Encompass Health (EHC)
NYSE:EHC
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Earnings Data
Report Date
Aug 04, 2026After Close (Confirmed)
Period Ending
2026 (Q2)Consensus EPS Forecast
1.48Last Year’s EPS
1.4Same Quarter Last Year
Strong Buy
Based on 6 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The call presented multiple material operating and financial wins: double-digit EBITDA growth, revenue growth, improved clinical quality metrics, lower RN turnover, meaningful decline in premium labor, strong free cash flow and an expanded development pipeline. Offsetting these positives were manageable headwinds: short-term volume impact from unit closures (~85 bps), a one-time increase in bad debt tied to legacy claim write-offs, MA utilization variability, regulatory implementation risk and localized capacity constraints in high-demand markets. Management emphasized plans to address capacity via bed adds, de novos, joint ventures and small-format hospitals, and raised full-year guidance based on Q1 performance. Overall, positives materially outweighed the negatives.Company Guidance
Top-Line and Profitability Growth
Q1 revenue increased 9% year-over-year to $1.59 billion; adjusted EBITDA rose 11.2% to $348.8 million. Company raised 2026 guidance to net operating revenue of $6.375B–$6.470B, adjusted EBITDA $1.35B–$1.38B, and adjusted EPS $5.89–$6.11.
Strong Discharge and Pricing Trends
Total discharges grew 4.3% (1.6% same-store), and net revenue per discharge increased 3.7%, driven by patient mix and a favorable Medicare SSI adjustment.
Outstanding Clinical Outcomes and Quality Metrics
Discharge-to-community improved 50 basis points to 84.5%; discharge-to-acute improved 30 bps to 8.6%; discharge-to-SNF improved 20 bps to 6.2% — all above industry averages.
Workforce Stability and Lower Premium Labor
Annualized RN turnover improved to 17.8% from 20.2% (lowest since at least 2012); therapist turnover improved to 6.4% from 7.8%. These improvements helped drive a 9.4% decline in premium labor spend versus Q1 2025 and contract labor FTEs fell to 1.2% of total FTEs (down 10 bps).
Capacity Expansion and Development Pipeline
Opened a new 49-bed hospital in Irmo, SC and added 44 beds to existing hospitals in Q1; plan to open 7 more hospitals (≈340 beds) and add 100–150 incremental beds in 2026. Pipeline beyond 2026: 11 hospitals / 520 beds; developing small-format hospital strategy with at least one expected in 2027.
Strong Cash Generation and Capital Allocation
Q1 adjusted free cash flow of $194 million. Repurchased ~708,000 shares for $71.6 million in Q1; paid and declared $0.19 per share dividends. Net leverage at quarter end was a modest 1.9x, supporting ongoing buybacks and growth CapEx.
Operational Efficiency and Digital/Analytics Initiatives
SWB per FTE increased 3.7%; investments in clinical career ladders and Palantir-enabled market/real-estate, revenue cycle and documentation productivity initiatives expected to drive more efficient clinical and administrative workflows.
Potential Favorable Medicare Pricing Update
CMS 2027 IRF proposed rule included a net market basket update of 2.4%, which the company estimates could yield a ~2.4% pricing increase for Medicare patients beginning Oct 1, 2026 (pending final rule).
EHC Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
EHC Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
Apr 30, 2026 | $100.00 | $107.48 | +7.48% |
Feb 05, 2026 | $99.36 | $105.18 | +5.86% |
Oct 29, 2025 | $125.16 | $116.37 | -7.02% |
Aug 04, 2025 | $108.93 | $113.28 | +4.00% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does Encompass Health (EHC) report earnings?
Encompass Health (EHC) is schdueled to report earning on Aug 04, 2026, After Close (Confirmed).
What is Encompass Health (EHC) earnings time?
Encompass Health (EHC) earnings time is at Aug 04, 2026, After Close (Confirmed).
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is EHC EPS forecast?
EHC EPS forecast for the fiscal quarter 2026 (Q2) is 1.48.