All investors love getting big returns from their portfolio, whether it's through stocks, bonds, ETFs, or other types of securities. But when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.
While cash flow can come from bond interest or interest from other types of investments, income investors hone in on dividends. A dividend is that coveted distribution of a company's earnings paid out to shareholders, and investors often view it by its dividend yield, a metric that measures the dividend as a percent of the current stock price. Many academic studies show that dividends account for significant portions of long-term returns, with dividend contributions exceeding one-third of total returns in many cases.
Maximus (MMS - Free Report) is headquartered in Mclean, and is in the Business Services sector. The stock has seen a price change of -33.31% since the start of the year. The government health services provider is currently shelling out a dividend of $0.33 per share, with a dividend yield of 2.29%. This compares to the Government Services industry's yield of 0.71% and the S&P 500's yield of 1.34%.
Looking at dividend growth, the company's current annualized dividend of $1.32 is up 10% from last year. Over the last 5 years, Maximus has increased its dividend 1 times on a year-over-year basis for an average annual increase of 1.91%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. Maximus's current payout ratio is 17%, meaning it paid out 17% of its trailing 12-month EPS as dividend.
MMS is expecting earnings to expand this fiscal year as well. The Zacks Consensus Estimate for 2026 is $8.43 per share, which represents a year-over-year growth rate of 14.54%.
Investors like dividends for a variety of different reasons, from tax advantages and decreasing overall portfolio risk to considerably improving stock investing profits. It's important to keep in mind that not all companies provide a quarterly payout.
Big, established firms that have more secure profits are often seen as the best dividend options, but it's fairly uncommon to see high-growth businesses or tech start-ups offer their stockholders a dividend. During periods of rising interest rates, income investors must be mindful that high-yielding stocks tend to struggle. That said, they can take comfort from the fact that MMS is not only an attractive dividend play, but is also a compelling investment opportunity with a Zacks Rank of #2 (Buy).
Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.
The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.
Zacks Premium includes access to the Zacks Style Scores as well.
What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.
Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.
The Style Scores are broken down into four categories:
Value ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.
Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.
Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.
VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.
How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.
Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.94% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.
That's where the Style Scores come in.
To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.
As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.
Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Maximus (MMS - Free Report) Headquartered in Reston, VA, Maximus operates government health and human services programs globally. With more than 37,200 employees across the globe, Maximus has a presence in the United States, Australia, Canada, Saudi Arabia, Singapore and the United Kingdom.
MMS is a #2 (Buy) on the Zacks Rank, with a VGM Score of A.
Additionally, the company could be a top pick for growth investors. MMS has a Growth Style Score of B, forecasting year-over-year earnings growth of 14.5% for the current fiscal year.
One analyst revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.03 to $8.43 per share. MMS also boasts an average earnings surprise of +15%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, MMS should be on investors' short list.
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company to watch right now is Maximus (MMS - Free Report) . MMS is currently sporting a Zacks Rank #2 (Buy) and an A for Value.
Another notable valuation metric for MMS is its P/B ratio of 2.83. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 2.84. Within the past 52 weeks, MMS's P/B has been as high as 3.10 and as low as 2.22, with a median of 2.42.
Value investors also use the P/S ratio. The P/S ratio is calculated as price divided by sales. This is a preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. MMS has a P/S ratio of 0.57. This compares to its industry's average P/S of 0.76.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Maximus is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, MMS feels like a great value stock at the moment.
MMS benefits from recurring government contracts, solid liquidity and shareholder returns, but regulatory shifts and contract dependence remain key risks.
TYSONS, Va.--(BUSINESS WIRE)--Maximus schedules its FY26 third quarter earnings call for Thursday, August 6, and will issue a release with its financial results that morning.
Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.
The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.
Zacks Premium also includes the Zacks Style Scores.
What are the Zacks Style Scores? The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.
Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.
Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.
VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.
It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.94% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.
That's where the Style Scores come in.
You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.
Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.
For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Maximus (MMS - Free Report) Headquartered in Reston, VA, Maximus operates government health and human services programs globally. With more than 37,200 employees across the globe, Maximus has a presence in the United States, Australia, Canada, Saudi Arabia, Singapore and the United Kingdom.
MMS is a #2 (Buy) on the Zacks Rank, with a VGM Score of A.
Additionally, the company could be a top pick for growth investors. MMS has a Growth Style Score of B, forecasting year-over-year earnings growth of 14.5% for the current fiscal year.
Three analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.10 to $8.43 per share. MMS also boasts an average earnings surprise of +15%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, MMS should be on investors' short list.
TYSONS, Va.--(BUSINESS WIRE)--Maximus (NYSE: MMS), a leading provider of government services, announced today that its Board of Directors has approved a quarterly cash dividend of $0.33 per share, payable on August 31, 2026, to shareholders of record on August 14, 2026.
