Encompass Health reported second quarter results that beat expectations, prompting the company to raise its full-year guidance twice in the same release. Net operating revenue climbed 9.6% to $1.597 billion, and adjusted earnings per share rose 10.7% to $1.55. The company, the largest owner of inpatient rehabilitation hospitals in the U.S., discharged 68,895 patients, up 5.6%, with same-store discharges growing 2.8%. Management lifted full-year revenue guidance to $6.41 billion to $6.49 billion, adjusted EBITDA to $1.365 billion to $1.395 billion, and adjusted EPS to $6.02 to $6.25. The board also increased the stock repurchase authorization to $1 billion on July 23, after buying back $145.8 million of stock this year. However, adjusted free cash flow fell 4.8% to $177.0 million due to higher capital spending, and long-term debt rose to $2.598 billion from $2.447 billion at the end of 2025.
Encompass Health CorpQ2 beat and raised full-year guidance, plus increased buyback authorization.
