Maximus Q3 revenue falls 5%, misses estimates

Maximus

06/08/2026 11:46

Overview
U.S. government services provider's fiscal Q3 revenue fell yr/yr, missing expectations
Adjusted EPS for fiscal Q3 rose yr/yr
Company repurchased 0.75 mln shares for $50.4 mln in Q3

Outlook
Maximus reiterates FY26 revenue guidance of $5.2 bln to $5.35 bln, expects results near low end
Company updates FY26 adj diluted EPS outlook to $7.90-$8.20, reflecting a temporary contract change
Maximus now expects FY26 free cash flow of $425 mln to $475 mln

Result Drivers
REDUCED DISASTER AND CLINICAL VOLUMES - Co said lower natural disaster support activity and clinical volume surges in U.S. Federal Services segment led to yr/yr revenue decline
EFFICIENCY INITIATIVES - Co attributed improved consolidated earnings to ongoing efficiency efforts, including broader deployment of automation and AI-enabled tools
PRODUCTIVITY IMPROVEMENTS - Productivity improvements and technology-enabled efficiencies contributed to margin gains in U.S. Federal Services segment

Company press release: ID:nBwbb6dn6a

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Miss
$1.28 bln
$1.33 bln (2 Analysts)
Q3 Adjusted EPS
Beat
$2.22
$2.21 (2 Analysts)
Q3 Net Income
 
$103.59 mln
 
Q3 Gross Profit
 
$348.80 mln
 
Q3 Operating Income
 
$161.43 mln
 
Q3 Pretax Profit
 
$138.16 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 66.3% above its August 5 closing price of $63.15
The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 7 three months ago

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For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(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.)