MMS

As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q1. Today, we are looking at government & technical consulting stocks, starting with Maximus (NYSE:MMS). The sector has historically benefitted from steady government spending on defense, infrastructure, and regulatory compliance, providing firms long-term contract stability. However, the Trump administration is showing more willingness than previous administrations to upend government spending and bloat. Whether or not defense budgets get cut, the rising demand for cybersecurity, AI-driven defense solutions, and sustainability consulting should benefit the sector for years, as agencies and enterprises seek expertise in navigating complex technology and regulations. Additionally, industrial automation and digital engineering are driving efficiency gains in infrastructure and technical consulting projects, which could help profit margins. The 6 government & technical consulting stocks we track reported a mixed Q1. As a group, revenues were in line with analysts’ consensus estimates. While some government & technical consulting stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 2.6% since the latest earnings results. With nearly 50 years of experience translating public policy into operational programs that serve millions of citizens, Maximus (NYSE:MMS) provides operational services, clinical assessments, and technology solutions to government agencies in the U.S. and internationally. Maximus reported revenues of $1.31 billion, down 4.1% year on year. This print fell short of analysts’ expectations by 0.9%. Overall, it was a mixed quarter for the company with a beat of analysts’ EPS estimates but a slight miss of analysts’ revenue estimates. Maximus delivered the weakest full-year guidance update of the whole group. The stock is down 4.7% since reporting and currently trades at $60.93. Is now the time to buy Maximus? Access our full analysis of the earnings results here, it’s free. Founded in 1894 as a response to the growing dangers of electricity in American homes and businesses, UL Solutions (NYSE:ULS) provides testing, inspection, and certification services that help companies ensure their products meet safety, security, and sustainability standards. UL Solutions rep...

Maximus delivered first-quarter results that were met with a positive market reaction, despite a year-on-year revenue decline. Management attributed performance to improved operational efficiency and the growing impact of technology investments, especially in automation and artificial intelligence. CEO Bruce L. Caswell emphasized that technology-enabled solutions have enhanced execution across the company’s government services portfolio. CFO David W. Mutryn highlighted that increased efficiency led to higher profitability, as seen in the sequential step-up in margins, even as the business faced difficult comparisons due to last year’s temporary surges in disaster and clinical work. Is now the time to buy MMS? Find out in our full research report (it’s free). Revenue: $1.31 billion vs analyst estimates of $1.32 billion (4.1% year-on-year decline, 0.9% miss) Adjusted EPS: $2.07 vs analyst estimates of $1.97 (5.3% beat) Adjusted EBITDA: $188 million vs analyst estimates of $177.4 million (14.4% margin, 6% beat) The company reconfirmed its revenue guidance for the full year of $5.28 billion at the midpoint Management raised its full-year Adjusted EPS guidance to $8.40 at the midpoint, a 2.4% increase Operating Margin: 11.4%, in line with the same quarter last year Market Capitalization: $3.12 billion While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Will Gilday (CJS Securities) asked about elevated days sales outstanding (DSO) and buyback capacity given cash flow lumpiness. CFO David W. Mutryn explained DSO was impacted by a federal client’s complex invoicing requirements but expects collections to improve by Q4. Will Gilday (CJS Securities) inquired about expanding SNAP solutions. CEO Bruce L. Caswell described the Accuracy Assistant tool as the core offering, emphasizing integration with BPO services and AI-driven document processing. Will Gilday (CJS Securities) pressed for details on state revenue declines and the path to growth. Mutryn cited specific state program volume declines but expressed confidence that H.R. 1–related activity will drive sequential improvement by Q4. Will Gilday (CJS Securities) sought clarity...

Maximus MMS reported mixed second-quarter fiscal 2026 results, wherein earnings beat the Zacks Consensus Estimate while revenues missed the same. MMS’ adjusted earnings per share of $2.07 beat the consensus mark by 4.6% and increased 3% year over year. Revenues of $1.31 billion missed the consensus mark by 1.1% and declined 4.1% from the year-ago quarter due to lower natural disaster support work and temporary clinical volume surges in domestic segments. However, the reported quarterly earnings beat did not impress investors, as the stock has declined 7.7% since the earnings release on May 7, reflecting poor quarterly revenue performance and weak revenue guidance for fiscal 2026. Maximus, Inc. price-consensus-eps-surprise-chart | Maximus, Inc. Quote Maximus guided revenues in the range of $5.2-$5.35 billion. The midpoint of $5.275 billion for fiscal 2026 was lower than the Zacks Consensus Estimate of $5.32 billion. The U.S. Federal Services segment generated revenues of $753.1 million, down 3.2% year over year due to the absence of elevated natural disaster support work. Excluding disaster-related work, the segment posted 1.5% organic growth. The U.S. Services segment’s revenues declined 6% year over year to $415.8 million, reflecting lower clinical volumes. Outside the U.S. segment revenues decreased 3.1% year over year to $137.1 million. Operating income totaled $148.5 million compared with $153 million in the prior-year quarter. Operating margin improved 20 basis points year over year to 11.4%, while adjusted EBITDA margin expanded to 14.4% from 13.7%, driven by efficiencies enabled by automation and AI tools. The U.S. Federal Services segment operating margin expanded to 17.6% from 15.3% a year ago, supported by technology initiatives and automation that enabled higher processing volumes without a proportional increase in labor costs. The U.S. Services segment operating margin was 9.3%, down from 12.2% in the prior-year quarter due to a $6.9 million non-cash impairment charge related to a software asset. Excluding the charge, segment margin was 10.9%. Management highlighted growing traction in AI-enabled offerings and automation initiatives. The company stated that generative and probabilistic AI solutions are automating nearly half of certain high-volume dispute resolution workflows, enabling employees to focus on more complex cases and improving operat...

Interested in Maximus, Inc.? Here are five stocks we like better. Maximus raised its fiscal 2026 outlook again after a strong Q2, citing improved profitability, automation/AI-driven efficiencies, and margin expansion. The company lifted adjusted EPS guidance to $8.25 to $8.55 and now expects adjusted EBITDA margin of about 14.2%. Technology investments are showing up in results, with management pointing to AI and automation as key drivers of operating leverage across federal services and claims processing. CEO Bruce Caswell said the company is seeing “clear evidence” that its multiyear transformation is improving speed, accuracy, and cost structure. Capital returns remain a priority as Maximus generated solid free cash flow, kept leverage below target, and accelerated share repurchases. The board also refreshed the buyback authorization with up to $400 million available. Maximus (NYSE:MMS) raised its fiscal 2026 earnings outlook for the second consecutive quarter after reporting second-quarter results that management said reflected stronger profitability, operating efficiencies from automation and artificial intelligence, and increased capital deployment toward share repurchases. The government services company reported second-quarter revenue of $1.31 billion, which Chief Financial Officer David Mutryn said was consistent with expectations and on track with the company’s full-year revenue guidance. Adjusted EBITDA margin was 14.4%, compared with 13.7% in the prior-year period, while adjusted earnings per share rose to $2.07 from $2.01. → Beyond NVIDIA: Picks-and-Shovels AI Plays with Strong Momentum Mutryn said the quarter showed “clear evidence” that technology investments are contributing to bottom-line returns. He pointed to automation and AI tools as drivers of margin improvement, including in a dispute resolution program for a government customer where automation has created operating leverage. Maximus reiterated its fiscal 2026 revenue guidance of $5.2 billion to $5.35 billion and its free cash flow guidance of $450 million to $500 million. The company raised its full-year adjusted EBITDA margin outlook to approximately 14.2%, up 20 basis points from prior guidance, and increased its adjusted EPS forecast by 20 cents to a range of $8.25 to $8.55. → MercadoLibre Boldly Invests in Growth: Discount Deepens Mutryn said the midpoint of the updated earnings...

Last week saw the newest quarterly earnings release from Maximus, Inc. (NYSE:MMS), an important milestone in the company's journey to build a stronger business. Maximus reported US$1.3b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of US$1.80 beat expectations, being 6.2% higher than what the analysts expected. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. Taking into account the latest results, Maximus' dual analysts currently expect revenues in 2026 to be US$5.32b, approximately in line with the last 12 months. Per-share earnings are expected to accumulate 7.3% to US$7.35. Before this earnings report, the analysts had been forecasting revenues of US$5.40b and earnings per share (EPS) of US$7.53 in 2026. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a small dip in their earnings per share forecasts. Check out our latest analysis for Maximus It might be a surprise to learn that the consensus price target was broadly unchanged at US$110, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 0.08% by the end of 2026. This indicates a significant reduction from annual growth of 6.1% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 6.6% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Maximus is expected to lag the wider industry. The most important thing to take...

