Maximus (NYSE:MMS) Issues Quarterly Earnings Results

Maximus (NYSE:MMS) released its earnings results on Thursday. The health services provider reported $1.85 EPS for the quarter, topping the consensus estimate of $1.84 by $0.01, FiscalAI reports. The business had revenue of $1.35 billion for the quarter, compared to the consensus estimate of $1.37 billion. Maximus had a return on equity of 25.23% and a net margin of 5.87%.The company’s revenue for the quarter was down 4.1% compared to the same quarter last year. During the same period in the previous year, the company posted $1.61 earnings per share. Maximus updated its FY 2026 guidance to 8.050-8.350 EPS.

Here are the key takeaways from Maximus’ conference call:

• Raised earnings outlook — adjusted EPS guidance increased to $8.05–$8.35 with an adjusted EBITDA margin target of ~14%, and revenue guidance narrowed to $5.2B–$5.35B (ranges trimmed to reflect a ~$25M divestiture).
• Pipeline growth vs. near-term awards — pipeline rose to $59.1B (from $51.3B) with $6.2B in proposals pending/preparation (up 55% YoY), but TTM Book-to-Bill is ~0.5x and Q1 awards were light (quarterly book-to-bill 0.2x), and management assumes virtually no new-work contribution in FY26.
• State program tailwinds — new Medicaid semi-annual redeterminations and community engagement (work) requirements plus SNAP funding changes create measurable addressable demand; Maximus launched an AI-powered Accuracy Assistant for SNAP error reduction and is engaging states, with new work expected to layer in FY27–FY28.
• Automation/AI driving efficiency and wins — AI initiatives raised U.S. Federal Services margins (guidance to 16.5–17%), produced examples like 45% of disputes resolved autonomously and improved throughput, and Maximus won the GSA gXCC BPA (single award, subject to protest) for contact-center transformation.
• Near-term cash/working-capital pressure — Q1 operating cash outflow was $244M and free cash flow -$251M, DSO climbed to 78 days due to payment delays (shutdown and administrative timing), and net leverage rose to 1.8x (from 1.5x), though management expects DSO to normalize and reiterated FY26 FCF guidance of $450M–$500M.

Maximus Price Performance

NYSE:MMS traded down $1.60 during trading hours on Friday, reaching $76.63. The stock had a trading volume of 433,414 shares, compared to its average volume of 594,461. The company has a debt-to-equity ratio of 0.77, a quick ratio of 1.64 and a current ratio of 1.64. The stock has a market capitalization of $4.18 billion, a PE ratio of 13.78 and a beta of 0.57. Maximus has a 52 week low of $63.77 and a 52 week high of $100.00. The company has a 50 day moving average price of $90.29 and a two-hundred day moving average price of $86.35.

Maximus Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Monday, March 2nd. Investors of record on Friday, February 13th will be given a $0.33 dividend. This is an increase from Maximus’s previous quarterly dividend of $0.30. This represents a $1.32 dividend on an annualized basis and a dividend yield of 1.7%. The ex-dividend date is Friday, February 13th. Maximus’s dividend payout ratio (DPR) is presently 21.58%.

Analysts Set New Price Targets

Several equities research analysts recently issued reports on MMS shares. Weiss Ratings restated a “buy (b-)” rating on shares of Maximus in a report on Monday, December 29th. Zacks Research upgraded Maximus from a “hold” rating to a “strong-buy” rating in a research note on Tuesday, December 30th. One investment analyst has rated the stock with a Strong Buy rating and one has assigned a Buy rating to the company’s stock. Based on data from MarketBeat, Maximus presently has a consensus rating of “Strong Buy”.

Maximus News Roundup

Here are the key news stories impacting Maximus this week:

• Positive Sentiment: Q1 EPS beat estimates: Maximus reported $1.85 EPS vs. consensus $1.84 and up from $1.61 a year ago, supporting profitability expectations. Read More.
• Positive Sentiment: Margins improved despite revenue pressure — management emphasized margin expansion and cost discipline on the call, which helps near-term earnings quality. Read More.
• Neutral Sentiment: FY2026 EPS guidance given as $8.05–$8.35 — roughly in line with street expectations (consensus ~8.18), so guidance didn’t materially change the EPS outlook. Read More.
• Neutral Sentiment: Full earnings call transcript, slides and management commentary are available for deeper review (useful for assessing contract pipeline and margin drivers). Read More.
• Negative Sentiment: Revenue missed expectations: Q1 revenue was $1.35B vs. ~$1.37B consensus and was down ~4.1% year-over-year, highlighting near-term top-line pressure. Read More.
• Negative Sentiment: Company tightened 2026 revenue guidance to $5.2–$5.4B (below consensus ~$5.5B), which may weigh on growth expectations until contract wins/revenues accelerate. Read More.

Insider Buying and Selling

In related news, insider Michelle F. Link sold 4,039 shares of the stock in a transaction dated Wednesday, December 3rd. The shares were sold at an average price of $86.84, for a total value of $350,746.76. Following the completion of the transaction, the insider owned 19,542 shares of the company’s stock, valued at approximately $1,697,027.28. This trade represents a 17.13% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. 1.80% of the stock is owned by company insiders.

Hedge Funds Weigh In On Maximus

Several hedge funds have recently added to or reduced their stakes in the company. HighTower Advisors LLC grew its holdings in shares of Maximus by 14.7% in the fourth quarter. HighTower Advisors LLC now owns 6,431 shares of the health services provider’s stock worth $555,000 after purchasing an additional 823 shares during the last quarter. CIBC Bancorp USA Inc. purchased a new stake in Maximus in the 3rd quarter valued at about $552,000. Danske Bank A S bought a new position in Maximus in the 3rd quarter worth about $55,000. Advisory Services Network LLC purchased a new position in shares of Maximus during the third quarter worth approximately $32,000. Finally, Armistice Capital LLC increased its position in shares of Maximus by 57.2% during the third quarter. Armistice Capital LLC now owns 5,727 shares of the health services provider’s stock worth $523,000 after acquiring an additional 2,084 shares during the period. 97.21% of the stock is currently owned by institutional investors.

Maximus Company Profile

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.