About Maximus
As a leading strategic partner to government, Maximus helps improve the delivery of public services amid complex technology, health, economic, and social challenges. With a deep understanding of program service delivery, acute insights that achieve operational excellence, and an extensive awareness of the needs of the people being served, our employees advance the critical missions of our partners. Maximus provides tech-enabled services to government agencies, including innovative business process management and technology solutions, that provide improved outcomes for the public and higher levels of productivity and efficiency of government-sponsored programs. For more information, visit maximus.com.
Included in this press release are forward-looking statements within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as: "anticipate," "intend," "plan," "goal," "seek," "opportunity," "could," "potential," "believe," "project," "estimate," "expect," "continue," "forecast," "strategy," "future," "likely," "may," "should," "will," and similar references to future periods. Any statements herein that are not historical facts, including statements about our dividend or future dividends, are forward-looking statements that are subject to risks and uncertainties. These risks could cause our actual results to differ materially from those indicated by such forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. A summary of risk factors can be found in Item 1A, "Risk Factors" in our Annual Report on Form 10-K for the fiscal year ended September 30, 2025, filed on November 20, 2025.
Maximus (MMS - Free Report) has been beaten down lately with too much selling pressure. While the stock has lost 8.4% over the past four weeks, there is light at the end of the tunnel as it is now in oversold territory and Wall Street analysts expect the company to report better earnings than they predicted earlier.
We use Relative Strength Index (RSI), one of the most commonly used technical indicators, for spotting whether a stock is oversold. This is a momentum oscillator that measures the speed and change of price movements.
RSI oscillates between zero and 100. Usually, a stock is considered oversold when its RSI reading falls below 30.
Technically, every stock oscillates between being overbought and oversold irrespective of the quality of their fundamentals. And the beauty of RSI is that it helps you quickly and easily check if a stock's price is reaching a point of reversal.
So, by this measure, if a stock has gotten too far below its fair value just because of unwarranted selling pressure, investors may start looking for entry opportunities in the stock for benefiting from the inevitable rebound.
However, like every investing tool, RSI has its limitations, and should not be used alone for making an investment decision.
Why MMS Could Bounce Back Before LongThe RSI reading of 28.06 for MMS is an indication that the heavy selling could be in the process of exhausting itself, so the stock could bounce back in a quest for reaching the old equilibrium of supply and demand.
This technical indicator is not the only factor that calls for a potential rebound for the stock. There is a fundamental indicator as well. A strong agreement among sell-side analysts covering MMS in raising earnings estimates for the current year has led to an increase in the consensus EPS estimate by 0.4% over the last 30 days. And an upward trend in earnings estimate revisions usually translates into price appreciation in the near term.
Moreover, MMS currently has a Zacks Rank #2 (Buy), which means it is in the top 20% of more than 4,000 stocks that we rank based on trends in earnings estimate revisions and EPS surprises. This is a more conclusive indication of the stock's potential turnaround in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Maximus (MMS - Free Report) has been on a downward spiral lately with significant selling pressure. After declining 12.7% over the past four weeks, the stock looks well positioned for a trend reversal as it is now in oversold territory and there is strong agreement among Wall Street analysts that the company will report better earnings than they predicted earlier.
We use Relative Strength Index (RSI), one of the most commonly used technical indicators, for spotting whether a stock is oversold. This is a momentum oscillator that measures the speed and change of price movements.
RSI oscillates between zero and 100. Usually, a stock is considered oversold when its RSI reading falls below 30.
Technically, every stock oscillates between being overbought and oversold irrespective of the quality of their fundamentals. And the beauty of RSI is that it helps you quickly and easily check if a stock's price is reaching a point of reversal.
So, by this measure, if a stock has gotten too far below its fair value just because of unwarranted selling pressure, investors may start looking for entry opportunities in the stock for benefiting from the inevitable rebound.
However, like every investing tool, RSI has its limitations, and should not be used alone for making an investment decision.
Why a Trend Reversal is Due for MMSThe RSI reading of 27.8 for MMS is an indication that the heavy selling could be in the process of exhausting itself, so the stock could bounce back in a quest for reaching the old equilibrium of supply and demand.
This technical indicator is not the only factor that calls for a potential rebound for the stock. There is a fundamental indicator as well. A strong agreement among sell-side analysts covering MMS in raising earnings estimates for the current year has led to an increase in the consensus EPS estimate by 0.4% over the last 30 days. And an upward trend in earnings estimate revisions usually translates into price appreciation in the near term.
Moreover, MMS currently has a Zacks Rank #2 (Buy), which means it is in the top 20% of more than 4,000 stocks that we rank based on trends in earnings estimate revisions and EPS surprises. This is a more conclusive indication of the stock's potential turnaround in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Whether it's through stocks, bonds, ETFs, or other types of securities, all investors love seeing their portfolios score big returns. But for income investors, generating consistent cash flow from each of your liquid investments is your primary focus.
