Maximus Reports 5.1% Revenue Decline in Q3 Fiscal Year 2026

Maximus, Inc. reported a decline in financial performance for the third quarter of fiscal year 2026, with total revenue of $1.28 billion, a decrease of 5.1% compared to $1.35 billion in the same period last year. The company's net income for the quarter was $103.6 million, down from $106.0 million in the prior year, resulting in diluted earnings per share of $1.95, compared to $1.86 a year earlier. For the nine months ended June 30, 2026, revenue totaled $3.93 billion, a 4.4% decrease from $4.11 billion in the previous year, while net income increased to $295.6 million from $243.7 million.

The decline in revenue was attributed to several factors, including a decrease in volumes on large, transaction-based contracts and the absence of short-term disaster recovery work that had contributed to higher revenues in the previous fiscal year. Additionally, the company experienced a negative impact from divestitures, including the sale of its child support business in December 2025, which generated approximately $15 million in revenue. Despite these challenges, Maximus reported a gross profit margin improvement, with gross profit for the quarter at $348.8 million, representing a 27.3% margin compared to 26.7% in the prior year.

Strategically, Maximus has focused on enhancing its service offerings and expanding its market presence. The company continues to invest in technology solutions and has recorded a capitalized software impairment charge of $6.9 million during the quarter. The company also reported a significant increase in accounts receivable, which rose to $1.38 billion from $898.1 million, reflecting ongoing efforts to manage cash flow and collections from government contracts. As of June 30, 2026, Maximus had approximately 52,358 shares outstanding, with a total shareholders' equity of $1.74 billion.

Looking ahead, Maximus anticipates continued challenges in the current fiscal year, particularly in the U.S. Federal Services Segment, where a temporary contractual modification is expected to reduce diluted earnings per share by approximately $0.35 per quarter through early fiscal year 2027. The company projects operating margins for the U.S. Services Segment to range between 9.5% and 10% for fiscal year 2026. Despite these hurdles, Maximus remains committed to leveraging its technology and service capabilities to improve government operations and enhance service delivery for its clients.