Government services provider Maximus misses Q4 profit estimates due to severance charges

Maximus

20/11/2025 11:40

Overview

Maximus Q4 revenue and adjusted EPS missed analyst expectations

Fiscal 2025 revenue grew 2.4% to $5.43 bln, driven by U.S. Federal Services Segment

Company repurchased 5.8 mln shares for $457 mln during fiscal year 2025

Outlook

Maximus expects fiscal 2026 revenue between $5.225 bln and $5.425 bln

Company anticipates fiscal 2026 adjusted EPS between $7.95 and $8.25

Maximus forecasts fiscal 2026 free cash flow between $450 mln and $500 mln

Result Drivers

U.S. FEDERAL SERVICES - Revenue growth driven by clinical program volume increases and natural disaster support

U.S. SERVICES DECLINE - Revenue decreased due to previous excess Medicaid volumes and severance charges

OUTSIDE U.S. SEGMENT - Revenue decline due to divestitures, offset by organic growth

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Revenue
Miss
$1.32 bln
$1.34 bln (2 Analysts)
Q4 Adjusted EPS
Miss
$1.62
$1.67 (2 Analysts)
Q4 Net Income
$75.29 mln
Q4 Gross Profit
$333.55 mln
Q4 Operating Income
$122.86 mln
Q4 Pretax Profit
$100.47 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 $105.00, about 25.9% above its November 19 closing price of $77.76

The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 11 three months ago

Press Release: ID:nBw7q4K53a

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(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.)