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

Maximus (NYSE:MMS) posted its quarterly earnings data 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. The business had revenue of $1.35 billion for the quarter, compared to analysts’ expectations of $1.37 billion. Maximus had a net margin of 6.92% and a return on equity of 25.30%. The firm’s revenue was down 4.1% compared to the same quarter last year. During the same period in the previous year, the firm posted $1.61 EPS. 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 Stock Down 3.9%

MMS stock opened at $75.17 on Friday. Maximus has a 1-year low of $63.77 and a 1-year high of $100.00. The business’s 50 day simple moving average is $90.07 and its 200 day simple moving average is $86.38. The company has a current ratio of 2.34, a quick ratio of 1.64 and a debt-to-equity ratio of 0.88. The firm has a market capitalization of $4.10 billion, a PE ratio of 11.44 and a beta of 0.57.

Maximus Increases Dividend

The firm 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 $0.33 dividend. The ex-dividend date of this dividend is Friday, February 13th. This is a positive change from Maximus’s previous quarterly dividend of $0.30. This represents a $1.32 dividend on an annualized basis and a dividend yield of 1.8%. Maximus’s payout ratio is 21.58%.

Key Maximus News

Here are the key news stories impacting Maximus this week:

• Positive Sentiment: Q1 EPS narrowly beat expectations — Maximus reported $1.85 EPS vs. the $1.84 consensus, showing earnings strength and year‑over‑year EPS improvement. Maximus (MMS) Q1 Earnings Top Estimates
• Positive Sentiment: Margins improved — management emphasized margin gains and cost discipline during the call, which supports near‑term profitability despite revenue pressure. Maximus Earnings Call: Margins Rise Amid Revenue Pressure
• Neutral Sentiment: Full disclosure and investor materials posted — the company released the press release, slide deck and earnings‑call transcript for detailed review (useful for modeling/QA but not market moving by itself). View Press Release / Slide Deck
• Negative Sentiment: Revenue miss and YoY decline — Q1 revenue was $1.35B vs. ~$1.37B expected and fell ~4.1% year‑over‑year, signaling near‑term top‑line weakness. Maximus Q1 results and materials
• Negative Sentiment: Tightened / lower FY‑2026 revenue guidance — management set FY‑2026 revenue of $5.2B–$5.4B (below Street ~ $5.5B) and EPS guidance of $8.05–$8.35 (around but slightly below consensus midpoint), which pressured growth expectations. Maximus tops Q1 earnings forecasts while tightening 2026 revenue guidance

Wall Street Analyst Weigh In

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

Insider Activity at Maximus

In other news, insider Michelle F. Link sold 4,039 shares of the business’s stock in a transaction that occurred 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 sale, the insider owned 19,542 shares in the company, valued at $1,697,027.28. The trade was a 17.13% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. Insiders own 1.80% of the company’s stock.

Hedge Funds Weigh In On Maximus

A number of hedge funds have recently added to or reduced their stakes in the stock. Royal Bank of Canada grew its stake 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 worth $1,345,000 after buying an additional 11,716 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its holdings in shares of Maximus by 0.6% during 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 acquiring an additional 221 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its position in shares of Maximus by 7.0% during 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 in the last quarter. Jane Street Group LLC increased its stake in Maximus by 941.2% in the first quarter. Jane Street Group LLC now owns 98,273 shares of the health services provider’s stock valued at $6,701,000 after acquiring an additional 88,835 shares during the last quarter. Finally, Sivia Capital Partners LLC bought a new position in Maximus in the second quarter valued at approximately $204,000. Institutional investors own 97.21% of the company’s stock.

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.