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MMS: Share Repurchases Will Support Stronger Future Earnings Power

Update shared on 08 Dec 2025

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AnalystConsensusTarget's Fair Value
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1Y
22.6%
7D
4.2%

Analysts have modestly raised their price target on Maximus to approximately $110.00 per share from about $110.00, citing slightly lower perceived risk, stable long term growth expectations, and a sustained margin outlook that supports a steady valuation multiple.

What's in the News

  • Completed repurchase of 8,967,470 shares, about 15.01% of shares outstanding, for $678.58 million under the buyback program announced in 2020, including 1,721,139 shares bought in the latest tranche for $150.84 million (company filing)
  • Issued fiscal 2026 earnings guidance and projected revenue between $5.225 billion and $5.425 billion (company guidance)
  • Awarded a new Joint Cyber Command and Control Readiness contract by the U.S. Air Force, with a potential value of $86 million to support engineering, software, and architecture enhancements over a multiyear term (company announcement)
  • Secured a $31 million, four year contract with the Massachusetts Health Connector to provide enrollment and premium billing services and to launch a redesigned digital member portal for more than 370,000 marketplace members (company announcement)
  • Won a five year, $62 million renewal from Pennsylvania's Department of Human Services to continue and expand the Enrollment Assistance Program, including new support for CHIP recipients and deployment of AI based training tools for contact center staff (company announcement)

Valuation Changes

  • Fair Value: unchanged at approximately $110.00 per share, indicating no material shift in the intrinsic value estimate.
  • Discount Rate: decreased slightly from about 7.73% to roughly 7.71%, reflecting a modest reduction in perceived risk.
  • Revenue Growth: effectively unchanged at around 2.81% annually, signaling stable long term top line expectations.
  • Net Profit Margin: essentially flat at about 8.04%, supporting a consistent profitability outlook.
  • Future P/E: edged down slightly from roughly 13.91x to about 13.90x, indicating a marginally lower implied valuation multiple.

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Disclaimer

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