Cash flow can come from bond interest, interest from other types of investments, and, of course, dividends. A dividend is that coveted distribution of a company's earnings paid out to shareholders, and investors often view it by its dividend yield, a metric that measures the dividend as a percent of the current stock price. Many academic studies show that dividends account for significant portions of long-term returns, with dividend contributions exceeding one-third of total returns in many cases.
Maximus (MMS - Free Report) is headquartered in Mclean, and is in the Business Services sector. The stock has seen a price change of -23.51% since the start of the year. Currently paying a dividend of $0.33 per share, the company has a dividend yield of 2%. In comparison, the Government Services industry's yield is 0.85%, while the S&P 500's yield is 1.5%.
Looking at dividend growth, the company's current annualized dividend of $1.32 is up 10% from last year. Over the last 5 years, Maximus has increased its dividend 1 times on a year-over-year basis for an average annual increase of 1.91%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. Maximus's current payout ratio is 16%, meaning it paid out 16% of its trailing 12-month EPS as dividend.
Looking at this fiscal year, MMS expects solid earnings growth. The Zacks Consensus Estimate for 2026 is $8.46 per share, with earnings expected to increase 14.95% from the year ago period.
Investors like dividends for many reasons; they greatly improve stock investing profits, decrease overall portfolio risk, and carry tax advantages, among others. But, not every company offers a quarterly payout.
Big, established firms that have more secure profits are often seen as the best dividend options, but it's fairly uncommon to see high-growth businesses or tech start-ups offer their stockholders a dividend. During periods of rising interest rates, income investors must be mindful that high-yielding stocks tend to struggle. With that in mind, MMS presents a compelling investment opportunity; it's not only an attractive dividend play, but the stock also boasts a strong Zacks Rank of #2 (Buy).
Shares of Maximus, Inc. (NYSE:MMS – Get Free Report) hit a new 52-week low during trading on Friday . The company traded as low as $64.66 and last traded at $64.9950, with a volume of 47252 shares traded. The stock had previously closed at $66.03.
Wall Street Analyst Weigh In Several equities research analysts have issued reports on MMS shares. Zacks Research upgraded shares of Maximus from a “hold” rating to a “strong-buy” rating in a research note on Tuesday, December 30th. Weiss Ratings downgraded Maximus from a “buy (b)” rating to a “hold (c+)” rating in a research report on Tuesday, February 24th. Finally, Wall Street Zen lowered Maximus from a “buy” rating to a “hold” rating in a report on Monday, February 23rd. One analyst has rated the stock with a Strong Buy rating and one has given a Hold rating to the stock. According to data from MarketBeat, Maximus presently has an average rating of “Buy”.
Read Our Latest Research Report on MMS
Maximus Stock Down 1.5% The firm has a market cap of $3.55 billion, a P/E ratio of 9.90 and a beta of 0.59. The firm’s fifty day moving average is $79.22 and its 200 day moving average is $84.30. The company has a debt-to-equity ratio of 0.88, a quick ratio of 2.34 and a current ratio of 2.34.
Maximus (NYSE:MMS – Get Free Report) last issued its quarterly earnings data on Thursday, February 5th. The health services provider reported $1.85 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.84 by $0.01. Maximus had a net margin of 6.92% and a return on equity of 25.30%. The firm had revenue of $1.35 billion during the quarter, compared to the consensus estimate of $1.37 billion. During the same period last year, the business posted $1.61 earnings per share. The business’s revenue for the quarter was down 4.1% compared to the same quarter last year. Maximus has set its FY 2026 guidance at 8.050-8.350 EPS. As a group, equities research analysts anticipate that Maximus, Inc. will post 6.15 earnings per share for the current fiscal year.
Maximus Increases Dividend The company also recently announced a quarterly dividend, which was paid on Monday, March 2nd. Stockholders of record on Friday, February 13th were issued a dividend of $0.33 per share. This is an increase from Maximus’s previous quarterly dividend of $0.30. This represents a $1.32 dividend on an annualized basis and a dividend yield of 2.0%. The ex-dividend date of this dividend was Friday, February 13th. Maximus’s payout ratio is 20.09%.
Insider Activity In other Maximus news, CFO David Mutryn purchased 1,000 shares of the firm’s stock in a transaction that occurred on Monday, February 9th. The shares were acquired at an average cost of $75.62 per share, for a total transaction of $75,620.00. Following the completion of the purchase, the chief financial officer owned 40,037 shares of the company’s stock, valued at approximately $3,027,597.94. The trade was a 2.56% increase in their position. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Jan Madsen sold 742 shares of Maximus stock in a transaction dated Tuesday, March 17th. The stock was sold at an average price of $72.25, for a total transaction of $53,609.50. Following the completion of the sale, the director owned 20,795 shares of the company’s stock, valued at $1,502,438.75. This trade represents a 3.45% decrease in their position. The SEC filing for this sale provides additional information. 1.80% of the stock is currently owned by company insiders.
