Maximus Q1 EPS Beats by 0.5%, Revenues Decline 4.1% to $1.4B
Maximus posted Q1 EPS of $1.85, a 14.9% year-over-year increase and 0.5% above estimates, while revenues fell 4.1% to $1.4 billion, missing projections by 4.6%. Federal Services revenue rose to $786.6 million, but international and U.S. Services sales dropped 15.7% and 8.2%, respectively.
1. Q1 Results
Maximus delivered first-quarter adjusted EPS of $1.85, up 14.9% year over year and 0.5% above consensus. Total revenues reached $1.4 billion, down 4.1% from the prior year and 4.6% below estimates, reflecting a mix of contract delays and timing shifts.
2. Segment Breakdown
The U.S. Federal Services segment posted $786.6 million in revenue, surpassing expectations and marking a year-over-year increase. International revenues fell 15.7% to $143.2 million, while U.S. Services revenue declined 8.2% to $415.2 million, weighed by reduced government funding and project timing.
3. Guidance Update
Fiscal 2026 revenue guidance was narrowed to $5.20–5.35 billion versus a prior consensus of $5.45 billion. Adjusted EPS is now expected between $8.05 and $8.35 per share, with a midpoint above consensus, and EBITDA margin forecast raised to around 14%.
4. Cash Flow and Balance Sheet
Maximus ended the quarter with $137.6 million in cash, down from $222.4 million, and long-term debt of $1.5 billion. Operating cash flow used $244.4 million, while free cash flow is projected at $450–500 million for the year.