Encompass Health shares surge 20.53% premarket after Q4 results beat estimates, driving optimism with 14.9% adjusted EBITDA growth and strong 2026 guidance.

Encompass Health surged 20.53% in premarket trading following the release of strong fourth-quarter results and upbeat 2026 guidance. The company reported adjusted earnings per share of $1.46, exceeding analyst estimates by 12.3%, with revenue rising 9.9% to $1.54 billion. Key metrics included a 15.9% year-over-year increase in adjusted EBITDA to $335.6 million and a 24.8% rise in adjusted earnings per share. Management highlighted 10.5% revenue growth for 2025, 14.9% adjusted EBITDA growth, and capacity expansion via 517 new inpatient beds. The stock’s rally aligned with optimistic 2026 guidance, with adjusted EPS projected at $5.81–$6.10 (above the $5.82 consensus) and revenue forecasted at $6.365–$6.465 billion. The results and outlook underscored the company’s ability to capitalize on aging demographics and expanding demand for rehabilitation services.