Hedge Funds Weigh In On Maximus A number of hedge funds have recently added to or reduced their stakes in the stock. Farther Finance Advisors LLC raised its holdings in Maximus by 69.0% in the 4th quarter. Farther Finance Advisors LLC now owns 284 shares of the health services provider’s stock valued at $25,000 after acquiring an additional 116 shares in the last quarter. Richardson Financial Services Inc. grew its holdings in shares of Maximus by 123.1% during the 3rd quarter. Richardson Financial Services Inc. now owns 348 shares of the health services provider’s stock worth $32,000 after purchasing an additional 192 shares in the last quarter. Advisory Services Network LLC bought a new position in shares of Maximus in the third quarter worth $32,000. Canada Pension Plan Investment Board bought a new position in shares of Maximus in the second quarter worth $35,000. Finally, Cullen Frost Bankers Inc. acquired a new position in Maximus in the third quarter valued at about $38,000. Institutional investors own 97.21% of the company’s stock.
Maximus Company Profile (Get Free Report)
Maximus, Inc (NYSE: MMS) is a global provider of government services focused on delivering health and human services programs. The company partners with federal, state, and local agencies to administer and manage programs that support individuals and families across various stages of life. Key service areas include eligibility determination and enrollment services for Medicaid, Medicare, Children’s Health Insurance Program (CHIP) and other public assistance programs, as well as call center operations, case management and program integrity solutions.
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Allspring Global Investments Holdings LLC cut its position in Maximus, Inc. (NYSE:MMS – Free Report) by 21.1% in the 4th quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 415,876 shares of the health services provider’s stock after selling 111,017 shares during the period. Allspring Global Investments Holdings LLC owned 0.76% of Maximus worth $35,961,000 at the end of the most recent reporting period.
A number of other hedge funds and other institutional investors have also added to or reduced their stakes in MMS. Arizona State Retirement System lifted its holdings in shares of Maximus by 0.9% in the 3rd quarter. Arizona State Retirement System now owns 16,674 shares of the health services provider’s stock worth $1,524,000 after purchasing an additional 156 shares in the last quarter. GAMMA Investing LLC boosted its stake in Maximus by 13.9% during the 3rd quarter. GAMMA Investing LLC now owns 1,337 shares of the health services provider’s stock valued at $122,000 after purchasing an additional 163 shares during the last quarter. Trust Point Inc. increased its holdings in Maximus by 3.7% during the 3rd quarter. Trust Point Inc. now owns 5,286 shares of the health services provider’s stock worth $483,000 after purchasing an additional 191 shares in the last quarter. Richardson Financial Services Inc. increased its holdings in Maximus by 123.1% during the 3rd quarter. Richardson Financial Services Inc. now owns 348 shares of the health services provider’s stock worth $32,000 after purchasing an additional 192 shares in the last quarter. Finally, MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its stake in shares of Maximus by 0.6% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 34,476 shares of the health services provider’s stock worth $2,351,000 after purchasing an additional 221 shares during the last quarter. 97.21% of the stock is owned by institutional investors.
Analysts Set New Price Targets A number of research analysts have recently weighed in on MMS shares. Weiss Ratings lowered Maximus from a “buy (b)” rating to a “hold (c+)” rating in a report on Tuesday, February 24th. Wall Street Zen cut shares of Maximus from a “buy” rating to a “hold” rating in a research report on Monday, February 23rd. Finally, Zacks Research upgraded Maximus from a “hold” rating to a “strong-buy” rating in a research note on Tuesday, December 30th. One research analyst has rated the stock with a Strong Buy rating and one has assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, Maximus has a consensus rating of “Buy”.
Get Our Latest Research Report on Maximus
Insiders Place Their Bets In other Maximus news, CFO David Mutryn bought 1,000 shares of the business’s stock in a transaction on Monday, February 9th. The stock was purchased at an average price of $75.62 per share, for a total transaction of $75,620.00. Following the completion of the transaction, the chief financial officer directly owned 40,037 shares of the company’s stock, valued at $3,027,597.94. This trade represents a 2.56% increase in their ownership of the stock. The acquisition was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, CEO Bruce Caswell bought 3,175 shares of Maximus stock in a transaction dated Tuesday, February 10th. The stock was acquired at an average price of $78.45 per share, with a total value of $249,078.75. Following the purchase, the chief executive officer directly owned 328,013 shares of the company’s stock, valued at approximately $25,732,619.85. This represents a 0.98% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Company insiders own 1.80% of the company’s stock.
