Brief: Maximus Inc Posts Q3 Adjusted EPS $2.16

Maximus

07/08/2025 14:09

Corrects period to Q3, from Q2, in Key Details table

Overview

Maximus fiscal Q3 revenue rises 2.5% to $1.35 bln, beating analyst estimates

Adjusted EPS for fiscal Q3 increases to $2.16, up from $1.74 last year

Company raises FY25 guidance for revenue, earnings, and free cash flow

Outlook

Maximus raises FY25 revenue guidance to $5.375 bln-$5.475 bln

Company expects FY25 adjusted EPS between $7.35 and $7.55

Maximus anticipates FY25 adjusted EBITDA margin of approximately 13%

Company increases FY25 free cash flow guidance to $370 mln-$390 mln

Result Drivers

FEDERAL SERVICES - Revenue increased 11.4% due to elevated volumes in clinical programs

MEDICAID IMPACT - U.S. Services Segment revenue decreased 6.9% due to prior year's excess Medicaid-related activities

DIVESTITURES - Outside the U.S. Segment revenue decreased due to divestitures, offset by 7.3% organic growth

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Beat
$1.35 bln
$1.29 bln (2 Analysts)
Q3 Net Income
$105.98 mln
Q3 Gross Profit
$359.51 mln
Q3 Operating Income
$165.67 mln
Q3 Pretax Profit
$142.97 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

The average consensus recommendation for the business support services peer group is "buy"

Wall Street's median 12-month price target for Maximus Inc is $103.00, about 27.3% above its August 6 closing price of $74.87

The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 11 three months ago

Press Release: ID:nBwb6VwSya

 (This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)