| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 95 | 8.5x | 17.8x | Top tier | |
Growth | 49 | -3.3% | 7.1% | Around median | |
Quality | 71 | 13.1% | 4.5% | Top tier | |
Safety | 65 | 2.3x | 2.6x | Around median | |
Capital Return | 70 | 2.20% | 2.12% | Top tier | |
Momentum | 8 | -32.4% | 2.9% | Bottom tier | |
Sentiment | 50 | 2 | 3 | Around median |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Maximus manages technology-enabled government programs and services in the United States and abroad, generating revenue by executing contracts that support federal agencies, state programs, and clinical and employment services. The business is divided into three segments: U.S. Federal Services, U.S. Services, and Outside the U.S., with a clear concentration in federal operations. The company also invests in artificial intelligence tools and process improvements, including IVR, chatbots, and proactive outreach, to increase efficiency and improve the beneficiary experience.
In Q3 fiscal 2026, Maximus recorded revenue of $1.28 billion, while its EDGAR filings showed gross profit of $348.8 million, net income of $103.6 million, and earnings per share of $1.95. Gross profit was approximately 27% of revenue, while the adjusted EBITDA margin was 15.0% and adjusted earnings per share were $2.22, compared with a margin of 14.7% and adjusted earnings of $2.16 in the corresponding quarter of the previous year. On a trailing-twelve-month basis ending in fiscal 2026, revenue totaled $5.2 billion, net income was $370.9 million, and earnings per share were approximately $6.99.
U.S. Federal Services accounted for approximately $721 million, or about 56% of Q3 fiscal 2026 revenue, and achieved an operating income margin of 18.6%. U.S. Services recorded revenue of $418 million and an operating margin of 10.8%, while Outside the U.S. generated revenue of $140 million and a limited operating profit of $1.2 million. This mix shows that profitability depends heavily on the federal segment, while the contribution from operations outside the United States remains modest.
Automated analysis for informational purposes only — not investment advice.
The average analyst price target is $110, with both the highest and lowest targets matching at $110 and a consensus Buy rating; this target is 10% above the top of the 52-week range of $100, while the bottom of the range is $52.73. However, the narrow target range of a single figure reduces the diversity of valuation signals, and the optimism should be weighed against the $0.35 reduction in the midpoint of adjusted earnings per share guidance for fiscal 2026, weak sales, and the suspension of VA MDE incentives.
Figures in the text are as of 2026-08-31; the live price is shown at the top of the page.
The VA client temporarily suspended performance incentives and penalties under the VA MDE contract for all vendors effective July 1, 2026, to improve the review and verification of monthly invoices. Maximus therefore removed the Q4 fiscal 2026 incentive contribution and lowered the midpoint of adjusted earnings per share guidance by $0.35 to $8.05. The new guidance range is $7.90 to $8.20, while the company maintained revenue guidance of $5.2 billion to $5.35 billion with a bias toward the low end.
U.S. Federal Services generated revenue of $721 million and an operating income margin of 18.6% in Q3 fiscal 2026, making it the company's largest segment. According to management's explanation, VA MDE incentives contributed approximately $0.35 in earnings per share in each of the first three quarters of fiscal 2026. The company also assumes that incentives will not accrue in Q1 fiscal 2027, while the published draft scope of work included all six regions in which Maximus currently operates.
The total sales opportunity pipeline was $50.4 billion as of June 30, 2026, including $2.9 billion of submitted proposals and $2.4 billion of proposals in preparation. The company also had $1.35 billion of contracts that had been awarded but not yet signed, compared with $1.25 billion of contracts signed since the beginning of fiscal 2026. However, the book-to-bill ratio was approximately 0.5 times over the twelve-month period, and the timing of awards remained exposed to procurement delays, protests, and adjustments to opportunity scopes.
Artificial intelligence-related requirements or criteria were included in approximately 75% to 80% of new bids and recompetes in Maximus's business pipeline through Q3 fiscal 2026. Improvements including IVR, chatbots, and proactive outreach across five contracts delivered a 3.5-percentage-point improvement in the operating margin of the relevant group. Maximus Ventures also invested directly in Spectro Cloud, a platform for managing artificial intelligence infrastructure with a focus on cost, security, and governance.
The company expects U.S. Services to achieve mid-single-digit organic growth in Q4 fiscal 2026, driven by Medicaid beneficiary outreach activities under existing contracts. In SNAP, it conducted more than 40 demonstrations of the Accuracy Assistant tool and 150 client meetings, while the national payment error rate was approximately 10.6% in fiscal 2025 compared with 10.9% in fiscal 2024. However, management said Medicaid discussions progressed more slowly than expected because of the complexity of the interim rules and the need for states to determine implementation mechanisms.
Operations used $125 million of cash, and free cash flow recorded an outflow of $137 million in Q3 fiscal 2026, with days sales outstanding reaching 98 days. After June 30, 2026, the company collected approximately $245 million from a major federal client and expects to end fiscal 2026 with days sales outstanding below 70 days and free cash flow of between $425 million and $475 million. Total debt was $1.65 billion at the end of the quarter, with net leverage of 2 times within the target range of 2 to 3 times.