Maximus Stock Down 0.4% MMS opened at $62.32 on Friday. The company’s 50-day moving average price is $76.48 and its two-hundred day moving average price is $83.63. The company has a quick ratio of 2.34, a current ratio of 2.34 and a debt-to-equity ratio of 0.88. Maximus, Inc. has a twelve month low of $60.75 and a twelve month high of $100.00. The stock has a market cap of $3.40 billion, a price-to-earnings ratio of 9.49 and a beta of 0.63.
Maximus (NYSE:MMS – Get Free Report) last posted its quarterly earnings results on Thursday, February 5th. The health services provider reported $1.85 EPS for the quarter, topping analysts’ consensus estimates of $1.84 by $0.01. Maximus had a net margin of 6.92% and a return on equity of 25.30%. The company had revenue of $1.35 billion for the quarter, compared to analysts’ expectations of $1.37 billion. During the same quarter in the previous year, the firm posted $1.61 EPS. Maximus’s revenue was down 4.1% on a year-over-year basis. Maximus has set its FY 2026 guidance at 8.050-8.350 EPS. As a group, equities analysts expect that Maximus, Inc. will post 6.15 earnings per share for the current year.
Maximus Increases Dividend The firm also recently disclosed a quarterly dividend, which was paid on Monday, March 2nd. Shareholders of record on Friday, February 13th were issued a dividend of $0.33 per share. This represents a $1.32 annualized dividend and a yield of 2.1%. This is a boost from Maximus’s previous quarterly dividend of $0.30. The ex-dividend date of this dividend was Friday, February 13th. Maximus’s payout ratio is currently 20.09%.
Maximus Profile (Free Report)
Maximus, Inc (NYSE: MMS) is a global provider of government services focused on delivering health and human services programs. The company partners with federal, state, and local agencies to administer and manage programs that support individuals and families across various stages of life. Key service areas include eligibility determination and enrollment services for Medicaid, Medicare, Children’s Health Insurance Program (CHIP) and other public assistance programs, as well as call center operations, case management and program integrity solutions.
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Key Takeaways MMS gains from government partnerships, recurring revenues, strong cash flow and steady dividend payouts.MMS relies heavily on federal and state contracts, exposing growth to funding shifts & slowing core segments.MMS posted Q1 EPS growth. However, its revenues missed estimates and declined year over year. Maximus (MMS - Free Report) is benefiting from its reputation as a trusted partner to governments worldwide, delivering cost-effective, scalable solutions in health and human services. Strong shareholder-friendly policies and solid liquidity are added advantages.
Meanwhile, regulatory risk and heavy reliance on contracts from federal and state governments pose significant concerns for the company. Heightened competition within the government services industry further puts pressure on profitability and scalability.
How is MMS Faring?Maximus gains from its business process management expertise and ability to deliver cost-effective, efficient and large-scale solutions, positioning it as a lucrative partner to governments. The company has grown to be a leading operator of government health and human services programs globally, enabling it to generate predictable recurring revenue streams. Improved quality of lifestyle and more complex health needs have increased the need for government social benefits and safety-net programs, consequently driving the company’s top-line growth.
MMS generates strong cash flow from operations, driven by its profitable operations and efficient receivables management. The subject-matter expertise of its workforce in the critical aspects of the design, implementation, and operation of government health and human services programs differentiates the company, giving it a competitive advantage over its peers.
The company consistently rewards its shareholders through dividend payments. It paid dividends of $68.7 million, $72.9 million, $68.1 million and $68.7 million in fiscal 2025, 2024, 2023 and 2022, respectively. Such moves indicate the company’s commitment to return value to shareholders and instill their confidence in the business.
MMS’s current ratio (a measure of liquidity) at the end of the first quarter of fiscal 2026 was 2.34, higher than the industry’s 2.14. A current ratio of more than 1 indicates that the company is well-positioned to pay off its short-term obligations.
Meanwhile, Maximus continues to rely heavily on contracts from federal and state governments, particularly in programs like Medicaid and Medicare. The company is currently experiencing slowing growth in its core business segments due to this reliance. MMS’s top line and contract volume can be directly impacted by changes in government funding priorities.
The company operates in a highly regulated industry, which exposes it to significant regulatory risks. Policy shifts or changes to government healthcare programs under different political administrations could affect Maximus’s ability to win contracts or sustain existing ones. Regulatory changes that tighten requirements for contractors could increase operational costs and reduce profits.
Recently, MMS reported mixed first-quarter fiscal 2026 results. Earnings of $1.85 per share marginally beat the Zacks Consensus Estimate and increased 14.9% from the year-ago quarter. Total revenues of $1.4 billion missed the consensus estimate by 4.6% and dipped 4.1% year over year.
Maximus currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Earnings Snapshots of Some Other Service ProvidersFTI Consulting, Inc. (FCN - Free Report) reported impressive results for the fourth quarter of 2025.
FCN’s adjusted earnings per share of $1.78 beat the consensus mark by 39 cents and increased 14.1% from the year-ago quarter. FTI Consulting’s revenues of $990.7 million beat the Zacks Consensus Estimate of $911.4 million and rose 10.7% from the year-ago quarter.
