Market Experts Bullish on Maximus Following Strategic Outlook

Maximus US5779331041

Financial analysts have adopted an optimistic stance toward Maximus Inc., with several firms raising their price targets after the company released its latest earnings and provided forward guidance emphasizing profitability improvements.

For its full fiscal year 2025, Maximus reported revenue of $5.43 billion, marking a 2.4% increase year-over-year. Organic growth was notably stronger at 3.9%. This performance was largely fueled by robust demand for clinical services within its U.S. federal government client segment.

The company’s adjusted earnings per share (EPS) for the year came in at $7.36. A key highlight was the expansion of its adjusted EBITDA margin to 12.9%. The quarterly results, announced on November 20, presented a mixed picture against market expectations: revenue of $1.32 billion for the fourth quarter slightly missed a consensus estimate of $1.34 billion, while adjusted EPS of $1.62 surpassed the anticipated $1.47.

Forward Guidance Centers on Margin Expansion

Management's forecast for fiscal year 2026 places a clear emphasis on enhancing profitability. Revenue is projected to be in the range of $5.225 billion to $5.425 billion. Adjusted EPS is expected to land between $7.95 and $8.25.

A significant point in the outlook is the anticipated adjusted EBITDA margin of 13.7%, which signals planned operational efficiency gains. The corporate strategy is focused on deepening its penetration in the U.S. federal market and leveraging AI-driven automation to accelerate growth from 2027 onward.

Analyst Price Target Revisions

The financial community responded positively to the report. On November 21, Raymond James lifted its price target on Maximus shares from $90 to $95, reiterating its "Outperform" rating. The firm cited the solid quarterly performance and the compelling margin outlook as reasons for the adjustment.

The current average price target among covering analysts stands at approximately $90. Some institutions have set targets as high as $120. In a separate move on December 16, Zacks Research assigned the stock a "Buy" rating and awarded it an "A" grade for growth potential.

Capital Return and Valuation

Maximus continues its commitment to returning capital to shareholders. The company has increased its share repurchase authorization to $400 million. It also pays a quarterly dividend of $0.30 per share.

Trading near $88, the stock's current price reflects the market's assessment of these recent developments and the firm's strategic focus on efficiency and federal market expansion.

Key Data Points:
* FY 2025 Revenue: $5.43 billion (+2.4%)
* FY 2025 Adjusted EPS: $7.36
* FY 2026 Adjusted EPS Guidance: $7.95 - $8.25
* Raymond James Price Target: $95
* Strategic Focus: AI automation and U.S. federal market