Before we begin, if you do not already have a copy, the second quarter earnings release, supplemental information, and related Form 8-K filed with the SEC are available on our website at encompasshealth.com. On page two of the supplemental information, you will find the safe harbor statements, which are also set forth in greater detail on the last page of the earnings release. During the call, we'll make forward-looking statements, such as guidance and growth projections, which are subject to risks and uncertainties, many of which are beyond our con- During the call, we will make forward-looking statements, such as guidance and growth projections, which are subject to risks and uncertainties, many of which are beyond our control.
You are cautioned not to place undue reliance on these estimates, projections, guidance, and other forward-looking information presented, which are based on current estimates of future events and speak only as of today. As revenue grew 9.6%, adjusted EBITDA increased 9.2%, and adjusted EPS increased 10.7%. Based primarily on our Q2 results, we are again raising our guidance for 2026. We again experienced increased participation in our clinical staff professional growth and development programs, such as our career ladders, providing nurses with support to attain advanced licenses and certifications, including certified rehabilitation RN designation.
Our professional growth and development programs also enhance our abilities to serve high acuity, medically complex patients. Demand for inpatient rehabilitation services remains strong, and we continue to invest in capacity additions. We maintain an active pipeline of new hospital development projects, both wholly owned and joint ventures, while also executing on bed expansion opportunities as warranted by occupancy trends and market dynamics. North Carolina exhibits highly favorable population growth and demographic characteristics, and our assessment points to a large underserved market for IRF services.