Encompass Health Raises 2026 Outlook Following Strong Second Quarter
Birmingham-based Encompass Health reported a 9.6% increase in net operating revenue for the second quarter of 2026, reaching $1.597 billion. Driven by rising patient discharge volumes and disciplined operational management, the inpatient rehabilitation provider has raised its full-year financial guidance and expanded its stock repurchase program.
The company’s growth trajectory remains steady, with Adjusted EBITDA climbing 9.2% to $348 million compared to the same period last year. CEO Mark Tarr pointed to a successful facility expansion strategy, noting that the company opened three new hospitals in the first half of 2026. These additions, combined with bed expansions at existing sites, underscore the firm’s commitment to capturing increased demand for rehabilitative care.
Looking toward the end of the year, Encompass Health expects to launch five additional hospitals and integrate over 100 new beds into its current network. Reflecting this confidence, the board of directors increased the company's common stock repurchase authorization to $1 billion on July 23. The updated full-year guidance now projects net operating revenue between $6.41 billion and $6.49 billion, with Adjusted EBITDA expected to reach a range of $1.365 billion to $1.395 billion.
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