% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.

This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.

That's where the Style Scores come in.

To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.

The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.

A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.

Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: Encompass Health (EHC - Free Report) Encompass Health Corporation is a provider of integrated healthcare services. It offers facility-based patient care through its network of inpatient rehabilitation hospitals. Through its extensive network of 173 hospitals across 39 states and Puerto Rico, the company delivers high-quality, cost-effective, integrated care in the healthcare space. It provides a continuum of facility-based for its patients and their families, which will gain more prevalence as coordinated care and integrated delivery payment models, such as accountable care organizations and bundled payment arrangements.

EHC is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.

It also boasts a Value Style Score of B thanks to attractive valuation metrics like a forward P/E ratio of 18; value investors should take notice.

For fiscal 2026, five analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.07 to $5.97 per share. EHC boasts an average earnings surprise of +9.8%.

With a solid Zacks Rank and top-tier Value and VGM Style Scores, EHC should be on investors' short list.

, /PRNewswire/ -- Encompass Health Corp. (NYSE: EHC) today issued notice for redemption of $400 million of the outstanding principal balance of its 4.500% senior notes due 2028 (the "2028 Notes"). The redemption price will be 100.0% of par, plus accrued and unpaid interest to the redemption date of June 13, 2026, pursuant to the terms of the 2028 Notes. Since June 13, 2026 is not a business day, the redemption price will be paid on the next business day, June 15, 2026. As a result of this redemption, the Company expects to record an approximate $3.2 million loss on early extinguishment of debt in the second quarter of 2026. As of May 14, 2026, the aggregate principal amount of the 2028 Notes outstanding was $800 million.

The information contained in this press release does not constitute a notice of redemption of the 2028 Notes. Holders of the 2028 Notes should refer to the notice of redemption delivered to the registered holders of the 2028 Notes by Computershare Trust Company, National Association, the trustee with respect to the 2028 Notes.

About Encompass Health 
Encompass Health (NYSE: EHC) is the largest owner and operator of inpatient rehabilitation hospitals in the United States. With a national footprint that includes 175 hospitals in 39 states and Puerto Rico, the Company provides high-quality, compassionate rehabilitative care for patients recovering from a major injury or illness, using advanced technology and innovative treatments to maximize recovery. Encompass Health is recognized as America's Most Awarded Leader in Inpatient Rehabilitation by Newsweek and Statista and is ranked among Fortune's World's Most Admired Companies™, Forbes' America's Best Companies and Becker's Healthcare's Top Places to Work in Healthcare. For more information, visit encompasshealth.com, or follow us on our newsroom, X, Instagram and Facebook.

From Fortune.© 2026 Fortune Media IP Limited. All rights reserved. Fortune® is a registered trademark and Fortune World's Most Admired Companies™ is a trademark of Fortune Media IP Limited and are used under license. Fortune and Fortune Media IP Limited are not affiliated with, and do not endorse products or services of, Encompass Health.

Forward-looking statements
Statements contained in this press release which are not historical facts are forward-looking statements. In addition, Encompass Health, through its senior management, may from time to time make forward-looking public statements concerning the matters described herein. All such estimates, projections, and forward-looking information speak only as of the date hereof, and Encompass Health undertakes no duty to publicly update or revise such forward-looking information, whether as a result of new information, future events, or otherwise. Such forward-looking statements are necessarily estimates based upon current information and involve a number of risks and uncertainties. Actual events or results may differ materially from those anticipated in these forward-looking statements as a result of a variety of factors. While it is impossible to identify all such factors, factors which could cause actual events or results to differ materially from those estimated by Encompass Health include, but are not limited to, potential disruptions, breaches, or other incidents affecting the proper operation, availability, or security of Encompass Health's information systems, including unauthorized access to or theft of patient, business associate, or other sensitive information; changes, delays in (including in connection with resolution of Medicare payment reviews or appeals), or suspension of reimbursement for Encompass Health's services by governmental or private payors; a significant market disruption; and other factors which may be identified from time to time in Encompass Health's SEC filings and other public announcements, including its Form 10-K for the year ended Dec. 31, 2025 and Form 10-Q for the quarter ended March 31, 2026.