Management attributed the earnings guidance increase to technology investments, specifically AI-enabled automation, which are decoupling labor costs from volume processing. Performance in U.S. Federal Services was driven by strong execution and technology initiatives that improved margins despite tough comparisons to prior-year natural disaster work. The company is shifting toward a 'proactive integrity' model, using advanced analytics and data matching to prevent government program fraud upfront rather than relying on 'pay-and-chase' detection. Operational leverage is being realized through the 'Total Experience Management' (TXM) solution and AI accelerators that now handle nearly half the effort in specific dispute resolution programs. Management emphasized their role as 'customer zero,' testing AI tools internally to establish the governance, controls, and workflows required for secure government integration. U.S. Services performance reflected a planned divergence in the first half of the year, with management expecting a return to organic growth as state priorities shift toward H.R. 1 compliance. The near-term adjusted EBITDA margin target range was raised to 12% to 15%, reflecting the perceived staying power of technology-driven cost actions. Management expects DSO to finish the fiscal year below 70 days, assuming a collection catch-up from a major federal customer in the fourth quarter. U.S. Services is forecasted to achieve mid-single-digit organic growth in Q4, providing momentum for fiscal 2027 as Medicaid community engagement (MCE) regulations solidify. Capital deployment will prioritize opportunistic share repurchases and M&A targets in federal, defense, and national security domains that offer revenue synergies. Guidance assumes that while procurement timelines in civilian agencies remain difficult to forecast, underlying demand for technology modernization remains strong. A $6.9 million asset impairment was recorded in the U.S. Services segment following a customer decision to discontinue a specific software asset built under a prior contract. A discrete R&D tax benefit of $4.2 million was recognized following an initiative to document eligible credits as the company shifts to a tech-forward model. DSO remained elevated at 78 days due to administrative delays and complex retroactive invoicing requirements with a major federal customer. Manageme...

Maximus Inc. (NYSE:MMS) reported second-quarter fiscal 2026 results on Thursday that exceeded earnings expectations but missed Wall Street revenue forecasts, sending shares down 3.05% following the announcement. The government services contractor posted adjusted earnings of $2.07 per share, topping the analyst consensus estimate of $2.02 by $0.05. Quarterly revenue totaled $1.31 billion, below analyst expectations of $1.37 billion and down 3.7% from $1.36 billion in the same period last year. The company said the year-over-year decline was largely due to the absence of natural disaster response work and temporary spikes in clinical service volumes that boosted results during the prior-year quarter. Despite weaker revenue, Maximus increased its full-year adjusted diluted earnings per share guidance by $0.20 to a range of $8.25 to $8.55. The midpoint of $8.40 is above the previous midpoint of $8.20. The company also raised its adjusted EBITDA margin outlook by 20 basis points to approximately 14.2%. However, Maximus maintained its full-year revenue forecast of $5.2 billion to $5.35 billion. The midpoint of $5.275 billion sits slightly below the analyst consensus estimate of $5.32 billion. “Our second consecutive earnings guidance increase reflects growing confidence in our ability to leverage in-house AI and other technology capabilities to improve efficiency and support margin expansion,” said Bruce Caswell, President and Chief Executive Officer. The company said improved profitability was supported by operational efficiencies and automation initiatives, including the use of AI-enabled tools across multiple program areas. Adjusted EBITDA margin expanded to 14.4%, compared with 13.7% in the prior-year quarter. Maximus also announced that its Board of Directors approved a new $400 million share repurchase authorization. In addition, the company declared a quarterly dividend of $0.33 per share. Maximus provides government services and technology solutions focused on health, employment, and human services programs. The company works with federal, state, and local governments to administer public-sector operations, customer support, clinical services, and digital transformation initiatives. Maximus stock price

