The raised full-year guidance and strong operational metrics (discharge growth, revenue per discharge, cash flow) suggest continued momentum. Monitor the Q4 2026 earnings call for updates on hospital expansion progress and any impact from Medicare reimbursement changes.
Price Chart
Executive Summary
Encompass Health reported Q3 2026 adjusted EPS of $1.52, beating the $1.36 consensus by 11.8%, on revenue of $1.6095B, beating the $1.60B consensus. The company raised full-year 2026 guidance for revenue, Adjusted EBITDA, and adjusted EPS, reflecting strong operational momentum with 8.9% revenue growth and 15.5% Adjusted EBITDA growth.
Key Financial Metrics
Key Facts
- Q3 2026 adjusted EPS $1.52 vs consensus $1.36 (beat by 11.8%)
- Q3 2026 net operating revenue $1.6095B vs consensus $1.60B (beat)
- Revenue grew 8.9% YoY to $1.6095B from $1.4775B
- Adjusted EBITDA grew 15.5% YoY to $346.6M from $300.1M
- Adjusted free cash flow grew 51.2% YoY to $263.4M from $174.2M
- Full-year 2026 guidance raised: revenue to $6.45B-$6.50B (from $6.41B-$6.49B), Adjusted EBITDA to $1.395B-$1.415B (from $1.365B-$1.395B), adjusted EPS to $6.23-$6.37 (from $6.02-$6.25)
- Discharges increased 5.7% YoY to 69,605; same-store discharge growth 3.0%
- Net patient revenue per discharge increased 4.0% YoY to $22,543
- Cash from operations grew 33.7% YoY to $362.0M
Financial Impact
EPS beat of $0.16 (11.8%) on $1.6095B revenue; guidance raised across all key metrics
Risk Factors
- Medicare and Medicaid reimbursement changes could pressure revenue
- Labor cost inflation and staffing shortages remain industry-wide risks
- Execution risk on de novo hospital openings and bed expansions
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 1 press release from GlobeNewswire.
| Document | Accession Number |
|---|---|
| PRESS-RELEASE Data (Synthetic) | press-prn-302922661 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 28, 2026 1d ago | 8-K | No price | awaiting T+1 | awaiting T+1 | No price |
Oct 28, 2026 1d ago | Press Release | $115.00 | awaiting T+1 | awaiting T+1 | $131.49 (+14.34%) |
Oct 27, 2026 2d ago | Institutional Cluster | $122.09 $131.49 | ▲ +7.70% | ▲ +8.08% | $131.49 (+7.70%) |
Oct 23, 2026 6d ago | Institutional Cluster | $124.09 $124.10 | ▲ +0.01% | ▼ −0.70% | $131.49 (+5.96%) |
Oct 22, 2026 7d ago | Press Release | $126.01 $124.09 | ▼ −1.52% | ▼ −1.00% | $131.49 (+4.35%) |
Oct 1, 2026 28d ago | Press Release | $119.80 $120.97 | ▲ +0.98% | ▲ +0.30% | $131.49 (+9.76%) |
Sep 1, 2026 8w ago | Insider Cluster | $122.05 $121.18 | ▼ −0.71% | ▼ −1.16% | $131.49 (+7.73%) |
Aug 11, 2026 11w ago | Insider Cluster | $125.35 $124.83 | ▲ +0.41% | ▲ +0.67% | $131.49 (−4.90%) |
Aug 5, 2026 12w ago | Press Release | $124.82 $125.23 | ▲ +0.33% | ▼ −0.28% | $131.49 (+5.34%) |
Jul 9, 2026 16w ago | Press Release | $110.16 $110.01 | ▼ −0.13% | ▲ +0.65% | $131.49 (+19.36%) |
US Market Status
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