Maximus Q2 adjusted EPS rises, outlook raised

Maximus

07/05/2026 11:44

Overview

U.S. government services provider's fiscal Q2 revenue declined yr/yr, reflecting lower disaster support work

Adjusted EPS for fiscal Q2 rose compared to prior year

Company raised full-year earnings outlook and announced $400 mln share repurchase program

Outlook

Maximus raises FY26 adjusted diluted EPS guidance to $8.25-$8.55 from prior $8.05-$8.35

Company maintains FY26 revenue guidance at $5.2 bln-$5.35 bln and free cash flow at $450 mln-$500 mln

Maximus expects U.S. Federal Services segment FY26 operating margin of about 17.5% and U.S. Services segment margin of about 10.0%

Result Drivers

AUTOMATION & AI - Efficiency gains from automation, including AI-enabled tools, drove improved profitability across multiple program areas

NATURAL DISASTER WORK LAPSE - Revenue declined year-over-year due to the absence of natural disaster support work and temporary clinical volume surges that benefited the prior year

SEGMENT MARGIN IMPROVEMENT - U.S. Federal Services segment margin improved due to technology initiatives enabling greater volume processing without a commensurate increase in labor costs

Company press release: ID:nBw8MGCHCa

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Slight Miss*
$1.31 bln
$1.32 bln (2 Analysts)
Q2 Adjusted EPS
Beat
$2.07
$1.97 (2 Analysts)
Q2 Net Income
$98.06 mln
Q2 Gross Profit
$342.26 mln
Q2 Operating Income
$148.49 mln
Q2 Pretax Profit
$126.53 mln


*Applies to a deviation of less than 1%; not applicable for per-share numbers.

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"

Wall Street's median 12-month price target for Maximus Inc is $110.00, about 72% above its May 6 closing price of $63.95

The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 11 three months ago

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.)