IT’s adjusted earnings were $3.94 per share, which beat the Zacks Consensus Estimate by 12.6%. The metric decreased 27.7% from the year-ago quarter. Gartner’s total revenues of $1.8 billion beat the consensus estimate by a slight margin and improved 2.2% on a year-over-year basis.
TYSONS, Va.--(BUSINESS WIRE)--Maximus schedules its FY26 second quarter earnings call for Thursday, May 7, and will issue a release with its financial results that morning.
All investors love getting big returns from their portfolio, whether it's through stocks, bonds, ETFs, or other types of securities. However, when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.
Cash flow can come from bond interest, interest from other types of investments, and, of course, dividends. A dividend is the distribution of a company's earnings paid out to shareholders; it's often viewed by its dividend yield, a metric that measures a dividend as a percent of the current stock price. Many academic studies show that dividends account for significant portions of long-term returns, with dividend contributions exceeding one-third of total returns in many cases.
Maximus (MMS - Free Report) is headquartered in Mclean, and is in the Business Services sector. The stock has seen a price change of -23.68% since the start of the year. The government health services provider is paying out a dividend of $0.33 per share at the moment, with a dividend yield of 2% compared to the Government Services industry's yield of 0.83% and the S&P 500's yield of 1.41%.
Looking at dividend growth, the company's current annualized dividend of $1.32 is up 10% from last year. Over the last 5 years, Maximus has increased its dividend 1 times on a year-over-year basis for an average annual increase of 1.91%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. Maximus's current payout ratio is 16%, meaning it paid out 16% of its trailing 12-month EPS as dividend.
Looking at this fiscal year, MMS expects solid earnings growth. The Zacks Consensus Estimate for 2026 is $8.46 per share, which represents a year-over-year growth rate of 14.95%.
Investors like dividends for a variety of different reasons, from tax advantages and decreasing overall portfolio risk to considerably improving stock investing profits. It's important to keep in mind that not all companies provide a quarterly payout.
High-growth firms or tech start-ups, for example, rarely provide their shareholders a dividend, while larger, more established companies that have more secure profits are often seen as the best dividend options. Income investors must be conscious of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. That said, they can take comfort from the fact that MMS is not only an attractive dividend play, but is also a compelling investment opportunity with a Zacks Rank of #2 (Buy).
Here are three stocks with buy rank and strong value characteristics for investors to consider today, April 17:
Maximus (MMS - Free Report) : This company, which operates government health and human services programs globally, carries a Zacks Rank #1(Strong Buy), and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 0.5% over the last 60 days.
Maximus has a price-to-earnings ratio (P/E) of 8.19, compared with 11.30 for the industry. The company possesses a Value Score of A.
Bread Financial (BFH - Free Report) : This tech-forward financial services company, which offers simple, personalized payment, lending and saving solutions, carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 1.7% over the last 60 days.
Bread Financial has a price-to-earnings ratio (P/E) of 8.63, compared with 14.40 for the industry. The company possesses a Value Score of B.
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Published in business-services consumer-staples finance
Maximus (MMS - Free Report) could be a solid choice for investors given its recent upgrade to a Zacks Rank #1 (Strong Buy). This rating change essentially reflects an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.
A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years.
Individual investors often find it hard to make decisions based on rating upgrades by Wall Street analysts, since these are mostly driven by subjective factors that are hard to see and measure in real time. In these situations, the Zacks rating system comes in handy because of the power of a changing earnings picture in determining near-term stock price movements.
As such, the Zacks rating upgrade for Maximus is essentially a positive comment on its earnings outlook that could have a favorable impact on its stock price.
Most Powerful Force Impacting Stock PricesThe change in a company's future earnings potential, as reflected in earnings estimate revisions, has proven to be strongly correlated with the near-term price movement of its stock. The influence of institutional investors has a partial contribution to this relationship, as these big professionals use earnings and earnings estimates to calculate the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their transaction of large amounts of shares then leads to price movement for the stock.
For Maximus, rising earnings estimates and the consequent rating upgrade fundamentally mean an improvement in the company's underlying business. And investors' appreciation of this improving business trend should push the stock higher.
Harnessing the Power of Earnings Estimate RevisionsEmpirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, so it could be truly rewarding if such revisions are tracked for making an investment decision. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions.
The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here >>>> .
Earnings Estimate Revisions for MaximusThis government health services provider is expected to earn $8.46 per share for the fiscal year ending September 2026, which represents no year-over-year change.
Analysts have been steadily raising their estimates for Maximus. Over the past three months, the Zacks Consensus Estimate for the company has increased 3.3%.
Bottom LineUnlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of "buy" and "sell" ratings for its entire universe of more than 4,000 stocks at any point in time. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a "Strong Buy" rating and the next 15% get a "Buy" rating. So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term.
