Aug 6, 2026 earnings call — VA incentive pause and guidance update
Maximus revised fiscal 2026 adjusted diluted EPS guidance to range between $7.90 and $8.20 per share.
Revenue $1.3B (est $1.3B) · EPS $2.22 (est $2.21) · Next-quarter revenue outlook $5.2B–$5.3B
Key quotes
"With this pause effective July 1, 2026, we have removed any assumed fourth quarter fiscal year 2026 contribution from incentives, which reduces our diluted EPS guidance by approximately $0.35."
"I'm pleased to report that collections from this customer have accelerated in July with approximately $245 million received since June 30."
"Our total pipeline sales opportunities was $50.4 billion at June 30, comprised of approximately $2.9 billion in proposals pending, $2.4 billion in proposals in preparation and $45.1 billion in opportunities we are tracking."
Analyst Q&A 1
VA contract pause and other updates
Q (Will Gildea · CJS): He asked for more color on the VA temporary contract modification, why incentives were paused, and whether the pause might last longer than 180 days. He also asked about the Draft PWS, awarded-but-unsigned contracts, SNAP/Medicaid work requirements and 2027 outlook, Q4 collections and DSO, and M&A priorities.
A: They said the customer called the pause temporary and described it as a 180 days pause that would be completed on December 31, though there could be up to a 6-month extension to align with procurement timing. The Draft PWS only shows scope, not pricing or incentives, covers all 6 regions, and the awarded-but-unsigned deals are longer-term, some cleared protests and are pending administrative execution. On SNAP/Medicaid they said the court allowed implementation to proceed so requirements start January 1, 2027, semiannual redeterminations affect the expansion population of about 21 million, beneficiaries can self-attest medical frailty and states get 90-10 funding; they also reported collecting $245 million since July 1 and expect DSO to drop below 70 by the end of September; M&A and share repurchases remain priorities with M&A focused on capabilities and revenue synergies.
"We've been told by the customer that it's a temporary pause." — Bruce L. Caswell (CEO)