Zacks Research Has Bullish Estimate for EHC Q1 Earnings

Encompass Health Corporation (NYSE:EHC) – Analysts at Zacks Research upped their Q1 2026 earnings per share (EPS) estimates for shares of Encompass Health in a research note issued on Thursday, February 19th. Zacks Research analyst Team now expects that the company will post earnings of $1.52 per share for the quarter, up from their prior forecast of $1.44. Zacks Research has a “Hold” rating on the stock. The consensus estimate for Encompass Health’s current full-year earnings is $4.80 per share. Zacks Research also issued estimates for Encompass Health’s Q2 2026 earnings at $1.49 EPS, Q3 2026 earnings at $1.40 EPS, Q4 2026 earnings at $1.62 EPS, FY2026 earnings at $6.03 EPS, Q1 2027 earnings at $1.57 EPS, Q2 2027 earnings at $1.62 EPS, Q3 2027 earnings at $1.49 EPS, Q4 2027 earnings at $1.65 EPS, FY2027 earnings at $6.32 EPS and FY2028 earnings at $7.13 EPS.

Encompass Health (NYSE:EHC) last released its quarterly earnings data on Thursday, February 5th. The company reported $1.46 EPS for the quarter, beating analysts’ consensus estimates of $1.29 by $0.17. The business had revenue of $3.09 billion for the quarter, compared to the consensus estimate of $1.54 billion. Encompass Health had a return on equity of 18.20% and a net margin of 9.54%.The business’s revenue for the quarter was up 9.9% on a year-over-year basis. During the same quarter in the prior year, the business posted $1.17 EPS. Encompass Health has set its FY 2026 guidance at 5.810-6.100 EPS.

A number of other research firms also recently commented on EHC. Barclays increased their target price on shares of Encompass Health from $150.00 to $153.00 and gave the company an “overweight” rating in a research report on Friday, February 6th. Wall Street Zen raised Encompass Health from a “hold” rating to a “buy” rating in a report on Sunday, January 18th. Finally, Raymond James Financial raised Encompass Health to a “strong-buy” rating in a report on Friday, October 31st. Two analysts have rated the stock with a Strong Buy rating, seven have given a Buy rating and one has issued a Hold rating to the stock. According to data from MarketBeat, Encompass Health currently has a consensus rating of “Buy” and a consensus price target of $143.29.

Encompass Health Stock Down 0.5%

EHC stock opened at $106.59 on Friday. The stock has a market cap of $10.73 billion, a P/E ratio of 19.24, a PEG ratio of 2.04 and a beta of 0.73. The company has a current ratio of 1.08, a quick ratio of 1.14 and a debt-to-equity ratio of 0.76. Encompass Health has a twelve month low of $92.53 and a twelve month high of $127.99. The company’s 50 day moving average is $103.98 and its two-hundred day moving average is $114.47.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the stock. Price T Rowe Associates Inc. MD grew its position in Encompass Health by 24.6% in the 4th quarter. Price T Rowe Associates Inc. MD now owns 4,805,413 shares of the company’s stock valued at $510,047,000 after buying an additional 948,202 shares during the last quarter. Northwestern Mutual Wealth Management Co. lifted its stake in shares of Encompass Health by 3,059,159.7% in the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 3,793,482 shares of the company’s stock worth $402,640,000 after acquiring an additional 3,793,358 shares during the period. Wellington Management Group LLP boosted its holdings in shares of Encompass Health by 21.7% in the fourth quarter. Wellington Management Group LLP now owns 3,384,877 shares of the company’s stock valued at $359,271,000 after acquiring an additional 603,472 shares in the last quarter. T. Rowe Price Investment Management Inc. increased its stake in shares of Encompass Health by 27.2% during the fourth quarter. T. Rowe Price Investment Management Inc. now owns 2,722,887 shares of the company’s stock worth $289,008,000 after acquiring an additional 581,812 shares during the period. Finally, Alliancebernstein L.P. raised its holdings in Encompass Health by 23.4% during the third quarter. Alliancebernstein L.P. now owns 2,515,878 shares of the company’s stock worth $319,567,000 after purchasing an additional 476,564 shares in the last quarter. Institutional investors and hedge funds own 97.25% of the company’s stock.

Insider Transactions at Encompass Health

In other Encompass Health news, CEO Mark J. Tarr sold 150,000 shares of the company’s stock in a transaction that occurred on Wednesday, February 11th. The stock was sold at an average price of $111.64, for a total transaction of $16,746,000.00. Following the completion of the sale, the chief executive officer directly owned 377,070 shares of the company’s stock, valued at $42,096,094.80. This represents a 28.46% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. 2.00% of the stock is owned by company insiders.

Encompass Health Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Wednesday, April 15th. Investors of record on Wednesday, April 1st will be issued a dividend of $0.19 per share. The ex-dividend date of this dividend is Wednesday, April 1st. This represents a $0.76 dividend on an annualized basis and a dividend yield of 0.7%. Encompass Health’s dividend payout ratio (DPR) is currently 13.72%.

Encompass Health News Roundup

Here are the key news stories impacting Encompass Health this week:

• Positive Sentiment: Zacks Research raised several near‑term and multi‑year earnings forecasts for EHC (multiple quarterly upgrades for Q1–Q4 2026 and Q1–Q4 2027 and FY2026→$6.03, FY2027→$6.32, FY2028→$7.13), signaling better-than-expected profitability trends. This upward revision cadence supports higher future earnings expectations and is bullish for the stock.
• Positive Sentiment: Encompass Health declared a quarterly cash dividend of $0.19 per share (record Apr 1; payable Apr 15), a sign of steady cash flow and shareholder return policy; the yield is modest (~0.7%) but supports income-oriented investors. Encompass Health declares dividend on common stock
• Neutral Sentiment: Zacks maintained a “Hold” rating despite the estimate upgrades, indicating the firm sees upside limited relative to risk — this tempering of conviction may blunt an otherwise stronger rally.
• Neutral Sentiment: Market commentary and post‑earnings analysis pieces are circulating (e.g., Q4 analysis and “buy/sell/hold” writeups) that could influence short-term flows as investors digest the Q4 beat and management guidance. Encompass Health (EHC): Buy, sell, or hold post Q4 earnings?

Encompass Health Company Profile

Encompass Health Corporation is a leading provider of post‐acute healthcare services in the United States, operating a comprehensive network of inpatient rehabilitation hospitals and home health and hospice agencies. Its inpatient rehabilitation hospitals offer intensive therapy programs for patients recovering from conditions such as stroke, brain injury, spinal cord injury, cardiac and pulmonary disorders, and orthopedic procedures. Through its home health segment, Encompass Health delivers skilled nursing, physical therapy, occupational therapy and speech therapy to patients in the comfort of their homes, while its hospice services provide end‐of‐life care focused on symptom management and emotional support for patients and families.

Founded in 1984 as HealthSouth Corporation and rebranded as Encompass Health in 2018, the company has grown organically and through acquisitions to serve patients across more than 30 states.