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Encompass Health Reports Third Quarter Results for 2026

Encompass Health Corporation has announced its financial results for the third quarter that ended on September 30, 2026, revealing remarkable growth in various operational metrics. As the largest owner and operator of inpatient rehabilitation hospitals in the United States, the company continues to lead in providing high-quality rehabilitative care to its patients.

Financial Overview

In its quarterly report, Encompass Health recorded net operating revenues of $1.609 billion, an increase from the $1.478 billion seen in the same period last year, marking an impressive growth of 8.9%. This surge in revenue was accompanied by a significant increase in earnings, with income from continuing operations attributable to Encompass Health per diluted share rising from $1.24 to $1.51—a 21.8% increase. Additionally, adjusted earnings per share showed a notable uptick, moving from $1.23 to $1.52, representing a 23.6% improvement.

The company emphasized its strong cash flow, reporting $362 million generated from operating activities, a remarkable 33.7% increase from the previous year. Adjusted EBITDA also saw substantial growth, reaching $346.6 million, which is 15.5% higher than last year’s figure.

Strategic Expansion

Mark Tarr, the President and CEO of Encompass Health, highlighted the company’s expansion strategy, noting that in the first nine months of 2026, four new hospitals were opened, contributing a total of 189 beds. Existing hospitals also saw an addition of 85 beds. This expansion reflects the company's commitment to meeting the increasing demand for high-quality rehabilitation services across the nation.

Tarr expressed optimism regarding the company’s value proposition and disciplined operational strategy, asserting that these results validate Encompass Health's approach and solidify the long-term prospects of the business.

Adjusted Guidance 2026

In light of the strong quarterly performance, Encompass Health has raised its full-year guidance. The company now expects total net operating revenue for 2026 to fall between $6.450 billion and $6.500 billion, up from the previous forecast of $6.410 billion to $6.490 billion. Likewise, adjusted EBITDA projections have been increased to between $1.395 billion and $1.415 billion, compared to the earlier expectation of $1.365 billion to $1.395 billion. Furthermore, adjusted earnings per share are now anticipated to be in the range of $6.23 to $6.37, a conservative increase from the prior guidance.

Looking Ahead

The company’s results and the updated guidance have positioned Encompass Health positively ahead of its upcoming investor conference call scheduled for October 29, 2026. This call will provide further detail on the third quarter results and future operational strategies. Investors can access the call by dialing the designated numbers provided in the report.

About Encompass Health

Encompass Health Corporation is the nation's largest operator of inpatient rehabilitation hospitals with a comprehensive national footprint that includes 179 facilities across 39 states and Puerto Rico. The company is widely recognized for its commitment to providing high-quality, compassionate rehabilitative care utilizing advanced technology and innovative treatment methods. Encompass Health has consistently been acknowledged in various rankings, including Fortune's World's Most Admired Companies and Newsweek's leader in inpatient rehabilitation.

For further information, visit the Encompass Health website or follow them on social media platforms. The ongoing growth and expansion strategies underscore the organization's commitment to enhancing healthcare services for patients in their recovery journeys.