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Maximus (MX:MMS)
:MMS
Mexico Market
EarningsQ3 2026 Earnings Report

Maximus (MMS) Q3 2026 Earnings Report

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MX:MMS Q3 2026 EPS Results

Actual EPS$38.06
Consensus EPS$37.81
Beat/MissBeat by +$0.26
One Year Ago EPS$37.04

MX:MMS Q3 2026 Revenue Results

Actual Revenue$21.93B
Expected Revenue$22.76B
Beat/MissMissed by -$831.49M
YoY Revenue Growth-5.15%

Earnings Announcement Details

QuarterQ3 2026
Date08/06/2026
TimeBefore Open
Conference CallThursday, August 6, 2026
MX:MMS Upcoming Earnings
Maximus's next earnings date is estimated for November 19, 2026, based on past reporting schedules.

Q3 2026 Earnings Call Audio

MX:MMS Q3 2026 Earnings Call
0:00 / 0:00

Q3 2026 Earnings Slide Deck

Q3 2026 Earnings Call Summary

Q3 2026
Earnings Call Date:Aug 06, 2026|
% Change Since:
|
Earnings Call Sentiment|Positive
The call presents a generally constructive operational and strategic picture — Q3 revenue was in line with expectations, margins improved year-over-year, a large $50.4B pipeline and $1.25B of signed awards support medium/long-term growth, AI adoption is delivering measurable margin benefits, and collections momentum has begun to relieve working capital stress. However, notable near-term headwinds include a customer-directed pause of VA MDE incentives that reduced FY26 EPS guidance by ~$0.35, elevated DSO and a Q3 free cash flow outflow, a slowed procurement environment with a trailing book-to-bill of ~0.5x, and modest profitability in Outside the U.S. Taken together, the company appears to be navigating temporary timing and contract-driven challenges while maintaining margin progress, a sizable pipeline, disciplined capital allocation, and strategic investments that support growth into FY2027.
Company Guidance
The company reiterated fiscal 2026 revenue guidance of $5.20–$5.35 billion (bias toward the low end) and issued revised adjusted diluted EPS guidance of $7.90–$8.20 (midpoint $8.05, down $0.35 from the prior $8.40), which corresponds to a full‑year adjusted EBITDA margin of ~13.7% and implies Q4 adjusted diluted EPS at the midpoint of $1.91 (Q4 adjusted EBITDA margin roughly ~13%); free cash flow is now expected to be $425–$475 million, interest expense ~ $88 million, and the full‑year tax rate 24–24.5%; segment assumptions include U.S. Federal Services operating margin 16.5–17.0% for the year (Q4 14.5–15.0%), U.S. Services 9.5–10.0% (includes a $6.9M noncash charge), and Outside the U.S. breakeven (implying a profitable Q4); liquidity and balance sheet metrics: Q3 total debt $1.65B (Term Loan B raised $325M), consolidated net leverage 2.0x (target 2x–3x), Q3 DSO was 98 days but expected to finish the year below 70 days ( ~$245M collected since June 30), Q3 cash used in operations was $(125)M and Q3 free cash flow $(137)M; share activity: repurchased ~0.75M shares for $50M in Q3, $400M authorization remains available, and ~8.3M shares (~14% of beginning outstanding) repurchased since FY2025.
Quarterly Revenue In Line with Expectations
Q3 revenue of $1.28 billion was in line with expectations and Management reiterated full-year revenue guidance of $5.2B–$5.35B (bias toward lower end).
Improved Profitability Metrics
Adjusted EBITDA margin improved to 15.0% in Q3 from 14.7% year-ago (+0.3 percentage points). Adjusted EPS was $2.22 in Q3 vs. $2.16 prior year (+2.8%).
Segment Margin Strength — U.S. Federal Services
U.S. Federal Services Q3 revenue $721M with operating income margin of 18.6% vs. 18.1% prior year (+0.5 ppt), driven by efficiency gains and technology investments.
U.S. Services Trajectory Toward Growth
U.S. Services Q3 revenue $418M; operating margin 10.8% with management forecasting positive mid-single-digit organic growth in Q4 and expected continued organic growth into FY2027.
Large Sales Pipeline and Book of Awards
Total pipeline of $50.4B at June 30 (57% new work; 55% attributable to U.S. Federal Services). Year-to-date signed awards were $1.25B and an additional $1.35B awarded but unsigned, supporting medium/long-term growth.
Accelerated Collections from Major Federal Customer
Collections momentum improved with approximately $245M received since June 30, addressing elevated DSO and supporting the expectation that DSO will finish the fiscal year below 70 days (current DSO 98 days).
Active Capital Allocation and Share Repurchases
Repurchased ~0.75M shares for $50M in Q3; since FY2025 repurchased ~8.3M shares (~14% of beginning outstanding). Entire $400M Board buyback authorization remains available.
AI Adoption and Operational Benefits
75%–80% of new bids contain explicit AI requirements. AI-based improvements across 5 contracts produced ~3.5% operating margin improvement for that group; strategic investments (e.g., Spectro Cloud) to accelerate secure AI adoption.

MX:MMS Earnings History

Report Date
Fiscal Quarter
Forecast / EPS
Last Year's EPS
EPS YoY Change
Press Release
Nov 19, 2026
2026 (Q4)
31.72 / -
27.776―
2026 (Q3)
37.81 / 38.06
37.0352.78% (+1.03)
2026 (Q2)
33.69 / 35.49
34.4632.99% (+1.03)
2026 (Q1)
31.21 / 31.72
27.60514.91% (+4.12)
2025 (Q4)
28.63 / 27.78
25.03310.96% (+2.74)
Aug 07, 2025
2025 (Q3)
26.32 / 37.04
29.83424.14% (+7.20)
2025 (Q2)
23.66 / 34.46
26.91928.03% (+7.54)
2025 (Q1)
23.46 / 27.60
22.97520.15% (+4.63)
2024 (Q4)
25.38 / 25.03
22.11813.18% (+2.91)
2024 (Q3)
26.01 / 29.83
8.573248.00% (+21.26)
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed