Encompass Health Corp (EHC) FinancialsEHCEncompass Health Corp

Encompass Health Corporation (EHC) generates its revenue through a diversified portfolio of business segments. Currently, the largest contributor to its top-line growth is Medicare, accounting for 65.5% of total sales, equivalent to $1.04B. Other significant revenue streams include Medicare Advantage and Managed Care. Understanding this composition is critical for investors evaluating how EHC navigates market cycles within the Healthcare Facilities & Services industry.

Evaluating the bottom line, Encompass Health Corporation maintains a gross margin of 90.20%. This metric reflects the company's pricing power and manufacturing efficiency. Further down the income statement, the operating margin stands at 18.05%, while the net margin is 13.02%. These profitability ratios, combined with a Return on Equity (ROE) of 24.75%, provide a clear picture of how effectively EHC converts its operational activities into shareholder value.

In the context of the broader market, EHC competes directly with industry leaders such as BTSG and DVA. With a market capitalization of $12.19B, it holds a leading position in the sector. When comparing efficiency, EHC's gross margin of 90.20% stands against BTSG's 12.72% and DVA's 27.98%. Such benchmarking helps identify whether Encompass Health Corporation is trading at a premium or discount relative to its financial performance.

Encompass Health has demonstrated strong revenue growth, with total revenue increasing from $1.35 billion in Q3 2024 to $1.59 billion in Q2 2026. The net income has also shown a positive trend, with $194 million reported in Q1 2026, reflecting the company's solid profitability.