Maximus Reports Q2 Fiscal 2026 Revenue of $1.31 Billion, Net Income Increases to $98.1 Million

Maximus, Inc. reported its financial results for the second quarter of fiscal year 2026, revealing a revenue of $1.31 billion, a decrease of 4.1% from $1.36 billion in the same period last year. The company's net income for the quarter was $98.1 million, reflecting a slight increase from $96.6 million year-over-year. Earnings per share rose to $1.80, compared to $1.69 in the prior year. For the first half of the fiscal year, total revenue was $2.65 billion, down from $2.76 billion, while net income increased to $192 million from $137.8 million.

The decline in revenue was attributed to several factors, including the disposal of certain business segments and a decrease in demand across various contracts. Specifically, the U.S. Services Segment saw a revenue drop of 6.0% for the quarter, while the Outside the U.S. Segment experienced a 3.1% decline. In contrast, the U.S. Federal Services Segment reported a smaller revenue decrease of 3.2%. The company noted that the previous year's results included short-term disaster recovery work, which did not recur in fiscal year 2026, impacting year-over-year comparisons.

Strategically, Maximus completed the divestiture of its child support business in December 2025 for approximately $14 million, which had been generating about $25 million in annual revenue. This divestiture resulted in a gain of $9 million. The company also recorded a $6.9 million impairment charge related to a capitalized software asset during the quarter. Despite these challenges, Maximus continues to focus on expanding its business development initiatives, particularly in the U.S. Services Segment, which is expected to return to organic growth by the end of the fiscal year.

Operationally, Maximus reported a total employee headcount of 54,000 as of March 31, 2026, a decrease from 56,000 a year earlier. The company also noted an increase in accounts receivable, which rose to $1.11 billion from $898 million, indicating potential delays in cash collections. Days Sales Outstanding (DSO) increased to 78 days, up from 62 days at the end of the previous fiscal year. Looking ahead, Maximus anticipates an effective tax rate of approximately 24% to 25% for the fiscal year and expects to maintain compliance with its debt covenants, which include a Consolidated Net Total Leverage Ratio not exceeding 4.00:1.00.