The stock dropped 16% to $78.34 in morning trading, a sharp reversal for a company that had seen modest gains over the past year. The sell-off followed a report showing revenue fell 4.1% to $1.35 billion, missing the $1.37 billion consensus estimate. While the company increased its profitability, investors focused on the contracting top line and a cautious multi-year guidance.

The Fiscal 2026 Forecast

The McLean, Virginia-based company provided a long-term outlook that failed to meet analyst projections. According to the report, Maximus expects 2026 revenue to range between $5.2 billion and $5.35 billion, well below the $5.47 billion anticipated by FactSet. Adjusted earnings for the same period are projected to be between $8.05 and $8.35 per share, compared to the analyst consensus of $8.17.

Despite the revenue pressures, the company’s quarterly profit rose to $93.9 million, or $1.70 per share, up from $41.2 million a year earlier. Adjusted earnings reached $1.85 per share, which technically outperformed the $1.82 per share forecast. However, the 4.1% revenue slide and the conservative future guidance suggest a more challenging growth environment for the government services provider than previously modeled.