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Encompass Health ( (EHC) ) has provided an update.
On February 5, 2026, Encompass Health reported strong results for the fourth quarter ended December 31, 2025, with net operating revenue up 9.9% year-on-year to $1.54 billion and diluted income from continuing operations per share rising 20.3% to $1.42. Adjusted earnings per share increased 24.8% to $1.46, while Adjusted EBITDA grew 15.9% to $335.6 million, supported by a 5.3% increase in discharges, higher net patient revenue per discharge, and improved cash generation, including a 24.1% rise in operating cash flow and 23.6% growth in adjusted free cash flow. For full-year 2025, management highlighted revenue growth of 10.5% and a 14.9% increase in Adjusted EBITDA, underpinned by capacity expansion of 517 inpatient rehabilitation beds through eight new hospitals and bed additions at existing sites, reinforcing the company’s position to capture rising demand from an aging U.S. population. Looking ahead, the company issued 2026 guidance calling for net operating revenue of $6.37 billion to $6.47 billion, Adjusted EBITDA of $1.34 billion to $1.38 billion and adjusted earnings per share of $5.81 to $6.10, signaling continued growth expectations and underscoring the importance of non-GAAP metrics such as Adjusted EBITDA and adjusted free cash flow in assessing its leverage, liquidity and ability to fund expansion and shareholder returns.
The most recent analyst rating on (EHC) stock is a Hold with a $101.00 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 Neutral.
The score is supported by solid profitability and a positive earnings outlook with raised guidance, but is held back by weak technicals (price below key moving averages with negative momentum) and cash-flow concerns highlighted by negative free cash flow growth. Valuation is reasonable, though the dividend provides limited support.
To see Spark’s full report on EHC stock, click here.
More about Encompass Health
Encompass Health Corporation (NYSE: EHC) is the largest owner and operator of inpatient rehabilitation hospitals in the United States, with 173 facilities across 39 states and Puerto Rico providing hospital-based rehabilitative care for patients recovering from major injuries or illnesses, supported by advanced technology and specialized clinical programs.
Average Trading Volume: 995,762
Technical Sentiment Signal: Sell
Current Market Cap: $9.62B
Learn more about EHC stock on TipRanks’ Stock Analysis page.