Encompass Health Corporation (NYSE:EHC) is a leading inpatient rehabilitation provider in the US. The company faces regulatory changes in healthcare.
In the second half of 2025, Encompass Health delivered strong financial results. Q3 EBITDA grew 11% year-over-year. Q4 beat analyst expectations.
The company issued 2026 guidance exceeding Street estimates. The Medicare payment rule for FY2027 is expected to include rate updates of 2.5-3.0%.
Encompass Health is gaining market share, especially in stroke cases. Bed addition targets for 2025-2027 support expansion.
Risks include same-store volume softness and regulatory changes. The company pays dividends and has strong ROE.