Image source: The Motley Fool. Thursday, May 7, 2026 at 9 a.m. ET Chief Executive Officer — Bruce L. Caswell Chief Financial Officer — David W. Mutryn Senior Vice President, Investor Relations — James Francis David W. Mutryn: Thanks, James, and good morning. I would characterize our completed second quarter in three ways. First, strong execution with the sequential step-up to profitability we anticipated. Second, clear evidence that our technology investments are contributing to bottom-line returns as reflected in our improved full-year earnings outlook. And third, increased capital deployment toward share repurchases, given our view that our shares have been trading at an attractive valuation. Turning to second quarter results, Maximus, Inc. reported revenue of $1.31 billion, consistent with our expectations and on track with our full-year guidance. As I indicated on previous calls, as we progress across this fiscal year, we are facing tough comparative quarters to last year, which benefited from natural disaster work in the U.S. Federal Services segment and temporary clinical volume surges in both domestic segments. On the bottom line, adjusted EBITDA margin was 14.4%, and adjusted EPS was $2.07 for the quarter, which compares to 13.7% and $2.01, respectively, for the prior-year period. The improvement highlights our ability to drive margin enhancement through efficiency enabled by automation, including AI tools. One example is a dispute resolution program for a government customer where automation has helped create meaningful operating leverage. The second quarter results included two unusual items, with one reducing earnings and the other increasing earnings by approximately the same amount—meaning they effectively net out of adjusted EPS. First, we recorded an asset impairment related to a subset of capitalized assets attributable to the U.S. Services segment. This impairment was tied to an unusual circumstance dating back to fiscal 2024 where a software asset was built and capitalized under a prior contract for a specific customer. A recent decision by this customer led us to writing off the balance of the asset, which was $6.9 million, or a $0.09 per share impact to the U.S. Services segment operating income. The second item is the discrete research and development tax benefit totaling $4.2 million, or approximately $0.08 per share. As we have become...

MCLEAN, Va. (AP) — MCLEAN, Va. (AP) — Maximus Inc. (MMS) on Thursday reported fiscal second-quarter net income of $98.1 million. The McLean, Virginia-based company said it had profit of $1.80 per share. Earnings, adjusted for amortization costs, came to $2.07 per share. The results topped Wall Street expectations. The average estimate of three analysts surveyed by Zacks Investment Research was for earnings of $1.98 per share. The government health services provider posted revenue of $1.31 billion in the period, which did not meet Street forecasts. Three analysts surveyed by Zacks expected $1.32 billion. Maximus expects full-year earnings in the range of $8.25 to $8.55 per share, with revenue in the range of $5.2 billion to $5.35 billion. _____ This story was generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on MMS at https://www.zacks.com/ap/MMS

Maximus (MMS) came out with quarterly earnings of $2.07 per share, beating the Zacks Consensus Estimate of $1.98 per share. This compares to earnings of $2.01 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +4.55%. A quarter ago, it was expected that this government health services provider would post earnings of $1.84 per share when it actually produced earnings of $1.85, delivering a surprise of +0.54%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. Maximus, which belongs to the Zacks Government Services industry, posted revenues of $1.31 billion for the quarter ended March 2026, missing the Zacks Consensus Estimate by 1.12%. This compares to year-ago revenues of $1.36 billion. The company has topped consensus revenue estimates just once over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Maximus shares have lost about 25.9% since the beginning of the year versus the S&P 500's gain of 7.6%. While Maximus has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Maximus was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) sto...

For the quarter ended March 2026, Maximus (MMS) reported revenue of $1.31 billion, down 4.1% over the same period last year. EPS came in at $2.07, compared to $2.01 in the year-ago quarter. The reported revenue compares to the Zacks Consensus Estimate of $1.32 billion, representing a surprise of -1.12%. The company delivered an EPS surprise of +4.55%, with the consensus EPS estimate being $1.98. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance. As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately. Here is how Maximus performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Revenue- U.S. Federal Services: $753.14 million compared to the $795.43 million average estimate based on two analysts. The reported number represents a change of -3.2% year over year. Revenue- U.S. Services: $415.75 million compared to the $417.62 million average estimate based on two analysts. The reported number represents a change of -6% year over year. Revenue- Outside the U.S: $137.07 million compared to the $139.88 million average estimate based on two analysts. The reported number represents a change of -3.1% year over year. View all Key Company Metrics for Maximus here>>> Shares of Maximus have returned -1.8% over the past month versus the Zacks S&P 500 composite's +11.4% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Maximus, Inc. (MMS) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Maximus (MMS) reported fiscal Q2 adjusted earnings Thursday of $2.07 per diluted share, up from $2.0