Maximus (NYSE:MMS) Posts Quarterly Earnings Results, Beats Estimates By $0.01 EPS

Maximus (NYSE:MMS) released its quarterly earnings data on Thursday. The health services provider reported $2.22 earnings per share for the quarter, beating the consensus estimate of $2.21 by $0.01, Zacks reports. Maximus had a return on equity of 24.91% and a net margin of 7.07%.The firm had revenue of $1.28 billion during the quarter, compared to the consensus estimate of $1.33 billion. During the same period in the previous year, the company posted $2.16 earnings per share. The firm’s quarterly revenue was down 5.1% on a year-over-year basis. 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 Stock Up 1.5%

MMS traded up $0.88 on Friday, hitting $59.21. The company had a trading volume of 1,378,337 shares, compared to its average volume of 623,694. The stock has a market capitalization of $3.11 billion, a price-to-earnings ratio of 8.75 and a beta of 0.59. The company has a debt-to-equity ratio of 0.90, a quick ratio of 2.21 and a current ratio of 2.42. The stock has a fifty day moving average price of $58.63 and a 200-day moving average price of $67.46. Maximus has a 12-month low of $52.73 and a 12-month high of $100.00.

Maximus Announces Dividend

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

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

Analyst Upgrades and Downgrades

Several research analysts have issued reports on the stock. Zacks Research cut shares of Maximus from a “strong-buy” rating to a “hold” rating in a report on Monday, April 27th. Wall Street Zen cut shares of Maximus from a “buy” rating to a “hold” rating in a research report on Saturday. Finally, Weiss Ratings cut shares of Maximus from a “hold (c)” rating to a “hold (c-)” rating in a research report on Wednesday, May 20th. Two equities research analysts have rated the stock with a Hold rating, Based on data from MarketBeat, Maximus has an average rating of “Hold”.

Institutional Trading of Maximus

A number of institutional investors have recently modified their holdings of the company. Parkside Financial Bank & Trust raised its position in shares of Maximus by 13.4% during the 4th quarter. Parkside Financial Bank & Trust now owns 1,268 shares of the health services provider’s stock worth $109,000 after acquiring an additional 150 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its holdings in Maximus by 0.6% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 34,476 shares of the health services provider’s stock valued at $2,351,000 after purchasing an additional 221 shares in the last quarter. Larson Financial Group LLC increased its stake in Maximus by 13.8% in the third quarter. Larson Financial Group LLC now owns 1,869 shares of the health services provider’s stock valued at $171,000 after purchasing an additional 227 shares during the last quarter. Northwestern Mutual Wealth Management Co. increased its stake in Maximus by 225.2% in the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 439 shares of the health services provider’s stock valued at $38,000 after purchasing an additional 304 shares during the last quarter. Finally, National Bank of Canada FI raised its holdings in Maximus by 38.9% during the third quarter. National Bank of Canada FI now owns 1,118 shares of the health services provider’s stock worth $102,000 after purchasing an additional 313 shares in the last quarter. 97.21% of the stock is currently owned by institutional investors.

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.