Maximus 2025 Q4 Earnings Misses Estimates Despite 3.8% Net Income Growth

Maximus (MMS) reported fiscal 2025 Q4 earnings on November 20, 2025, missing revenue and EPS estimates. The company exceeded its own guidance for 2026, projecting $5.225–$5.425 billion in revenue and $7.95–$8.25 adjusted EPS, while emphasizing AI and federal market expansion as growth drivers.

Revenue

Maximus’s total revenue remained flat at $1.32 billion in 2025 Q4, matching the prior year. U.S. Federal Services led with $747.94 million in revenue, reflecting 10.8% year-over-year growth. However, U.S. Services revenue declined to $429.27 million, a 7.4% drop compared to the previous year, while Outside the U.S. revenue fell to $141.11 million, down 20.4% year-over-year.

Earnings/Net Income

The company’s EPS rose 14.3% to $1.37 in 2025 Q4, outpacing the $1.20 reported in 2024 Q4. Net income grew 3.8% to $75.29 million, despite missing non-GAAP EPS estimates by $0.05. The EPS increase reflects strong operational performance, though the net income growth was modest compared to the broader revenue stagnation.

Post-Earnings Price Action Review

Maximus’s stock price climbed 3.60% during the latest trading day, gained 1.91% over the past week, but declined 6.44% month-to-date. The mixed performance reflects investor caution ahead of the company’s 2026 guidance and uncertainty about federal procurement timing. Analysts noted that the stock’s recent volatility aligns with broader market trends in the Government Services sector, which has underperformed year-to-date.

CEO Commentary

Bruce L. Caswell, CEO, highlighted 3.9% organic growth in 2025, driven by U.S. Federal Services (12.1% growth) and international operations (4.1% growth). He emphasized strategic investments in AI and automation, including 30 planned deployments, and expressed confidence in Maximus’s “durable organic growth” despite challenges in federal procurement timing.

Guidance

David Mutryn, CFO, outlined fiscal 2026 guidance: $5.225–$5.425 billion in revenue, 13.7% adjusted EBITDA margin, and $7.95–$8.25 adjusted EPS. Free cash flow is projected at $450–$500 million, with M&A and share repurchases prioritized for growth acceleration.

Additional News

Maximus announced a $0.30 per share quarterly dividend and secured a $86 million U.S. Air Force Cyber Command contract, expanding its national security capabilities. Additionally, the company formed a cooperative research and development agreement (CRADA) to enhance intellectual property and federal service offerings. These moves underscore its focus on technology-driven growth and long-term client partnerships.