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Maximus’ $50 Billion Pipeline — Can It Outrun The VA Earnings Hit?

Maximus Incorporated reported third quarter fiscal 2026 results with stable revenue and modest margin improvement despite near-term challenges from customer contract modifications. Revenue was $1.28 billion, in line with expectations. Adjusted EBITDA margin increased to 15.0% from 14.7% a year earlier, while adjusted EPS rose to $2.22 from $2.16. Prior-year comparisons included elevated temporary revenue from natural disaster support and clinical volume surges, mainly within U.S. Federal Services. U.S. Federal Services generated $721 million in revenue, consistent with guidance but lower year-over-year due to the absence of disaster-related demand and prior clinical surges. Operating margin improved to 18.6% from 18.1%. U.S. Services revenue reached $418 million, with mid-single-digit organic growth expected to return in the fourth quarter, supported by Medicaid-related programs. Operating margin increased to 10.8%. Outside the U.S. reported $140 million in revenue and a slight operating profit, with growth targeted through sales pipeline conversion.