Aug. 11 at 8:47 PM
TD Cowen analyst Ryan Langston maintained Encompass Health as his top small- and mid-cap pick after the company delivered strong Q2 2026 results, driven by better-than-expected same-facility volume growth and earnings.
Adjusted EBITDA reached
$348 million, about 3% above consensus, despite an
$11.5 million year-over-year headwind from supplemental hospital discharge payments. Revenue rose 10% to
$1.60 billion, beating estimates by 2%, while adjusted EPS increased 11% to
$1.55, above the
$1.49 consensus. Same-facility discharges grew 2.8%, ahead of the 2% estimate, while total discharges rose 5.6%.
Encompass Health raised its 2026 adjusted EBITDA guidance by
$15 million at both ends of its range and lifted revenue guidance to
$6.41-
$6.49 billion. Management also authorized a new
$1 billion share-repurchase program, while adding 100 beds through facility expansions and new openings.
$EHC