Filing Flows › Encompass Health (EHC) › Q2 2026
Encompass Health (EHC) Q2 2026 earnings results (second quarter 2026)
10-Q filed Aug 7, 2026
Encompass Health (EHC) reported revenue of $1.6B for the second quarter 2026 (Q2 2026), +10% from a year earlier and +0.7% from the quarter before. Operating margin was 18.1%, net earnings $154M (9.6% of revenue).
Encompass Health, Q2 2026: revenue $1.6B (+10% year over year), operating margin 18.1%, net earnings $154M, operating cash flow $283M. The chart follows the revenue to costs, profit and cash.
| Q2 2026 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $1.6B | +0.7% | +10% |
| Operating profit | $288M | -4% | +11% |
| Net earnings | $154M | -21% | +8% |
| Operating cash flow | $283M | -10% | +5% |
| Free cash flow | $62.3M | -59% | -45% |
What changed
Revenue was $1.6B in Q2 2026, up 10% year over year and up 1% from the previous quarter. Medicare was the largest line at 66% of revenue. Medicare added $0.11B year over year (up 11%), 77% of the total change. Workers’ compensation declined 5%.
Operating profit was $0.29B, a 18.1% margin (up 0.3 points year over year). Of the extra revenue versus Q2 2025, 21% reached operating profit, above the 18% margin then. Total costs grew 9% against revenue growth of 10%. Net earnings were $0.15B, up 8% year over year. The effective tax rate was 20.5%.
Operating cash flow was $0.28B (up 5% year over year), 136% 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 $0.22B left free cash flow of $0.06B.
Questions
What was Encompass Health's revenue in the second quarter 2026?
Encompass Health (EHC) reported revenue of $1.6B for the second quarter 2026 (Q2 2026), +10% from a year earlier and +0.7% from the quarter before.
Was Encompass Health profitable in the second quarter 2026?
Operating profit was $288M (18.1% of revenue) and net earnings $154M.
Source: Encompass Health 10-Q on SEC EDGAR.