#United States #Birmingham #revenue growth #Encompass Health #Rehabilitation Hospitals

Encompass Health Reports Impressive Q2 2026 Results

BIRMINGHAM, Ala., August 5, 2026 — Encompass Health Corporation (NYSE: EHC), the nation’s largest owner and operator of inpatient rehabilitation hospitals, has disclosed its second-quarter financial results for 2026, showcasing a significant uptick in revenue and a promising outlook for the remainder of the year.

Record Revenue and Earnings Performance

For the quarter ending June 30, 2026, Encompass Health reported a net operating revenue of $1.597 billion, compared to $1.458 billion for the same period in 2025, marking an impressive growth of 9.6%. Both adjusted earnings per share (EPS) and income from continuing operations attributed to Encompass Health soared to $1.55, a 10.7% increase year-over-year.

CEO Mark Tarr expressed satisfaction with the company’s performance, stating, "We are very pleased with our performance for the second quarter, as revenue increased 9.6%, and Adjusted EBITDA grew 9.2%." Encompass Health also noted a 5.6% rise in discharges, totaling 68,895 for the quarter, alongside an increase in net patient revenue per discharge, which reached $22,521, representing a 3.9% growth.

Expansion Plans and Increased Capacity

In alignment with its growth trajectory, Encompass Health has initiated strategic expansions, opening three facilities that add 139 beds to its existing operations in the first half of 2026. The company has plans for further expansion, eyeing the addition of five more hospitals and over 100 beds before the year's end, significantly enhancing access to rehabilitative care across the nation.

2026 Guidance Adjustment

In light of the robust performance, Encompass Health has revised its full-year 2026 financial guidance. The updated estimates project net operating revenue between $6.410 billion and $6.490 billion, Adjusted EBITDA between $1.365 billion to $1.395 billion, and adjusted EPS between $6.02 to $6.25. The adjustments reflect a great confidence in the company’s operational strategy and its ability to meet increasing demand for its services.

Share Repurchase Program

Additionally, the company’s board of directors has authorized an escalation in its common stock repurchase program to $1 billion, demonstrating a commitment to returning value to its shareholders. By the end of June 2026, Encompass Health had repurchased approximately $145.8 million of its stock, signifying strong capital management amidst its expansion endeavors.

Future Outlook

As Encompass Health looks towards the future, the company is optimistic about its prospects, greatly supported by newly opened facilities that provide high-quality, innovative rehabilitative care. The significant growth seen in revenue, discharge rates, and proactive expansion strategies portray a compelling narrative for investors and the healthcare market as a whole. Encompass Health’s standing as a leader in inpatient rehabilitation care only strengthens its positioning in a competitive healthcare environment.

For those interested in further insights into these developments, Encompass Health will hold an investor conference call on August 6, 2026, to discuss these results in detail. This call, along with supplemental information, will be available through their investor relations site.

About Encompass Health

Encompass Health operates 176 hospitals across 39 states and Puerto Rico, emphasizing quality and compassionate rehabilitative care. The company continues to be acclaimed as recognized by Newsweek and Fortune, further solidifying its reputation among America’s most esteemed healthcare employers.

For more updates on Encompass Health's performance and initiatives, please visit encompasshealth.com.