Encompass Health Q1 Revenue Up 9%, Adjusted EPS Tops Estimates and Raises Guidance
Encompass Health reported Q1 net income of $194.5 million ($1.93 GAAP, $1.60 adjusted EPS), topping estimates with revenue of $1.59 billion, up 9% year-over-year. The company raised full-year guidance to $5.89–6.11 per share and $6.38–6.47 billion revenue while planning eight new hospitals adding 389 beds plus 175 expansions.
1. Strong Q1 Financial Performance
Encompass Health achieved net income of $194.5 million in Q1, translating to $1.93 per share GAAP and $1.60 adjusted EPS, both surpassing analyst forecasts. Revenue climbed 9.0% to $1.5866 billion, driven by a 4.3% increase in discharges and a 3.7% rise in net patient revenue per discharge to $22,633.
2. Increased Guidance and Capacity Growth
The company lifted full-year 2026 guidance to $5.89–6.11 adjusted EPS and $6.38–6.47 billion revenue, modestly above prior targets. It opened a new 49-bed hospital in South Carolina, added 44 beds at existing sites, and plans eight new hospitals (389 beds) plus 175 additional beds in existing facilities during the year.