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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…
Revenue by segment, Q3 2026
| Segment | Revenue | Share | Q/Q | Y/Y |
|---|---|---|---|---|
| Inpatient | $1.6B | 97.0% | +1% | +10% |
| ↳ Medicare | $1.1B | 66.2% | +2% | +13% |
| ↳ Medicare Advantage | $253M | 15.7% | -3% | +3% |
| ↳ Managed care | $173M | 10.8% | +1% | +5% |
| ↳ Medicaid | $49.6M | 3.1% | 0% | -0.8% |
| ↳ Other third-party payors | $11.9M | 0.7% | 0% | +21% |
| ↳ Workers’ compensation | $8.2M | 0.5% | +15% | -4% |
| Other | $40.4M | 2.5% | -12% | -20% |
| Patients | $8.0M | 0.5% | +19% | +63% |
Where each dollar of revenue goes
| Line | Q3 2026 | % of revenue |
|---|---|---|
| Revenue | $1.6B | 100.0% |
| Operating profit | $288M | 17.9% |
| Income tax | $53.4M | 3.3% |
| Net earnings | $150M | 9.3% |
| Operating cash flow | $362M | 22.5% |
| Free cash flow | $128M | 7.9% |
Revenue, quarter by quarter
| Quarter | Revenue | Y/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%.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.