Maximus (NYSE:MMS) Issues Quarterly Earnings Results

Maximus (NYSE:MMS) released its earnings results on Thursday. The health services provider reported $1.85 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.84 by $0.01, FiscalAI reports. The business had revenue of $1.35 billion for the quarter, compared to analyst estimates 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 quarter 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 Trading Down 16.6%

NYSE MMS traded down $15.55 during trading hours on Thursday, hitting $78.14. 1,469,218 shares of the company were exchanged, compared to its average volume of 573,146. The company has a quick ratio of 1.64, a current ratio of 1.64 and a debt-to-equity ratio of 0.77. The stock has a market cap of $4.26 billion, a PE ratio of 14.04 and a beta of 0.57. The stock has a 50-day moving average price of $90.45 and a 200 day moving average price of $86.41. Maximus has a 52 week low of $63.77 and a 52 week high of $100.00.

Maximus Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Monday, March 2nd. Stockholders of record on Friday, February 13th will be given a dividend of $0.33 per share. This represents a $1.32 annualized dividend and a dividend yield of 1.7%. The ex-dividend date is Friday, February 13th. This is a positive change from Maximus’s previous quarterly dividend of $0.30. Maximus’s payout ratio is 21.58%.

Insider Activity at Maximus

In other news, insider Michelle F. Link sold 4,039 shares of the stock in a transaction on Wednesday, December 3rd. The stock was sold at an average price of $86.84, for a total transaction of $350,746.76. Following the completion of the transaction, the insider directly owned 19,542 shares in the company, valued at approximately $1,697,027.28. This represents a 17.13% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. 1.80% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of the company. Advisory Services Network LLC bought a new stake in Maximus in the 3rd quarter valued at $32,000. Canada Pension Plan Investment Board acquired a new stake in shares of Maximus in the second quarter valued at about $35,000. Danske Bank A S acquired a new stake in Maximus in the 3rd quarter valued at $55,000. National Bank of Canada FI grew its position in shares of Maximus by 38.9% during the 3rd quarter. National Bank of Canada FI now owns 1,118 shares of the health services provider’s stock valued at $102,000 after acquiring an additional 313 shares during the period. Finally, Wexford Capital LP purchased a new position in shares of Maximus during the third quarter worth about $114,000. Institutional investors own 97.21% of the company’s stock.

Wall Street Analysts Forecast Growth

Several research firms have recently commented on MMS. Zacks Research upgraded shares of Maximus from a “hold” rating to a “strong-buy” rating in a research report on Tuesday, December 30th. Weiss Ratings reaffirmed a “buy (b-)” rating on shares of Maximus in a research note on Monday, December 29th. One analyst has rated the stock with a Strong Buy rating and one has issued a Buy rating to the company. According to data from MarketBeat, the stock presently has an average rating of “Strong Buy”.

Key Headlines Impacting Maximus

Here are the key news stories impacting Maximus this week:

• Positive Sentiment: Q1 EPS slightly beat expectations: Maximus reported $1.85 EPS versus the consensus $1.84, showing year-over-year EPS improvement and better-than-expected profitability metrics. Maximus (MMS) Q1 Earnings Top Estimates
• Neutral Sentiment: Full earnings release, slides and conference call available — useful for investors wanting detail on segment performance and management commentary. Maximus Reports Fiscal Year 2026 First Quarter Results
• Neutral Sentiment: Analyst/coverage notes and deeper metric comparisons are being published (Zacks pieces reviewing whether the company is a value buy and comparing key metrics vs. estimates) — these may shape near-term sentiment but don’t alter fundamentals by themselves. Should Value Investors Buy Maximus (MMS) Stock?
• Negative Sentiment: Revenue missed and declined year-over-year: Q1 revenue was $1.35B vs. ~$1.37B expected and was down ~4.1% YoY — a sign of near-term pressure on top-line growth. Maximus Q1 details (MarketBeat)
• Negative Sentiment: Guidance came in light on revenue: FY2026 revenue guidance of $5.2B–$5.4B is below the consensus (~$5.5B). EPS guidance of $8.05–$8.35 is broadly in line but slightly conservative versus consensus — the revenue shortfall likely drove the selloff. Maximus (MMS) Q1 Metrics vs Estimates
• Negative Sentiment: Technical/flow factors: unusually high intraday volume and the stock trading below its 50- and 200-day moving averages amplify downside pressure as some investors trim exposure after the guidance and revenue miss. Pre-earnings write-up (MSN)

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.