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Encompass Health (EHC) guidance and outlook
Encompass Health (EHC) raised its guidance on Oct 28, 2026: Revenue $6.5B for FY2026; EBITDA $1.4B for FY2026; EPS $6.23–$6.37 for FY2026. Encompass Health's 10-Q filed Nov 3, 2026 makes 22 forward-looking statements.
Guidance and outlook
Latest guidance
| Metric | Period | Range | Change |
|---|---|---|---|
| Revenue | FY2026 | $6.5B | raised |
| EBITDA | FY2026 | $1.4B | raised |
| EPS | FY2026 | $6.23–$6.37 | raised |
From the earnings release filed Oct 28, 2026 (8-K on EDGAR).
Forward-looking statements, 10-Q filed Nov 3, 2026
- While we treat patients of all ages, most of our patients are 65 and older, and the number of Medicare enrollees is expected to continue to grow for the foreseeable future.
- More specifically, the average age of our Medicare patients is approximately 77, and the population group for ages 75 and older is expected to grow at approximately 4% per year through 2030.
- We believe the demand for the services we provide will continue to increase as the U.S. population ages.
- Based on our analysis that utilizes the acuity of our patients annualized over a twelve-month period ended June 30, 2026, our experience with outlier payments over this same time frame, and other factors, we believe the 2027 Final IRF Rule will result in a net increase to our Medicare payment rates of approximately 2.3% effective October 1, 2026.
- With this expansion, 108 of our IRFs (representing approximately 63% of our IRF Medicare claims) will be subject to RCD.
- We have engaged, and will continue to engage, with the MAC and CMS to ensure the review process is consistent with existing rules, regulations and statutes.
- In the case of new-store volume growth, the addition of hospitals to our portfolio also may be difficult and take longer than expected.
- We remain confident in the prospects of our business based on the increasing demands for the services we provide to an aging population.
- We expect Depreciation and amortization to increase going forward as a result of our recent and ongoing capital investments.
- In certain jurisdictions, we do not expect to generate sufficient income to use all available state net operating losses and foreign tax credits prior to their expiration.
- This determination is based on our evaluation of all available evidence in these jurisdictions including results of operations during the preceding three years, our forecast of future earnings, and prudent tax planning strategies.
- It is possible we may be required to increase or decrease our valuation allowance at some future time if our forecast of future earnings varies from actual results on a consolidated basis or in the applicable tax jurisdiction, if the timing of future tax deductions differs from our expectations, or pursuant to changes in state and foreign tax laws and rates.
Encompass Health's latest quarter
Encompass Health, Q3 2026: revenue $1.6B (+9% year over year), operating margin 17.9%, net earnings $150M, operating cash flow $362M. The chart follows the revenue to costs, profit and cash.
Questions
Did Encompass Health raise or lower its guidance?
Encompass Health (EHC) raised its guidance on Oct 28, 2026: Revenue $6.5B for FY2026; EBITDA $1.4B for FY2026; EPS $6.23–$6.37 for FY2026.
What does Encompass Health expect?
While we treat patients of all ages, most of our patients are 65 and older, and the number of Medicare enrollees is expected to continue to grow for the foreseeable future. More specifically, the average age of our Medicare patients is approximately 77, and the population group for ages 75 and older is expected to grow at approximately 4% per year through 2030. We believe the demand for the services we provide will continue to increase as the U.S. population ages.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.