Maximus (NYSE:MMS) Announces Quarterly Earnings Results

Maximus (NYSE:MMS) posted its quarterly earnings data on Thursday. The health services provider reported $2.22 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.21 by $0.01, Zacks reports. The firm had revenue of $1.28 billion for the quarter, compared to the consensus estimate of $1.33 billion. Maximus had a net margin of 7.07% and a return on equity of 24.91%. The business’s revenue for the quarter was down 5.1% compared to the same quarter last year. During the same period in the previous year, the firm earned $2.16 EPS. Maximus updated its FY 2026 guidance to 7.900-8.200 EPS.

Here are the key takeaways from Maximus’ conference call:

• Third-quarter results were solid: revenue reached $1.28 billion, adjusted EBITDA margin improved to 15.0% from 14.7%, and adjusted EPS rose to $2.22 from $2.16 year over year. Maximus reiterated fiscal 2026 revenue guidance of $5.2 billion to $5.35 billion, though it remains biased toward the lower end.
• A temporary pause in performance incentives on the VA Medical Disability Exam contract is expected to reduce fourth-quarter adjusted EPS by approximately $0.35. Maximus lowered fiscal 2026 adjusted EPS guidance to $7.90–$8.20 and expects fourth-quarter adjusted EBITDA margin of approximately 13%.
• Collections from a major federal customer accelerated, with approximately $245 million received since June 30. Management still expects DSO to fall below 70 days by fiscal year-end and free cash flow to range from $425 million to $475 million.
• Maximus expects U.S. Services to return to positive mid-single-digit organic growth in the fourth quarter as Medicaid-related outreach and engagement volumes increase. SNAP accuracy initiatives, AI-enabled solutions, and defense and national security opportunities were highlighted as longer-term growth drivers.
• The company reported a $50.4 billion sales pipeline, but procurement delays, scope revisions, cancellations, and increased use of bridge contracts are slowing opportunity maturation. Awarded-but-unsigned contracts increased to $1.35 billion, which management expects to support improving book-to-bill in future quarters.

Maximus Price Performance

MMS stock traded up $0.88 during midday trading on Friday, reaching $59.21. The company had a trading volume of 1,378,337 shares, compared to its average volume of 623,694. The firm has a 50-day moving average price of $58.63 and a 200-day moving average price of $67.46. The company has a market capitalization of $3.11 billion, a P/E ratio of 8.75 and a beta of 0.59. Maximus has a 1 year low of $52.73 and a 1 year high of $100.00. The company has a debt-to-equity ratio of 0.90, a current ratio of 2.42 and a quick ratio of 2.21.

Maximus Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Monday, August 31st. Investors of record on Friday, August 14th will be given a $0.33 dividend. This represents a $1.32 annualized dividend and a dividend yield of 2.2%. The ex-dividend date is Friday, August 14th. Maximus’s dividend payout ratio is 19.76%.

Wall Street Analyst Weigh In

MMS has been the subject of a number of recent analyst reports. Zacks Research downgraded shares of Maximus from a “strong-buy” rating to a “hold” rating in a research report on Monday, April 27th. Weiss Ratings downgraded Maximus from a “hold (c)” rating to a “hold (c-)” rating in a research note on Wednesday, May 20th. Finally, Wall Street Zen lowered Maximus from a “buy” rating to a “hold” rating in a report on Saturday. Two analysts have rated the stock with a Hold rating, According to MarketBeat, Maximus currently has a consensus rating of “Hold”.

Institutional Trading of Maximus

A number of hedge funds have recently made changes to their positions in MMS. Royal Bank of Canada raised its position in Maximus by 146.2% during the first quarter. Royal Bank of Canada now owns 19,732 shares of the health services provider’s stock valued at $1,345,000 after purchasing an additional 11,716 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its holdings in shares of Maximus by 0.6% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 34,476 shares of the health services provider’s stock worth $2,351,000 after purchasing an additional 221 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its holdings in shares of Maximus by 7.0% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 180,690 shares of the health services provider’s stock worth $12,321,000 after purchasing an additional 11,754 shares in the last quarter. Jane Street Group LLC increased its position in shares of Maximus by 941.2% during the 1st quarter. Jane Street Group LLC now owns 98,273 shares of the health services provider’s stock valued at $6,701,000 after purchasing an additional 88,835 shares during the last quarter. Finally, Sivia Capital Partners LLC bought a new position in shares of Maximus during the 2nd quarter valued at about $204,000. 97.21% of the stock is owned by institutional investors.

Maximus News Summary

Here are the key news stories impacting Maximus this week:

• Positive Sentiment: Fiscal Q3 adjusted earnings were $2.22 per share, ahead of analyst estimates of approximately $2.20–$2.21 and up from $2.16 a year earlier. Higher margins also supported the quarter’s bottom-line performance. Maximus Q3 Earnings Beat Estimates, Increase Year Over Year
• Positive Sentiment: The earnings beat, year-over-year EPS growth and stronger margins indicate that Maximus is maintaining profitability even as sales soften. Maximus Q3 Earnings Beat Estimates
• Neutral Sentiment: Management’s fiscal Q3 earnings call focused on the quarterly performance and updated outlook, providing investors with additional context on operating trends and the company’s expectations for the remainder of fiscal 2026. Maximus Q3 2026 Earnings Call Transcript
• Negative Sentiment: Revenue was $1.28 billion, below the $1.33 billion consensus estimate and down 5.1% year over year. The shortfall suggests softer demand or project timing is limiting growth. Maximus Fiscal Q3 Earnings Snapshot
• Negative Sentiment: Maximus reduced fiscal 2026 EPS guidance to $7.90–$8.20, below the consensus estimate of $8.43. Revenue guidance of $5.2–$5.4 billion remains broadly in line with expectations at the midpoint, but the lower profit outlook is a key overhang for MMS. Updated Maximus Fiscal 2026 Guidance

About Maximus

Maximus, Inc (NYSE: MMS) is a global provider of government services focused on delivering health and human services programs. The company partners with federal, state, and local agencies to administer and manage programs that support individuals and families across various stages of life. Key service areas include eligibility determination and enrollment services for Medicaid, Medicare, Children’s Health Insurance Program (CHIP) and other public assistance programs, as well as call center operations, case management and program integrity solutions.