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How Encompass Health (EHC) makes money

Encompass Health (EHC) made $1.6B of revenue in the third quarter 2026 (Q3 2026), +9% from a year earlier. Inpatient brought in $1.6B (97%); Other brought in $40.4M (3%); Patients brought in $8.0M (0%). Of every dollar of revenue, 18¢ was left as operating profit, 9¢ was left as net earnings.

Drawing the Sankey…

Encompass Health revenue by segment, Q3 2026Encompass Health revenue by segment, Q3 2026Inpatient$1.6BOther$40.4MPatients$8.0M
Encompass Health: revenue by line, Q1 2025 to Q3 2026Encompass Health: revenue by line, Q1 2025 to Q3 2026InpatientMedicaidOtherOutpatient and otherPatientsInpatient: $1.6B latest$1.6BMedicaid: $0 latestOther: $40.4M latestOutpatient and other: $0 latestPatients: $8.0M latestQ1 2025Q2 2025Q3 2025Q1 2026Q2 2026Q3 2026
The mix barely moved between Q1 2025 and Q3 2026.
Encompass Health revenue by quarterEncompass Health revenue by quarter$1.5BQ1 2025$1.5BQ2 2025$1.5BQ3 2025$1.5BQ4 2025$1.6BQ1 2026$1.6BQ2 2026$1.6BQ3 2026
Encompass Health: where each dollar of revenue goesEncompass Health: where each dollar of revenue goesOperating profit18¢Income tax3¢Net earnings9¢Operating cash flow22¢Free cash flow8¢

Revenue by segment, Q3 2026

SegmentRevenueShareQ/QY/Y
Inpatient$1.6B97.0%+1%+10%
  ↳ Medicare$1.1B66.2%+2%+13%
  ↳ Medicare Advantage$253M15.7%-3%+3%
  ↳ Managed care$173M10.8%+1%+5%
  ↳ Medicaid$49.6M3.1%0%-0.8%
  ↳ Other third-party payors$11.9M0.7%0%+21%
  ↳ Workers’ compensation$8.2M0.5%+15%-4%
Other$40.4M2.5%-12%-20%
Patients$8.0M0.5%+19%+63%

Where each dollar of revenue goes

LineQ3 2026% of revenue
Revenue$1.6B100.0%
Operating profit$288M17.9%
Income tax$53.4M3.3%
Net earnings$150M9.3%
Operating cash flow$362M22.5%
Free cash flow$128M7.9%

Revenue, quarter by quarter

QuarterRevenueY/Y
Q3 2026$1.6B+9%
Q2 2026$1.6B+10%
Q1 2026$1.6B+9%
Q4 2025$1.5B+10%
Q3 2025$1.5B+9%
Q2 2025$1.5B+12%
Q1 2025$1.5B+11%

From Encompass Health's 10-Q filed Nov 3, 2026 (on EDGAR).

Questions

How does Encompass Health make money?

Encompass Health (EHC) made $1.6B of revenue in the third quarter 2026 (Q3 2026), +9% from a year earlier. Inpatient brought in $1.6B (97%); Other brought in $40.4M (3%); Patients brought in $8.0M (0%). Of every dollar of revenue, 18¢ was left as operating profit, 9¢ was left as net earnings.

What is Encompass Health's biggest business?

Inpatient: $1.6B in the third quarter 2026, 97% of revenue, +10% from a year earlier.

What is Encompass Health's profit margin?

Net earnings were $150M, 9.3% of revenue, in the third quarter 2026; the operating margin was 17.9%.

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Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.