Filing Flows › Encompass Health (EHC) › Q1 2026
Encompass Health (EHC) Q1 2026 earnings results (first quarter 2026)
10-Q filed May 1, 2026
Encompass Health (EHC) reported revenue of $1.6B for the first quarter 2026 (Q1 2026), +9% from a year earlier and +3% from the quarter before. Operating margin was 19.0%, net earnings $194M (12.3% of revenue).
Encompass Health, Q1 2026: revenue $1.6B (+9% year over year), operating margin 19.0%, net earnings $194M, operating cash flow $313M. The chart follows the revenue to costs, profit and cash.
| Q1 2026 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $1.6B | +3% | +9% |
| Operating profit | $302M | +6% | +13% |
| Net earnings | $194M | +33% | +28% |
| Operating cash flow | $313M | -10% | +8% |
| Free cash flow | $151M | +29% | +20% |
What changed
Revenue was $1.6B in Q1 2026, up 9% year over year and up 3% from the previous quarter. Medicare was the largest line at 65% of revenue. Medicare added $0.06B year over year (up 6%), 48% of the total change.
Operating profit was $0.30B, a 19.0% margin (up 0.7 points year over year). Of the extra revenue versus Q1 2025, 26% reached operating profit, above the 18% margin then. Total costs grew 8% against revenue growth of 9%. The fastest-growing cost line was General & admin (+11%). Net earnings were $0.19B, up 28% year over year. The effective tax rate was 18.5%.
Operating cash flow was $0.31B (up 8% year over year), 126% of net income including minority interests. Non-cash charges added back $0.09B of depreciation and amortization and $0.01B of share-based compensation. Working capital and other items used $0.03B. Capital expenditures of $0.16B left free cash flow of $0.15B.
Questions
What was Encompass Health's revenue in the first quarter 2026?
Encompass Health (EHC) reported revenue of $1.6B for the first quarter 2026 (Q1 2026), +9% from a year earlier and +3% from the quarter before.
Was Encompass Health profitable in the first quarter 2026?
Operating profit was $302M (19.0% of revenue) and net earnings $194M.
Source: Encompass Health 10-Q on SEC EDGAR.