10-Q · August 7, 2026
Encompass Health reported Q2 2026 revenue of $1.597 billion and diluted EPS of $1.55. Revenue increased approximately 0.4% sequentially and 9.4% year over year, while EPS declined 19.7% sequentially but rose 11.5% year…
Earnings analysis · 10-Q
EHC earnings analysis
Filed November 3, 2026 · Our reading of the company's report
The latest report
Encompass Health delivered a strong third quarter, with revenue of $1.609 billion and EPS of $1.52, both above consensus and higher than the prior-year period. Adjusted EBITDA rose 15.5% to $346.6 million, while…
Read full summary
Encompass Health delivered a strong third quarter, with revenue of $1.609 billion and EPS of $1.52, both above consensus and higher than the prior-year period. Adjusted EBITDA rose 15.5% to $346.6 million, while operating cash flow and adjusted free cash flow grew 33.7% and 51.2%, respectively. The 10-Q reports no material changes to the risk factors in the 2025 Form 10-K and does not introduce new quantitative guidance; the latest outlook had been raised in the October 28 earnings release.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $1.52
What stood out
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Revenue growth exceeded expectations
Third-quarter revenue was $1.609 billion, up 8.9% year over year and approximately 0.5% above the $1.601 billion consensus estimate.
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EPS beat and improved year over year
Reported third-quarter EPS was $1.52 versus $1.36 expected, a 11.8% consensus beat and 22.6% increase from $1.24 in the prior-year quarter.
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Profitability and cash flow accelerated
Adjusted EBITDA increased 15.5% to $346.6 million, while operating cash flow and adjusted free cash flow increased 33.7% and 51.2%, respectively.
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Share repurchases remained active
The company repurchased 497,958 shares during the quarter at an average price of $118.39, with $953.3 million remaining under the repurchase authorization.
What to watch
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No material risk-factor changes
Item 1A states there were no material changes from the risk factors in the 2025 Form 10-K, while directing investors to the Key Challenges discussion in Item 2 for updates. The filing therefore does not identify a new quantified risk-factor change.
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Significant remaining buyback authorization
The company repurchased 497,958 shares at an average price of $118.39 and had $953,256,027 remaining under its authorization, representing continued use of capital for buybacks that could compete with debt reduction or other investments.
Management's outlook
The 10-Q extract does not provide new quantitative guidance. The latest disclosed outlook was provided in the October 28, 2026 earnings release: full-year 2026 revenue of $6.45 billion-$6.50 billion, adjusted EPS of $6.23-$6.37, and adjusted EBITDA of $1.395 billion-$1.415 billion.
Earlier filings 2
10-Q · May 1, 2026
Encompass Health Corporation (EHC) reported strong Q1 2026 results, with net operating revenues increasing 9.0% year-over-year to $1.586 billion, surpassing estimates of $1.568 billion. Diluted EPS came in at $1.77,…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.