Maximus Q1 revenue falls 4.1%, misses estimates

Maximus

05/02/2026 11:38

Overview

Government services provider's fiscal Q1 revenue fell 4.1%, missing analyst expectations

Adjusted EPS for fiscal Q1 rose to $1.85, beating analyst expectations

Company raised fiscal 2026 earnings guidance, narrowed revenue guidance range

Outlook

Maximus raises fiscal year 2026 earnings guidance, narrowing revenue range to $5.2-$5.35 bln

Company expects adjusted EBITDA margin to improve by 30 basis points to 14%

Maximus anticipates adjusted diluted EPS between $8.05 and $8.35 for fiscal year 2026

Result Drivers

U.S. FEDERAL SERVICES - Segment revenue increased 0.8% due to organic growth, with improved margins from technology initiatives

U.S. SERVICES SEGMENT - Revenue decreased 8.2% due to lower volumes and demand for engagement

OUTSIDE U.S. SEGMENT - Revenue decline attributed to divestitures and lower volumes on several programs

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Miss
$1.35 bln
$1.37 bln (2 Analysts)
Q1 Adjusted EPS
Beat
$1.85
$1.82 (2 Analysts)
Q1 Net Income
$93.94 mln
Q1 Gross Profit
$318.67 mln
Q1 Operating Income
$146.21 mln
Q1 Pretax Profit
$126.27 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 $110.00, about 17.4% above its February 4 closing price of $93.69

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

Press Release: ID:nBwbZHt6Ka

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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.)