Media contact: 
Polly Manuel | 205-970-5912
[email protected] 

Investor relations contact:
Mark Miller | 205-970-5860
[email protected]   

SOURCE Encompass Health Corp.

Key Takeaways Encompass Health is expanding with new rehab hospitals and added beds to meet rising demand.EHC posted 9.1% revenue growth in Q1 2026 as discharges and patient revenues improved.Rising labor costs and $2.5B in long-term debt may pressure EHC's margins and flexibility. Encompass Health Corporation (EHC - Free Report) has been steadily expanding its inpatient rehabilitation business, driven by growing demand for rehabilitation services. The company continues to strengthen its network through de novo hospitals and additional bed capacity across existing facilities. Shares of EHC have lost 0.4% over the past three months, outperforming the industry, which declined 7.2% during the same period.

Headquartered in Bloomfield, AL, Encompass Health has a market capitalization of nearly $10.58 billion. EHC is currently trading at a forward 12-month P/E of 17.24X, higher than the industry average of 16.59X,  but lower than its five-year median of 18.76X. EHC currently holds a Zacks Rank #3 (Hold) and a Value Score of B.

Zacks Estimates for EHCThe Zacks Consensus Estimate for 2026 earnings is pegged at $5.96 per share, suggesting a 9.4% year-over-year increase. Over the past month, estimates have seen five upward revisions against one movement in the opposite direction. The consensus estimate for 2026 revenues is pinned at $6.43 billion, indicating 8.3% year-over-year growth. Management expects 2026 revenues to be in the range of $6.375-$6.470 billion. Encompass beat earnings estimates in each of the trailing four quarters, with the average surprise being 9.8%.

Encompass Health Corporation Price, Consensus and EPS SurpriseEHC’s Key Growth DriversEncompass Health continues to benefit from rising demand for inpatient rehabilitation services, supported by an aging population and growing post-acute care needs. In first-quarter 2026, total discharges increased 4.3% year over year to 67,763, while same-store discharges rose 1.6%.

Capacity expansion remains a key growth driver for EHC. The company has been steadily increasing its footprint through de novo hospitals and bed additions. It opened eight de novo hospitals in 2023, seven in 2024 and eight hospitals along with a 50-bed satellite facility in 2025.

In first-quarter 2026, EHC opened a new 49-bed rehabilitation hospital in Irmo, SC, and added 44 beds across existing facilities. For 2026, management plans to open eight de novos, adding nearly 389 beds, along with 150-200 additional beds at existing hospitals.Net patient revenue per discharge improved 3.7%. The company has also maintained healthy occupancy levels, supporting consistent revenue growth. Revenues grew 11.9% in 2024, 10.5% in 2025 and another 9.1% in the first quarter of 2026 to $1.6 billion.

Despite industrywide cost pressures, EHC continues to deliver healthy profitability. Adjusted EBITDA increased 11.2% year over year to $348.8 million in the first quarter of 2026, while adjusted EPS rose 16.8% to $1.60. The company also maintains a strong trailing 12-month return on invested capital (ROIC) of 10.1%, well above the industry average of 6.7%, reflecting disciplined capital deployment and efficient operations.

The company’s healthy cash-generating ability provides flexibility to support expansion initiatives and shareholder returns. Net cash from operations increased 17.9% in 2024, 17.2% in 2025 and another 8.5% in first-quarter 2026 to $313.1 million. EHC expects adjusted free cash flow between $760 million and $875 million in 2026, positioning it well to fund growth projects, dividends and share repurchases.

Key Risk Factors for EHCLabor expenses remain a major concern for EHC. Salaries and benefits increased 11.6% in 2024, 7.4% in 2025 and another 7.3% in the first quarter of 2026 to $818.1 million. Labor costs accounted for 51.6% of revenues during the first quarter. Continued shortages of nurses, therapists and other healthcare professionals may increase dependence on costly contract labor, pressuring margins.

