Maximus Q3 Earnings Call Highlights

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MarketBeat

Sat, August 8, 2026 astatine 2:03 PM CDT 6 min read

Key Points

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Maximus lowered its full-year net and cash-flow guidance aft the Department of Veterans Affairs paused show incentives connected its Medical Disability Exam program. Adjusted EPS is present expected astatine $7.90–$8.20 and escaped currency travel astatine $425–$475 million, portion gross guidance was maintained astatine $5.2–$5.35 billion.
Third-quarter gross reached $1.28 billion, with adjusted EBITDA borderline improving to 15.0% and adjusted EPS rising to $2.22. Cash postulation besides improved aft quarter-end, with astir $245 cardinal received from a large national lawsuit amid elevated days income outstanding.
Management highlighted a $50.4 cardinal income pipeline and imaginable maturation from Medicaid, SNAP medication and AI-enabled authorities services. Maximus said AI requirements present look successful astir 75%–80% of caller bids and cited a 3.5% operating-margin betterment crossed 5 contracts utilizing AI tools.

Maximus (NYSE:MMS) reported fiscal 2026 third-quarter gross of $1.28 billion, with adjusted EBITDA borderline of 15.0% and adjusted diluted net per stock of $2.22. Revenue was successful enactment with the company's expectations, portion adjusted EBITDA borderline improved from 14.7% a twelvemonth earlier and adjusted EPS roseate from $2.16.

The institution reiterated its full-year gross outlook but reduced its net and free-cash-flow guidance aft the Department of Veterans Affairs temporarily paused show incentives and disincentives connected its Medical Disability Exam, oregon VA MDE, program.

VA Incentive Pause Reduces Earnings Outlook

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CFO David Mutryn said the VA notified each programme vendors of a intermission successful the inducement mechanism, effectual July 1, arsenic the bureau works to amended its invoice reappraisal and validation process. Maximus had recorded affirmative show incentives during each of the archetypal 3 quarters of fiscal 2026, reflecting results connected measures including timeliness, accuracy and quality.

The institution removed assumed VA MDE inducement contributions from its fourth-quarter forecast. That enactment lowered its full-year adjusted EPS outlook by astir $0.35 per share.

Adjusted diluted EPS is present expected to beryllium $7.90 to $8.20, compared with the anterior midpoint of $8.40.
Full-year adjusted EBITDA borderline is expected to beryllium astir 13.7%.
Free currency travel is present expected to beryllium $425 cardinal to $475 million.
Revenue guidance was reiterated astatine $5.2 cardinal to $5.35 billion, with a bias toward the little extremity of the range.