Maximus (NYSE:MMS) Releases Earnings Results, Beats Expectations By $0.01 EPS

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

Shares of Maximus stock traded down $15.64 on Thursday, hitting $78.06. The company’s stock had a trading volume of 1,399,215 shares, compared to its average volume of 570,580. The company has a market capitalization of $4.26 billion, a price-to-earnings ratio of 14.06 and a beta of 0.57. The firm has a fifty day moving average price of $90.45 and a 200-day moving average price of $86.41. The company has a debt-to-equity ratio of 0.77, a quick ratio of 1.64 and a current ratio of 1.64. Maximus has a 1 year low of $63.77 and a 1 year high of $100.00.

Maximus Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Monday, March 2nd. Shareholders of record on Friday, February 13th will be paid a dividend of $0.33 per share. 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. This is an increase from Maximus’s previous quarterly dividend of $0.30. Maximus’s dividend payout ratio (DPR) is 21.58%.

Insider Buying and Selling

In other Maximus news, insider Michelle F. Link sold 4,039 shares of the firm’s stock in a transaction that occurred on Wednesday, December 3rd. The shares were sold at an average price of $86.84, for a total value of $350,746.76. Following the transaction, the insider directly owned 19,542 shares of the company’s stock, valued at $1,697,027.28. This trade represents a 17.13% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Insiders own 1.80% of the company’s stock.

Institutional Trading of Maximus

Several hedge funds have recently made changes to their positions in the company. Royal Bank of Canada raised its holdings in Maximus by 146.2% in the 1st quarter. Royal Bank of Canada now owns 19,732 shares of the health services provider’s stock valued at $1,345,000 after buying an additional 11,716 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its stake 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 valued at $2,351,000 after acquiring an additional 221 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted 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 acquiring an additional 11,754 shares during the last quarter. Jane Street Group LLC boosted 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 worth $6,701,000 after purchasing an additional 88,835 shares during the period. Finally, Sivia Capital Partners LLC acquired a new stake in Maximus in the 2nd quarter valued at approximately $204,000. Hedge funds and other institutional investors own 97.21% of the company’s stock.

Wall Street Analyst Weigh In

Several research analysts recently issued reports on the company. Weiss Ratings reaffirmed a “buy (b-)” rating on shares of Maximus in a research report on Monday, December 29th. Zacks Research raised Maximus from a “hold” rating to a “strong-buy” rating in a report on Tuesday, December 30th. One analyst has rated the stock with a Strong Buy rating and one has given a Buy rating to the company’s stock. Based on data from MarketBeat.com, Maximus presently has an average rating of “Strong Buy”.

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.