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Dec 31, 2025
Maximus Q1 2026 Earnings Report
Maximus reported its fiscal year 2026 first quarter results, with revenue of $1.35 billion and diluted earnings per share of $1.70.
Key Takeaways
Maximus delivered resilient first-quarter results, with revenue in line with expectations and significant improvements in diluted and adjusted diluted earnings per share compared to the prior year. The company's U.S. Federal Services segment showed strong performance, while the U.S. Services and Outside the U.S. segments experienced revenue declines, partly due to divestitures and lower volumes. The company raised its full-year earnings guidance, reflecting confidence in future performance driven by a strong pipeline and technology initiatives.
Revenue for the first quarter was $1.35 billion, a 4.1% decrease from $1.40 billion in the prior year, consistent with expectations.
Diluted EPS increased significantly to $1.70 from $0.69 in the prior year, and adjusted diluted EPS rose to $1.85 from $1.61.
The U.S. Federal Services Segment revenue grew by 0.8% to $787 million, with its operating margin improving to 16.5%.
Maximus raised its fiscal year 2026 adjusted EBITDA margin expectation to approximately 14% and adjusted diluted EPS guidance to a range of $8.05 to $8.35 per share.
Revenue by Segment
Forward Guidance
Maximus is narrowing its fiscal year 2026 revenue guidance to $5.2 billion to $5.35 billion, while raising its adjusted EBITDA margin expectation to approximately 14% and adjusted diluted earnings per share guidance to a range of $8.05 to $8.35. Free cash flow guidance is maintained at $450 million to $500 million.
Positive Outlook
- Raised adjusted EBITDA margin expectation by 30 basis points to approximately 14% for fiscal year 2026.
- Increased adjusted diluted earnings per share guidance by $0.10, now expected to range between $8.05 and $8.35.
- Maintained strong free cash flow guidance of $450 million to $500 million for the full fiscal year.
- Strong sales pipeline of $59.1 billion, with new work opportunities representing approximately 59%.
- U.S. Federal Services Segment operating margin expected to range between 16.5% and 17% for the full year.
Challenges Ahead
- Narrowed revenue guidance range to $5.2 billion to $5.35 billion, partly due to a small divestiture.
- U.S. Services Segment revenue decreased by 8.2% in Q1 due to lower volumes and demand.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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