You can learn more about the Zacks Rank here >>>
The upgrade of Maximus to a Zacks Rank #1 positions it in the top 5% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term.
TYSONS, Va.--(BUSINESS WIRE)--Maximus (NYSE: MMS), a leading provider of tech-enabled government services, today announced Elizabeth Moellering as the company’s new General Counsel and Corporate Secretary. In this role, she succeeds John Martinez, who departed the company earlier this year.
Since February of this year, Moellering has served as Interim General Counsel and Deputy General Counsel. She originally joined Maximus in 2024 as Head of Litigation, where she built a new, disciplined structure for managing legal disputes before taking on additional responsibilities.
“The role of General Counsel is important to helping Maximus fulfill our mission assisting governments in the delivery of essential citizen programs,” said Bruce Caswell, President and Chief Executive Officer, Maximus. “I am excited that Elizabeth has accepted this new role serving on our executive team. As we’ve worked together over the past few years, she has demonstrated strong judgment, collaborative leadership, and served as a trusted partner across our business.”
Prior to joining Maximus, Moellering handled complex litigation and investigations at Optum, served as a federal prosecutor focused on white‑collar matters and child victim offenses, and practiced as a litigation associate at Skadden Arps. Her proven track record, deep legal expertise, and the strong relationships she has built across the legal team and the enterprise make her the right leader to serve as General Counsel at this time.
“I’m honored to lead the Maximus legal team at a pivotal time for government services,” said Moellering. “The accelerating adoption of AI and digital innovation is creating new opportunities to help our partners deliver better outcomes—more efficiently and at greater scale—for the millions of citizens they serve. With 50 years of excellence behind us, I’m excited to help Maximus advance our mission and accelerate what’s next.”
About Maximus
As a leading strategic partner to government, Maximus helps improve the delivery of public services amid complex technology, health, economic, and social challenges. With a deep understanding of program service delivery, acute insights that achieve operational excellence, and an extensive awareness of the needs of the people being served, our employees advance the critical missions of our partners. Maximus provides tech-enabled services to government agencies, including innovative business process management and technology solutions, that provide improved outcomes for the public and higher levels of productivity and efficiency of government-sponsored programs. For more information, visit maximus.com.
Key Takeaways Maximus benefits from long-term government contracts, ensuring stable and predictable revenue streams.MMS is supported by rising demand for healthcare and social programs, expanding into clinical services.Strong liquidity and consistent dividends highlight Maximus' financial discipline and cash flow stability. Maximus Inc. (MMS - Free Report) is benefiting from its strong presence in government health and human services, consistent cash generation, and reliable contract-driven business model. While the stock may not offer explosive upside, its stability, predictable revenues and long-term demand drivers make it an attractive choice for investors seeking steady compounding.
A Proven Operator With Deep Government TiesWith more than four decades of experience, Maximus has established itself as a leading global operator of government health and human services programs. The company’s core strength lies in its ability to deliver cost-effective, scalable and efficient solutions through its business process management expertise. Governments rely heavily on such capabilities, especially when managing large-scale public programs, which positions Maximus as a trusted and recurring partner.
One of the most important advantages here is the company’s reliance on long-term contracts. These agreements provide visibility into future revenues and create a stable earnings base. At the same time, Maximus continues to pursue long-term relationships not only within its existing markets but also across adjacent areas, ensuring that its growth strategy remains relevant and forward-looking.
Structural Demand Tailwinds Support GrowthThe broader demand environment remains favorable for Maximus. Increasing life expectancy and the growing complexity of healthcare needs have significantly expanded the need for government-backed health and social support programs. This is not a short-term trend but a structural shift that is expected to persist over time.
As governments continue to invest in safety-net programs and healthcare administration, companies like Maximus benefit directly. The company is also actively expanding into clinical services as well as long-term services and supports, which further strengthens its positioning in high-demand segments. These initiatives enhance its ability to capture incremental opportunities and diversify revenue streams over time.
Operational Strength and Financial DisciplineA key differentiator for Maximus is its ability to deliver measurable and defined outcomes. Its workforce brings deep subject-matter expertise in the design, implementation and operation of complex government programs. This not only strengthens client trust but also helps the company maintain a competitive edge in a crowded market.
From a financial standpoint, liquidity remains a clear strength, as reflected in its current ratio of 2.34 at the end of the first quarter of fiscal 2026, which is comfortably above the industry average of 2.07. This indicates that the company is well-positioned to meet its short-term obligations without stress.
Consistent Dividends Reinforce Shareholder ConfidenceMaximus has also demonstrated a strong commitment to returning value to shareholders through dividends. The company paid cash dividends of $68.7 million in fiscal 2022, $68.1 million in fiscal 2023, $72.9 million in fiscal 2024 and $68.7 million in fiscal 2025. This consistency reflects management’s confidence in the durability of its business model and its ability to generate steady cash flows.
