Maximus Q1 revenue falls 4.1%, misses estimates

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

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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