Key Points – Maximus lowered its full-year earnings and cash-flow guidance after the Department of Veterans Affairs paused performance incentives on its Medical Disability Exam program.
Adjusted EPS is now expected at $7.90–$8.20 and free cash flow at $425–$475 million, while revenue guidance was maintained at $5.2–$5.35 billion. – Third-quarter revenue reached $1.28 billion, with adjusted EBITDA margin improving to 15.0% and adjusted EPS rising to $2.22
Cash collection also improved after quarter-end, with approximately $245 million received from a major federal customer amid elevated days sales outstanding. – Management highlighted a $50.4 billion sales pipeline and potential growth from Medicaid, SNAP administration and AI-enabled government services. Maximus said AI requirements now appear in roughly 75%–80% of new bids and cited a 3.5% operating-margin improvement across five contracts using AI tools. Maximus (NYSE:MMS) reported fiscal 2026 third-quarter revenue of $1.28 billion, with adjusted EBITDA margin of 15.0% and adjusted diluted earnings per share of $2.22.
Revenue was in line with the company’s expectations, while adjusted EBITDA margin improved from 14.7% a year earlier and adjusted EPS rose from $2.16. The company reiterated its full-year revenue outlook but reduced its earnings and free-cash-flow guidance after the Department of Veterans Affairs temporarily paused performance incentives and disincentives on its Medical Disability Exam, or VA MDE, program. VA Incentive Pause Reduces Earnings Outlook CFO David Mutryn said the VA notified all program vendors of a pause in the incentive mechanism, effective July 1, as the agency works to improve its invoice review and validation process.