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An update from Encompass Health ( (EHC) ) is now available.
For the first quarter ended March 31, 2026, Encompass Health reported net operating revenue of $1.59 billion, up 9% year on year, with diluted EPS from continuing operations rising 19.6% to $1.77 and adjusted EPS up 16.8% to $1.60, while Adjusted EBITDA grew 11.2% to $348.8 million and operating cash flow increased 8.5%. The company continued to expand capacity by opening a new 49-bed hospital in Irmo, South Carolina and adding 44 beds at existing facilities, lifted its full-year 2026 guidance for revenue, Adjusted EBITDA and adjusted EPS, and highlighted the importance of non-GAAP metrics such as Adjusted EBITDA, leverage ratio and adjusted free cash flow in assessing liquidity, debt service capability and growth investment, signaling confidence in sustained demand and a robust development pipeline.
Encompass Health’s first-quarter volume metrics showed 4.3% growth in discharges and a 3.7% increase in net patient revenue per discharge, partially offset by a year-on-year decline in adjusted free cash flow to $193.8 million as growth and capital needs weighed on this measure. Management said these trends validate its operating strategy and value proposition and outlined a development plan for 2026 that includes opening eight hospitals with 389 beds and adding about 175 beds to existing sites, indicating continued balance-sheet reliance on, and covenant sensitivity around, Adjusted EBITDA and related non-GAAP measures that underpin its credit agreements and future expansion capacity.
The most recent analyst rating on (EHC) stock is a Buy with a $145.00 price target. To see the full list of analyst forecasts on Encompass Health stock, see the EHC Stock Forecast page.
Spark’s Take on EHC Stock
According to Spark, TipRanks’ AI Analyst, EHC is a Outperform.
The score is driven primarily by solid profitability and a materially improved balance sheet, plus an upbeat earnings call with constructive 2026 guidance. Offsetting these positives are the sharp deterioration in reported cash flow in 2025 and only mixed technicals (below longer-term moving averages).
To see Spark’s full report on EHC stock, click here.
More about Encompass Health
Encompass Health Corp., listed on the NYSE as EHC, is the largest owner and operator of inpatient rehabilitation hospitals in the United States. With 174 hospitals across 39 states and Puerto Rico, it focuses on providing rehabilitative care for patients recovering from major injuries or illnesses, leveraging advanced technology and innovative treatments to maximize recovery outcomes.
The company has garnered significant industry recognition, being named America’s Most Awarded Leader in Inpatient Rehabilitation by Newsweek and Statista. It is also ranked among Fortune’s World’s Most Admired Companies and Forbes’ America’s Best Companies, underscoring its strong reputation and competitive positioning in the post-acute care segment.
Average Trading Volume: 1,129,960
Technical Sentiment Signal: Buy
Current Market Cap: $10.2B
For a thorough assessment of EHC stock, go to TipRanks’ Stock Analysis page.