Encompass Health shares surge 14.46% after hours on Q4 earnings beat and 2026 revenue guidance.

Encompass Health (EHC) surged 14.46% in after-hours trading following the release of strong Q4 2025 financial results, including a 9.9% year-over-year revenue increase to $1.54 billion and adjusted EBITDA growth. The company also provided 2026 guidance projecting net operating revenue of $6.37–$6.47 billion and earnings of $5.81–$6.10 per share, exceeding Wall Street expectations. Additionally, the appointment of Cain A. Hayes to its board, a veteran in healthcare payor operations, signaled enhanced expertise to navigate reimbursement and regulatory challenges. These developments reinforced confidence in the company’s execution capabilities and margin resilience, despite ongoing risks from payer behavior and reimbursement pressures. The stock’s sharp rise reflects investor optimism over near-term operational momentum and strategic governance improvements.