Despite these positives, the stock has declined 3% over the past year. However, this performance should not be viewed negatively in isolation, as it reflects the stock’s defensive characteristics in a volatile market environment. This positioning makes it more suitable for investors who prioritize stability and steady income over aggressive, high-growth returns.
Risks That Cannot Be IgnoredMaximus is currently facing slowing growth in its core business segments, which could limit near-term upside. The company’s heavy reliance on government contracts, particularly in programs such as Medicaid and Medicare, also introduces a layer of dependency that investors must consider. Any shift in government funding priorities can directly affect contract volumes and revenue growth.
Competition is another area of concern. The company operates in a highly competitive landscape that includes both large multinational players and smaller specialized providers. Sustaining its competitive advantage requires ongoing investment, which can pressure margins and create challenges in balancing growth with profitability.
Regulatory risk further complicates the outlook. As a participant in a highly regulated industry, Maximus is exposed to changes in healthcare policies, social program structures, and data privacy regulations. Policy shifts related to Medicaid expansion or broader healthcare reforms under different administrations can influence its ability to win new contracts or maintain existing ones. These uncertainties may also lead to volatility in the stock price.
Final Take: A Steady “Buy With Awareness”Maximus is a pick rating because of its stable business model, strong government relationships, solid liquidity, and consistent dividend history. It is not a high-growth momentum stock, but it offers something equally valuable: predictability and resilience.
For investors, the ideal approach is to view MMS as a long-term holding that can provide steady returns while navigating policy-driven risks. The combination of structural demand, disciplined execution, and financial strength supports a positive outlook, but keeping an eye on growth trends and regulatory developments remains essential.
In comparison, peers such as Conduent Incorporated (CNDT - Free Report) and CACI International (CACI - Free Report) operate in similar government services and outsourcing domains, offering a useful benchmark. Conduent focuses heavily on transaction processing and digital platforms for government clients, while CACI International is more aligned with technology-driven federal services and defense-related contracts. While Conduent faces execution challenges, CACI International benefits from a stronger positioning in high-end IT services, highlighting the differentiated strengths across the peer landscape.
Currently, MMS carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Dividends are one of the best benefits to being a shareholder, but finding a great dividend stock is no easy task. Does Maximus (MMS) have what it takes?
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.
For the quarter ended March 2026, Maximus (MMS - Free Report) 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.
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.
Key Takeaways MMS beat Q2 EPS estimates, but revenues fell 4.1% year over year and missed the consensus mark.Maximus raised fiscal 2026 EPS guidance and lifted adjusted EBITDA margin outlook to 14.2%.MMS expanded margins with AI-driven automation and higher processing volumes in federal services. Maximus (MMS - Free Report) 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 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.
Segmental Revenues of MaximusThe 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.
MMS’ Margin Performance ImprovesOperating 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%.
Maximus Accelerates AI-Led Automation EffortsManagement 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 operating leverage.
Maximus also noted increasing demand for its Total Experience Management platform and AI-enabled program integrity solutions aimed at fraud prevention, workflow automation and customer service modernization.
Balance Sheet & Cash Flow of MMSMaximus exited the quarter with unrestricted cash and cash equivalents of $157 million compared with $222.4 million at fiscal 2025-end. Gross debt totaled $1.55 billion as of quarter-end.
Cash provided by operating activities was $190 million in the quarter, while free cash flow totaled $179 million. During the quarter, the company repurchased approximately 1.4 million shares for $111 million and an additional 0.6 million shares for nearly $40 million through May 1, 2026.
MMS Raises Fiscal 2026 Earnings OutlookFor fiscal 2026, MMS’ adjusted earnings per share are now expected in the range of $8.25-$8.55, up from the prior guidance of $8.05-$8.35, with the midpoint of $8.40 being above the Zacks Consensus Estimate of $8.33.
The company maintained free cash flow guidance between $450 million and $500 million and raised adjusted EBITDA margin guidance by 20 basis points to approximately 14.2%.
The tax rate is expected to range between 24.0% and 25.0% for the fiscal year 2026.
Maximus carries a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Earnings SnapshotsRollins, Inc. (ROL - Free Report) reported impressive first-quarter 2026 results. ROL’s adjusted earnings of 24 cents per share matched the consensus mark and rose 9.1% from the year-ago quarter. ROL’s total revenues of $906.4 million surpassed the consensus mark by 1.3% and increased 10.2% year over year.
Waste Connections, Inc. (WCN - Free Report) posted impressive first-quarter 2026 results. WCN’s adjusted earnings of $1.23 per share outpaced the consensus mark by 3.4% and rose 8.9% from the year-ago quarter. WCN’s total revenues of $2.37 billion beat the consensus mark by 0.7% and increased 6.4% year over year.