EHC exited first-quarter 2026 with $110.5 million in cash and cash equivalents and $2.5 billion in long-term debt. Its net debt-to-capital ratio of 41.28% remained above the industry average of 39.01%, which could limit financial flexibility. Regulatory changes, including TEAM implementation and expanded RCD reviews, may increase administrative burden and temporarily affect reimbursement collections.

Key PicksWhile investors can maintain a neutral view on Encompass Health, they can consider some better-ranked stocks in the broader Medical space like Indivior Pharmaceuticals, Inc. (INDV - Free Report) , BrightSpring Health Services, Inc. (BTSG - Free Report) and Hinge Health, Inc. (HNGE - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Indivior Pharmaceuticals’ 2026 earnings is pegged at $3.35 per share, indicating a 34% year-over-year improvement. INDV beat earnings estimates in each of the trailing four quarters, with the average surprise being 65.4%. The consensus estimate for 2026 revenues is pinned at $1.3 billion, implying 1.5% year-over-year growth.

The Zacks Consensus Estimate for BrightSpring Health’s 2026 earnings is pegged at $1.64 per share, which has witnessed five upward revisions in the past 30 days, with no movement in the opposite direction. BTSG beat earnings estimates in three of the trailing four quarters and missed once, with the average surprise being 14.6%. The consensus estimate for 2026 revenues is pinned at $15.1 billion, implying 16.6% year-over-year growth.

The Zacks Consensus Estimate for Hinge Health’s 2026 earnings is pegged at $2.37 per share, which has moved up 52 cent over the past 30 days. The consensus estimate for revenues is pegged at $791.8 billion, indicating 34.7% year-over-year growth. HNGE’s bottom line surpassed estimates in each of the trailing four quarters, the average surprise being 179.5%.

, /PRNewswire/ -- Encompass Health Corp. (NYSE: EHC) today announced plans to build a freestanding, 36-bed inpatient rehabilitation hospital in Bridgeport, West Virginia. The hospital will be an expanded relocation of Encompass Health's former 19-bed unit within the WVU Medicine United Hospital Center.

"We're thrilled to expand access to inpatient rehabilitation care for patients in Bridgeport and surrounding communities," said Abe Sims, president of Encompass Health's MidAtlantic region. "The need for our services has increased with continued growth in the area, and we look forward to serving more patients closer to home in this new, freestanding hospital."

The hospital will feature all private patient rooms, a state-of-the-art therapy gym equipped with advanced rehabilitation technologies, an activities of daily living suite, an in-house dialysis suite, a dining room, a pharmacy and an outdoor therapy courtyard.

The hospital will serve patients recovering from debilitating illnesses and injuries, including stroke and other neurological conditions, brain and spinal cord injuries, amputations and complex orthopedic conditions. In addition to 24-hour nursing care, the hospital will provide physical, occupational and speech therapies to help patients restore function and improve quality of life. Care will be delivered by an interdisciplinary team of specialized nurses, therapists and physicians.

Encompass Health's 19-bed unit within the WVU Medicine United Hospital Center is now closed, but Encompass Health Rehabilitation Hospital of Morgantown has temporarily expanded its capacity to provide continuity of care for patients during construction of the new hospital in Bridgeport.

About Encompass Health 
Encompass Health (NYSE: EHC) is the largest owner and operator of inpatient rehabilitation hospitals in the United States. With a national footprint that includes 175 hospitals in 39 states and Puerto Rico, the Company provides high-quality, compassionate rehabilitative care for patients recovering from major injuries or illnesses, using advanced technology and innovative treatments to maximize recovery. Encompass Health is recognized by Newsweek as America's Most Awarded Leader in Inpatient Rehabilitation and is ranked among Fortune's World's Most Admired Companies™ and Forbes' America's Best Companies. It is also recognized by Becker's Healthcare and Modern Healthcare as a top healthcare employer. For more information, visit encompasshealth.com and follow us on our newsroom, X, Instagram and Facebook.

