Encompass Health reported third quarter 2026 results that exceeded analyst expectations on both the top and bottom lines, driven by robust demand for inpatient rehabilitation services. Net operating revenue grew 8.9% year-over-year to $1.61 billion, supported by a 5.7% increase in total discharges and higher reimbursement rates. On the strength of these results, the company raised its full-year 2026 guidance for revenue, Adjusted EBITDA, and adjusted EPS.
Key Highlights
- Adjusted EBITDA of $346.6 million beat the consensus estimate of $327 million, representing 15.5% year-over-year growth.
- Same-store discharge growth of 3.0% indicates steady organic demand, while total discharge growth reached 5.7%.
- Full-year 2026 adjusted EPS guidance was increased to a midpoint of $6.30, up from the previous midpoint of $6.14.
- Capacity expansion remained a priority with 274 total beds added year-to-date, including four new hospital openings totaling 189 beds.