Encompass Health (EHC) is trading higher after releasing first-quarter 2026 earnings and increasing its full-year 2026 outlook. The update showed continued volume growth in inpatient rehabilitation, improving profitability metrics, and management confidence signaled through a guidance lift. (stocktitan.net)

For Q1 2026, Encompass Health reported net operating revenue of $1.5866 billion (up 9.0% year over year), adjusted EBITDA of $348.8 million (up 11.2%), and income from continuing operations per diluted share of $1.77 (up 19.6%). Adjusted EPS was $1.60 versus $1.37 a year ago, while discharges rose to 67,763 (up 4.3%). (stocktitan.net)

The company modestly raised its 2026 outlook, with net operating revenue now expected at $6.375 billion to $6.470 billion, up from the prior $6.365 billion to $6.465 billion range. Management also reiterated an expansion pipeline, including plans to open eight hospitals (389 beds) and add roughly 175 beds in 2026, building on Q1 capacity additions and a new hospital opening in South Carolina. (stocktitan.net)

Despite the upbeat prints and higher guidance, investors will monitor whether cash generation rebounds after adjusted free cash flow fell 12.9% year over year to $193.8 million in Q1. Attention is also likely to stay on reimbursement dynamics, audit activity, and staffing-cost pressure given the sector’s sensitivity to labor trends and payor changes. (stocktitan.net)