From Fortune.© 2026 Fortune Media IP Limited. All rights reserved. Fortune® is a registered trademark and Fortune World's Most Admired Companies™ is a trademark of Fortune Media IP Limited and are used under license. Fortune and Fortune Media IP Limited are not affiliated with, and do not endorse products or services of, Encompass Health.

Forward-Looking Statements
Statements contained in this press release which are not historical facts, such as those relating to the likelihood, timing and effects of the completion of this hospital project, are forward-looking statements. In addition, Encompass Health may from time to time make forward-looking public statements concerning the matters described herein. All such estimates, projections and forward-looking information speak only as of the date hereof, and Encompass Health undertakes no duty to publicly update or revise such forward-looking information, whether as a result of new information, future events or otherwise. Such forward-looking statements are necessarily estimates based upon current information and involve a number of risks and uncertainties. Encompass Health's actual results or events may differ materially from those anticipated in these forward-looking statements as a result of a variety of factors. While it is impossible to identify all such factors, factors which could cause actual results or events to differ materially from those anticipated include, but are not limited to, the regulatory review and approval process, any adverse outcome of various lawsuits, claims and legal or regulatory proceedings that may be brought by or against the Company; the possibility this project will experience unexpected delays; the ability to successfully complete this project consistent with Encompass Health's growth strategy, including development and maintenance of relationships with referral sources; disease outbreaks, including the speed, depth, geographic reach and duration of the spread; the actions to be taken by Encompass Health in response to disease outbreaks; changes in the regulation of the healthcare industry at either or both of the federal and state levels; competitive pressures in the healthcare industry and Encompass Health's response thereto; the hospital's ability to maintain proper local, state and federal licensing; potential disruptions, breaches or other incidents affecting the proper operation, availability or security of Encompass Health's information systems; Encompass Health's ability to attract and retain nurses, therapists and other healthcare professionals in a highly competitive environment with often severe staffing shortages and the impact on Encompass Health's labor expenses from potential union activity and staffing shortages; changes, delays in (including in connection with resolution of Medicare payment reviews or appeals), or suspension of reimbursement for Encompass Health's services by governmental or private payors; general conditions in the economy and capital markets; and other factors which may be identified from time to time in Encompass Health's SEC filings and other public announcements, including Encompass Health's Form 10-K for the year ended December 31, 2025 and Form 10-Q for the quarter ended March 31, 2026.

Media contact:
Polly Manuel | 205-970-5912
[email protected]

Investor relations contact: 
Mark Miller | 205-970-5860
[email protected]

SOURCE Encompass Health Corp.

Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.

Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.

Zacks Premium includes access to the Zacks Style Scores as well.

What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.

Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.

The Style Scores are broken down into four categories:

Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.

Growth ScoreGrowth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.

Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.

VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.

How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.

#1 (Strong Buy) stocks have produced an unmatched +23.7% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.

With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.

That's where the Style Scores come in.

To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.

Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.

Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.

Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: Encompass Health (EHC - Free Report) Encompass Health Corporation is a provider of integrated healthcare services. It offers facility-based patient care through its network of inpatient rehabilitation hospitals. Through its extensive network of 173 hospitals across 39 states and Puerto Rico, the company delivers high-quality, cost-effective, integrated care in the healthcare space. It provides a continuum of facility-based for its patients and their families, which will gain more prevalence as coordinated care and integrated delivery payment models, such as accountable care organizations and bundled payment arrangements.

EHC is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.

It also boasts a Value Style Score of B thanks to attractive valuation metrics like a forward P/E ratio of 17.02; value investors should take notice.

Five analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.07 to $5.97 per share. EHC also boasts an average earnings surprise of +9.8%.

With a solid Zacks Rank and top-tier Value and VGM Style Scores, EHC should be on investors' short list.