Encompass Health Corporation (EHC) stock is soaring 5.70% in pre-market trading on Tuesday, following the release of its impressive second-quarter 2025 financial results and raised full-year guidance. The company, one of the largest providers of inpatient rehabilitation services in the U.S., reported robust revenue growth and earnings that surpassed analyst expectations.

For Q2 2025, Encompass Health delivered $1.46 billion in revenue, representing a 12.0% year-over-year increase and exceeding the consensus estimate of $1.427 billion. The company's non-GAAP earnings per share (EPS) reached $1.40, significantly topping the expected $1.23 and marking a 26.1% growth compared to the same period last year. The strong performance was driven by increased patient discharges, improved pricing, and a favorable shift in the payer mix towards higher-reimbursement insurance categories.

In light of these results, Encompass Health's management raised its full-year 2025 guidance for key metrics including revenue, adjusted EBITDA, and non-GAAP EPS. The company now projects full-year net operating revenue between $5.88 billion and $5.98 billion, up from the previous range of $5.85 billion to $5.93 billion. Additionally, BofA Global Research has raised its price objective for Encompass Health from $140 to $145, further boosting investor confidence in the company's growth prospects.