| Earnings per Common Share The following table sets forth the computation of basic and diluted earnings per common share (in millions, except per share amounts): | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended September 30, | | Nine Months Ended September 30, | | 2026 | | 2025 | | 2026 | | 2025 | | Basic: | | | | | | | | | Numerator: | | | | | | | | | Income from continuing operations | $ | 204.4 | | | $ | 175.0 | | | $ | 644.7 | | | $ | 557.8 | | | Less: Net income attributable to noncontrolling interests included in continuing operations | (53.7) | | | (48.1) | | | (160.9) | | | (135.9) | | | Less: Income allocated to participating securities | (0.4) | | | (0.3) | | | (1.3) | | | (1.1) | | | Income from continuing operations attributable to Encompass Health common shareholders | 150.3 | | | 126.6 | | | 482.5 | | | 420.8 | | | | | | | | | | | | | | | | | | | | | | | | | | | (Loss) income from discontinued operations attributable to Encompass Health common shareholders | (0.8) | | | (0.4) | | | 14.5 | | | (1.8) | | | Net income attributable to Encompass Health common shareholders | $ | 149.5 | | | $ | 126.2 | | | $ | 497.0 | | | $ | 419.0 | | | Denominator: | | | | | | | | Basic weighted average common shares outstanding | 98.3 | | | 100.5 | | | 98.8 | | | 100.5 | | Basic earnings per share attributable to Encompass Health common shareholders: | | | | | | | | Continuing operations | $ | 1.53 | | | $ | 1.26 | | | $ | 4.88 | | | $ | 4.19 | | Discontinued operations | (0.01) | | | — | | | 0.15 | | | (0.02) | | Net income | $ | 1.52 | | | $ | 1.26 | | | $ | 5.03 | | | $ | 4.17 | | | | | | | | | | | Diluted: | | | | | | | | | Numerator: | | | | | | | | | Income from continuing operations | $ | 204.4 | | | $ | 175.0 | | | $ | 644.7 | | | $ | 557.8 | | | Less: Net income attributable to noncontrolling interests included in continuing operations | (53.7) | | | (48.1) | | | (160.9) | | | (135.9) | | | | | | | | | | | | | | | | | | | Income from continuing operations attributable to Encompass Health common shareholders | 150.7 | | | 126.9 | | | 483.8 | | | 421.9 | | | | | | | | | | | | | | | | | | | (Loss) income from discontinued operations attributable to Encompass Health common shareholders | (0.8) | | | (0.4) | | | 14.5 | | | (1.8) | | | Net income attributable to Encompass Health common shareholders | $ | 149.9 | | | $ | 126.5 | | | $ | 498.3 | | | $ | 420.1 | | | Denominator: | | | | | | | | Diluted weighted average common shares outstanding | 99.7 | | | 102.3 | | | 100.2 | | | 102.3 | | Diluted earnings per share attributable to Encompass Health common shareholders: | | | | | | | | Continuing operations | $ | 1.51 | | | $ | 1.24 | | | $ | 4.83 | | | $ | 4.13 | | Discontinued operations | (0.01) | | | — | | | 0.14 | | | (0.02) | | Net income | $ | 1.50 | | | $ | 1.24 | | | $ | 4.97 | | | $ | 4.11 | |
The following table sets forth the reconciliation between basic weighted average common shares outstanding and diluted weighted average common shares outstanding (in millions): | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended September 30, | | Nine Months Ended September 30, | | 2026 | | 2025 | | 2026 | | 2025 | | Basic weighted average common shares outstanding | 98.3 | | | 100.5 | | | 98.8 | | | 100.5 | | Restricted stock awards, dilutive stock options, and restricted stock units | 1.4 | | | 1.8 | | | 1.4 | | | 1.8 | | | Diluted weighted average common shares outstanding | 99.7 | | | 102.3 | | | 100.2 | | | 102.3 | |
See Note 15, Earnings per Common Share, to the consolidated financial statements accompanying the 2025 Form 10‑K for additional information related to our common stock.
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